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HomeMy WebLinkAboutORDINANCE 6226OF FAYEr' J i r V m o - , .40K AN; 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Ordinance: 6226 File Number: 2019-0490 PARKSON CORPORATION: AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND ACCEPT A QUOTE IN THE AMOUNT OF $47,500.00 PLUS APPLICABLE TAXES AND FREIGHT CHARGES FROM PARKSON CORPORATION FOR THE PURCHASE OF AN ELECTRIC TILLING MOLE FOR THE BIOSOLIDS MANAGEMENT SITE, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, over the past year three of the six Thermo -System mole units used at the Biosolids Management Site have experienced frame stress fractures that were repairable but which could indicate the risk of a more catastrophic or non -repairable failure; and WHEREAS, Parkson Corporation, which is currently the only national source of the mole units, is offering the units for 50% of the original price; and WHEREAS, the normal lead time for a replacement unit is six months and the failure of a unit without having a spare available would likely lead to the landfilling of 32 loads of biosolids equating to a cost of $29,000.00 not including additional fuel and labor costs. 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 accepts the quote in the amount of $47,500.00 (plus any applicable taxes and freight charges) from Parkson Corporation for the purchase Page 1 Printed on 914119 File Number 2019-0490 Ordinance 6226 of an electric tilling mole for the Biosolids Management Site. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Ordinance. PASSED and APPROVED on 9/3/2019 Attest: nnrrrn Sondra E. Smith, City Clerk TreaK/ T N, �; FAYEITEVILLE:�'I -A, Page 2 Printed on 914119 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2019-0490 Agenda Date: 9/3/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: C. 10 PARKSON CORPORATION: AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND ACCEPT A QUOTE IN THE AMOUNT OF $47,500.00 PLUS APPLICABLE TAXES AND FREIGHT CHARGES FROM PARKSON CORPORATION FOR THE PURCHASE OF AN ELECTRIC TILLING MOLE FOR THE BIOSOLIDS MANAGEMENT SITE, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, over the past year three of the six Thermo -System mole units used at the Biosolids Management Site have experienced frame stress fractures that were repairable but which could indicate the risk of a more catastrophic or non -repairable failure; and WHEREAS, Parkson Corporation, which is currently the only national source of the mole units, is offering the units for 50% of the original price; and WHEREAS, the normal lead time for a replacement unit is six months and the failure of a unit without having a spare available would likely lead to the landfilling of 32 loads of biosolids equating to a cost of $29,000.00 not including additional fuel and labor costs. 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 accepts the quote in the amount of $47,500.00 (plus any applicable taxes and freight charges) from Parkson Corporation for the purchase of an electric tilling mole for the Biosolids Management Site. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Ordinance. City of Fayetteville, Arkansas Page 1 Printed on 91412019 Tim Nyander Submitted By City of Fayetteville Staff Review Form 2019-0490 Legistar File ID 9/3/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/14/2019 WASTEWATER TREATMENT (730) Submitted Date Division / Department Action Recommendation: Staff recommends approval of the purchase of an electric tilling mole from Parkson Corporation for use at the Biosolids Management Site in the amount of $47,500.00 plus applicable freight and taxes, and approval of a budget adjustment. Budget Impact: 5400.730.5800-5801.00 Water and Sewer Account Number Fund 02069.1 Plant Pumps and Equipment - WWTP Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? Yes Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Project Title $ 1,128,495.00 $ 1,128,490.63 $ 53,119.00 $ 53,119.00 V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Approval Date: Comments: Freight is estimated at $900.00, and taxes are estimated at $4,719.00 for a total cost of $53,119.00. f CITY OF kL` FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 3, 2019 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Water & Sewer Committee Tim Nyander, Utilities Director FROM: Greg Weeks, Wastewater Treatment DATE: August 14, 2019 CITY COUNCIL MEMO SUBJECT: Purchase of an Electric Tilling Mole from Parkson Corporation RECOMMENDATION: Staff recommends approval of the purchase of an electric tilling mole from Parkson Corporation for use at the Biosolids Management Site in the amount of $47,500.00 plus applicable freight and taxes, and approval of a budget adjustment. BACKGROUND: The Biosolids Management Site utilizes a series of six solar houses, approximately 48,000 total square -feet, to partially dry wet biosolids prior to the thermal drying process for production of Class -A, biosolids fertilizer. Each solar house includes an electric mole unit specifically designed for tilling the biosolids automatically, aiding in the drying process. The biosolids drying process saves the City significant landfill costs annually, as well as allows for beneficial reuse of the biosolids material. DISCUSSION: The City's solar houses drying system is a trademarked product of Thermo -System GmbH, out of Germany. Since initial construction and system startup in May 2011, Parkson Corporation has been Thermo -System's exclusive parts and services representative for US customers. Recently, project staff were informed by Parkson, the US representative of the solar drying system, they will no longer be carrying the sole source rights of representation for Thermo - System GmbH products for US customers. In addition to recently announcing their change of representation status, Parkson has offered the City discounted pricing on their in -stock Thermo - System products. An item of interest is a robotic tilling mole unit, originally designed specifically for Fayetteville's drying system, available at 50% its original list price. The solar houses and current electric tilling mole units have been in operation for just over 8 years. This service time translates to over 13,000 hours, or an estimated 35,000 miles, of operation per mole unit. This year, three of the six mole units have experienced frame stress fractures. Fortunately, the stress fractures have been repairable, but these damages could be indicative of extended component usage and the possibility of a more catastrophic frame or other non -repairable failure. Parkson has indicated that normal lead time for a replacement mole Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 is six months. Considering recent developments between Parkson and Thermo -System's US representation, the availability of a new mole unit and repair parts is completely uncertain for the near future. If a solar house were out of service for even eight months, while replacement units or parts are on order (or unavailable), staff estimates at least 32 loads of biosolids would need be landfilled. At an average cost of $900 per load hauled to the landfill that equates to almost $29,000, which does not include the additional fuel and labor for the landfill hauling. Staff recommends a bid waiver with Parkson Corporation as they are currently the only US source of the Thermo -System electric mole unit. Parkson recently submitted a quote of $47,500.00 for a mole unit that will would be available as a critical spare for the Biosolids Management Site. Freight is estimated at $900.00, and taxes are estimated at $4,719.00 for a total cost of $53,119.00. BUDGET/STAFF IMPACT: Budgeted funds will be moved from the Sanitary Sewer Rehabilitation account to the Plant Pumps and Equipment account to cover the cost of the purchase of an electric tilling mole for the Biosolids Site. Funds being moved are budgeted funds for sewer rehabilitation/replacement and maintenance. Attachments: Quote from Parkson Corporation Budget Adjustment Aftermarket - Quotation Parkson 1401 W. Cypress Creek Road - Suite 100, Fort Lauderdale, FL 33309 1- 888 PARKSON I"ming 5l 562 Bunker Court, Vernon Hills, IL 60061 1-800-249-2140 * The Quotation is submitted pursuant to Parkson Corporation's Aftermarket Terms and Conditions, which are attached hereto Quote Name Fayetteville AR 700194 evs 6122/19 Created Date 6122/2019 Quote Number 00024795 Expiration Date 7/22/2019 Prepared By Edna Sugden Contact Name Chiisty Taylor Phone 847-837-4938 Phone (479) 444-0717 Email Email chiisty.laylot@jacobs.com cces,,��ugden@parkson.com CL�+'YA �"l &-0G VCo'4' -' Bill To Name Fayetteville AR WWTP Ship To Name Fayetteville AR WWTP Project t# 700194 Estimated Delivery 1 week Product Numbei DescriptionOtem Line Item - Customized Mole, ThermoSystems "Billy" (originally sold to Fayetteville, t hen reparied and Custom 1.00 $47,500.00 $47,500.00 Item used as a show unit since 0900000- x- Freight Ground transportation via flatbet Line Items Please complete information below: / BILL TO Name: �i{%1 Address �ke�dJ PO tf: Bill to - Email: m ►LhobsK 414ku)s(—OLY.g" V 11 // Quote Acceptance Information Signat Name J V�y(vNl/ Title Date jla� 1 1.00 $900.00 $900.00 Subtotal $48,400.00 Total Price $48,400.00 SHIP TO Name: IllV1 -- I f r. _ _ - Address�I r ���Q n -lye, j City, State, Zip:1aq0*—VJjl Q Ndi ' bt" NI SHIP TO Attn of: V tr 1 AcjJf� Phone: Lfl C145 — (�Q All amounts expressed in US Dollars Par sin Treating water Righ[ 8-5-2019.dk Jacobs (Fayetteville parts) AFTERMARKET TERMS AND CONDITIONS (DOMESTIC) These terms and conditions ("Agreement") apply to your purchase of Parts as described on page 1 above ("Parts") from Parkson Corporation ("Parkson"), is the entire contract between you and Parkson and supersedes any previous communications, representations or contracts between you and Parkson regarding the Parts. Any additional or different terms will not apply, and this Agreement may not be altered, supplemented or amended unless agreed to in writing by Parkson. By placing an order based on this Quotation, you accept and are bound to this Agreement. 1. Orders. Either a Purchase Order from you referencing this Quotation or the execution of this Quotation is required prior to order activation. You are responsible to ensure that all information provided to Parkson is accurate and complete. Your order is subject to both acceptance and cancellation by Parkson, in its sole discretion. All orders are subject to Credit approval. Miscellaneous expenses (courier, freight charges, handling, insurance, etc.) and travel associated with the order will be for your account. You may not cancel or change an Order after acceptance by Parkson without the written consent of Parkson. If Parkson, in its sole discretion, agrees to cancel an Order, you are responsible to pay for all work completed and expenses incurred from the earlier of the date of the order, or authorization to proceed, plus a cancellation fee of 20% of the order value. If Parkson, in its sole discretion, agrees to change an order at your request, you are responsible to pay for all additional expenses resulting from that change. 2. Payment Terms. Payment terms are 100% Net 30 due from date of invoice, subject to credit approval. Parkson accepts cash, check, Visa, MasterCard and American Express. Parkson may invoice part of an order separately.,A 2,0% processing RIAX,$1 v r .ifayment month -or -the -highest ameunt-permitted-hy-law;-okraif�.� �'�.,.e-...,.,�^a There is a $50 minimum on all orders. A Packaging and Handling fee of $25 for all orders under $2,000.00 will apply unless paying by credit card. In those situations, fees will be waived. 3. Shipping; Title; Risk of Loss; Acceptance. Parkson will pre -pay and add delivery charges to a courtesy. Shipping terms for all Parts are FOB destination therefore, delivery failures are not Parkson's responsibility. Quoted lead-times reflect best estimation based on loading and capacity at time of Quotation but are not guaranteed. Parkson reserves the right to inform you of lead-time changes. You must notify Parkson within ten (10) days of receipt of shipment, in writing, if you believe any part of your purchase is missing, wrong or damaged. Unless you have so notified Parkson, specifying the nature of what is missing, wrong, or damaged within ten (10) days of shipment, Parts will be deemed accepted, non -returnable and non-refundable. 4. Taxes. Unless provided with a valid and correct tax exemption certificate applicable to your purchase of Parts and the Parts' ship -to location, Parts sold by Parkson and shipped to certain destinations are subject to collection of sales tax by Parkson. You are responsible for any other sales, use or other taxes associated with the order. 5. Force Majeure. Parkson shall not be responsible for any delay or failure in delivery or performance of any of its duties hereunder due to acts of God, acts or omissions or any other occurrence commonly known as Force Majeure, including war, riots, acts of terrorism, embargoes, strikes, or other concerted acts of workers, casualties or accidents, or any other causes or circumstances that prevent or hinder the manufacture or delivery of the Parts. Parkson may cancel or delay performance hereunder for so long as such performance is delayed by such occurrence and in such event Parkson shall have no liability to you whatsoever. 6. Warranty where as_, , E98}days-#otlowing�he Fa+#s-shipment-date-Ifzheorder-includes-any-oust€eservise by--Parkson,-the-warranty shall-be--fo,-:--psi o„a-of -one- )-yeaF-from--the--Parts shipment -date his -shall -be a-limited-warrantr€o-be-€ree #om defective-materiai-and workmanshf p,-under_normal---use-aad-sepAce-and-whea-instal led, -operated -and main€aired--- in-accordance--with--installa€ion--instwc€ions;--this-pelisy--and maintenance/operating-procedures To -make -claim -under -this -Warranty, -you -must not4--Rarksor}-wftWw 'Wn-(l%-business-days-atter--the-date-oU-dt6cevery-of any nonconforfnkyand-make thea€fected-Part4a4rnmediately-available-for-inspection-by Parkson--©r----its--sewice-repres6nta€ive—lf-Parksor+s--inspection -indicates nonconfwrmfing-materia/sandWworkmanship,-€he Part. .,ill, at-Parkson's-trptioa; either--be-repaired-or-replaced-without-charge. Upon-receipt-of-Parkson-'s-written consent, -Parts-may--be-promptly-retumed-to-ParksorL-F:O B. -its -factory: However, under --certain circumstaaees; Parkson may decide, fa its-fiole-discretion to repair -or replace-Pa#s-at-the--Project-site..-Buyer-hereby--agrees-to--Provide-Aarksoa its (employees-aadlor representat4es €reeet-charge,-on-site-access-t-theRroject-sfte; land-any-necessary-ut;4 ies and -plant -personnel needed-by-Rafksoa for -the -purpose of-repairing-andlor-replacing-nonconforming-Rants- perthis -Warra nty-.4he-fotlowiag (W111-VOId-thiS-Warrdnty:-i?artS-that-ar@�i6ed-fOF-pUr{i06eS-Other-tf7aR�fio6@-fiOFWhIGt1 �tliEjF-wEY'e--de6igai'ff; o -,-a y--.^Ot-Ufied--1n--:3��.COrda+Ice-Wltt}-g@nerall}!-apprOVed (practice ; -wiad; (earthquake] eave-in,-hghtniag -war; of raadaiism -unauthorized alterations to -or !modifications -of -the -Part rkson, ia-writing; Abuse,-aeglest-0r imisuse- af--Parts-inoiuding-without-limitation operatior, -is I d+scevered;-Operation--of-Parts-by-persons-+wt-properly-traiaed�or-that-purpose; (failure-to-operate-the-Pa#s-in--accordance--wfth-Rarkson� specif+cations;-0&M (�-0EherritteaaideNnes-andle (inspection,-adjustment-and/or-preventative--maintenance.-Parkson-is not -liable -for (any-sorrectwe-wo*-oF-expenditure--that-has-not been-authorizod--by-Parkson-in (writing-W*r4o} the-68mrnenGement-of-6uch-work-and-fHlO"o--committing-to-such (expendituresffs requested--bY-BuYeF, where ns -evidence of Ineaoeaformfagraater+ars,aadler workmaas#ip-isfound; wilFbe invoiced-io-the-Buyer (at Parkson'-s-c.;rrent-;,er a.'em�sl.�� °u.,-a,.-t.R.,^�.,�I-,-,.n.' riving-e�cpeases-OasiteaaboFand !#refight -are -not -covered by this Warranty,-This-Warrantydoes-not-cover--normalwear land tear -Following a -Warranty -claim verih tion -and (raa+aienance is-required.-Rhysical-damage-due-to-external-force6-andtor-accident is (not-covem"y-t#»s-Warranty.-TheefferA"f-sorrosien--and-unforeseeabieanflueat isharasteristicsare-exoluded.-from-this-Warranty-Actions-by-3N parties -in -causing (flonsonformity-o%the-Parts-are-not-covered-under4his-Warranty: --THE-FOREGOING UMITED-WARRANTYfS-E-XGLIIcnr� ..€-4ND-nun �N-LIEU-OF-AL1-0THER-GUARANTEES kAND-WARRA14TIES-0E-ANY-KN[D-WHATSOEVER, 4R1TTEN;-ORAL-OR4MPLIED; idl 1 r1T HER WARRAAITIC-lMIT-A-TION-ANY-WARRANT-YOF (MERCI•IANTA&L}TY--ANDIOR FfT-NESS FOR_-A--PARTICULAR..-PURPOSE;- ARE (BIER€B-Y--DISGIAIMED. 7. Limitation of Liability. PARKSON DOES NOT ACCEPT LIABILITY BEYOND THE REMEDIES SET FORTH HEREIN, INCLUDING BUT NOT LIMITED TO, ANY LIABILITY FOR PARTS NOT BEING AVAILABLE FOR USE, LOST REVENUE OR PROFITS OR LOSS OF BUSINESS. PARKSON WILL NOT BE LIABLE FOR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, INDIRECT, OR PUNITIVE DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY THIRD PARTY. YOU AGREE THAT FOR ANY LIABILITY RELATED TO THE PURCHASE OF PARTS, PARKSON IS NOT LIABLE OR RESPONSIBLE FOR ANY AMOUNT OF DAMAGES ABOVE THE AMOUNT INVOICED FOR THE APPLICABLE PARTS. PARKSON SHALL NOT BE RESPONSIBLE, UNDER ANY CIRCUMSTANCES, FOR ATTORNEYS' OR LITIGATION EXPENSES. 8. Indemnification. You shall comply and require your employees to comply with all instructions provided by Parkson regarding installation, use and maintenance of the Parts and shall require your employees to use reasonable care and all safety devices in the operation and maintenance of said Parts. You shall not remove or permit sueh-aeeident-er- You agree to indemnify and hold Parkson and its suppliers harmless from any and all claims, demands, liabilities, causes of action, suits, costs and expenses of any kind and nature (including attorney's fees) ("Actions") for personal injury or property damage arising from or in any way connected with the operations, activities or use of the Parts if you fail to fulfill any of the foregoing obligations. You agree to indemnify Parkson, its employees, agents, representatives and suppliers from and against any and all Actions, regardless of form, concerning any breach of this Agreement by you, any acts or omissions by you relating to your performance hereunder, and any claim of third parties arising out of this Agreement or the sale of Parts hereunder. 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Arkansas ®without reference to the choice of law principles thereof. Any action arising out of or relating to this Agreement shall be brought to any federal or state court in Arkansas having jurisdiction of the subject matter, and you irrevocably consent that such a court shall have personal jurisdiction over you and you waive any objection that the court is an inconvenient forum. CNF -026 Rev 4 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number /Org2 WASTEWATER TREATMENT (730) 2019 Requestor: Cheryl Partain BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A Budget Adjustment is needed in the Plant Pumps and Equipment - WWTP project for the purchase of an electric tilling mole for the Biosolids Management Site. Budgeted funds from the Sanitary Sewer Rehabilitation project will be transferred to this project to cover the cost of this item. The budgeted funds being transferred are for sewer rehabilitation/replacement and maintenance. RESOLUTION/ORDINANCE COUNCIL DATE LEGISTAR FILE ID# 9/3/2019 2019-0490 L ilk H u tche+i* 8/15/2019 4:31 PM Budget Director TYPE: JOURNAL #: GLDATE: CHKD/POSTED: Date D - (City Council) TOTAL - - x.20190516 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 5400.730.5800-5801.00 53,119 - 02069 1 EX Fixed Assets 5400.720.5700-5815.00 (53,119) - 02017 1 EX Sewer Improvements H:\Budget Adjustments\2019_Budget\City Council\09-03-2019\2019-0490 BA Parkson Corporation 1 of 1 RECEIVED OCT 03 2019 NORTHWEST ARKANSAS GTY OF FAYETT 19 YeMoCt � CITY CLERK'S O�FICE (a AFFIDAVIT OF PUBLICATION I Cathy Staggs, do solemnly swear that I am the Accounting Manager for 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. 6226 Was inserted in the Regular Edition on: September 12, 2019 Publication Charges: $ 117.00 Cathy SU s Subscribed and sworn to before me This �p day ofSLP}—, 2019. &,- -7, , C' C) Notary Public My Commission Expires: 2(L-D'ZZ2,1- k,,,i HY WILES r .ansas - Benton County 1'2tzry Public - Comm# 12397118 Commission Expires Feb 20, 2024 **NOTE** e Please do not pay from Affidavit. Invoice will be sent. Ordinance: 6226 File Number: 2019-0490 PARKSON CORPORATION: AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND ACCEPT A QUOTE IN THE AMOUNT OF 547,500.00 PLUS APPLICABLE TAXES AND FREIGHT CHARGES FROM PARKSON CORPORATION FOR THE PURCHASE OF AN ELECTRIC TILLING MOLE FOR THE BIOSOLIDS MANAGEMENT SITE, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, over the past year three of the six Thermo -System mole units used at the Biosolids Management Site have experienced frame stress fractures that were repairable but which could indicate the risk of a more catastrophic or non -repairable failure; and WHEREAS, Parkson Corporation, which is currently the only national source of the mole units, is offering the units for 50% of the original price; and WHEREAS, the normal lead time for a replacement unit is six months and the failure of a unit withal having a spare available would likely lead to the landfilling of 32 loads of biosolids equating to a cost of $29,000.00 not including additional fuel and labor costs. 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 accepts the quote in the amount of $47,500.00 (plus any applicable taxes and freight charges) from Parkson Corporation for the purchase of an electric tilling mole for the Biosolids Management Site. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Ordinance. PASSED and APPROVED on 9/3/2019 Attest: Jordan, Mayor E. Smith, City Clerk Treasurer 63 Sept. 12, 2019