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Home My WebLink AboutOrdinance 5386 ORDINANCE NO. 5386 AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND TO APPROVE THE PURCHASE OF MEDIUM CRUSHED ROCK SALT FOR SNOW AND ICE REMOVAL WHEREAS, even though our Transportation Division began the winter season with very substantial reserves of rock salt for use on city streets for snow and ice removal, the severe ice and snow storms have depleted the City's supplies so that additional rock salt needs to be purchased quickly; and WHEREAS, the price of medium crushed rock salt used for snow and ice removal fluctuates quickly based on supply and demand such that formal competitive bidding is not feasible and would result in substantially higher prices. 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 that because of the rapid price fluctuations of crushed rock salt, formal competitive bidding is not feasible or practical and therefore waives formal competitive bidding for the purchase of rock salt in 2011 to be replaced by the purchase of rock salt based upon three written quotes on a case by case basis without the need for further City Council approval as long as the Transportation Department's purchases remain within its budgetary authority. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves the immediate purchase of crushed rock salt from Cargill Deicing Technology pursuant to its written quotation which is attached. PASSED and APPROVED this 8h day of February, 2011. APPROVED: ATTEST: Y 0F®®U� e FAYETTEVI LLE o ADY��t/�v IY �G�(/6t/ �9sly�'%yKANSP°J�? By: By ZGTOkNa4a�S I NELD JO N, Mayor SONDRA E. SMITH, City Clerk/Treasurer City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements February 15,2011 City Council Meeting Date Agenda Items Only Terry Gulley Transportation Transportation Services Submitted By Division Department Action Required: An ordinance waiving the requirements of formal competitive bidding for the purchase of medium crushed rock salt for snow and ice removal. $ 271,927.00 Materials&Supplies Cost of this request Category/Project Budget Program Category/Project Name 2100.4120.5204.00 $ 22,544.11 Street Maintenance Account Number Funds Used to Date Program/Project Category Name $ 249,382.89 Street Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached Previous Ordinance or Resolution# Department Dir or Date Original Contract Date: Original Contract Number: City Attorney Date -P 0. . 2-5--U(t 02-08-1 1 A08 X55 RCVD R ce and Internal Services Director Date Received in City Clerk's Office _ (�—�---1/ CKe.f of Staff Date Received in ENT Mayor's Office dr ° ay ate Comments: Revised January 15,2009 THE CITY OF FAYETTEVILLE,ARKANSAS a;ye DEPARTMENT CORRESPONDENCE ARKANSAS o CITY COUNCIL AGENDA MEMO To: Mayor and City Council Thru: Don Marr, Chief of Staff q� From: Terry Gulley, Transportation Services Department Director ��/� Date: February 15, 2011 Subject: Bid Waiver for Medium Crushed Rock Salt PROPOSAL: Staff proposes an ordinance waiving the requirements of formal competitive bidding for the purchase of medium crushed rock salt for snow and ice removal. RECOMMENDATION: The price of medium crushed rock salt used for snow and ice removal fluctuates based on supply and demand. The supply and demand.of these materials varies depending on weather conditions and the severity of each winter weather season. For this reason suppliers cannot feasibly guarantee a fixed price over a twelve month period. Staff recommends approving the purchase of medium crushed rock salt based on written quotes which will be obtained on a case by case basis without the need for further approval of the City Council. BUDGET IMPACT: Funds for the acquisition of medium crushed rock salt are budgeted in the Street Maintenance Program. 4 r Ca g Deicing Technology 24950 Country Club Blvd,Suite 450 North Ohnsted OH 44070 Phone7 800-600-7258—Fax:800-467-3409 Date:February 8 2011 City of FayetteviIle 1523 S Happy Hollow Fayetteville AR 72701 Customer Number:60036859 Shipping Info: 113 West Mountain Fayetteville AR 72701 ATTN:Carolyn Smith Phone: (479)575-8348 Fax: (479)4443490 Cargill Deicing Technology is pleased to submit the following quote for your DEICING SALT needs for the 2010/2011 season. Price Basis Product *Delivered **Pickup Tons Terminal N997—Bulk Deicing Road Salt $98.02 200 522226—Catoosa Oklahoma PLEASE SIGN AND RETURN THIS QUOTE LETTER TO MY ATTENTION WITHIN 5 DAYS FROM DATE OF LETTER WE CANNOT UPDATE YOUR ACCOUNT FOR THIS YEAR WITHOUT THE SIGNED QUOTE LETTER THIS QUOTE DOES NOT CONSTITUTE AN ORDER! To placean order or if you have any questions,concerning your account, please feel free to contact our Sales Department at 800/600-SALT. *Delivered products will ship in minimum 22 ton loads TERMS AND CONDITIONS Your payment terms are NET 30 DAYS. The pricing stated in this quote letter is firm from February 8,2011 through April 30,2011, provided it is signed and returned within 5 days from the date of this letter.The tonnage figure is an estimate only AND IS SUBJECT TO AVAILIBILI'TY at the time of the order.Either party in regard to estimated tonnages assumes no obligation. This quotation assumes normal operating conditions at Cargill's terminals and production facilities.Cargill Deicing Technology reserves the right to decline orders/shipments for any reasons relating to conditions at the terminals/production facilities,weather conditions,or any other reason that may affect Cargill's ability to accept orders. This quote assumes that salt will be delivered from or picked up at the terminal set forth above. Sourcing of products from another Cargill Deicing Technology facility is subject to availability and additional fees that may be applied to your account.For additional terms and conditions,please go to www.car 'llrg deicing com.Cargill's sale of product is expressly conditional upon Customer's acceptance of the terms and conditions.Any terms which may exist on the Customer's standard purchase order(or similar forms)and which alter or are inconsistent with the terms and conditions will be of no legal force or effect and will not govern the transaction contemplated by this Quote Letter. Thank you for the opportunity to be of service.-We are looking forward to supplying your salt needs. Cargill Deicing Technology ACCEPTED(Buyer) Signature: Signature: Name: Joshua Evcic Title: Western Region Team Leader CONFIDENTIAL LEVEL 2 CONFIDENTIAL THIS DOCUMENT CONTAINS LEVEL 2 TRADE SECRET INFORMATION. @2009 Cargill,Incorporated All Rights Reserved DISCLOSURE,USE,OR REPORDUCTION OUTSIDE CARGILL,AND INSIDE CARGILL TO OR BY THOSE EMPLOYEES WHO DO NOT HAVE A NEED TO KNOW IS PROHIBITED EXCEPT AS AUTHOR12ED BY CARGILL IN WRITING. ORDINANCE NO. AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND TO APPROVE THE PURCHASE OF MEDIUM CRUSHED ROCK SALT FOR SNOW AND ICE REMOVAL WHEREAS, even though our Transportation Division began the winter season with very substantial reserves of rock salt for use on city streets for snow and ice removal, the severe ice and snow storms have depleted the City's supplies so that additional rock salt needs to be purchased quickly; and WHEREAS, the price of medium crushed rock salt used for snow and ice removal fluctuates quickly based on supply and demand such that formal competitive bidding is not feasible and would result in substantially higher prices. 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 that because of the rapid price fluctuations of crushed rock salt, formal competitive bidding is not feasible or practical and therefore waives formal competitive bidding for the purchase of rock salt in 2011 to be replaced by the purchase of rock salt based upon three written quotes on a case by case basis without the need for further City Council approval as long as the Transportation Department's purchases remain within its budgetary authority. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves the immediate purchase of crushed rock salt from Cargill Deicing Technology pursuant to its written quotation which is attached. PASSED and APPROVED this 8th day of February, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer