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HomeMy WebLinkAbout178-21 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 178-21 File Number: 2021-0435 AIT SERVICES, INC.: A RESOLUTION TO AUTHORIZE THE PURCHASE OF A CARBON STEEL RIBBON BLENDER FROM AIT SERVICES, INC. FOR $19, 625.00 PLUS ANY APPLICABLE TAX AND FREIGHT CHARGES FOR THE THERMAL DRYING UNIT AT THE BIOSOLIDS MANAGEMENT SITE, AND TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $3,925.00 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 authorizes the purchase of a carbon steel ribbon blender from AIT Services, Inc. for $19,625.00 plus any applicable tax and freight charges for the thermal drying unit at the Biosolids Management Site, and further approves a project contingency in the amount of $3,925.00. PASSED and APPROVED on 7/6/2021 Page 1 Printed on 7/7n1 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2021-0435 Agenda Date: 7/6/2021 Version: 1 Status: Passed In Control: City Council Meetinq Agenda Number: A.3 AIT SERVICES, INC.: File Type: Resolution A RESOLUTION TO AUTHORIZE THE PURCHASE OF A CARBON STEEL RIBBON BLENDER FROM AIT SERVICES, INC. FOR $19, 625.00 PLUS ANY APPLICABLE TAX AND FREIGHT CHARGES FOR THE THERMAL DRYING UNIT AT THE BIOSOLIDS MANAGEMENT SITE, AND TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $3,925.00 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 authorizes the purchase of a carbon steel ribbon blender from AIT Services, Inc. for $19,625.00 plus any applicable tax and freight charges for the thermal drying unit at the Biosolids Management Site, and further approves a project contingency in the amount of $3,925.00. City of Fayetteville, Arkansas Page 1 Printed on 7/7/2021 Tim Nyander Submitted By City of Fayetteville Staff Review Form 2021-0435 Legistar File ID 7/6/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 6/9/2021 WASTEWATER TREATMENT (730) Submitted Date Division / Department Action Recommendation: Staff recommends the approval of the purchase of a carbon steel ribbon blender for the thermal drying unit located at the Biosolids Management Site from AIT Services, Inc. in the amount of $19,625.00 plus applicable taxes and freight charges, and to approve a project contingency in the amount of $3,925.00. 5400.730.5800-5414.00 Account Number 02069.1 Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? No Budget Impact: Water and Sewer Fund Plant Pumps and Equipment - WWTP Project Title Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget $ 1,317,743.00 $ 426,301.51 L$ 891,441.49 $ 29,912.50 V20180321 Purchase Order Number: Previous Ordinance or Resolution # Ord. 6147 Change Order Number: Original Contract Number: Approval Date: Comments: Freight is estimated at $4,000 and taxes are estimated at $2,362.50. With the contingency of $3,925.00, the estimated total project cost is $29,912.50. CITY OF FAYETTEVILLE ARKANSAS MEETING OF JULY 6, 2021 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Tim Nyander, Utilities Director DATE: June 9, 2021 CITY COUNCIL MEMO SUBJECT: AIT Services, Inc. — Purchase of a Carbon Steel Ribbon Blender for the Thermal Dryer at the Biosolids Management Site RECOMMENDATION: Staff recommends the approval of the purchase of a carbon steel ribbon blender for the thermal drying unit located at the Biosolids Management Site from AIT Services, Inc. in the amount of $19,625.00 plus applicable taxes and freight charges, and to approve a project contingency in the amount of $3,925.00. BACKGROUND: In 2020, Jacobs was approved to replace the existing 10-year old surge bin at the Biosolids Management Site as a scheduled 2021 CIP. After further evaluation, it was determined that an in-house refurbishment will be more economical and the scope of the project was modified. Jacobs will purchase the material needed and provide the labor to refurbish the surge bin. The City will provide the ribbon blender needed to complete the rebuild. DISCUSSION: The City received a quote from AIT Services, Inc for a new carbon steel ribbon blender at $19,625.00 plus applicable taxes and freight charges. Freight is estimated at $4,000.00. Additionally, due to the volatile nature of materials prices in the current market, it is requested to add a 20% contingency of $3,925.00 for a total cost of $29,912.50 (including freight and taxes). Ordinance 6147, signed on February 5, 2019, waives competitive bidding through December 31, 2021 for thermal dryer parts and repair services through AIT Services, Inc. BUDGET/STAFF IMPACT: Funds are available in the Plant Pumps & Equipment - WWTP account within the Water & Sewer Fund. Attachments: Quote from AIT Services Ordinance 6147 Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 AIT SERVICES, INC. Date: May 3, 2021 To: Jerry Genz Jacobs/Fayetteville From: Dan Bolton AIT Services, Inc. Re: Ribbon Blender Price Jerry, The price below is for a replacement shafted ribbon blender for your existing dryer dry product surge bin. This price does not include the vessel, bearings, or any other component. Price: $19,625.00 Lead Time: Estimated 8 —10 Weeks ARO and Down Payment Not Included: Any State or Local Taxes, Installation or Freight Terms: 50% Down with PO — 50% Net 30 Upon Completion Freight: Estimated maximum freight cost - $4,000. Note: The ribbon blender design is taken from the original files of Fayetteville generated when the dryer was manufactured by Fenton Environmental Technologies, Inc. The drawings of the ribbon blender from these files now owned by AIT were submitted to the original manufacturer and supplier of the complete surge bin mixer for pricing. While AIT believes the ribbon blender proposed should be a direct replacement for the existing component, no guarantee or warranty of such can be provided unless exact measurements if the existing component can be compared to the drawings on file. If you have any questions, please let us know. Thanks, Dan Bolton P.O. Box 2333 1100 CR 134 Phone: 325-646-9754 Brownwood, TX 76804 Brownwood, TX 76801 Fax: 325-649-9658 113 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: Lisa Branson, Deputy City Q,FK T ►i, ' f A YE EVILtf :;Iu r I..F�•��. C Page 2 Printed on 217119