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HomeMy WebLinkAbout23-Purchasing .. - .. . CaTY: OF SAN BERNAaDINO - REQUEST FO COUNCIL ACTION From: Dean R. Meech, Purchasing Agent Dept: Purchasing ~: April 24, 1991 Subject: One Each. Chi pper Truck... Bid: F-91-11 Synopsis of Previous Council ection: None Recommended motion: Adopt Resolution Dean R. Meech. 4-./{kA Supporting data at1lIChed: yes Phone: 384-5085 Werd: N/A Contact person: Dean R. Meech, Purchasing Agent FUNDING REQUIREMENTS: Amount: $46.605.47 Source: (Acct. No.1 635-311-54011 (Acct. DescriDtionl Equipment Lease Payment (1-6 years) Finence: (j .--J ~ () r Council Notes: 7",.n~n:) Agenda Item No:J.,:J..-;J..3 .. CiTy"OF SAN BERN.aDINO - REQUEST Fa) COUNCIL ACTION STAFF REPORT F-91-11 The proposed purchase is for one (1) each new brush chipper truck to be utilized in daily operations by the Public Services/Street Department. At the request of the department, appropriate specifications were prepared, published and furnished to area suppliers. Bids were publicly opened and declared on April 23, 1991. The following is a sumary of bids received. COMPANY TOTAL BID (INCLUDING TAX) No Bid $42,303.93 (no bond) $41,626.59 (no bond) $46,605.47 (met bond requirement) Chino Hills Ford Fairview Ford Sales GMC Truck *Dietrich International Nineteen (19) vendors of this commodity were solicited. Four (4) vendors responded, one no bid, two (2) without meeting bond requirements and one meeting all requirements. Bid bonding is usually not requested when equipment is of a standard type item or minor accessory enhancement. This equipment requires the body to be specially fabricated on a standard purchased chassis. This involves a sub-contractor responsibility. Times are lean for equipment suppliers and many inquires have come into the City from unfamiliar sources. Because we advertise in a newspaper of general circulation along with known vendor source mailings the bid bond was felt necessary to eliminate risk to the City when supply is a two tier responsibility and may appear from an unfamiliar source. The requisition requested a "piggy back" (1) on original contract F-90-16 dated 5-15-90, 22 days short of one year. The Municipal Code gives the City latitude to purchase from a vendor or manufacturer which, through the City's bidding process, or other California government agency's bidding procedure, has established a price at which such a vendor is wil1in9 to sell to the City. The City has exercised this latitude in the past but not abused it. It has been utilized when mitigating circumstances prevailed or politic1y sensitive situations arose. We normally follow the standard ~lunicipa1 Code formal bid procudures. The bids at the time of 5-15-90 were very close, a $4738.00 difference. The difference today is $4998.00 but with the vendor failing to meet the material requirements of the bid specification, namely Section 29, bid bonding. This bid result was unexpected but the assurance to the City's risk position is valid. 75-0264 1 " o o STAFF REPORT April 24, 1991 Page 2 A note for Council's edification: the vendor who offered the equipment at the price paid last time through the back door did not respond to this bid. If we could buy a piece of equipment one year later in this particular industry at the same price, perhaps we paid too much last time. Total payout difference in last year's price to this year's price is $5744.00. Incidently a local vendor is recommended for the award. Specifications as bid meet the City's specifications and requirements. It is therefore recommended that the bid of Dietrich International at $46,605.47 be accepted for contract. The equipment is a lease purchase transaction. The lease purchase amount to finance is $46,605.47 including tax. The cost to finance is (9985.79 at 7.391 payable six (6) months in arrears for ten (10) semi-annual payments of $5659.12 for a total payout of $56,591.20 over five (5) years. The lease purchase vendor is Pacificorp Capital Inc. Equipment delivery is 120 days after receipt of order. Lease payment commences approximately six (6) months after receipt of equipment. Account Number: 635-311-54011 Total Amount: $46,605.47 ~.1_1'(;,~ ~"t A . : 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A SCHEDULE 22 ADDENDUM TO PACIFICORP CAPITAL INC. FOR THE FINANCING OF ONE (1) CHIPPER TRUCK, TO BE UTILIZED BY THE PUBLIC SERVICES/STREET DEPARTMENT IN ACCORDANCE WITH BID SPECIFICATION F-91-11. BE IT RESOLVED BY THE MAYOR. AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That Pacificorp Capital Inc. is the lowest and best responsible bidder for the financing of one (1) chipper truck in accordance with Bid Specification F-91-11 for the total amount of $56,591.10 at 7.391 interest payable six (6) months in arrears over five (5) years; pursuant to this determination, the Purchasing Agent is hereby authorized and directed to issue Schedule 22 Addendum to Lease Purchase Agreement Number 1112 dated February 6, 19B6 for said financing of one (1) chipper truck to said lowest and best responsible bidder; such award shall only be effective upon the issuance Schedule 22 Addendum to Lease Purchase Agreement Number 1112 by the Purchasing Agent; and all other quotations therefor are hereby rejected. SECTION 2. The authorization to execute the above referenced Schedule 22 Addendum to lease Purchase Agreement Number 1112 is rescinded if the parties to the agreement fail to execute it within sixty (60) days of the passage of this resolution. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of ,199___, by the following vote, to wit: / / / / / / / / / / / / / / / / / / / / / / / / 04-24-91 -1- ~3 - . . : 1 2 3 4 5 6 7 8 9 10 11 12 o o RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A SCHEDULE.Z2 ADDENDUM TO PACIFICORP CAPITAL INC. FOR THE FINANCING OF ONE (1) CHIPPER TRUCK, TO BE UTILIZED BY THE PUBLIC SERVICES/STREET DEPARTMENT IN ACCORDANCE WITH BID SPECIFICATION F-91-11. Council Members: AYES NAYS ABSTAIN ESTRADA REILLY FLORES MAUDSLEY MINOR POPE-LUDLAM MILLER 13 14 The foregoing resolution is hereby approved this 15 16 17 18 19 20 21 227S 23 Clty Clerk day of ,199_. W. R. HOlcomb, Mayor City of San Bernardino 24 25 26 04-24-91 27 28 -2-