HomeMy WebLinkAboutOrdinance 5440 ORDINANCE NO. 5440 AN ORDINANCE AMENDING SECTION 34.25: SALES OF ARTICLE II: PURCHASE AND SALE OF CITY PROPERTY; CONTRACTS OF CHAPTER 34: FINANCE AND REVENUE OF THE CODE OF FAYETTEVILLE TO PROVIDE AUTHORITY AND PROCEDURES FOR THE SALE OF BIOSOLIDS 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 amends Section 34.25: Sales of Article II: Purchase and Sale of City Property of Chapter 34: Finance and Revenue of the Code of Fayetteville, so that after amendment it shall read as provided in Exhibit"A"which is incorporated herein. PASSED and APPROVED this day of 201h day of September, 2011. APPROVED: ATTEST: By: By: � C � OtIONELD J RD , Mayor SONDRA E. SMITH, City Clerk/Treasurer ```ao�tarrrrrrarro :FAYETTEVILLE: ®A-At4 ®�J '°�>,�G TONt®G,e� Page No. 2 Ordinance No. 5440 EXHIBIT "A" 34.25 Sales for damage the hay may have received during the harvest. (A)The purchasing agent may sell or exchange any city-owned supplies, (D) In regard to the marketing and sale of equipment, or materials if such have a dried biosolids produced by the City of fair market value of less than $2,500.00 Fayetteville Wastewater Utility: through a quote process. Vehicles and heavy equipment are excluded from this (1) Bulk quantities of dried process. biosolids (defined as amounts greater than 500 pounds not in a bag or other container) (B)Such supplies, equipment, or materials shall be advertised for sale as an organic which have a fair market value of based fertilizer product at a pre-determined $2,500.00 or more may be sold by the base price twice each year, normally on or purchasing agent by public auction or by about March 1St and September 1St of a given contract sale after formal competitive year. Bulk quantities, if available, shall be bids for the purchase therefore have been pre-committed for each marketing period on solicited by advertisement and by other a first call, first commit basis, up to 60% of means and such bids have been received the projected available amount. Any and opened. remaining amount shall be marketed during the marketing period at the same base price (C)In regard to the marketing and sale of on a first call, first commit basis. hay produced by the City of Fayetteville: (1) The current year's hay crop shall (2) A base or standard price for be advertised for sale, at a pre-established bulk quantities of dried biosolids shall be base price on or about April 1St of a given established for each marketing period based year. The hay shall be pre-committed, on a on the best information available from fair first call, first commit basis, up to 60% of market value of similar products or from the the projected crop. Any remaining hay shall cooperative extension service. Adjustments be marketed during the harvest season at the as determined by operating personnel may same base price on a first call, first served be made based on current costs of basis. production; method of delivery; quality of product available; quantities purchased; or (2) A base or standard price shall be other market-driven conditions. established based on average fair market value for square baled Bermuda grass hay, (3) Quantities of dried biosolids less behind the baler, in Northwest Arkansas, or than 500 pounds and placed in a bag or other based on the best available information from container may be made available to the the cooperative extension service. public via various reputable retail outlets at any given time, according to reasonable (3) Prior to buyer's removal of the terms and conditions as approved by the hay from the site, adjustments as determined City Purchasing Manager. The price by site operating personnel, will be made to charged for less than bulk quantities may be the base price for quantity purchases; adjusted by operating personnel based on according to the type of bale purchased; and current costs of production; method of the relative quality of the harvested hay; and delivery; quality of product available; Page No. 3 Ordinance No. 5440 quantities purchased; or other market-driven conditions. (E)The City Council may waive the requirements for public auction or formal competitive bids for sales of personal property in exceptional situations where such procedures are deemed not feasible nor practical. City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 20-Sep-11 City Council Meeting Date Agenda Items Only David Jurgens Utilities Director Utilities Submitted By Division Department Action Required: Approval of an ordinance changing Section 34.25, Sales, specifically adding language to allow for and establish procedures for the sale of biosolids produced by the Wastewater Utility. N/A Biosolids Sales Cost of this request Category/Project Budget Program Category/Project Name Water and Sewer Revenue Account Number Funds Used to Date Program/Project Category Name Water/Sewer Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached l7 Previous Ordinance or Resolution# Depart -Di ector Date Original Contract Date: �i q— Original Contract Number: Attorney Date Finance and Internal Services Director Date Received in City Clerk's Office ofw�, q-,A-// Chief of Staff Date ENReceived in / % Mayor's Office / M or Date Comments: Revised January 15,2009 CITY COUNCIL AGENDA MEMO a e evl e MEETING DATE OF SEPTEMBER 20,2011 THE CITY OF FAYETTEVILLE,ARKANSAS ARKANSAS • . To: Fayetteville City Council Thru: Mayor Lioneld Jordan Don Marr, Chief of Staff From: David Jurgens, PE,Utilities Director 9 1/\l 9 Water, Sewer, Solid Waste Committee Date: August 31, 2011 Subject: Approval of an Ordinance Changing Section 34.25, Sales, specifically adding language to allow for and establish procedures for the sale of biosolids produced by the Wastewater Utility RECOMMENDATION City Administration recommends approval of changing section 34.25, Sales, specifically adding language to allow for and establish procedures for the sale of biosolids produced by the Wastewater Utility. BACKGROUND The biosolids drying projects are nearing completion. The solar houses are complete and in operation. This summer, these units have been able to dry the material to 85-90% solids, although normal operations expect to produce a range of 40 - 70% solids. Thermal dryer construction, including the required gas line, will be complete in late October or early November. This dryer will dry the biosolids to over 90% solids,producing a class A biosolids product which is marketable as an organic based fertilizer product. We will then be able to dry all biosolids in house, preventing hauling to landfills, and allow for virtually unrestricted and unlimited use of the product. Prior to these installations, the City hauled an average of 15 tractor trailer loads of biosolids weekly to landfills in Lamar or Russellville. DISCUSSION This ordinance revision follows a similar format but expands the existing ordinance for selling hay produced at Wastewater Utility facilities. It allows for competitive sales based on quality and quantity of product sold. It also limits the amount any one purchaser can buy, which is essential to protect the City from a circumstance whereby one buyer is no longer able to purchase the product. We have essentially no storage for our product, requiring that we have significant flexibility in moving it when required. This ordinance allows sufficient flexibility to do so. All biosolids product sold will meet Class A certification per EPA and 40 CFR 503 regulations. The product can be used as an organic based fertilizer product, land applied without any restrictions, and/or bagged and marketed to the public for application to lawns and gardens without restrictions. BUDGET IMPACTS Like hay sales, biosolids sales is a revenue generator. Based on similar product sales in other parts of the country, we expect revenues to start small and increase with time as the product becomes more widely known and used. Biosolids Sale CCMemo Augl l ORDINANCE NO. AN ORDINANCE AMENDING SECTION 34.25: SALES OF ARTICLE II: PURCHASE AND SALE OF CITY PROPERTY;CONTRACTS OF CHAPTER 34: FINANCE AND REVENUE OF THE CODE OF FAYETTEVILLE TO PROVIDE AUTHORITY AND PROCEDURES FOR THE SALE OF BIOSOLIDS 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 amends Section 34.25: Sales of Article II: Purchase and Sale of City Property of Chapter 34: Finance and Revenue of the Code of Fayetteville, so that after amendment it shall read as provided in Exhibit"A"which is incorporated herein. PASSED and APPROVED this day of 20th day of September, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer 34.25 Sales each marketing period based on the best information available from fair market value of similar products or (A) The purchasing agent may sell or exchange any from the cooperative extension service. Adjustments city-owned supplies, equipment, or materials if as determined by operating personnel may be made such have a fair market value of less than based on current costs of production; method of $2,500.00 through a quote process.Vehicles and delivery; quality of product available; quantities heavy equipment are excluded from this process. purchased;or other market-driven conditions. (B) Such supplies, equipment, or materials which (3) Quantities of dried biosolids less than 500 have a fair market value of $2,500.00 or more pounds and placed in a bag or other container may be may be sold by the purchasing agent by public made available to the public via various reputable auction or by contract sale after formal retail outlets at any given time, according to competitive bids for the purchase therefore have reasonable terms and conditions as approved by the been solicited by advertisement and by other City Purchasing Manager. The price charged for less means and such bids have been received and than bulk quantities may be adjusted by operating opened. personnel based on current costs of production; method of delivery; quality of product available; (C) In regard to the marketing and sale of hay quantities purchased; or other market-driven produced by the City of Fayetteville: conditions. (1) The current year's hay crop shall be (E) The City Council may waive the requirements for advertised for sale,at a pre-established base price on public auction or formal competitive bids for sales or about April 1St of a given year. The hay shall be of personal property in exceptional situations pre-committed, on a first call,first commit basis, up to where such procedures are deemed not feasible 60% of the projected crop. Any remaining hay shall nor practical. be marketed during the harvest season at the same base price on a first call,first served basis. (2) A base or standard price shall be established based on average fair market value for square baled Bermuda grass hay, behind the baler, in Northwest Arkansas, or based on the best available information from the cooperative extension service. (3) Prior to buyer's removal of the hay from the site, adjustments as determined by site operating personnel,will be made to the base price for quantity purchases; according to the type of bale purchased; and the relative quality of the harvested hay; and for damage the hay may have received during the harvest. (D) In regard to the marketing and sale of dried biosolids produced by the City of Fayetteville Wastewater Utility: (1) Bulk quantities of dried biosolids (defined as amounts greater than 500 pounds not in a bag or other container)shall be advertised for sale as an organic based fertilizer product at a pre- determined base price twice each year, normally on or about March 15 and September 1St of a given year. Bulk quantities,if available,shall be pre-committed for each marketing period on a first call, first commit basis, up to 60% of the projected available amount. Any remaining amount shall be marketed during the marketing period at the same base price on a first call,first commit basis. (2) A base or standard price for bulk EXHIBIT quantities of dried biosolids shall be established for a Existing ordinance: (C) In regard to the marketing and sale of hay produced at the sludge management site at the pollution control plant: (1) The current year's sludge management site hay crop shall be advertised for sale, at a pre- established base price on or about April 1st of a given year. The hay shall be pre-committed, on a first call, first commit basis, up to 60% of the projected crop. Any remaining hay shall be marketed during the harvest season at the same base price on a first come, first served basis. (2) A base or standard price shall be established based on average fair market value for square baled Bermuda grass hay, behind the baler, in Northwest Arkansas, as established by cooperative extension service recommendations. (3) Prior to buyer's removal of the hay from the sludge management site, adjustments as determined by Operations management International, Inc. (OMI) personnel, will be made to the base price for quantity purchases; according to the type of bale purchased; and the relative quality of the harvested hay; and for damage the hay may have received during the harvest. NORTHWEST ARKANSAS DEMOCRAT-GAZETTE NORTHWESTARKANSAS THE MORNING NEWS OF SPRINGDALE THE MORNING NEWS OF ROGERS NEWS—P-M— � NORTHWEST ARKANSAS TIMES LLC BENTON COUNTY DAILY RECORD 212 NORTH EAST AVENUE,FAYETTEVILLE,ARKANSAS 72701 1 P.O.BOX 1607,72702 1479-442-1700 1 WWW.NWANEWS.COM AFFIDAVIT OF PUBLICATION I, Cathy Wiles, do solemnly swear that I am the Legal Clerk of the Northwest Arkansas Newspapers, LLC, printed and published in Washington and Benton County, Arkansas, bona fide circulation, RECEIVED that from my own personal knowledge and reference to the files of said publication, the advertisement of: OCT 0 7 2011 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE City of Fayetteville Ordinance 5440 tZ- �- Was inserted in the Regular Editions on: oi�pwo,Nc Ivo sago �� OF�DINANGE AMENDING SECTION 34 2,b September 29, 2011 SALEOF ARiCLE II FURCHA$ gND SALE lea' OF;C(T�,PRO�ERTY� CONTI3gCTS�p�CHAPTER' � P � 34 'FINAiVCE AN�MENUE OF E CODE OFw H �/�� FAYETTEVILLE'70�P�ODEUTFi0131TYND naKaHSns-� PROCEDURES FORTH OF BIOSOLIDS BE 17 ORDAINI D BY T 51 Publication es:Charg $51.88 ); CITY COUNCIL OF THE CITY OF FAYETTEV�CLE Se�Gon 1?hat thha Cl<yCounciiof the C ty of fay tte la Arkans hereby amentls Section 34 25 Sales of Articl Purchase and Sale df Gf�Prt�petty ofOfaa ter 34 Rnance and Revenue of the Co a of Fayettevle so tha�af)era tl raj iYshaiead'as provded m Exhib(t A whichJs)ncorporatedheCein PASSEp and gPPROVED this 20 h da o ,r APPROVED�, ATTEST "° " ��� ('/k-Jl LIONELD JO�"qT1 Mayors 5O s � �JdDRp���Sf�y11TH� Cl�rk/T7easurer Exhibttsfor�this o7dtpance may be u�ewed in the office of 1fie�Ci _Cie �reasurer Cat y Wiles Subscribed ands rn t before me This&� day of 6. 76� , 2011. 1 ' 4otary Public My Commission Expires: SANDRA E SCHACHERMLIER 8ENTON000NTY NOTARY PUBLIC-ARKANSAS ANY C-VnWM EVIM APM 1S,2017 COexebeion No.12960121 **NOTE** Please do not pay from Affidavit. Invoice will be sent.