HomeMy WebLinkAbout128-15 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
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: FAYET-I f Vll_LE
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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