HomeMy WebLinkAboutStaff Report 351-06City
City of Palo Alto
Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS 6
DATE:SEPTEMBER 11, 2006 CMR:351:06
SUBJECT:APPROVAL OF REVISION NO. 2 TO PURCHASE ORDER 4504003179
WITH ALTEC INDUSTRIES, INC. FOR AN ADDITIONAL AMOUNT OF
$3,800 TO ENABLE PAYMENT FOR MINOR CHANGES TO THE SECOND
DIGGER DERRICK TRUCK CURRENTLY UNDER CONSTRUCTION
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to negotiate
and execute a second revision to purchase order 4504003179 with Altec Industries, Inc. for related,
additional work, the total value of which shall not exceed $3,800. This revised amount represents
2.4 percent of the original contract amount of $412,539.
BACKGROUND
On July 10, 2006, Council approved a revision to the purchase order in the amount of $3,800
(CMR:287:06, Attachment A) which represents the cost per truck. Previously, Council approved a
purchase order for the purchase of two digger derrick trucks (CMR:214:05).
DISCUSSION
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.
RESOURCE IMPACT
Funds were budgeted for this contract in the FY 2006-07 Public Works Department Vehicle and
Equipment Replacement budget.
ENVIRONMENTAL REVIEW
The equipment purchase does not constitute a project for purposes of CEQA, there is no
environmental review required. This change order is not considered a project under the California
Environmental Quality Act (CEQA) and an environmental review is not required.
POLICY IMPLICATIONS
Authorization of this change order does not represent any change to the existing policy.
ATTACHMENTS
Attachment A: CMR:287:06
CMR:351:06 Page 1 of 2
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
KAREN DAVIS
.A~ati~e Assistant
GLENN S. ROBERTS
Director of Public Works
V L SON
Assistant City Manager
CMR:351:06 Pag~ 2 of 2
ATTACHMENT A
C ty of PaSo A to
City Manager’s Report
TO:
FROM: ,
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER
JULY 10, 2006
APPROVAL OF REVISION NO.
DEPARTMENT: PUBLIC WORKS
CMR:287:06
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
10
RECOMMENDATION
Staffrecommends 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 ofwhich 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, staffwill conduct
bne 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 ormodified. The total cost to make these changes and
modifications to bothmacks is $3,800.
REsoURcE IMPACT
Funds have been budgeted for this contract inthe 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.
......... ~Pa~e 1 of 2
ATTACI~ENTS
Attachment A: - CMR:214:05
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
K.~ITI-I LA ~ "
Fleet Manager
GLENN S. ROBERTS
Director of Public Works
. F_2v!~Y .HARRISON
Assistant City Manager
CMR:287:06 Page 2 of 2
TO:
FROM:
DATE:
SUBJECT:
City Alt
CityNianager . Repor
HONORABLE CiTY COU~.~cIL
CITY MANAGER DEPARTMENT~- PUBLIC WORKS
APRIL 25, 2005 CM~:214:05
AerR0VAL OF AN E . .NTERI" RISE PI.rRO~,SE OROER WITH ALTEC
-.INDUSTRIES, I~IC. IN.--~ ,AtVIOU1N~-OF $412,539 FOR THE
PURCHASE OF TWO DIGGER DERRICK TRucKs
RECOMMENDATION,
Staff recommends that Couneii approve and authorize the City Manag.er to execute a purchase
order ~vith Altee Industries, Inc. in the amount of $412,539 for ~the purchase of ~T¢o digger
derrick trucks.
DISCUSSION
. Equipment }¢Ianagement’s .eurrentvehiele and equipment replacement workplan, includes the
replacement of two digger derricktrucks. Digger de.miek tmeks.are utilized-in .electric
distribution system maintenance; fo~ replacing utility pol, s;, for servi.eing pole mounted
.equipment such as tr ~.ap_sformers and g~itches; and for lifting ~md..handling heavy cargo. ~ T~iese
tasks are fundament~I to distribution system maintenance. They’canno~ be aeeompllshed~without
file use of a digger derrick.
City. Pohey and Procedures Section 4-01 establishes the replacement cycles of various clas. ses of
City fleet equipment According to the policy, the.replacement cycle of a digger .deniek.tmek I~
years. One oft he tracks scheduled for replacement is 15 yearsold; the.other is 13 years old.
Although both of these uniis ha~v.e been in daily us~ since they were placed ".into-service,
Equipment Management’s preventive. ~tenanee program and good operating, praetice~ by the
Electlie Opek~-ions group have hel~edi.,~.., extend thei~ life well beyond established guidelines.
Although there is a tWo-year difference i~ the age of these trucks, both should be replaced at the
same time, to insure standardization and’op.erator familiarity.
The digger derricks to be purchased ineq.~porate more safe~ features and.are more efficient than
the units they will replae.e. For example, . the Altee derricks include a fully-functional radio
remote control which will allow the o~rator to control the machine from the ground while
standing a safe distance away from th~iwtrk.
There are only twO distributors of digg~"d.errick tin(ks in Northern California: Altee Industries
and Terex-Telelect. Siaff researeh.~dth~?:offerings from each manufaett~rer to determine if they
could provide the features tliat the Eleet~e Operations group required. The. two.most important
criteria were the radio remote control and an open operating position (described above). A1tee
was the only mmlufacturer that could provide both the openoperating position and radio remote.
CM1~21~:05 Page 1 of 2
Terex-Telelect could not provide the open operathag position, but could meet all of the other
requirements.
Durixtgtl~e course of research,, staff became aware’of a recent pur~ .base by the City o£ !~oseville
of an Altee digger derrick truck that met all of Electric Operation’s requirements.. S¢~:f reviewed
purchase doc’.maentafionofrom: the R0s~evilleacqaisition, and determined that a piggyback
purchase could be made; in’ aceordmaee., with Palo Alto. MtmieipaI Code Seetaon 2..~0.360’ " " ~ (j) 2. A
bid summary from the Roseville acquisition is shown in the Table below.
, City of J~oseville Purchase Order PA406028 (4/8/04)- Bid ~ummary*
Aatee Industries, Inc.."
Terex-Te!elect ¯"XL-4047
This aequisin’on Was for on.e unit. only. :
$190,298
’$219,583 "
R.ESOURCE IMPACT
Funds .have been budgeted for this eontra~t in the F7 200~05 ~b~eWor~ Dep~t Ve~cle
~d ~pment Keplaeement buret. ’
POLI~K INIPLICATIONS.
Authorizatlon.ofthis purchase order does not r.epr£se..nt auy ch.a~_ge tO the exi~ policy.
The equipment that wilt be purchased employs emiSs.’..i0ns~eduction teelmology ttiat will result in
a signiiicanfly lower level of emissions.
ATTACH~I~I"s
Attaetmaent A: Bid.Summary
Attachment B: Certiiieate oflqondisc~~on
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER }LPPROVAL:
Fleet Mauager
GLENNROBERTS
Assistant. City Manager
CMR:214:05 Page 2 of 2
Salesman*: Denni~ Gillott Quote Date: 03/08/04 Quote No.: 8280
Custon~er*:Koseville Electric
Price/Units w/o Chassis: 121,956-00
Chassis Price: 68,342.00
Price/Unit with Chassis: 190,298.00
Trade-in:0.00
Quotation Type:Steel Other
Expected Award Date: 03/19/2004
No. of Units:
Mgdel No.:
Delivery:
Gross Profit %:
Net Price:
Competitive lnfo:
Reason for
won\loss:
!
D947
180 - 210 days
11%
$190,298.00
Actual
Salesmanship,
RESULTS OF QUOTATION
If:on Yes ¯ ¯Lost 7"0 Did Not .BzO,
What were the key factors c’ontributing to the above results? (Price, Salesmanship, Delivery, Demonstration, Features, S,ervice, Quality,
Budget).
Salesmanship -.
CO~qPETITOR. 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 $2t 9,583 Price with Chassis
Est. Chassis price $68,000 Est. Chassis price
Trade-in none Trade-in
Delive_r_y 180-210 days Delivery
Make
Model
Dealer
Quantity Awarded
Price w/o Chassis
Price with Chassis
Est. Chassis price
Trade-in
Delivery
4.Make
Model
Dealer
Quantity Awarded
Price w/~ Chassis
Price with Chassis
Est. Chassis price
Trade-in
Delivery
Items that are in ltalics must be fil}ed in.
* If there are no competitors enter "none", if competitor is not known enter "unknown".
Lasl Modified By: Dennis Gillott/Westem/Altec @ 03/21/2004
ATTAC~ENT ,B
CERTIFICATION OF NONDISCRIMINATION SECTION 4"10
Certification of Nondiscrimination:
As suppliers of goods or services to the City of Pale.Alto, the firm and individuals listed below
certify that they do not discriminate in employment with regards to age, race, color, ~eligion, sex,
national origin, ancestry, disability, 6r sexual preference; that they are in compliance with all
Federal, State, and local directives and executive orders regarding nondiscrimination in
employment.
THE INFORMATION HEREIN iS CERTIFIED CORRECT BY SIGNATURE(S) BELOW.
Firm:
Name:
Title:
Signature:
(PRINT OR TYPE NAME)
Name:
Title:
Note:
-(PRINT OR TYPE NAME)
The City of Palo Alto, pu~uant to California Corporations Code Section 37 3, requires two
co .rporate officers to execute contracts.
*.The signature of First Offficer* 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 fofloWing: Secretary;
Assistant Secretary; Chief Financial Officer; or Assistant Treasurer.
(In the alternative, a ceffified corporate resolution attesting to the signatory
authority of the individuals .signing in their respective capacities is acceptable)
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