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HomeMy WebLinkAbout88-02 RESOLUTION• • • • • • RESOLUTION NO. 88-02 A RESOLUTION APPROVING AN AGREEMENT WITH TOTER, INC AT AN ESTIMATED COST OF EIGHT HUNDRED EIGHTY THOUSAND TWO HUNDRED FIFTY DOLLARS ($880,250.00) FOR THE PURCHASE OF RESIDENTIAL REFUSE CARTS TO BE USED IN THE AUTOMATED RESIDENTIAL WASTE COLLECTION PROGRAM. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves an agreement with Toter, Inc. at an estimated cost of Eight Hundred EightyThousand Two Hundred Fifty Dollars ($880,250:00) for the purchase of residential refuse carts to be used in the Automated Residential Waste Collection Program. Section 2. That the City Council hereby authorizes the Mayor or his duly authorized representative to sign any documents required to complete said purchase. PASSED and APPROVED this 4th day of June, 2002 EATHER WOODRUFF, Ci`tX%Clerk APPROVED: By: DAN COODY, Mayor NAME OF FILE: CROSS REFERENCE: Resolution No. 88-02 • 06/04/02 Resolution No. 88-02 05/03/02 Bid Tabulation No. 02-32 05/07/02 Departmental Correspondence to Mayor Coody & City Council from Gary Dumas regarding memo from Otto Industries 05/06/02 Departmental Correspondence to Mayor Coody & City Council from Gary Dumas regarding Residential Carts -Volume Based Program 05/02/02 Memo faxed to Mayor and City Representatives from Warren Webster, Otto Industries 05/21/02 Staff Review Form 06/05/02 Memo to Gary Dumas, General Services, from Heather W oodruff, City Clerk NOTES: • • • FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Mayor and City Council From: Gary Dumas® Date• Tuesday, May 07, 2002 Subject: Attached Memo from Otto Industries Background A representative of Otto Industries, a cart manufacturer, has voiced concern about the bid specification defining the cart which would be acceptable to the City of Fayetteville for the automated residential trash collection. Otto Industries' concerns are well outlined in their attached memo and will not be repeated. Discussion As the Council is aware due to the invitations to view various demonstrations of automated equipment for this modified program, the Solid Waste Division with the Equipment committee and the Fleet Division have been evaluating automation equipment for the past several months. This equipment has included not only truck chassis's, bodies, and types of automation, but also various cart types and manufacturing processes. The various carts types were evaluated with the various types of equipment in both hot and cold temperatures. After discussions internally on the performance of the carts to withstand the anticipated use and abuse, to retain their shape after misuse, and general maneuverability when loaded, specific features in construction and design were decided upon. One of the primary features viewed as necessary for a long-lasting economical cart was the construction process, rotational molding as opposed to injection molding. Other features were a minimum 10 inch wheel size and minimum bar length. These two features were determined necessary to assure ease of customer use and compatibility with our systems semi -automated commercial cart program. While it is certainly true that other design features could have been developed which General Services Department 113 West Mountain Street Fayetteville. Arkansas 72701 Telephone: 479-575-8330 Fax: 479-575-8257 Email: gdumas@ci.fayetteville.ar.us 1 C . 0 • • would have resulted in a workable cart, the testing performed by the Division supervisors and drivers, concluded that these features in the bid documents would result in the best cart for our particular situation. One argument in the Otto Industries memo indicated that the City would be unable to receive competitive pricing with the bid specifications as published. From the bid tab included in the packet, it is clear that the city did receive competitive pricing. The two higher bidders were for injection molded products. Otto Industries did submit one of those bids. The staff is of the opinion that the bid specifications were proper to assure an appropriate product for the community's use and that the pricing is competitive. Recommendation This memo is for informational purposes only. Staff is available to answer any questions that the Council may have. • • FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Mayor and City Council From. Gary Dum Date: Monday, May 06, 2002 Subject: Residential Carts -Volume Based Program Background There are two items on the Council for May 21 related to the automation of the residential waste collection program. This item pertaining to the various sized volume based carts and the following item pertaining to the automated route collection vehicle These issues were discussed during the budget session late last fall. The staff was directed to solicit bids and return to Council for action. Discussion The bids for the volume based carts came in substantially less than anticipated. The bid is for 25,000 carts of various sizes which will be determined by each customer's choice. Approximately 22,000 carts will be distributed by the successful bidder, who will also mark where the cart should be placed for pickup. The successful bidder will also help to develop necessary public information material for the customer's use. The remaining approximate 3,000 carts will be used for customer requested change outs and for new customers. During discussions with the Council last fall concerning this program three issues remained to be resolved. The first issue concerned the requirement of a deposit for the cart. The cart costs to the City will range from $27.17 to $39.94. A deposit of 100% of the cost would not seem to be extreme. The deposit for existing customers could be billed over 3 to 4 months in the normal billing cycle. A refund could be provided following the payment of the final billing for the customer, provided the cart was recovered by the City. The second issue concerned the monthly rate to be charged based upon the container volume. There was some discussion by the Council that the rate should be designed to more aggressively encourage trash volume reduction. Guidance from the Council is requested concerning this question. The third issue concerns excess General Services Department 113 West Mountain Street Fayetteville, Arkansas 72701. Telephone: 479-575-8330 Fax: 479-575-81257 Email: gdumas@ci.fayetteville.ar.us r c 0 14• • • trash beyond the volume of the container. Many cities simply do not allow trash to be placed in bags beside the container. Their policy is to require the customer to retain the excess for the next collection cycle. The option proposed by staff during the discussions last fall would allow additional bags to be place next to the container, if the bags were purchased from the City maintaining the volume based program. If this is to be the policy a fee structure for this added service will need to be developed based upon the container fee structure. Additionally, repetitive use of additional bags would require purchase of an additional container or an increase in the size of the customer's container. These are issues that will need to be addressed. The final costs of this purchase can not finalized until the customer survey is conducted to determine what volume, of how many carts will be required. This survey will be conducted at convenient locations throughout the community to give the customers an opportunity to see the various cart sizes and choose for themselves their individual needs. Prior to this survey the Council will need to finalize the monthly rate and the excess trash issue, since these questions will have an impact on the individual customer's volume choices. Recommendation Staff recommends approval of the resolution authorizing purchase of the residential carts from Toter, Inc. .1 18666071200 2002-05-03 14: - 53 (OMT), page 1 FAX COVER SHEET TO COMPANY FAX NUMBER 15015758241 FROM Warren Webster DATE 2002-05-03 RE Bid # 02-32 COVER MESSAGE Please distribute to Mayor and Council Members Warren Webster GET FREE ONLINE FAX DELIVERY FROM •FAX WWW.EFAX.COM Received: 3/ 6/02 9:28AM; 18888071200 -> HP LaserJet aiuu; re"e n668071200 2002-05-03 14: 3 (GMT), page 2 • May 206, 2002 Mayor and City Representatives City of Fayetteville 113 W. Mountain Street Fayetteville, Arkansas 72701 Via Fax Transmission Ladies and Gentlemen: We are corresponding with you directly regarding because our attempts to discuss our concerns with Staff by phone and in writing have been ignored. The City's bid specification (Bid No. 02-32) for automated refuse containers is proprietary, and is clearly intended to eliminate all vendors except Toter. It is our strong belief that the City's citizens are poorly served by a bid procedure that is neither open nor intended to foster competition among vendors. The following examples of specification items bear out our concerns: • Several request were made for the City to hold a common practice of a "pre-bid conference" with all potential bidders so items that preclude competition could be eliminated. These request have been ignored. • The specification requires the successful bidder to meet cart specifications that only one manufacture can meet. This lack of available competition lends itself to a higher cost to the City and a tendency from other bidders not to display their lowest price to competitors on a bid they cannot win. Warren Webster -32 Juanita Place. -Belleville, IL 62223 - Phone: 618-875-0612 - Fez: 877-806-1200 - E -mall: warte6QaoLcom r Received: 3/ 6/02 9:28AM; 186680.71200 2002-05-03 14:13 (OMT), page 3 18668071200 -> HP Laser -owe :sluts; nye u • • The specification calls for a metal bar of 10" in length, which again is only offered by one manufacture. A lengthy lower lift bar does not add to the value of a cart. The opposite is actually the case. By increasing the length of the lower lift bar the cart has the ability to shift from side to side which allows the carts to fall off into the hopper. In a fully automated system the lower lift bar does not come into play. It is our understanding that there is an additional bid out at this time for refuse trucks. Those trucks being fully automated. This specification serves no purpose other than to eliminate prospective bidders. • The specification requires that the 32 -gallon cart have 10 -inch wheels. We know of no cart on the market that has a 10 -inch wheel. It is items like this that could have been avoided with a pre bid meeting. We believe you will agree that the purpose of the competitive bidding process is to ensure that taxpayers get the best value for their tax dollars. Specifications such as the one distributed by Staff serve primarily to disparage this policy. By so tightly drafting its specifications to the advantage of one vendor, the current specification is anything but "in the public interest." Indeed, such over -limited specification will be likely to cost the taxpayers substantially more than if the bidding process is open and truly competitive. As it stands, the chosen vendor is hardly likely to feel competitive pricing pressure, and the citizens of Fayetteville will suffer. The bid opening scheduled for May 3rd, 2002 should be cancelled, a new pre-bid conference should be scheduled, and a bid specification intended to give your residents the benefit of competitive bidding should be published. We look forward to presenting our offer based on publication of a specification intended to foster rather than eliminate competition. Yours truly, ?Oamireas Welatei Warren Webster Otto Industries. Warren Webster -32 Juanita Place.-Be0evOk, IL 62223 - Phone: 618-875-0612 - Fax: 877-806-1200 - E-mail: warie6@aoLcom MTN • XX Agenda Request Contract Review Grant Review • • For the Fayetteville City Council meeting of: May 21,2002 FROM: Gary Dumas Solid Waste and Recvcling General Services Name Division Department ACTION REQUIRED: Approve resolution authorizing the purchase of carts for the automated residential waste collection program from the low bidder, Toter Inc. Toter will supply 25,000 carts with 4 volume capacities, 96, gallon, 65 gallon, 32 gallon, and 20 gallon. The number of each capacity cart will be based on a customer survey. Final costs will be determined by the individual customer choices. COST TO CITY: $880,250 estimated $880,000 Cost of this Request Category/Project Budget Category/Project Name Residential Carts -Volume Based Program 5500-5020-5890-00 $0 Account Number 02035-1 Project Number Funds Used to Date $880,000 Remaining Balance Solid Waste Program Name Solid Waste Improvements Fund BUDGET REVIEW: Budgeted Item _Budget Adjustment Attached 07— Bud et Manager ' Administrative Services Director C») TRACT/GtANT/LEAS REVIEW: GRANTING AGENCY: //0 &— Accounting Mane Dat ADA Coordinato 76� D to IntmalA 4111 sh 0' Purchasing Officer • itor sl-iloa Date Date Date Date STAFF RECOMMENDATION: Approve Resolution authorizing purchase Division Head 1 ----4 aTIr • epartment • ,I I, A• ministrative Services Dire i Date -D2 Date sl�IoZ ayor /( Date Cross Reference New Item: XXXXX Yes No Prev Ord/Res #: Orig Contract Date: • s R F • FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE • To: Gary Dumas, General Services From: Heather Woodruff, City Clerk Date: June 5, 2002 Please find attached a copy of Resolution No.88-02 approving an agreement with Toter, Inc. for the purchase of residential refuse carts to be used in the Automated Residential Waste Collection Program The original will be microfilmed and filed with the City Clerk. Bid No. 02-32 cc: Nancy Smith, Internal Audit Peggy Vice, Purchasing Carol Hill, Solid Waste a 0 a Document Reference • RES 010 03 Update Date 6042002 City f Fayetteville Cit.; Maintenance Item Action Ref. Taken Brief Description 88-02 • 6/10/2002 13:57:49 PURCHASE RESIDENTIAL REFUSE CARTS Enter Keywords • File Reference # Security Class Expiration Date Date for Cont/Referred: Name Referred to • • • • RES. 88-02 AGREEMETN TOTER, INC. $888,250.00 PURCHASE RESIDENTIAL REFUSE CARTS WASTE COLLECTION MICROFILM Cmdl-Return Cmd8-Retention CmdS-Abstract Yes No Retention Type: **** Active **** Cmd4-Delete Cmd3-End Press 'ENTER' to Continue (c) 1986-1992 Munimetrix Systems Corp.