HomeMy WebLinkAboutStaff Report 214-05City of Palo Alto
City Manager's Report
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: APRIL 25, 2005 CMR:214:05
SUBJECT: APPROVAL OF AN ENTERPRISE PURCHASE ORDER WITH ALTEC
INDUSTRIES, INC. IN THE AMOUNT OF $412,539 FOR THE
PURCHASE OF TWO DIGGER DERRICK TRUCKS
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 two digger
derrick trucks.
DISCUSSION
Equipment ~anagement' s current vehicle and equipment replacement workplan includes the
replacement of two digger derrick trucks. Digger derrick trucks are utilized in electric
distribution system maintenance; for replacing utility poles; for servicing pole mounted
equipment such as transformers and switches; and for lifting and handling heavy cargo. These
tasks are fundamental to 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 ofa digger derrick truck 10
years. qne 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 ofthese 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 derricks include a fully-functional radio'
remote control which will allow the operator to control 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 Blectric Operations group required. The two most important
criteria were the radio remote control and an open operating position (described above). Altec
was the only manufacturer that could provide both the open operating posi~ion and radio remote.
CMR,;Q14:05 Page 1 of2
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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 documentatio~ from the Roseville acquisition, and determined that a piggyback
purchase could be made, in accordance with Palo Alto Municipal Code Section 2.30.360 G) 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 *
Model Bid Price less tax)
D947-TR $190,298
XL-4047 $219,583
* This acquisition was for one unit. only.
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 technology that will result in
. a significantly lower level of emissions.
ATTACHMENTS
Attachment A: Bid Summary
Attachment B: Certificate of Nondiscrimination
PREPARED BY:
DEPARTMENT HEAD: 7lmag
j. ~
GLENN ROBERTS
CITY MANAGER APPROVAL:
Assistant City Manager
CMR:214:05 Page 20f2
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ATTACHMENT A
~Allec.
WON/LOSS REPORT (QUOTATION ACTIVITY REPORT)
Sa\csman*: Dennis Gillott Quote Date: 03/08/04
Cust011ler*: Roseville Electric
PricelUnits wlo Chassis: 121,956.00
Chassis Price: -':6:':-8.:.:,3"::472."'=070.:.---------
PricelUnit with Chassis: 190,298.00 ~~~~--------------Trade-in: 0.00
Quotation Type: Steel Other
Ex pecled A ward Date: 03/1912004
RESllLTS OF QUOTA TlON
Won Yes Lost To
No. of Units:
Model No.:
Delivery:
Gross Profit %:
Net Price:
Competitive Info:
Reason for
won\loss:
Quote No.: 8280
0947
I 80 -210 days
11%
$190,298.00
Actual
Salesmanshi~
Dill Not Buy _______ ......,,_
What were the key factors contributing to the above results? (Price, Salesmanship, Delivery, Dcmonstration, Features, S~rvice, Quality,
Budget).
Salesmansh ip
COM PETITOR QllOTE DATA
I. M"ke* Terex Telelect 2. Make
Model XL-4047 Model
Dea/er* Terex-West Dealer
Quantity Awarded o ea, Quantity Awarded
Price wlo Chassis $151,583 Price wlo Chassis
Price with Chassis $219,583 Price with Chassis
Est. Chassis price $68,000 Est. Chassis price
Trade-in none Trade-in
Deliver.y 180-210 days Delivery
3. Make 4. Make
Model Model
Dealer Dealer
Quantity Awarded Quantity Awarded
Price wlo Chassis Price wlo Chassis
Price with Chassis Price with Chassis
Est. Chassis price Est. Chassis price
Trade-in Trade-in
Delivery Delivery
I tems 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 GiliottIWestern/Altec @ 03/21/2004
\ ,
ATTACHMENTB
CERTIFICATION OF NONDISCRIMINATION SECTION 410
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 a'ge, race, color, religion, sex,
national origin, ancestry, disability, or 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:
Signature:
Name:
Title:
(PRINT OR TYPE NAME)
Signature: D 11_~MvGll
Name:
Title:
(PRINT OR TYPE NAME)
Note: The City of Palo Alto, pursuant to California Corporations Code Section 313, requires two
corporate officers to execute contracts.
~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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