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HomeMy WebLinkAbout166-03 RESOLUTION• • RESOLUTION NO. 166-03 A RESOLUTION AWARDING BID # 03-57 AND APPROVING A CONTRACT IN THE AMOUNT OF TWENTY-EIGHT THOUSAND THREE HUNDRED THIRTY-FOUR DOLLARS AND SIXTY-SIX CENTS ($28,334.66) TO DOWNING SALES AND SERVICE, INC. FOR THE PURCHASE AND INSTALLATION OF A CONVEYOR BELT FOR THE RECYCLING CENTER; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF THIRTY ONE THOUSAND THREE HUNDRED SEVENTY-TWO DOLLARS ($31,372.00) FOR SAME. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas, hereby awards Bid # 03-57 and approves a contract in the amount of Twenty - Eight Thousand Three Hundred Thirty -Four Dollars and Sixty -Six Cents (528,334.66) to Downing Sales and Service, Inc. for the purchase and installation of a conveyor belt for the Recycling Center. A copy of the contract, marked Exhibit "A" is attached hereto and made a part hereof. Section 2. That the City Council of the City of Fayetteville, Arkansas, hereby approves a budget adjustment in the amount of Thirty One Thousand Three Hundred Seventy -Two Dollars ($31,372.00) for same. PASSED and APPROVED this 4th day of November, 2003. PYETtek • c • .1) 1 By: SONDRA SMITH, City Clerk a APPROVED: By DAN COODY, Mayor City of Fayetteville, Arkansas • Budget Adjustment Form • Budget Year 2003 Department: Operations Division: Solid Waste Program: Recycling Date Requested 10/2/2003 1 Adjustment Number Project or Item Requested: $31,372 is requested to begin the Recycling Facility Conveyor Belt capital project. Project or Item Deleted: $30,000 of additional State Grants revenue. $1,372 from the Use of Fund Balance account. Justification of this Increase: The funding is for the purchase of a Conveyor Beft to be used in the Recycling Facility. Up to $30,000 of the cost will be covered with a state grant from ADEQ. The sales tax amount of $1,371.47 is not allowable and will be paid for out of City funds Justification of this.Decrease: The $30,000 grant is from ADEQ and Tri -County Solid Waste District. There is sufficient funds remaining to comply with City policy. Increase Budget (Decrease Revenue) Account Name Account Number Amount Project Number Fixed assets 5500 5060 5801 00 31,372 03034 1 Decrease Budget (Increase Revenue) Account Name Account Number Amount Project Number State grants 5500 0950 4302 00 30,000 03034 1 Use of fund balance 5500 0950 4999 99 1,372 Approval Signatures Re uestc Date /0-7Y-'03 udget Manager Date Date Dine tf� ate Budget Office Use Only Type: A B C Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log E Initial Date Initial Date Initial Date Initial Date NAME OF FILE: CROSS REFERENCE: Item # Date • Resolution No. 166-03 Document • 1 11.4.03 Res 166-03 2 10.17.03 memo to mayor & city council draft resolution copy of bid tabulation copy of Itr Downing Sales & Service copy of Itr Downing Sales & Service staff review 3 t l ///05 memo to Brian Pugh NOTES: • • i%y/&Y City Council Agenda Item /a� ¶ `fes-flC2. /^C To: Mayor and City Council From: Gary Dumas Date: October 17, 2003 Subject: Preprint agenda date and item number inserted by city clerk Accepting Bid for Conveyor Belt from Downing Sales and Service and Approve a Budget Adjustment for Funding of Sales Tax Portion of Equipment Purchase Recommendation: Staff recommends that the Ione bid from Downing Sales and Service in the amount of $28,334.66 to purchase a conveyor belt for the recycling center including all labor, materials and installation be accepted. A budget adjustment to accommodate this transaction will also need Council approval. Additionally, staff requests Council to pass a resolution to approve funding for the sales tax portion of the bid to cover costs not covered with the terms of the grant in the amount of$1,371.47. Background: The City was awarded a recycling grant from the Arkansas Department of Environmental Quality in September in the amount of S30,000 for the replacement of a conveyor belt for the recycling center. Request for bids for replacement of a conveyor belt in the recycling facility have gone through the Cities bid process and only one bidder gave a bid. The grant funds have been distributed through to the Tri -County Solid Waste District and are awaiting our request for funding. The conveyor belt feeds the baler used to process recyclables before sending them to market. This piece of equipment is critical to the day to day operation of the recycling center and has been in need of replacement for some time. Discussion: The terms of the recycling grant state that sales tax from bids cannot be covered with grant funds. Therefore the City will be required to fund that portion of the bid. Also attached is a budget adjustment form to explain the funding recommendation. The Division requested bids for purchasing a new conveyor belt and the associated costs to install the equipment. There was one bidder, Downing Sales and Service, turning in a bid to complete the fob in the amount of 523,313.88 if the bid was accepted by October 151, 2003. Downing Sales and Service told Staff that the amount of the bid was only good until October l5' and after that time the material costs to construct the belt would increase. The manufacturer of the belt, Process Solutions from Cross, South Carolina, has implemented an increase in the material cost of the belt and will not honor the original price after October 151. Since the bid couldn't be approved through City Council before October l51, and since Downing was the only bidder, a request from staff was made to determine the increase in costs to perform the work. On September 261", Downing sent a letter stating the increase in pnce after October 151. A second request from staff was made to include all other costs 1 of 2 10/16/2003 10.20.22 AM City Council Agenda Item not itemized in the original bid to cover bearings, sprockets and wear strips that should need replacement when the conveyor belt is disassembled. Downing sent a second letter on September 29th, detailing the replacement part costs and a total price if all work is performed at one time. The letters received by Downing are attached as supplements to the original bid. The total cost of the project after the material cost increase and replacement parts and labor were added comes to S28,334.66. The sales tax portion of this total bid from Downing comes to $1,371.47. The recycling grant saves the City the cost to replace the conveyor belt. The belt is in desperate need of replacement and constantly needs welding and othcr maintenance. The belt has been in use since the facility opened in the mid 90's. It is critical that our baler and conveyor remain in good condition as we don't have back up equipment for processing recyclables. Budget Impact: The City is entitled to receive a recycling grant from ADEQ and the Tri -County Solid Waste District in the amount of $30,000. The cost of the project to replace existing conveyor belt with a new belt, including labor and materials, is $28,334.66. The Tri -County District will use the grant funds to pay this amount minus the sales tax. Council needs to approve a budget adjustment to cover this transaction. The sales tax portion of this bill comes to SI,371.47. Since sales tax is not covered in the terms of the recycling grant, $1,372 is requested from the Use of Fund Balance account to cover this cost. The bid for work came in under the amount of grant money available. There are sufficient funds remaining to comply with City policy. 2 of 2 10/16/2003 10.20.22 AM • • RESOLUTION NO. A RESOLUTION AWARDING BID # 03-57 AND APPROVING A CONTRACT IN THE AMOUNT OF TWENTY-EIGHT THOUSAND THREE HUNDRED THIRTY-FOUR DOLLARS AND SIXTY-SIX CENTS ($28,334.66) TO DOWNING SALES AND SERVICE, INC. FOR THE PURCHASE AND INSTALLATION OF A CONVEYOR BELT FOR THE RECYCLING CENTER; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF THIRTY ONE THOUSAND TI -TREE HUNDRED SEVENTY-TWO DOLLARS (531,372.00) FOR SAME. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas, hereby awards Bid # 03-57 and approves a contract in the amount of Twenty - Eight Thousand Three Hundred Thirty -Four Dollars and Sixty -Six Cents ($28,334.66) to Downing Sales and Service, Inc. for the purchase and installation of a conveyor belt for the Recycling Center. A copy of the contract, marked Exhibit "A" is attached hereto and made a part hereof. Section 2. That the City Council of the City of Fayetteville; ArleansaJs, hereby approves a budget adjustment in the amount of Thirst' © e Thiousand Three Hundred Seventy -Two Dollars ($31,372.00) for sam _ S PASSED and APPROVED this 4th day of November, 209-. PPROUE 4rd ATTEST: By: I j SONDR'A%SM;IJTHity Clerk By ANtrOODY, Mayor err DD • e`e 0 m m 0 to v A7 m c c A X 0 D • • Sep 29 03 01:23p Downing Sales L Serv,Inc. 417 589 6753 • • Downing Sales & Service, Inc. 3 Indigo Rd Phillipsburg, MO 65722 9604 417 589 6227 Fax: 417 589 6753 September 29. 2003 Attn: Brian Pugh Purchasing, City of Fayetteville Fax: 479 444 3478 RE Bid #: 03-57 Options: New sprockets and bearings. If these are needed, the estimated price to remove and replace bearings and sprockets is $1,250.00. There are wear strips that are not part of the conveyor that may need to be replaced on the framework If these need to be replaced, the estimated price is $1525.00. Options Subtotal $ 3,075.00 Freight $ 100.00 Sales Tax $ 243.97 Total $ 3,418.97 Or Bid 03-57 Price to be held thru 10/1/03 Add on to hold until October 21, 2003, the increase in price is: 0 the above options are ordered at the same time, additional AR city and county sales tax is not applicable: however, state sales tax or $157.59 will be added with no additional freight added. We appreciate your business Sincerely, a�N Lorry 176wning Lb/,Id $23,313.88 $ 1,788.19 $ 3 23259 Total $28,334.66 p.1 gep 26 03 09:27a Downing Sales & Serv,Inc. 417 589 6753 p.l • • Downing Soles & Service. Inc. 3 Indigo Rd Phillipsburg, MO 65722 9604 417 589 6227 Fax: 417 589 6753 September 26, 2003 Attn: Peggy Purchasing City of Fayetteville Fax: 479 444 3478 RE Bid #: 03-57 Downing Sales 6 Service, Inc. will hold the price bid until October 1. 2003. In order to extend the order date to October 21, 2003, the increase in price is: $1,788.19 (Includes sales tax). This price doesn't include new sprockets and bearings. If these are needed, the estimated price to remove and replace bearings and sprockets is $1,250.00. There are wear strips that are not part of the conveyor that may need to be replaced on the framework If these need to be replaced, the estimated price is $1.825.00. These prices do not include sales tax or freight. We appreciate your business LD/,Id Se REVIEW FORM - FINANCIAL OBLIGIRON X AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council Meeting of: November 4th 2003 PROM: Brian Pugh Solid Waste and Recycling Operations Name Division Department ACTION RHQUIRBD: Accept bid from Downing Sales and Service in the amount of $28,334.66 to purchase conveyor belt and necessary labor for installation. Approve the budget adjustment to fund project. Pass a resolution to approve funding for the sales tax portion of the bid covering costs not allowable with the terms of the grant. The sales tax portion is $1,371.47. COST TO CITY: $30,000 Grant $28,334.66 Cost of this request 5500-5060-5801-00 Account Number $0 Recycling Facility Conveyor Belt Category/Project Budget Program Category / Project Name $0.00 Recycling Funds Used to Date Program / Project Category Name 03034 $ Solid Waste and Recycling Project Number Remaining Balance Fund Name BUDGET REVIEW: Budgeted Item x Budget Adjustment Attached udget Manager Date CONTRACT/GRANT/LEASE REVIEW: Accounting Manager Date Innteenal Au [or GD�Cc%1 /003 City At[o ney D to Purchasing Manager (o/16/03 Date fol1b103. Date STAFF RECOMMENDATION: Division Head Date 10/16/c21 Dep tment I Director Date Finance 6 Internal Services Dir. Chis (a-7.03 Date L tive Officer Date Mayor Date Received in Mayor's Office Cross Reference: Previous Ord/Res#: Orig. Contract Date. Orig. Contract Number: New Item: /b /7/0 7 Date Yes No FAYETTEVILLE INF CITY OF FAYETTEVIFFF. ARKANSAS DEPARTMENTAL CORRESPONDENCE • To: Brian Pugh Solid Waste Division From: Clarice Buffalohead-Pearman City Clerk's Division Date: 11/7/2003 Re: Res. No. 166-03 This memo is to confirm that you have received a copy of the above resolution awarding Bid No. 03-57 and approving a contract with Downing Sales and Service, Inc., for purchasing and installing a conveyor belt at the recycling facility. The resolution will be microfilmed and recorded in the city clerk's office. If anything else is needed please let the city clerk's office know. /cbp Attachment(s) Nancy Smith, Internal Auditor Barbara Fell, Budget & Research