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Home My WebLink About22- Public Services CITY OF SAN BERNA RDINO - REQUEST MR COUNCIL ACTION From: Pat Malloy, Director Subject: Resolutions awarding Purchase Orders to Amrep Incorporated and Southcoast Peterbilt Dept: Public Services for the furnishing and delivery of eighteen (18) each, automated side load refuse Date: January 18, 1995 vehicle bodies, refuse collection bodies and truck chassis. Synopsis of Previous Council Action: None 9JAN 31 Recommended Motion: Adopt Resolutions. i Signature I Contact person: Michael Eitel eorge, Fleet Manager Phone: 384-5220 Supporting data attached: Staff Report, Resolution Ward: All i FUNDING REQUIREMENTS: Amount: $2 , 053 ,910. 61 Source:(Acct. No.) 127-412-56102 Acct. Description) Refuse Residential Lease Payments Finance: Council Notes: Agenda Item No. Z-6-f CITY OF SAN BERNA RDINO - REQUEST MR, COUNCIL ACTION STAFF REPORT The Public Services Department's 1994/95 Budget provides for the replacement of eighteen (18) rear-loading refuse trucks with automated sideloader refuse collection vehicles. These vehicles are used daily in the collection of solid waste in the residential neighborhoods. The age of these trucks range from ten (10) to fourteen (14) years and have an average of 200,000 miles per truck. Last September, Council approved a residential recycling program in concept, and following further study, authorized staff to proceed with implementation of a three (3) can residential collection program on December 19, 1994. Notices inviting bids for chassis, Bid No. 95-07 and for bodies, Bid No. 95-06 were published locally and bid packages were mailed to 13 and 12 vendors respectively. As advertised, sealed bids were opened on August 16, 1994. The results of the acceptable bids from this process are summarized below for Councils review: TRUCK CHASSIS VENDOR LOCATION BID PRICE Southcoast Peterbilt Pico Rivera $1,345,993:61 Inland Empire White/Gmc Riverside $1,371,095.79 Carmenita Truck Center Santa Fe Springs $1,371,653.19 Trans West Fontana $1,640,458.73 i The bid received from Southcoast Peterbilt in Pico Rivera, $1,345,993.61 for (18) truck chassis' is the apparent low bid and meets the required specifications and the needs of the department. REFUSE COLLECTION BODY VENDOR LOCATION BID PRICE Amrep Inc. Ontario $ 707,917.00 American Vehicles Pomona $ 707,917.50 A bid of$703,456.65 was also received from Maxon Refuse Products, Huntington Park. This bid does not meet the specifications; the refuse collection body is too wide to be legally driven on public streets. Staff also conducted a field demonstration for this unit. The unit's performance was not acceptable as this unit could not empty the contents of a refuse can efficiently or effectively. The bid received from Amrep Inc., $707,917.00 meets the requirements of the Department and the specifications. However, following the receipt of these bid packages, the City was notified by Sunbelt Automated Systems that Amrep, Inc., has infringed upon their patent for a portion of the refuse collection body. Staff met with the City Attorney's office and Amrep. The City Attorney's office also contacted Amrep's legal counsel and Amrep has agreed by letter, copy attached, to indemnify and save harmless the City of San Bernardino against any and all CITY OF SAN BERNA RDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT Page 2 of 2 liability, loss, damages, cost or expense which the City may incur should Sunbelt Automated Systems, Inc. bring civil action against the City for patent infringement. The City Attorney's office is satisfied with this response. Purchasing and Public Services staff have evaluated the bids based on unit cost and conformance to the bid specifications. Based on this evaluation, staff is recommending that the bids from Southcoast Peterbilt and Amrep Inc. be accepted. Both companies have submitted letters agreeing to honor the bids as submitted last August. The Finance Department is currently accepting bids for the financing package for the lease purchase of all eighteen trucks and bodies. A Council Report recommending a contract for financing will be brought before Council by the end of February. Pat Malloy Barbara Pachon Director of Public Services Director of Finance I SOUTH COAST P E T E R B I L T December 22, 1994 Mike Eitelgeorge City of San Bernardino 300 N. "D" Street San Bernardino, CA 92418 I Dear Mr. Eitelgeorge: As previously quoted to the City of San Bernardino on Tuesday, August 16, 1994, Bid F-95-06, the prices for the eighteen (18) Automated Side Loader Refuse Trucks (Cab and Chassis only) are still i good and in effect. Thank you for giving South Coast the opportunity to serve your refuse truck needs. Yours truly, Ed Badalian Manager, Refuse Equipment Sales EBlcs AN AFFILI-c or AM t P® - 1555 SOUTH CUCAMONGA . ONTARIO, CALIFORNIA 91761 . (909)923-0430 December 22, 1994 Mike Eitelgeorge Fleet Manager City of San Bernardino 182 S. Sierra Way San Bernardino,Ca 92408 Re: Extension of Price Protection Bid#F-95-07 Dear Mr.Eitelgeorge: This letter is to inform you that Amrep,Inc. will extend the price quoted for the above Bid# for an additional 60 days from the above date. Any purchase orders awarded during the stated period will be honored by Amrep,Inc. If you need any further information please contact me at the above telephone number. i Thank you, c L. Mattson Sales and Marketing Manager Amp,Inc. AM - � E?o 1555 SOUTH CUCAMONGA • ONTARIO, CALIFORNIA 91761 • (909) 923-0430 December 08, 1994 Frank L. Rhemrev Deputy City Attorney City of San Bernardino 300 N. "D" Street San Bernardino, Ca 92418-0001 Re: Demand For Indemnification and Defense Dear Mr. Rhemrev: This letter is in response to your letter dated November 01, 1994 in which you have requested,in accordance with General Specification No. 8 of Specification No. 94-06,that Amrep indemnify and defend the City in any action relative to the City's use of Amrep's automated sideloading refuse trucks. Please be advised that Sunbelt Automated Systems has filed an action for patent infringement against Amrep, Inc., based on U.S. Patent No. Re. 34,292. Amrep denies that it has infringed said patent, and further believes and alleges that said patent is invalid. Amrep is vigorously defending the lawsuit and is prepared to present evidence showing that there is no objectively reasonable basis for Sunbelt's claim of infringement. Amrep's legal counsel is Baker, Maxham,Jester&Meador, 750 "B" Street, Suite 2770, San Diego, California 92101. Any questions regarding this lawsuit should be directed to Mr. Walter W. Duft of that firm at 619-233-9004. In specific response to the City's request for indemnification,Amrep hereby agrees to indemnify and save harmless the City of San Bernardino against any and all liability, loss,damages,cost or expense which the City may hereinafter incur, suffer or be required to pay by reason of any civil action brought against it by Sunbelt Automated Systems, Inc. for infringement of U.S. Patent No. Re. 34,292. Ve truly yours, TT"sx_ Jose Ghibaudo, President Amrep, Inc.