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HomeMy WebLinkAboutItem 2e: Purchase Order Contract to Nixon-Egli Equipment Company for Asphalt Truck Purchase of A• c Ay LFOR k 1 ,. It o r i ' Auy �/, 10 3 °° STAFF REPORT Public Works Services Department DATE: May 3, 2011 TO: Mayor and City Council FROM: Tom Tait, Public Works Services Director Prepared by: Dave McVey, General Services Superintendent SUBJECT: AWARD A PURCHASE ORDER CONTRACT TO NIXON -EGLI EQUIPMENT COMPANY FOR THE PURCHASE OF AN ASPHALT TRUCK IN THE AMOUNT OF $118,283.06 Recommendation: Approve SUMMARY Staff is recommending that the City Council award a purchase order contract to Nixon Egli Equipment Company for the purchase of a new 2011 heavy -duty compressed natural gas (CNG) asphalt truck to replace the existing 1991 asphalt patch truck, which meets the replacement criteria in the City's Equipment Replacement Program. Funds in the amount of $175,000 have been budgeted in the 2010 -11 Equipment Replacement Program. DISCUSSION The 2010 -11 Equipment Replacement Budget provides funds for the replacement of the 1991 asphalt truck with 115,000 miles. The funding for this replacement vehicle includes $100,000 from AQMD grant funds and $75,100 from the Water Fund. Specifically, the vehicle replacement will be a new 2011 PB loader asphalt unit (covered heater dump bed) mounted on a 2011 Ford F550 chassis and converted to CNG. The Ford F550 is an alternative fuel engine using CNG, which qualified for AQMD funding. The 1991 asphalt truck meets the replacement criteria in the City's Equipment Replacement Program. The truck is currently used daily by Public Works Services maintenance crews for a variety of asphalt repairs. These repairs range from small pot- hole repairs to the removal and replacement of large sections of asphalt. The new 2011 heavy -duty asphalt vehicle replacement truck has several advantages over the existing asphalt truck, both environmentally and functionality. For example, the new truck is fueled by CNG versus diesel, which meets AQMD requirements for alternative fuel and it helps the City to be in compliance with AQMD alternative mandates. Additionally, the new replacement truck can also hold three tons of asphalt versus only three - quarters of a ton with the old truck. The built in heater and covered dump bed (or you can think of it as an oven) keeps the asphalt material hotter for a longer period of time, which enables the City's maintenance crews to replace more square footage. The hotter material Page 1 of 2 Mayor and Council May 3, 2011 makes is easier for the maintenance crews to handle and work the asphalt material, thus allowing for a better finish. • Staff conducted a formal bidding process to award an asphalt truck with heater and covered dump bed. Notice inviting bids was published in the adjudicated along with bids mailed to local vendors. As advertised, the City Clerk publicly opened the sealed bids on April 5, 2011, with the following results: Bidder Location Amount Nixon -Egli Equipment Co. Ontario, CA $118,283.06 Municipal Maintenance* Sacramento, CA $66,195.71 *Non- responsive The new asphalt truck is difficult to purchase because the City's specifications call for a smaller version for the covered heater dump bed. The smaller version of the truck is more closely in line with the quantity of work that our maintenance crews are doing. Staff met with three (3) local vendors who could provide this piece of equipment, hoping to generate a competitive bidding environment. While two bidders submitted a bid (as listed above), the third vendor, Haaker Equipment, did not submit a bid, indicating that they could not get a chassis to mount the covered heater dump bed. Consequently, Municipal Maintenance's bid is considered non - responsive due to an incomplete bid. They failed to include the cost for the Ford F550 truck chassis as required in the bid specifications. Staff reviewed the bid documents from Nixon -Egli Equipment Company and verified that all their bid information is correct. Therefore, staff recommends that the City Council award a purchase order contract to Nixon -Egli Equipment Company for the purchase of a new asphalt truck in the amount of $118,283.06. FISCAL IMPACT Funds in the amount of $175,100 have been budgeted in the 2010 -11 Equipment Replacement Fund. The funding for this replacement vehicle includes $100,000 from AQMD grant funds and $75,100 from the Water Fund RECOMMENDATION 1. Authorize the City Council to award a purchase order contract to Nixon -Egli Equipment Company for the purchase of an asphalt truck in the amount of $118,283.06 2. Waive any informality in the bid or bidding process Approved by: .Darr -.-iQ Donald Penman, Penman, City Manager Page2of2