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HomeMy WebLinkAboutOrdinance 5159 ORDINANCE NO. 5159 AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING THROUGHOUT THE REMAINDER OF THE YEAR FOR THE PURCHASE OF ASPHALT MATERIALS FOR USE BY THE TRANSPORTATION DIVISION. WHEREAS, the crude oil market continues to experience extreme price volatility; and, WHEREAS, this volatility has greatly increased the price of asphalt, making normal competitive bidding procedures unworkable, impractical and not feasible; and, WHEREAS, the Transportation Division proposes, on an "as needed" basis, to obtain telephone or fax bids by direct solicitation of suppliers and accept the lowest bid in this abbreviated process. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby finds that such circumstances constitute an exceptional situation where competitive bidding is not feasible or practical, and therefore during the remainder of the year waives the requirements of formal competitive bidding for the purchase of asphalt materials, but requires that the Transportation Division solicit telephone�'Qb,farl,", bids and accept the lowest bid submitted. �.``%t; TR�''�., PASSED and APPROVED this 5t' day of August, 2008. a ; e FAY ETTEVI LLE ; APPROVED: ATTEST: C ;� By: By: &6� DAN COODY, May S-01DRA E. SMITH, City Clerk/Treasurer City of Fayetteville Staff Review Form City Council Agenda Items s�s� and Contracts, Leases or Agreementsy)�QJ'�/—n r 8/5/2008 $ E' �attAX 1 City Council Meeting Date Agenda Items Only Terry Gulley Transportation Operations Submitted By Division Department Action Required: Staff requests an ordinance waiving the requirements of formal competitive bidding for the purchase of asphalt materials for the Transportation Division. $ 2,358,575.00 In-House Pavement Improvements Cost of this request Category / Project Budget Program Category I Project Name 4470-9470-5417.00 $ 12242,485.40 Transportation Improvements Account Number Funds Used to Date Program / Project Category Name 02052 / 1 $ 1 , 116,089.60 Sales Tax Capital Improvements Project Number Remaining Balance Fund Name Budgeted Item �X Budget Adjustment Attached �6 Og Previous Ordinance or Resolution # epartment DiVector Date Original Contract Date: Original Contract Number: City Attom Date n Received in City ENTERED `9 pA 0. f1 7_ t2 of Clerk's Office 2 Finance and Internal Service Director Date / Received in EMT 1 Mayor's Office Mayor / Date Comments: Revised April 16, 2007 Tye evi le ARKANSAS City Council Agenda Item To: Mayor and City Council Thru: Gary Dumas, Director of Operations From: Terry Gulley, Transportation Manager Date: August 5, 2008 Subject: Bid Waiver for Asphalt Recommendation: Staff requests an ordinance waiving the requirements of formal competitive bidding for the purchase of asphalt materials for the Transportation Division. Background: The spike in asphalt costs is fueled by the record high price of crude oil. Asphalt consists of an aggregate and a petroleum-based tar which binds the mix together. The tar is rooted in crude oil which has doubled in price on the New York Mercantile Exchange futures market during the past year. The NYMEX for crude oil was $ 144 per barrel on July 14, 2008. The cost of the binder has increased 16 percent since April and more than 40 percent since last year. Information provided by APAC-Arkansas, Inc. confirms that the price of AC has increased over $400.00 per ton since February. The prices of fuel and freight have also increased significantly and can vary over a short period of time. Type 2 RAP surface mix asphalt requires a 4.08% AC mixture and the local asphalt suppliers implement an increased unit price for this material based on the increased price of raw materials purchased. Refiners are manufacturing much less asphalt, and because sources are limited, the price changes day to day. Discussion: Bid 08- 11 was awarded to Kiewit Southern Co. for purchase of asphalt materials and Hutchens Construction and McClinton-Anchor as alternate suppliers in February 2008. Escalating prices have deemed yearly bids unpractical. These suppliers cannot continue to provide materials at the original prices submitted with their bids. Additionally, Kiewit Southern Co. staff recently informed the City of a temporary plant shut-down, due to an inability to obtain oil, resulting in the need for City staff to utilize alternate suppliers at a higher price. Because of volatile pricing, staff recommends obtaining quotes on an as needed basis to guarantee the lowest possible price. ORDINANCE NO. AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING INDEFINITELY FOR THE PURCHASE OF ASPHALT MATERIALS FOR USE BY THE TRANSPORTATION DIVISION. WHEREAS, the crude oil market continues to experience extreme price volatility; and, WHEREAS, this volatility has greatly increased the price of asphalt, making normal competitive bidding procedures unworkable, impractical and not feasible; and, WHEREAS, the Transportation Division proposes, on an "as needed" basis, to obtain telephone or fax bids by direct solicitation of suppliers and accept the lowest bid in this abbreviated process. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby finds that such circumstances constitute an exceptional situation where competitive bidding is not feasible or practical, and therefore indefinitely waives the requirements of formal competitive bidding for the purchase of asphalt materials, but requires that the Transportation Division solicit telephone or fax bids and accept the lowest bid submitted. PASSED and APPROVED this 5h day of August, 2008. APPROVED: ATTEST: By: By: DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer Ginn Apperson - Fwd: RE: As haltquote adjustment Leguest _ Page 1j From: Andrea Foren To: Apperson, Ginny Date: 7/14/2008 1:36 pm Subject: Fwd: 'RE: Asphalt quote adjustment request > >> On 7/14/2008 at 12:56 pm, in message <B9F4D6DE7EEE3D49B1689D1FF679B8271BEA41@apac2mail0l.apac2.crhomg.com>, "Foster, David (APAC McClinton Anchor)" <David.Foster@apac.com> wrote: Andrea, I am trying to put together the invoice and information that you will need to support this adjustment. I understand that you will be buying more material from us tomorrow, so I want to make sure that we have this in place prior to that so that there won't be any surprises. Just to give you an idea of what kind of increase we are talking about: Old AC price, delivered to Sharps was $291.81 Current AC price, delivered to Sharps is $642.63 Difference is $350.82 Type 2 RAP surface mix (mix type you are purchasing tomorrow) requires 4.08% AC; therefore the actual increase (with no markup) is $14.31/ton ($350.82 x 0.0408). This makes the revised price per ton of $49.21 (bid price was $34.90). Any other mixes, including a Type 2 surface without RAP, will have different AC percentages and thus a different adjustment. When I receive a copy of the invoice and freight bill for the current AC, I will fax everything over for you. Let me know if you have any questions. David L. Foster, PE Sales Manager APAC-Arkansas, Inc. McClinton-Anchor Division (479) 587-3345 office (479) 263-4479 cell -----Original Message---- From: Andrea Foren [mailto:aforen@ci.fayetteville.ar.us] Sent: Wednesday, July 02, 2008 11:00 AM To: Foster, David (APAC McClinton Anchor) Cc: Apperson, Ginny; Foren, Andrea Subject: Re: Asphalt quote adjustment request David, Thanks for your e-mail. I hate to hear your supply prices have jumped Ginn Apperson - Fwd: RE: Asphalt quote adjustment request Page?; up. I'll be glad if/when the fuel nightmare goes away! We can allow an increase in your price; however, it has to be for the same increase per unit that your price has increased. So, if your price has increased say $1.00 per ton, then we can allow $1.00 per ton to be added to your price. Whatever the price per unit increase is, we have to justify it based on your receipts so show the increase. Does that make sense? Let me know if you have questions, it might be easier for me to explain over the phone. Thanks, Andrea Andrea Foren, CPPB City of Fayetteville, Purchasing Agent 113 W. Mountain Fayetteville, AR 72701 Phone: (479) 575-8220 aforen@cl.fayetteville.ar.us www.accessfayetteville.org P Please consider the environment before printing my e-mail >> > On 7/2/2008 at 7:19 am, in message <B9 F4D6DE7EEE3 D49B1689D i FF679B8271 BE861 @a pac2ma i 101.a pac2.crhomg.com>, "Foster, David (APAC McClinton Anchor)" <David.Foster@apac.com> wrote: Andrea, As of yesterday, our asphalt cement price that we are paying has dramatically increased; therefore we must request an adjustment in our prices from our quote for Bid 08-11. Can you give me some direction on how I need to go about that? Thanks, David L. Foster, PE Estimating Manager APAC-Arkansas, Inc. McClinton-Anchor Division (479) 587-3345 office (479) 263-4479 cell SUL 16 2009 0935 FR MCCLINTON-ANCHOR 4795212026 TO 5758257 P. 01i05 Aim Ls� MCCLINTON I ANCHOR COMPANIES 240 N. Block Avenue Fayetteville, AR 72701 Tel: 479 587-3300, Fax: 479 521-2825 TO: Andrea Foren FAX M: ' 479-575-8257 Purchasing Agent COMPANY- City of Fayetteville FROM.. David L. Foster, PE Sales Manager DATE: 7/11/08 TIME: 9:20 am NUMBER OF PAGES (INCLUDING COVER SHEE1): 5 IF YW HAVE PROBLEMS WIT TI THIS TRANSMISSION, PLEASE CALL (479) 58i-3380. Andrea , I ' ve attached an invoice and haul ticket to show what we were paying for material and haul last month . The material we bought earlier this week was from our sister division in Missouzi and those costs will all be handled internally, thus there will not be an invoice . It also appears that we will be utilizing NuStar fzom this point forward . Their current price as of today is $ 675 . 00/ton and our haul rate from their terminal at Catoosa is currently $19 . 60/ton . Therefore , as of today our price for the Type 2 RAP material is $51 . 33 . If you need any other type of material , just let me know and I ' ll calculate the price . The material you got yesterday will be billed at $49 . 21 since we were able to get AC at $ 620 . 00 /ton with a freight charge of $22 . 63 . Increase to the bid price is solely based on actual increases in AC prices, with no markup of any kind applied to the increase . Any questions, please call me . David 479-587-3345 office 479-263-4479 cell NOTICE OF CONFtOENT1A6rry T1tls facsimile may contain information that Is prlvikged and confidential andlor exempt from disclosure under applicable law. This tramiissian is intended solely for the individual or entity designated above. If you arc not the intended ,ecipien; er the employx or agent responsible for delivering it to the intended ralpient, you should understand that any distribution, copying or use of the Information contained in this fatainale by anyone other than the designated recipient Is utmuthotixcd and strictly mhibhed. If you have received this facsimile in error, please immediatcly notly the sender by telephone. JUL 16 2008 09: 36 FR MCCLINTON—ANCHOR 4795212826 TO 5758257 P. 02i05 Fix Server 6/ 5/ 2008 10 : 24 : 2 '1 AM YAUC. J / uui rax .ro. .o. f COMMERCI AL I NVOI CE S — F+�rt"t-°-a`-- Page 1 of 1 SemiNaterials, L.P n��_ .....................:...:.......::...... . ....:.. :............:.................. ... . .. ........................................:: . ... ..... .. ::............................:. - ::::::; ..:::. ....... ... ... ................... .. ...... . . . . . . ... ... .. ... . . . . ... .. I. .: . APAC M00inton-Anchor I nrofm Num : . P.O. thus 1307 Date: 6IS12006 Fayetteville, AR 72702 Remo To: See UT Irrtrudiom Below Unitod States Contact: Invoice Comots Phone: (000) 840-0092 Fax: 479-695.1774 Federal 1 D: 57.1?I %43 ::................. ..... .'..�. .:.:.....:... .-.................. .. . n.rn......................... ..w............. ......................... .:(..14A•.'.:a il.x.i:.......... . �::�.:..:. ... ....:..-............:. ............ . . .:.:.:..:::.:............ .. . .. . ... . .................. .... . Pro)ed: f9odr Customer Contact: lee D xhancis Project Reference- Customer Rateranmo 202120 Cgniract Raterence: APP09TSM7740 Date Descrlption Ouanthy UOM Prion US Dollars 61312009 BOL 52370.08.000665 Origin: PAtdto9ee RT, OK Delivery Term: Collect Destination: Beldon COAR Purch - Sslea - Asphall: FG 642260 _ 20.0900 278,00000 7,338.75 7p339.76 Cash Diem nt Due Date Invoke Total I nucha Terms It Pala 0y Amount _ 0026607 2% 10 Days Dratted by EFT 6r W2003 14G79 fil 14/2009 9 7s 71 n-% WI RE PAYMENT TO: PUFC ASER TO PAY ANY AFFU CABLE Bank d Oklahoma N.A. TAXE& ACCOUNTBNOTPAIDBYTHEDUE Tula, OK DATEARE31EB.4701112% 8 MCE ABA 0 103 200 035 CHAR� PER W;O 1TN (18T' PER YEAR). Account 9 209028253 SemNatotlola, L. P For Huesllons ragarding this Invoice, Please contact Jean Baucom by wiling 918.624-7194 Or taxing (910) 524.8001 . Avis /11it A JLL 26 2008 0936 FR MCCLINTON—ANCHOR 4795212826 TO 5758257 P. 03i05 I fib .Ldt 10." Fff pft I=6 *10 j © � - ] sl • tea lei FmAtK 4 j . Dae .'S AoA 4i] V j4- & Paudi418 =WA tU ;W.0 ' =M= SJ�a 1 Al•J y}y 1 a 1 41el sj!p� d X99 06QbAwFJ �mWW-isa rJ �l ® . ArrIN AWIF . AC-710e . AC-7105 m0 • AC- 7ec6cttTmckinsl.LC RECEIVED Invoke • AGTItt • AC•7,12 1408 West Deer Rwl Road AC-r"3 JUN 112008 L U Fmt• 0M4 CnbsoO, OK 14434 • AC-T115 �` �'Z 6F820<B acrABt • AC-7110 . AC-7120 . AC-7121 ® • AG7122 gel To y/ . AC-7149 ACaffl bete N. B4d: ndor0lr• g� / AC-7149 . ACAM F]"Col k• AR 71701 / AC-03 ACaM4 • AC4w • Acmm Wm? AC8888 . 62{72108 P.O. Na TOM Pepe w Pepe0002 • AC-972 laudl DueaalmiPi • ACpp91 . gym% 011s14t11 Detdl an Rab Am l TAYMW pw= 26.49 PC 64-22 14M Ima P4v= 580.95 Fa s=S Wp 0.16 "46 ACC98 Arms 7AVm Pap 0 MFb ntmm I I I Doe WonI uF11 Do1I MFeaml Tacks M pfug 1 2183M AC-eMTeohaTnxki0 LLC 13/541AU081M 20 Dax:CVmgAeVA1L10i i11' UC19.1 '.�AC�08B; Pedal!iMoq LLC; tlK11: 0610B(Zppa; m • altmrl0t Monday, Jul 14, 2008 09:59 AM JUL 16 2008 0936 FR MCa- INTON-ANCHOR 4795212826 TO 5758257 P. 04i05 To: All NuStar Energy_Customers Date; July 9, 2008 From: Bill Wood Subject: Catoosa Terminal Price Increase Effective July 16, 2008 the rack price for liquid asphalt will increase for all products. Please note the following price increases for each product listed below: PG 64-22-,S675 per ton PG 70.224785 per ton PG 70-28-5785 per ton PG 76-22-5810 per ton PG 76-28- 810 per ton Please call if you require product and do not have committed volumes with NaStar, of if you require product over your current committed NuStar volumes. If you have any questions please give me a call for further discussion. Kind Regards, Bill Wood Office-. 817 613 0947 Mobile: 817 550 3487 JUL 16 2098 0936 FR MCCLINTON-RNCHOR 4795212826 TO 5758257 P. 05i05 QUOTE Tackett Trucking LLC tNYOICE 9105 DATE: DECEMBER 14. 1007 1aM W. Deer Run Road,Ft. Gibson, Ok. 74434 EXPIRATION DATE DECEMBER 31? 2006 Phone 918-47a•3782 Fax 918-476-3782 Call: 918-351-5407 To Guy Washburn Hauls to Arkansas Plants Apac-Arkanset McClinton-Anchor SALESPERSON JOB PAYMENT TEPMS DUE DATE Darwin Tackett Liquid Asphalt Haut Rates Due an receipt qTy oEscaur tom UNrr PACE UNE TOTAL 1 From Wynnewood to West Fork '38.50 per ton 1 From Wynnewood to Sharp's '38.50 per ton t From Pert of Catncsa to West Fork '17.50 per ton 1 From Port of Catoasa to Sharp's or Centerten 01521 per ton 1 From Port of Muskagee to SILoam Springs •13.25 per ton 1 From Port of Muskogee to Sharp's or Centerton •14.25 per ton 1 From Pon Of Catoosa to Slleam Springs '13.25 per ton 1 From Pett of Muskogee to West Fork 016.50 per ton SUBTOTAL SALES TAX TOTAL quotation prepared by: 'Fuel Surcharge is Included up to 41110iliNgOL Then ORM This is based at Oklahanta Fuel Prices. Zs.s % TKMK YOU FOR YOUR BUSINESS! DEC 24 2007 12: 49 F HGE. 02 ** TOTAL PAGE. 05 sar (8. 1208) Clarice Pearman - Ord 5159 Page 1 From: Clarice Pearman To: Gulley, Terry Date: 8. 12.08 1 :45 PM Subject: Ord. 5159 Attachments: 5159 Asphalt Bid Waiver.pdf CC: Audit Terry: Attached is a copy of the above ordinance passed by City Council, August 5, 2008 regarding an asphalt bid waiver. Please let me know if there is anything else needed for this item. Have a good day. Thanks. Clarice