HomeMy WebLinkAboutORDINANCE 5854IRV
West Mountain
Street Fayetteville,
AR 72701
(479) 575-8323
Ordinance: 5854
File Number: 2016-0068
AIT SERVICES, INC.:
AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND
AUTHORIZE THE PURCHASE OF SPARE PARTS FOR THE THERMAL DRYING UNIT LOCATED
AT THE BIOSOLIDS MANAGEMENT SITE FROM AIT SERVICES, INC. IN THE AMOUNT OF
$65,371.50 PLUS APPLICABLE TAXES, TO APPROVE A PROJECT CONTINGENCY IN THE
AMOUNT OF $7,174.52, AND TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE
BIDDING FOR FUTURE PURCHASES OF PARTS AND REPAIR SERVICES THROUGH DECEMBER
31, 2018
WHEREAS, the thermal dryer located at the City's Biosolids Management Site, which helped save the City
approximately $1,000,000.00 in landfill costs and generated $60,000.00 in revenue through fertilizer sales to
the public in 2015, currently has no spare parts and the failure of any one of its critical components could
shut down the dryer for as much as six months; and
WHEREAS, AIT Services, Inc. is the sole provider of replacement parts for the thermal dryer.
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 determines an exceptional
situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the
requirements of formal competitive bidding and authorizes the purchase of spare parts for the thermal drying
unit located at the Biosolids Management Site from AIT Services, Inc. in the amount of $65,371.50 plus
applicable taxes, and further approves a project contingency in the amount of $7,174.52.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines an
Page 1 Printed on 312116
File Number: 2016-0068
Ordinance 5854
exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore
waives the requirements of formal competitive bidding and authorizes the future purchase of parts and repair
services from AIT Services, Inc. through December 31,
2018.
PASSED and APPROVED on 3/1 /2016
``i�t¢tsNr�rrt
� ' 1 AYE EVILLE;
Attest: `rjy�� ► fs �'�.
Sondra E. Smith, City Clerk Treasurer
Page 2 Printed on 312116
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Text File
File Number: 2016-0068
Agenda Date: 3/1/2016 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Ordinance
Agenda Number: C. 1
AIT SERVICES, INC.:
AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING
AND AUTHORIZE THE PURCHASE
OF SPARE
PARTS FOR THE
THERMAL
DRYING UNIT
LOCATED AT THE BIOSOLIDS MANAGEMENT
SITE FROM AIT
SERVICES,
INC. IN THE
AMOUNT OF $65,371.50 PLUS
APPLICABLE
TAXES, TO
APPROVE
A PROJECT
CONTINGENCY IN THE AMOUNT
OF $7,174.52,
AND TO WAIVE
THE REQUIREMENTS
OF
FORMAL COMPETITIVE BIDDING
FOR FUTURE PURCHASES OF PARTS
AND REPAIR
SERVICES THROUGH DECEMBER 31, 2018
WHEREAS, the thermal dryer located at the City's Biosolids Management Site, which helped save the
City approximately $1,000,000.00 in landfill costs and generated $60,000.00 in revenue through
fertilizer sales to the public in 2015, currently has no spare parts and the failure of any one of its critical
components could shut down the dryer for as much as six months; and
WHEREAS, AIT Services, Inc. is the sole provider of replacement parts for the thermal dryer.
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 determines an exceptional
situation exists in which competitive bidding is deemed not feasible or practical and therefore waives
the requirements of formal competitive bidding and authorizes the purchase of spare parts for the
thermal drying unit located at the Biosolids Management Site from AIT Services, Inc. in the amount of
$65,371.50 plus applicable taxes, and further approves a project contingency in the amount of
$7,174.52.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional
situation exists in which competitive bidding is deemed not feasible or practical and therefore waives
the requirements of formal competitive bidding and authorizes the future purchase of parts and repair
services from AIT Services, Inc. through December 31, 2018.
City of Fayetteville, Arkansas Page 1 Printed on 31212016
City of Fayetteville Staff Review Form
2016-0068
Legistar File ID
3/1/2016
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Billy Ammons 1/27/2016
Wastewater Treatment Plant /
Utilities Department
Submitted By Submitted Date Division / Department
Action Recommendation:
Approval of a Bid Waiver with AIT Services, Inc. for current and future parts purchases and repairs for the Thermal
Drying unit located at the Biosolids Management Site, and approval to purchase critical spare parts in the amount
of $65,371.50 plus $6,373.72 tax, plus a 10% contingency of $7,174.52, totaling $78,919.74.
Budget Impact:
5400.5800.5414.00 Water/Sewer
Account Number Fund
02069.1 Plant, Pumps and Equipment - WWTP
Project Number Project Title
Budgeted Item? Yes
Current Budget
$ 673,090.46
Funds Obligated
$ 247,499.00
Current Balance
625,591,.=6
Does item have a cost? Yes
Item Cost
$ 71,745.22
Budget Adjustment Attached? No
Budget Adjustment
$
Remaining Budget
S 353,846.24
Previous Ordinance or Resolution #
V20140710
Original Contract Number: Approval Date:
Comments
CITY OF
s
�e
ARKANSAS
MEETING OF MARCH 1ST 2016
TO: Mayor and Fayetteville City Council
CITY COUNCIL AGENDA MEMO
THRU: Don Marr, Chief of Staff
Water, Sewer, and Solids Waste Committee
Tim Nyander, Utilities Director
FROM: Billy Ammons, Wastewater Treatment
DATE: January 27, 2016
SUBJECT: Approval of a Bid Waiver with AIT Services, Inc. for current and future parts
purchases and repairs for the Thermal Drying unit located at the Biosolids Management
Site, and approval to purchase critical spare parts in the amount of $65,371.50 plus
applicable taxes plus a 10% contingency.
RECOMMENDATION:
City Administration recommends approval of a Bid Waiver with AIT Services, Inc. for current and
future parts purchases and repairs for the Thermal Drying unit located at the Biosolids
Management Site (BMS), and approval to purchase critical spare parts in the amount of
$65,371.50 plus $6,373.72 tax, plus a 10% contingency of $7,174.52, totaling $78,919.74.
BACKGROUND:
Biosolids are the finished product from the wastewater treatment process. Prior to 2012, these
biosolids were disposed of in landfills. In 2012, the City implemented a heat drying process that
eliminates harmful organisms found in untreated wastewater turning the biosolids into Class A
organic based fertilizer that is sold for public use. The main piece of equipment in this process is
the Thermal Dryer. In 2015, the BMS processed approximately 21,000 wet tons of biosolids
creating nearly 3,000 tons of fertilizer. This drying process saved the City nearly $1,000,000 in
landfill costs and generated approximately $60,000 in revenue from fertilizer sales last year.
DISCUSSION:
The Thermal Dryer drum rotates and is supported by two large bearings. In 2015, one of the
bearing units failed and was replaced; fortunately, a critical spare was on hand. These bearings
are manufactured on a per order basis, resulting in a lead time up to six months. If a bearing
fails during peak biosolids drying season and the City did not have a critical spare readily
available, it would cost the City more than $600,000 in landfill costs while waiting for the parts to
be manufactured and for the repair to be completed. AIT Services, Inc. is the sole source
provider for parts and repairs for the Fenton Thermal Dryer located at the BMS.
The City received a quote from AIT Services, Inc. in the amount of $65,371.50 plus tax for a
bearing unit for each end of the Thermal Dryer and for a swivel assembly to have as critical
spare parts. Because AIT Services, Inc. is the sole source provider, City Administration
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
recommends approving a bid waiver to for current and future parts purchases and repairs for
the Thermal Dryer.
BUDGET/STAFF IMPACT:
Funds are available in the Wastewater Treatment Plant CIP - Plant Pumps and Equipment.
ATTACHMENTS:
Staff Review Form
Purchase Order
Quote for Parts
s
Requester's Employee #:
OMI
Extension:
479-443-3292
Quantity
Unit of Issue
Unit Cost
Extended Cost
Account Number
Pro}ect.Sub#
In
Cartridge and all
icking) for Fenton
2/14
1
EA
20,977.50
$20,977.50
5400.5800.5414.00
02069.1
Cartridge and all
oating) for Fenton
2/14
1
EA
23,644.00
$23,644.00
5400.5800.5414.00
02069.1
✓ Swivel assembly for
mal Dryer 72/14,
utlet flanges, cooper
internal packing and
1
EA
19,500.00
$19,500.00
5400.5800.5414.00
02069.1
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
ing/Handling
1
Lot
1,250.00
$1,250.00
ns- 50% down payment required to order/manufacture
parts.
Subtotal:
AIT Services, INC.
1100 CR 134
Brownwood, TX 76801
Phone: 325-646-9754
Fax: 325-649-9658
Prepared by: Chad Bolton
ICUSTOMER
City of Fayetteville
Cooper Bearing Cartridge and all internal parts (locking) 20,977.50 1
Cooper Bearing Cartridge and all internal parts (floating) 23,644.00 1
(warranty attached for bearings) (22 weeks lead time) -
Rotary Swivel (1 year warranty) 19,500.00 1
(8-10 weeks)
**All parts for Fenton thermal dryer
esimated shipping for all pieces 1,250.00 1
TERMS i CONDITIONS
1. Customer will be billed 50% after indicating acceptance of this quote
2. 50% net 30 days after delivery.
3. Please fax or mail the signed price quote to the address above
Customer Acceptance (sign below):
x . / oJ4
Print Name:
QUOTE
DATE 1/1/2016
QUOTE # 1001
CUSTOMER ID
VALID UNTIL 1 /31 /2016
20,977.50
23,644.00
19,500.00
1,250.00
Subtotal
$ 65,371.50
Taxable
$ -
Tax rate
Tax due
$
Shipping
TOTAL
$ 65,371.50
If you have any questions about this price quote, please contact
Chad Bolton, 325-642-3578, cbolton@aittx.com
Thank You For Your Business!
-2011-2014 Vertex42 corn
NORTHWESTARKANsAs
Democlnda- v*Oaxjc#jc
BOXf Dil
r07, -�'' , I EVIL I..E:. A, tl.: . 4n -1, 00 > F;ah +79-69S I1lf, . is ," W.Id.. ADG.(:OM
AFFIDAVIT OF PUBLICATION
I, Cathy Wiles, do solemnly swear that I am the Legal Clerk of the
Northwest Arkansas Democrat -Gazette, printed and published in
Washington County and Benton County, Arkansas, and of bona fide
circulation, that from my own personal knowledge and reference
to the files of said publication, the advertisement of.
CITY OF FAYETTEVILLE
Ord. 5854
Was inserted in the Regular Edition on:
March 10, 2016
Publication Charges $ 127.40
rxjL
r
Cathy Wiles
Subscribed and sworn to before me
This 116 day of/VV rct) 2016.
Notary Publi
My Commission Expires:71% t ZS
ASHLEY DAVIS
Arkansas - Washington County
Notary Public - Comm# 12694247
My Commission Expires Ju! 2, 2025
**NOTE**
Please do not pay from Affidavit.
Invoice will be sent.
Ordinance: 5854
File Number: 2016-0068
AIT SERVICES, INC.:
AN ORDINANCE TO WAIVE THE
REQUIREMENTS OF FORMAL
COMPETITIVE BIDDING AND
AUTHORIZE THE PURCHASE OF
SPARE PARTS FOR THE THERMAL
DRYING UNIT LOCATED AT THE
BIOSOLIDS MANAGEMENT SITE
FROM AIT SERVICES, INC. IN THE
AMOUNT OF $65,371.50 PLUS
APPLICABLE TAXES, TO APPROVE A
PROJECT CONTINGENCY IN THE
AMOUNT OF $7,174.52, AND TO
WAIVE THE REQUIREMENTS OF
FORMAL COMPETITIVE BIDDING FOR
FUTURE PURCHASES OF PARTS AND
REPAIR SERVICES THROUGH
DECEMBER 31, 2018
WHEREAS, the thermal dryer located at
the City's Biosolids Management Site,
which helped save the City
approximately $1,000,000.00 in landfill
costs and generated $60,000.00 in
revenue through fertilizer sales to the
public in 2015, currently has no spare
parts and the failure of any one of its
critical components could shut down
the dryer for as much as six months;
and
WHEREAS, AIT Services, Inc. is the sole
provider of replacement parts for the
thermal dryer.
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
determines an exceptional situation
exists in which competitive bidding is
deemed not feasible or practical and
therefore waives the requirements of
formal competitive bidding and
authorizes the purchase of spare parts
for the thermal drying unit located at the
Biosolids Management Site from AIT
Services, Inc. in the amount of
$65,371.50 plus applicable taxes, and
further approves a project contingency
in the amount of $7,174.52.
Section 2: That the City Council of the
City of Fayetteville, Arkansas hereby
determines an
exceptional situation exists in which
competitive bidding is deemed not
feasible or practical and therefore
waives the requirements of formal
competitive bidding and authorizes the
future purchase of parts and repair
services from AIT Services, Inc. through
December 31,2018.
PASSED and APPROVED on 3/1/2016
Approved:
Lioneld Jordan, Mayor
Attest:
Sondra E. Smith, City Clerk Treasurer
73606982 March 10, 2016