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Home My WebLink About128-15 RESOLUTIONRESOLUTION NO. 128-15 A RESOLUTION TO AWARD BID NO. 15-41 AND AUTHORIZE THE PURCHASE OF BULK CRUSHED ROCK SALT FROM CENTRAL SALT, LLC AS PRIMARY SUPPLIER AND OAKLEY FERTILIZER, INC. AS SECONDARY SUPPLIER FOR MATERIALS DELIVERED, AND OAKLEY FERTILIZER, INC. AS PRIMARY SUPPLIER AND CENTRAL SALT, LLC AS SECONDARY SUPPLIER FOR MATERIALS PICKED UP, FOR VARYING UNIT PRICES AS NEEDED THROUGH THE 2015-2016 WINTER SEASON 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 No. 15- 41 and authorizes the purchase of bulk crushed rock salt from Central Salt, LLC as primary supplier and Oakley Fertilizer, Inc. as secondary supplier for materials delivered, and Oakley Fertilizer, Inc. as primary supplier and Central Salt, LLC as secondary supplier for materials picked up, for varying unit prices, as set forth in the bid sheet attached to this Resolution, as needeec through the 2015-2016 winter season. PASSED and APPROVED this 4t" day of August, 2015. ATTEST: IN SONDRA E. SMITH, City Clerk Treasurer 0111111111111" : FAYET-I f Vll_LE ASF°fB0 11tF1lt\ �1 e• City of Fayetteville, Arkansas 113 West Mountain Street : Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2015-0313 Agenda Date: 8/4/2015 Version: 1 Status: Agenda Ready In Control: City Council Meeting File Type: Resolution Agenda Number: A. 3 BID NO. 15-41 BULK CRUSHED ROCK SALT A RESOLUTION TO AWARD BID NO. 15-41 AND AUTHORIZE THE PURCHASE OF BULK CRUSHED ROCK SALT FROM CENTRAL SALT, LLC AS PRIMARY SUPPLIER AND OAKLEY FERTILIZER, INC. AS SECONDARY SUPPLIER FOR MATERIALS DELIVERED, AND OAKLEY FERTILIZER, INC. AS PRIMARY SUPPLIER AND CENTRAL SALT, LLC AS SECONDARY SUPPLIER FOR MATERIALS PICKED UP, FOR VARYING UNIT PRICES AS NEEDED THROUGH THE 2015-2016 WINTER SEASON BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section l: That the City Council of the City of Fayetteville, Arkansas hereby awards Bid No. 15-41 and authorizes the purchase of bulk crushed rock salt from Central Salt, LLC as primary supplier and Oakley Fertilizer, Inc. as secondary supplier for materials delivered, and Oakley Fertilizer, Inc. as primary supplier and Central Salt, LLC as secondary supplier for materials picked up, for varying unit prices, as set forth in the bid sheet attached to this Resolution, as needed through the 2015-2016 winter season. City of Fayetteville, Arkansas Page 1 Printed on 713012015 Terry Gulley Submitted By City of Fayetteville Staff Review Form 2015-0313 Legistar File ID August 4, 2015 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 7/17/2015 Submitted Date Transportation Services / Transportation Services Department Division / Department Action Recommendation: Staff recommends approval of a resolution awarding Bid 15-41 to and authorizing the purchase of bulk crushed salt from Central Salt, LLC as primary supplier and Oakley Fertilizer, Inc. as secondary supplier, for delivered materials and Oakley Fertilizer, Inc. as primary supplier and Central Salt, LLC as secondary supplier for materials picked up by City staff, in variable amounts, as needed throughout the 2015-2016 winter season. 2100.4120.5204.00 Account Number Project Number Budgeted Item? Yes Does item have a cost? NA Budget Adjustment Attached? No Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Street Fund Project Title $ 85,059.00 $ 66,214.39 188844,61 I$ 18,844,61 V20140710 Previous Ordinance or Resolution # Original Contract Number: Approval Date: lu Comments: The "does item have a cost" question was answered with "NA" due to the fact that materials are purchased on an"as needed" basis, and expenditures will cross fiscal years and operating budgets, so a purchase requisition will not be included in this request. CITY OF ay"Vk ARKANSAS MEETING OF AUGUST 4, 2015 TO: Mayor and City Council THRU: Don Marr, Chief of Staff CITY COUNCIL AGENDA MEMO FROM: Terry Gulley, Transportation Services Director DATE: July 17, 2015 SUBJECT: Bid 15-41, Bulk Crushed Rock Salt RECOMMENDATION: Staff recommends approval of a resolution awarding Bid 15-41 to and authorizing the purchase of bulk crushed rock salt from Central Salt, LLC as primary supplier and Oakley Fertilizer, Inc. as secondary supplier, for delivered materials and Oakley Fertilizer, Inc. as primary supplier and Central Salt, LLC as secondary supplier for materials picked up by City staff, in variable amounts, as needed throughout the 2015-2016 winter season. BACKGROUND: Sealed bids in accordance with State statutes, City ordinances, and purchasing procedures were publicly read and the results are attached to this memo. Compass Minerals America, Inc. submitted the low bid for delivered materials, however their bid was submitted with conditional requirements which did not meet the needs of the Transportation Division. These include a bid price binding for only 30 days after the bid opening, unwillingness to be awarded as a secondary supplier, requiring the City to agree to purchase 80% of the total estimated material quantity before April 2016, and a bid expiration date of March, 31, 2016. The Transportation Division has a limited storage capacity for crushed rock salt and can only purchase this material on an "as needed" basis, as existing supplies are exhausted to create the necessary storage space for additional materials. The utilization of current materials on hand depends on inclement weather conditions which cannot be accurately predicted in the distant future. Additionally, the terms and conditions of Bid 15-41 clearly state that "bid pricing shall remain good and firm until July 31, 2016", which is a condition that Compass Minerals America, Inc. is not willing to meet according to the attached amendments. For the reasons outlined above, Transportation Division staff recommend disqualifying the bid submitted by Compass Minerals America, Inc. Oakley Fertilizer, Inc. also submitted conditional requirements with their bid, which will be attached. These conditions include the supplier's product containing 5 gallons of beet juice per ton of crushed rock salt. This is an acceptable condition, as the Transportation Division already utilizes beet juice for snow and ice removal and often includes it in the salt or brine mixture. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 DISCUSSION: Central Salt, LLC submitted the low bid for delivered materials, if Compass Minerals America, Inc.'s bid is not considered. Transportation Division staff recommend that Central Salt, LLC be awarded Bid 15-41 - Line Item 1 (primary supplier). Central Salt, LLC submitted the low bid for materials picked up by City staff. However, this supplier's physical address and pick up location is in Lyons, Kansas, which is over 350 miles away from the City of Fayetteville. It is neither practical nor feasible for staff to drive over 12 hours round-trip, especially during inclement weather conditions, to pick up materials from this location. For this reason, it is recommended that Oakley Fertilizer, Inc. be awarded Bid 15-41 — Line Item 2 (primary supplier). Oakley Fertilizer, Inc.'s physical address and pick up location is in Morrilton, AR. Transportation Division staff have traveled to this location to pick up crushed rock salt in the past, due to emergency circumstances, when crushed rock salt was needed but no deliveries could be made in an acceptable amount of time. Management determined that it was feasible for staff to travel 143 miles (286 miles round-trip) to purchase materials from this supplier. BUDGET/STAFF IMPACT: Funds for the acquisition of these materials have been budgeted in Street Fund. Bulk crushed rock salt will be purchased on an "as needed" basis and payment will be remitted via purchase requisition or procurement card, depending on the supplier. Attachments: Bid 15-41 Tabulation Conditional Requirements CITY OF a'ettevle ARKANSAS Bid 15-41, Bulk Crushed Rock Salt Bid: 15-41 DATE: 06/1912015 2:00 PM CITY OF FAYETTEVILLE ass >r>::«.:;....:..:,.:,..;..;<::.,,..;:;:;>:.;•:<:.::.:::>::.Morton ,� i > Cargill. Central Salt LLC Compass Minerals "' Independent Salt Co Salt Oakley Fertilizer Inc " y s Plant Address for Pickup N/A State Rd 14, Lyons, KS Riverfront Rd. Van Buren, N/A N/A Hwy 9, Morrilton, AR DESORPTION EST PRICE TOTAL PRICE TOTAL ; PRICE TOTL�PRICE PRICE TOTAL RICE PRICE EQCH., TOTAL PRICE, ITEM TONS PRICE_, ,.EACH. _ PRICE ,. L,EA H , < <.,, ,' . f<, EACH -'P_ , ..,EA¢H.. Medium Crushed Clean Rock Salt for Snow and Ice Removal: Maximum size 1 3/8" with no more than 5% exceeding size 3/8", meeting AHTD specifications - 600 NO BID NO BID $106.16 $ 63,696.00 $102.28 $ 61,368.00 NO BID NO BID NO BID NO BID $124.30 $ 74,580.00 DELIVERED to the City of Fayetteville, 1525 S. Happy Hollow, Fayetteville, AR 72701 -Through July 31, 2016 Medium Crushed Clean Rock Salt for Snow and Ice Removal: Maximum size 3/8" with no more than 5% plus 318" in 200 NO BID NO BID $ 65.00 $ 13,000.00 $ 99.78 $ 19,956.00 NO BID NO BID NO BID NO BID $ 95.00 $ 19,000.00 2 the mix, meeting AHTD specifications - PICKED UP by the City of Fayetteville - Through July 31, 2016 TOTAL BASE BID (Item I + Item 2) NO BID $ 76,696.00 $ 81,324.00 NO BID NO BID $ 93,580.00 *NOTICE: Bid award Is contingent upon vendor meeting minimum specifications and formal authorization by City officials, to-tG-)5 uau: Submitted Conditional Requirements for Bids Compass Minerals June 17, 2015 Dear Sir / Madam: Compass Minerals International (CMP) appreciates the opportunity to submit a rock salt bid to the City of Fayetteville, AR for the 2015/2016 season. In an effort to assist us in better servicing your needs moving forward, we are asking the City of Fayetteville to accept the following amendments to the current bid documents. Acceptance of these amendments will allow CMP to better service your requirements for the coming year by optimizing inventory levels at your service depot. 1) Bid is binding for thirty (30) days after the bid opening date. 2) CMP will not accept a secondary or back-up award. 3) The City agrees to purchase 80% of the base bid amount of 800 tons, and CMP agrees to provide up to 100% of the base bid amount. 4) The City agrees to take delivery of the 80% minimum on or before April 30, 2016. (Please understand that CMP is unable to carry over inventory at our depot.) 5) Contract expires on March 31, 2016. Should you have questions please do not hesitate to call me on my direct line at (913) 344-9360. Sincerely, Monica Lloyd Sales Manager -Highway Sales Dear City of Fayetteville, Looking forward to the potential of doing business with you. However, it should be noted that due to our business with the State Highway Department our salt will have five gallons of beet juice per ton. The beet juice, as you might already be aware, lowers the freezing point of the salt. Along with this, the added beet juice helps the salt stick to the road when it is dispersed. This lowers the chances of salt bouncing off of the ground when it is spread and not being as effective. I am also attaching a spec sheet of our salt for your convenience. Simply wanted to be clear as to what our product contains. Look forward to doing business together. Regards, Luke Vance Salt Division Manager Oakley Fertilizer LLC (501) 351-7270 Mobile (501) 320-8554 Direct