HomeMy WebLinkAboutOrdinance 5301 f
ORDINANCE NO, 5301
AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE
BIDDING DURING CALENDAR YEAR 2010 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 through calendar year 2010.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section I . 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 through calendar year 2010, 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 5'h day of January, 2010.
APPROVED: ATTEST:
By: d — By: S C!c
OP ELD J AN, Mayor SONY 2A E. SMITH, City ClerTrer
0 ;R /TR
''saw , f..t %
FAYETTEVILLE ;
°WOONGTON���
City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
January 5, 2010
City Council Meeting Date
Agenda Items Only
Terry Gulley Transportation Transportation Services
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.
$ 1 ,637,700.00 In-House Pavement Improvements
Cost of this request Category / Project Budget Program Category / Project Name
4470-9470-5417.00 $ - Transportation Improvements
Account Number Funds Used to Date Program / Project Category Name
02052 / 1 $ 1 ,637,700.00 Sales Tax Capital Improvements
Project Number Remaining Balance Fund Name
Budgeted Item �X Budget Adjustment Attached
Previous Ordinance or Resolution # 5218
De art q irector Date
Original Contract Date:
Original Contract Number:
Ci ttorney Date
+wA q - .Q, — 11— IS -2cct
Finance and Internal Services Director Date Received in City ^ _
Clerk's Office '/",iV►/-�)
a
Clfief of Staff Date
Received in q
Mayor's Office 1
Mayr Date
Comments:
Revised January 15, 2009
Tay e eTHE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENT CORRESPONDENCE
ARKANSAS
CITY COUNCIL AGENDA MEMO
To: Mayor and City Council
Thru: Don Marr, Chief of Staff
From : Terry Gulley, Transportation Services Directorp4xP
Date: January 5, 2010
Subject: Bid Waiver for Asphalt Materials
PROPOSAL: Staff proposes an ordinance waiving the requirements of formal competitive bidding for the
purchase of asphalt materials for use by the Transportation Division during the 2010 fiscal year.
RECOMMENDATION: The price of raw materials required to manufacture asphalt has fluctuated a great
deal over the past two years 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 and 2009 fiscal years. 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.
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 # I : Bids due December 18, 2009 with pricing valid January 1 , 2010 — March 31 , 2010
Quarter #2: Bids due March 31 , 2010 with pricing valid April 1 , 2010 — June 30, 2010
Quarter #3 : Bids due June 30, 2010 with pricing valid July 1 , 2010 — September 30, 2010
Quarter #4: Bids due September 30, 2010 with pricing valid October 1 , 2010 — December 31 , 2010
Staff recommends bidding asphalt materials on a quarterly basis without the need for further approval of the
City Council, awarding the respective low bidder, and allowing for price adjustment requests based on the
current bid language.
BUDGET IMPACT: Funds for the acquisition of asphalt materials have been budgeted in the In-House
Pavement Improvements capital project. Sufficient funding is available for 2010 purchases.
ORDINANCE NO,
AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL
COMPETITIVE BIDDING DURING CALENDAR YEAR 2010 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 through calendar year 2010.
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 through calendar year 2010, 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 5b day of January, 2010.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer