HomeMy WebLinkAboutStaff Report 287-06City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: PUBLIC WORKS10
DATE:JULY 10, 2006 CMR:287:06
SUBJECT:APPROVAL OF REVISION NO. 1 TO PURCHASE ORDER 4504003179
WITH ALTEC INDUSTRIES, INC. IN THE AMOUNT OF $3,800 TO
ENABLE PAYMENT FOR MINOR CHANGES TO TWODIGGER
DERRICK TRUCKS CURRENTLY UNDER CONSTRUCTION
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to negotiate
and execute a revision to purchase order 4504003179 with Altec Industries, Inc. for related,
additional work, the total value of which shall not exceed $3,800. This revision amount represents
2.4 percent of the original contract amount of $412,539.
BACKGROUND
On April 25, 2005, Council approved a purchase order for the purchase of two digger derrick trucks
(Attachment A, CMR 214:05). At the time of purchase order award, staff felt that the design and
specifications for the digger derricks were complete, and that no changes would be necessary. No
contingency funds were originally designated for this purchase order.
DISCUSSION
During the construction of a complex piece of equipment such as a digger derrick, staff will conduct
one or more inspections to insure that the project is constructed in accordance with the City’s
specifications. Although the design and specifications for these vehicles were thoroughly reviewed
by both Public Works and Utilities staff prior to construction, a physical inspection conducted on
June 8, 2006 revealed unanticipated issues that will require additional work. Staffnoted 23 minor
items that needed to be added, changed or modified. The total cost to make these changes and
modifications to both trucks is $3,800.
RESOURCE IMPACT
Funds have been budgeted for this contract in the FY 2006-07 Public Works Department Vehicle and
Equipment Replacement budget.
POLICY IMPLICATIONS
Authorization of this change order does not represent any change to the existing policy.
ENVIRONMENTAL REVIEW
The equipment that will be purchased employs emissions-reduction technology that will result in a
significantly lower level of emissions.
CMR:287:06 Page 1 of 2
ATTACtIMENTS
Attachment A: " CMR:214:05
PREPARED BY:
DEPARTMENT HEAD:
KEITH LA HAIE
Fleet Manager
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL:
Assistant City Manager
CMR:287:06 Page 2 of 2
TO:
FROM:
DATE:
SUBJECT:
ATTACHMENT A
HONORABLE CITY COUNCIL
CITY MANAGER
APRIL 25, 2005
DEPARTMENT: PUBLIC WORKS
CMR:214:05
APPROVAL OF AN ENTERPRISE PURCHASE ORDER WITH ALTEC
INDUSTRIES, INC. IN: THE AMOUNT OF $412,539 FOR THE
PURCHASE OF TWO DIGGER DERRICK TRUCKS
6
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager to execute a purchase
order with Altec Industries, Inc, in the amount of $412,539 for the purchase of ~o digger
derrick trucks.
DISCUSSION
.Equipment .Management’s .currentvehiele and equipment replacement workplan ineIudes the
replacement of two digger derrick trucks. Digger derrick trucks are utilized in electric
distribution system maintenance; fo~ replacing utility pole.s; for servicing pole mounted
equipment such as transformers and Switches; and for lifting and. handling heavy cargo. These
tasks are fundamentalto distribution system maintenance. They cannot be accomplished without
the use of a digger derrick.
City Policy and Procedures Section 4-01 establishes the replacement cycles of various classes of
City fleet equipment. According to the policy, the replacement cycle of a digger derrick truck 16
years. One of the trucks scheduled for replacement is 15 years old; the other is 13 years old.
Although both of these units have been in daily use since they were placed into-service,
Equipment Management’s preventive maintenance program and good operating practices by the
Electric Operations group have helped ?tO extend their life well beyond established guidelines.
Although there is a two-year difference in the age of these trucks, both should be replaced at the
same time, to insure standardization and operator familiarity.
The digger derricks to be purchased incorporate more safety features and are more efficient than
the units they will replace. For example, the Altec derricl(s include a fially-functionaI radio
remote control which will allow the operator to controi the machine from the ground while
standing a safe distance away from the work.
There are only two distributors of digger derrick trucks in Northern California: Altec Industries
and Terex-Telelect_ Staff researched the offerings from each manufacturer to determine if they
could provide the features that the Electric Operations group required. The two most important
criteria were the radio remote control and an open operating position (described above). Altec
was Be only manufacturer that could provide both the open operating position and radio remote.
CMR:214:05 Page 1 of 2
Terex-Telelect could not provide the open operating position, but could meet all of the other
requirements.
During the course of research, staff became aware of a recent purchase by the City of Roseville
of an Altec digger derrick truck that met all of Electric Operation’s requirements.. Staff reviewed
purchase doc-amentation from the Roseville acquisition, and determined that a piggyback
purchase could be made, in accordance with Palo Alto Municipal Code Section 2.30.360 (j) 2. A
bid summary from the Roseville acquisition is shown in the Table below-.
City of Roseville Purchase Order PA406028 (4/8/04) - Bid Summary*
Terex-Telelect
* This acquisition was for one unit only.
Model Bid
....... XL-4047 $190.-298 ....
$219,583
RESOURCE IMPACT
Funds .have been budgeted for this contract in the FY 2004-05 Public Works Department Vehicle
and Equipment Replacement budget.
POLICY IMPLICATIONS
Authorization of this purchase order does not represent any change to the existing policy.
ENVIRONMENTAL REVIEW
The equipment that will be purchased employs emissions-reduction tectmolog3r that wig result in
a si~maificantly lower level of emissions.
ATTACI~V£ENTS
Attachment A: Bid Summary
Attachment B: Certi~cate of Nondiscrimination
PREPARED BY:
DEPAR~ HEAD:
CITY MANAGER APPROVAL:
Fleet Manager
GLENN ROBERTS
- Director/aS Public Works
--Assistant City Manager
CMR,:214:05 Page 2 of 2
ATTAC]:[M~NT A
WON/LOSS ILEPOR.T (QUOTATION ACTI~rITY REPORT)
Sale:sman*: Dennis Gillott Quote Date: 03/08104 Quote No.: 8280
Customer~:R.oseville Electric
Price/Units wlo Chassis: 121,956.00
Chassis Price: 68,342.00
P6ce/Unit with Chassis: 190,298.00
Trade-in:0.00
Quotation Type:Steel Other
Expected Award Date: 03119/2004
No. of Units:1
Model No.:D947
Delivery:180 - 210 days
Gross Profit %:11%
Net Price:$190,298.00
Competitive larD: Actual
Reason for Salesmanship
won\loss:
RESULTS OF 0UOTATION
Wou Yes Lost To DM Not Buy
What were the key factors e’ontributing to the above results’?. (Price, Salesmanship, Delivery, Demonstration, Features, S,ervice, Quality,
Budget).
Salesmanship
COM PETITOR QUOTE DATA
Make *Terex Telelect 2.Make
Model XL-4047 Model
Dealer~Terex-West Dealer
Quantity Awarded 0 e~,Quantity Awarded
Price w/o Chassis $151,583 Price w/o Chassis
Price with Chassis $219,583 Price with Chassis
Est. Chassis price $68,000 Est. Chassis price
Trade-in none Trade-in
Delivery 180-210 days Delivery
3. Make 4.Make
Model Model
Dealer Dealer
Quantity Awarded Quantity Awarded
Price w/o Chassis Price w/{3 Chassis
Price with Chassis Price with Chassis
Est. Chassis price Est. Chassis price
Trade-in Trade-in
Delivery Delivery
Items that are in Italics must be filled in.
* If there are no competitors enter "none", if competitor is not known enter "unknown".
Last Modified By: Dennis Gillott/Westem/Altec @ 03/21/2004
ATTACHMENT B
CERTIFICATION OF NONDISCRIMINATION SECTION 4"10
Certification of Nondiscrimination:
As suppliers of goods or services to the City of Palo Alto, the firm and individuals listed below
certify that they do not discriminate in employment with regards to age, race, color, religion, sex,
national odgin, ancestry, disability, Or sexual preference; that they are in compliance with al!
Federal, State, and local directives and executive orders regarding nondiscrimination in
employment.
THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW.
Firm:~ L~ ~ II
Name:
(PRINT OR TYPE NAME)
Signature:
Name:
Title:
Note:
(PRINT OR TYPE NAME)
The City of Palo Alto, pursuant to Califomia Corporations Code Section 313, requires two
co~. orate o~cers to execute con~_rPects.
*.The signature of First Officer* must be one of the following: Chairman of the
Board; President; or Vice President.
**The signature of the Second Officer**.must be one of the following: Secretary;
Assistant Secretary; Chief Financial Officer; or Assistant Treasurer.
(In the alternative, a certified corporate resolution attesting to the signatory
authority of the individuals signing in their respective capacities is acceptable)
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