HomeMy WebLinkAboutOrdinance 5218 ORDINANCE NO. 5218
AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE
BIDDING DURING THE SECOND, THIRD, AND FOURTH QUARTERS OF 2009
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 to solicit bids on a quarterly basis without the
need for further approval of the City Council from Q2 through the end of 2009.
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 annual competitive bidding is not feasible or
practical, and therefore from Q2 through the end of 2009, waives the requirements of formal competitive
bidding for the purchase of asphalt materials, allowing the Transportation Division to solicit bids oR„ampl,l„/
quarterly basis without the need for further approval of the City Council. �`%k� Y\/TRest S'''s
PASSED and APPROVED this 3`' day of February, 2009.
'c ; FAYETTEVILLE ;
APPROVED: ATTEST:
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�g41IIIIR101�,
y: 9�0� By: 7
YNELDJ AN, Mayor SONVIIA E. SMITH, City ClerI reasurer
i
City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements �4rn5/� Or�R��03�
February 3, 2009 A�pha ( t
City Council Meeting Date /tfa�'er
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 use by the Transportation Division.
$ 2, 136,900.00 In-House Pavement Improvements
Cost of this request Category / Project Budget Program Category / Project Name
4470-9470-5417.00 $ 59,248.60 Transportation Improvements
Account Number Funds Used to Date Program / Project Category Name
02052 / 1 $ 2,077,651 .40 Sales Tax Capital Improvements
Project Number Remaining Balance Fund Name
Budgeted Item �X Budget Adjustment Attached
7 1,/1)f Previous Ordinance or Resolution # 5159
De a yentDire or I D tete
(i Original Contract Date:
'1/fVrV/ Original Contract Number:
City Attorney ate
Sir
Received in City
p� 0. 2.0 . Q I Clerk's Office
Financ and`ITnternaIS i Director Date
Received in /
Mayor's Office I
1�/ Mayor �� ate
Comments:
Revised April 16, 2007
aye evi le
ARKANSAS
City Council Agenda Item
To: Mayor and City Council
Thru: Don Marr, Chief of Staff
From : Terry Gulley, Transportation Manage
Date: February 3, 2009
Subject: Bid Waiver for Asphalt
Recommendation: Staff requests an ordinance waiving the requirements of formal competitive bidding
for the purchase of asphalt materials for use by the Transportation Division during the second, third, and
fourth quarters of 2009.
Background: The price of raw materials required to manufacture asphalt has fluctuated a great deal over
the past year and continues to do so at this time. Asphalt consists of aggregate and petroleum-based
asphaltic cement (AC) which binds the mix together. The AC is rooted in crude oil which experienced
extreme volatility on the New York Mercantile Exchange market during the 2008 fiscal year. In addition,
the price of AC increased over $400.00 per ton last year. The prices of fuel and freight have also shown
significant variation and can increase or decrease 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 now manufacturing
much less asphalt, and because sources are limited, the price changes day to day.
Discussion: Volatile prices have deemed awarding an annual bid for asphalt materials unpractical . Local
asphalt suppliers cannot feasibly guarantee a fixed price over a twelve month time period. The following
schedule has been proposed for asphalt material bids:
Quarter #1 (Bid 09-08): Pricing valid through March 31 , 2009
Quarter 42: Bids due March 31 with pricing valid April 1 , 2009 — June 30, 2009
Quarter #3 : Bids due June 30 with pricing valid July 1 , 2009 — September 30, 2009
Quarter 44: Bids due September 30 with pricing valid October 1 , 2009 — December 31 , 2009
Staff recommends bidding asphalt materials on a quarterly basis, awarding the respective low bidder, and
allowing for price adjustment requests based on the current bid language.
ORDINANCE NO.
AN ORDINANCE WANING THE REQUIREMENTS OF FORMAL COMPETITIVE
BIDDING DURING THE SECOND, THIRD, AND FOURTH QUARTERS OF 2009
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 to solicit bids on a quarterly basis without the
need for further approval of the City Council from Q2 through the end of 2009.
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 annual competitive bidding is not feasible or
practical, and therefore from Q2 through the end of 2009, waives the requirements of formal competitive
bidding for the purchase of asphalt materials, allowing the Transportation Division to solicit bids on a
quarterly basis without the need for further approval of the City Council.
PASSED and APPROVED this 3 ' day of February, 2009.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
Page 1 of 1
Clarice Pearman - Ord. 5218
From: Clarice Pearman
To: Gulley, Terry
Date: 2.9.09 12:47 PM
Subject: Ord. 5218
CC: Audit
Attachments: Audit
Terry:
Attached is a copy of the above ordinance passed by City Council regarding a bid waiver for asphalt materials. Please let me
know if there is anything else needed for this item. Have a good day.
Clarice
file:// :\Documents%20and%20Settings\cpearman.000\Local%20Settings\Temp\XPgrpwise\499025F7FAY... 2.9.09
