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HomeMy WebLinkAboutORDINANCE 6147113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6147 File Number: 2018-0741 AIT SERVICES, INC.: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF SPARE PARTS AND REPAIR SERVICES FOR THE THERMAL DRYING UNIT LOCATED AT THE BIOSOLIDS MANAGEMENT SITE FROM AIT SERVICES, INC. IN THE AMOUNT OF $117,917.67 PLUS APPLICABLE TAXES, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $20,000.00, AND TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING FOR FUTURE PURCHASES OF PARTS AND REPAIR SERVICES FOR THE THERMAL DRYING UNIT FROM AIT SERVICES, INC. THROUGH DECEMBER 31, 2021 WHEREAS, the thermal dryer located at the City's Biosolids Management Site has helped save the City approximately $1,000,000.00 in landfill costs and generated $48,500.00 in revenue through fertilizer sales to the public in 2018; and WHEREAS, a recent inspection identified stress damage to split bearings, critical parts that support each end of the rotating drum, and the replacement or repair of the bearings and other worn or failing components should extend the life of the dryer up to five more years; and WHEREAS, AIT Services, Inc. is the sole provider of replacement parts for the thermal dryer. NOW, THEREFORE, 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 determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the purchase of spare parts for the thermal drying unit located at the Biosolids Management Site from AIT Services, Inc. in the amount of $117,917.67 plus applicable taxes, and further approves a project contingency in the amount of $20,000.00. Page 1 Printed on 217119 Ordinance Number.' 6147 File Number.' 2018-0741 Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that, because AIT Services, Inc. is the sole provider of replacement parts for the dryer unit, an exceptional situation exists in which competitive bidding is deemed not feasible or practical for future purchases and therefore waives the requirements of formal competitive bidding through December 31, 2021. PASSED and APPROVED on 2/5/2019 Attest: 111111rr►►► Lisa Branson, Deputy City Q,FK T ►i, ' f A YE EVILtf :;Iu rI..F�•��. C i"�+ �I 1 111 CO",%S Page 2 Printed on 217119 City of Fayetteville, Arkansas 113 West Mountain Street - •:4 Fayetteville, AR 72701 {+` (479) 575-8323 Text File -- File Number: 2018-0741 Agenda Date: 2/5/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: D. 2 AIT SERVICES, INC.: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF SPARE PARTS AND REPAI DRYING UNIT LOCATED AT THE BIOSOLIDS MANAGEMENT IN THE AMOUNT OF $117,917.67 PLUS APPLICABLE TA CONTINGENCY IN THE AMOUNT OF $20,000.00, AND TO FORMAL COMPETITIVE BIDDING FOR FUTURE PURCH SERVICES FOR THE THERMAL DRYING UNIT FROM DECEMBER 31, 2021 R SERVICES FOR THE THERMAL SITE FROM AIT SERVICES, INC. XES, TO APPROVE A PROJECT WAIVE THE REQUIREMENTS OF ASES OF PARTS AND REPAIR AIT SERVICES, INC. THROUGH WHEREAS, the thermal dryer located at the City's Biosolids Management Site has helped save the City approximately $1,000,000.00 in landfill costs and generated $48,500.00 in revenue through fertilizer sales to the public in 2018; and WHEREAS, a recent inspection identified stress damage to split bearings, critical parts that support each end of the rotating drum, and the replacement or repair of the beatings and other worn or failing components should extend the life of the dryer up to five more years; and WHEREAS, AIT Services, Inc. is the sole provider of replacement parts for the thermal dryer. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section l: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deerned not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the purchase of spare parts for the thermal drying unit located at the Biosolids Management Site frorn AIT Services, Inc. in the amount of $117,917.67 plus applicable taxes, and further approves a project contingency in the amount of $20,000.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that, because AIT Services, Inc. is the sole provider of replacement parts for the dryer unit, an exceptional situation exists in which competitive bidding is deemed not feasible or practical for future purchases and therefore waives the requirements of formal competitive bidding through December 31, 2021. City of Fayetteville, Arkansas Page 1 Printed on 2!7/2019 File Number: 2018-0741 City of Fayetteville, Arkansas Page 2 Printed on 217/2019 City of Fayetteville Staff Review Form 2018-0741 Legistar File ID 2/5/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Greg Weeks 1/4/2019 WASTEWATER TREATMENT (730) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends the approval of the purchase of spare parts and repair services for the thermal drying unit located at the Biosolids Management Site (BMS) from AIT Services, Inc. in the amount of $117,917.67 plus applicable taxes, to approve a project contingency in the amount of $20,000.00, and to authorize future purchases of parts and repair services through December 31, 2019. 5400.730.5800-5414.00 Account Number 02069.1 Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? No Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Water/Sewer Fund Plant Pumps and Equipment - WWTP Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Project Title $ 844,807.00 $ 698,366.79 146,440.21 $ 137,917.67 8,522.54 V20180321 Previous Ordinance or Resolution # Approval Date: CITY OF 3 FAYETTEVI LLE ARKANSAS MEETING OF FEBRUARY 5, 2019 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Tim Nyander, Utilities Director Water and Sewer Committee FROM: Greg Weeks, Jacobs Area Manager DATE: January 4, 2019 CITY COUNCIL MEMO SUBJECT: Thermal Dryer Parts and Repairs at the Biosolids Management Site RECOMMENDATION: Staff recommends the approval of the purchase of spare parts and repair services for the thermal drying unit located at the Biosolids Management Site (BMS) from AIT Services, Inc. in the amount of $117,917.67 plus applicable taxes, to approve a project contingency in the amount of $20,000.00, and to authorize future purchases of parts and repair services through December 31, 2019. BACKGROUND: Biosolids are the solid by-product from the water recovery process. Prior to 2012, all biosolids were landfill disposed. In 2012, the City implemented a sustainable, beneficial reuse drying process that converts the biosolids to a thermally dehydrated, organic -based Class -A, Exceptional Quality fertilizer, which is then sold for public use. The drying process is accomplished through operation of a 24 -cubic yard Fenton CM 7214 Thermal Dryer system. The biosolids drying process saves the City significant landfill costs annually, and through November 2018 generated approximately $48,500 in fertilizer sales. DISCUSSION: The biosolids are dried within a rotating drum supported on either end by large split bearings. Recent equipment inspections performed by AIT Services, Inc. identified stress damage to both split bearings; more recently shaft movement has also been measured pointing towards impending bearing failure. The manufacturer specified bearings are fabricated on a per order basis resulting in lead times of up to 5 months. If a bearing fails without the availability of a critical spare the thermal dryer down time could generate more than $500,000 of additional landfill fees while waiting for parts fabrication and delivery. The recent equipment inspection also identified several dryer components that are recommended to be replaced due to wear. These parts are needed to extend the life of the dryer for up to 5 more years. AIT Services, Inc is the sole authorized service and parts provider for Fenton Drying Systems. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 AIT Services, Inc. quoted $114,917.67 for the thermal dryer parts and repairs, and freight has been estimated in the amount of $3,000.00 for a total of $117,617.67. City staff recommends the approval of a contingency in the amount of $20,000.00 for potential parts and labor costs that could arise during the repair process. BUDGET/STAFF IMPACT: Funds are available in the Wastewater Treatment Plant CIP — Plant Pumps and Equipment project. Attachments: Quotes from AIT Services, Inc. AIT Services, INC. 1100 CR 134 13rownwood, TX 76801. 325-646-9759• TO — SHIP TO INSTRUCTIONS City of Fayetteville - - — ............. . .............. Same as recipient Add additional instructions - 2435 S Industrial Ur Fayetteville, AR 72701 QUANTITY DESCRIPTION PRICE •. 1 Rotor sprocket $9,669.52 $9,669.52 1 Motor drive sprocket $8,508.09 $8,508.09 1 Complete swivel $22,659.63 $22,659.63 2 Swivel rebuild kit including brass $2,602,55 $5,205.10 compression rings and compression washers 1 Stainless Steel Venturi $2,453.88 $2,453.88 Stainless Steel U trough with classifier box 1 and screen. approximately 12'3" long with $9,927.44 $9,927.49 lids and one end 2 Rotor packing glands this includes two $1,303.87 $2,607.74 aluminum packing rings and packing I Chamber product till limiting arm plus $385.00 $385.00 bearings 1. Thermocouple brush parts plus bearings and extra brush $735.00 $735.00 1 Water column gauge 0-10" $81.25 $81.25 SUBTOTAL $62,232.615 SALES TAX (1 PLUS, ALL SHIPPING ]'[iI) TOTAL $62,232.65 Thankyou for your business! AIT Services, INC. 1100 CR 139• Brownwood, TX 76801 325-646-9754 TO City of Fayetteville 2435 S Industrial Dr Fayetteville, AR 72701 SHIPTO INSTRUCTIONS _. . ......... Sante as recipient Add additional instructions 1 Craft Float Bearing: cartridge, bearing and $26,342.51 pedestal 1 Craft Locking Bearing: cartridge, bearing $26,34'1.51 and pedestal These are an alternate to the cooper hearings all specs are the same 4 — 6 weeks ship date SUBTOTAL SALES TAX PLUS, ALL SHIPPING TOTAL 'I'lhanl<you 1-01- your business! $26,39.2.51 $26,342.51 $52,685.02 0 TBD '52.681.02 RECEIVED MAR D 4 20I9 NRTH LEST ARKRNSRS C Il Y OF FAY E7TEVILLE rITY CLERK'S OFFICE Democrat,0azette AFFIDAVIT OF PUBLICATION I Cathy Staggs, do solemnly swear that I am the Accounting Manager of the Northwest Arkansas Democrat -Gazette, printed and published in Washington County and Benton County, Arkansas, and of bona fide circulation, that from my own personal knowledge and reference to the files of said publication, the advertisement of: CITY OF FAYETTEVILLE Ord. 6147 Was inserted in the Regular Edition on: February 21, 2019 Publication Charges: $ 139.10 "KSAAKD Cathy Staggs () (v Subscribed and sworn to before me This2'1 day of }„ 2019. Notary Public ff My Commission Expires; 2-4 � Ila* **NOTE** Please do not pay from Affidavit. Invoice will be sent. Ordinance: 6147 File Number 2018-0741 AIT SERVICES, INC AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPGf[TIVE BIDDING AND AUTI IORIZE THE PURCHASE OF SPARE PARTS AND REPAIR SERVICES FOR THE THERMAL DRYING UNIT LOCATED AT THE BIOSOLIDS MANAGEMENT SITE FROM AIT SERVICES, INC, IN THE AMOUNT OF S 117,917.67 PLUS APPLICABLE TAXES, TO APPROVE A PROJECTCONTINGENCY IN THE AMOUNT OF $20,000.00, AND TO WAIVE TI IE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING FOR FUTURE - PURCHASES OF PARTS AND REPAIR SERVICES FOR THE THERMAL DRYING UNIT FROM AIT SERVICES, INC. TI ]ROUGH DECEMBER 31, 2021 WHEREAS, the thermal dryer located at the City's Biosolids Management Site has helped save the City approximately $1,000,000.00 in landfill costs and generated $48,500,00 in revenue through Fertilizer sales to the public in 2018; and WHEREAS, a recent inspection identified stress damage to split hearings, critical parts that support each end of the rotating drum, and [he replacement or repair of the bearings and other worn or failing components should extend the life of the dryer up to five more years; and WHEREAS, AIT Services, Inc- is the sole provider of replacement parts for the thermal dryer. NOW, TI IEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: section I: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the purchase of spare parts for the thermal drying unit located at the Biosolids Management Site from AIT Services, Inc. in the amount of$1 17,917.67 plus applicable taxes, and further approves a project conlingcncy in the amount of $20,000,00. Section 2: That the City Council of the City or Fayetteville, Arkansas hereby determines that, because AIT Services, Inc. is the sole provider of replacement parts for the dryer unit, an exceptional situation exists in which competitive bidding is deemed not feasible or practical for future purchases and therefore waives the rcquirements of formal competitive bidding through December 31, 2021 PASSED and APPROVED on 2/5/2019 Approved: Lioneld B Jordan, Mayor Attest: Lisa Brinson, Deputy City Clerk 74844852 Feb -21,2019