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Home My WebLink About1999-02-08 City CouncilTO: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL FROM: DATE: SUBJECT: CITY MANAGER DEPARTMENT: PUBLIC WORKS FEBRUARY 8, 1999 CMR: 101:99 AWARD OF CONTRACT TO EMPIRE EQUIPMENT COMPANY FOR HEAVY EQUIPMENT REPAIRS RECOMMENDATION Staff recommends that Council: Approve and authorize the Mayor to execute the attached one-year contract with Empire Equipment Company in the amount of $130,000 for heavy equipment repair services. Authorize the City Manager or her designee to negotiate and execute one or more change orders to the contract with Empire Equipment Company for related additional but unforseen work which may be required during the contract period, the total value of which shall not exceed $13,000. DISCUSSION Project Description, The work to be performed under this contract is for the ongoing maintenance and repair of specialized landfill equipment which includes two bulldozers, one compactor, one scraper, one loader, and one tub grinder. Work includes scheduled inspections and maintenance, diagnosis, cost estimating, and on-site repairs at the City’s Refuse Disposal Area. The contractor provides a mechanic and a purpose-built track capable of lifting heavy components for on-site repairs. The contractor is also capable of.transporting oversize equipment to their local repair facility for major repairs. ,~ Bid Process Bids were sent to seven contractors on August 24, 1998. The bidding period was set at a 15-day minimum since all of the potential bidders were from the local area and were familiar with the relatively straightforward scope of work. Bids were received from two qualified contractors on September 8, 1998, as listed on the attached bid summary (Attachment A). Bids ranged from a high of $148,546 to a low bid of $129,039. Contractors not responding indicated that they did not submit a bid because their current obligations would not allow them to meet the requirements of this contract. Staff analyzed each bid based on the projected preventive maintenance and repair cost for a 12-month period (Attachment B). Although Empire’s bid for CMR:101:99 Page 1 of 2 preventive maintenance service was $5,656 higher than Peterson Tractor’s, its lower hourly labor rate for repairs ($60 vs. $77) will greatly offset this higher cost during the contract period, based on an average labor requirement of 1,400 to 1,500 hours annually. Staff recommends that the bid of $129,039 submitted by Empire Equipment Company be accepted; and that Empire Equipment Company be declared the lowest responsible bidder. The bid is 3.2 percent above the staff estimate of $125,000. RESOURCE..JqVIPACT It is anticipated that the co, st for maintaining the City’s landfill equipment will decrease slightly over the next year, as se~’eral pieces of equipment will be ~eplaeed during FY 1998-99. Most of the repair work for the new equipment will be covered by warranty agreements. Funds for this contract have been budgeted in the FY 1998-99 Public Works Department Vehicle Replacement and Maintenance Fund. POLICY IMPLICATIONS Authorization of the contract does not represent any change to the existing policy. ENVIRONMENTAL REVIEW This project is exempt from CEQA under Section 1530 of the CEQA guidelines. ATTACHMENTS . Attachment A:Bid Summar~j Attachment B:Bid Analysis Attachment C:Contract PREPARED BY: Keith LaHaie, Fleet Manager DEPARIqMENT HEAD: GLENN S. ROBERTS Director of Public Works EMILY HARRISON Assistant City Manager ’ CMR:101:99 P~ge 2 of 2 i i i i i i i i i iII-IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ~llllllllll IIIIIIII I I~ I IIIIIIIIIIIIIIIIIII IIIIIII IIIIIIIIIII I I I I I I IIIIIIIIIII IIIIIlIIIIIIIIII IIIII iI I I I I I IIIIIIJIIIIIIIIIIIIII IIIIIIIIIIII IIIIIII II IIIIIIIIlllllllllII IIIIIII II IIIIIIIIIIIIIIII! ! ! II IIIII II IIIII~ .,I I I I I~1 I I I I III~lll IllllIIIIIEl I I I I I I IUIIIIIIII ~11 IllilIII IIIIIIIIIIII~1 I I I I I I II IIIII~,,I,111,I~11 IIIIli.QIIIIIIIIII IIIII ZII IIIIitl ~llilllllllII IIIII~llilllll II IIIII ~1 I I I I I I ~,,I111’1IIIIIIIillllllllll ~Z D [] D Z oo ~J Z 0 ATTACHMENT B AGREEMENT BY THIS AGREEMENT MADE AND ENTERED INTO ON THE DAY OF BY AND BETWEEN THE CITY OF PALO ALTO (HEREINAFTER REFERRED TO AS CITY, AND (NAME)(1) Empire Equipment Company ~ (ADDRESS) 38600 Cedar Blvd .....(CITY) Newark J’DATE TO BE ENTEF19~[BY CITY ,PURCHASING (ZIP) 945(30 (PHONE) (HEREINAFTER REFERRED TO AS CONTRACTOR). IN CONSIDERATION OF THER MUTUAL COVENANTS, THE PA,=TIES HERETO AGREE AS FOLLOWS: CONTRACTOR SHALL PROVIDE OR FURNISH THE FOLLOWING SPECIFED SERVICES AND/OR MATERIh-S SPECIFIED IN EXHIBIT ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE: Heavy equipment repair services at the CityWs Refuse Disposal Area according to attached specifications. EXHIBITS THE FOLLOWING ATTACHED EXHIBITS HEREBY ARE MADE PARTOF THIS AGREEMENT: Specifications Insurance Requirements Cont~:actorWs BidTERMS THE SERVICES AND/OR MATERIALS FURNISHED UNDER THIS AGREEMENT SHALL COMMENCE ON AND SHALL BE COMPLETED BEFORE December 31. 1999 COMPENSATION FOR THE FULL PERFORMANCE OF THI~ AGREEMENT: ~] CITY SHALL PAY CONTRACTOR: Monthly, upon receipt of invoice. Total contract amount not to exceed [] CONTRACTOR SHALL PAY CITY: $130,000 January I, 1999 ® PAYMENT RECORD (DEPARTMENT USE REVERSE SIDE) CITY ACCOUNT NUMBER: ~15 34640 :1 3125 85/000 815 34640 3230 45,000 .GENERAL TERMS AND CONDITIONS ARE II~CLUDED ON BOTH SIDES OF THIS DOCUMENT. THIS AGREEMENT SHALL BECOME EFFECTIVE UPON ITS APPROVAL AND EXECL~ION BY CITY. IN WITNESS THE:~EOF, THE PARTIES HAVE EXECUTED THI,~ AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE.HOLD HARMLESS. CONTRACTOR agrees to indemnify, defend and hold harmless CIR’. its officers, agents, and employees ;rom anyand all demands, claims or liability o any nature, including wrongful death, caused by or arising out of CONTRACTOR’S, ~ officers’, agents’ or employees ~egligent acts, errors, or omissions, or willfu misconduct, or conduct for which the law imposes strict liability on CONTRACTOR in t~’..-" performance or failure to perform ~is agreement by CONTRACTOR. ENTIRE AGREEMENT, This agreement and the terms and conditions on the reverse her-.-.~f represent the entire agreement Letween the parties with respect to the purchas and sale of the equipment, materials or supplies or payment for services which may :e the subject of this contract. All ;rior agreements, representations, statements negotiations and undertakings whether oral or written are superseded hereby: PROJ ECT MANAGER AND REPRESENTATIVE FOR CITY NAME Keith LaHaie BY DEPT Public Works/Equipment Management P,O. BOX 10250 PALO ALTO, C(A~9~8%3Telephone 49(3-6948 SOC:AL SECURITY OR ’.R.S. NUMBER INVOICING SEND ALL INVOICES TO THE CITY, ATTN: PROJECT MANAGE,=, CITY OF PALO ALTO APPROVALS: (ROU~E FOR SIGNAT.~ES ACCORDING TO NUMBERS NAPPROVAL BOXES BELOWi CITY DEPARTMENT ["-IFunds Have Been RISK MANAGERBudgeted (1) (2) 1F OVER $5,000, REQUIRES CITY MANAGER’S SIGNATURE CIW OF PAL0 ALTO BY: ,,,",’CITY MANAGER RETAIN GREEN COPY FOR YOUR FILES IF( k~NCE. P~JRCHASING & CONTRACT ADMINISTRATION (4) " IF OVER $25,000, REQUIRES MAYOR AND CITY ATTORNEY SIGNATURES KI’I’EST:..~, , APPROVED AS TO FORM: : MAYOR CITY CLERK _ v CITY ATTORNEY ’ CONT=ACTOR