HomeMy WebLinkAboutStaff Report 1674City of Palo Alto (ID # 1674)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/13/2011
June 13, 2011 Page 1 of 3
(ID # 1674)
Summary Title: Track-type Dozer Rental
Title: Approval of a Contract with Ferma Corporation in the amount of $159,002
for the Long-term Rental of a Track-Type Bulldozer for a Period of up to 12
(Twelve) Months
From:City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve and authorize the City Manager or his designee
to execute a contract with Ferma Corporation in the amount of $159,002 for the rental
of a Caterpillar Model D8T, D9R, or D9T track-type bulldozer for a period of up to 12
(twelve) months.
Discussion
The City of Palo Alto owns and operates a Refuse Disposal Facility that consists of an
active municipal solid waste landfill, an active landfill gas collection system, a landfill
gas control system and a greenwaste composting operation. The facility utilizes several
pieces of heavy equipment, including a bulldozer, refuse compactor, wheel loaders and
water trucks. The bulldozer is the primary piece of equipment used to move trash,
compost and dirt at the landfill; therefore it is essential to daily operations.
At Council’s earlier directions, staff has been “fast filling” the landfill and as a result the
landfill is currently scheduled to stop receiving trash in late July 2011. The landfill will
continue to accept compostable materials and concrete and asphalt (from City crews)
until the end of 2011 and will accept clean soil for closure through mid 2012.
On February 17, 2011, the city-owned 2005 Caterpillar D8T bulldozer (Unit #4208)
suffered substantial fire damage to the engine compartment and cab, and has not been
operable since that date. The fire started spontaneously in the early morning hours of
February 17th, and was extinguished by the Palo Alto Fire Department at approximately
5:00 a.m. The fire was ruled accidental and the investigator was not able to pinpoint a
specific cause given the extent of the damage. The dozer had not been operated for a
period of twelve consecutive hours at the time the fire was reported.
The estimate to repair the fire damage exceeds $300,000 and the repairs would take a
June 13, 2011 Page 2 of 3
(ID # 1674)
minimum of four months to complete. The City’s insurance carrier was notified of the
loss and the claims process is currently in progress. Due to the cost of the repairs and
the down time that would be incurred, staff determined that a long-term rental would
be the most cost-effective means of providing a bulldozer to the landfill operation.
Even with the fire damage, the bulldozer has significant, but as yet, undetermined
residual value.
A Caterpillar D9R bulldozer was acquired on a short-term rental basis on February 18,
2011 in order to allow the landfill operations to continue uninterrupted while bids were
solicited.
A Request for Quotation (RFQ) for a track-type dozer, Caterpillar Model D8T, D9R, or
D9T was sent to three vendors on March 22, 2011. Bids were received from two
qualified bidders on April 5, 2011, as listed on the attached bid summary
(Attachment A). Bids ranged from a high of $159,002 to a low bid of $153,387. The bid
submitted by ECCO Equipment Corp. did not meet the City’s requirements, so it could
not be considered for award.
Staff has reviewed all bids submitted and recommends that the bid submitted by Ferma
Corporation be accepted and that Ferma Corporation be declared the lowest responsible
bidder.
Staff has checked references supplied by the vendor for previous contracts and has
found no significant complaints.
Resource Impact
Funds are available in the Fiscal Year 2011 Refuse Fund operating budget.
Policy Implications
Authorization of the contract does not represent any change to the existing policy.
Environmental Review
This work is exempt from the Comprehensive Environmental Quality Act (CEQA) under
Class 1 categorical exemption, Article 19, Section 15301.
Attachments:
·A -Bid Summary (DOC)
·B -General Services Contract (PDF)
Prepared By:John Moran, Assistant Fleet Manager
June 13, 2011 Page 3 of 3
(ID # 1674)
Department Head:J. Michael Sartor, Interim Director
City Manager Approval: James Keene, City Manager
BID SUMMARY
D8T/D9R Dozer
RFQ140833
Ferma Corporation Bid Total $159,002
Ecco Equipment Corporation Bid Total $153,387*
*Proposal did not meet specifications