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Home My WebLink About2000-04-17 City Council (15)City of Palo Alto City Man er,,sRep rt TO:HONORABLE CITY COUNCIL FROM:CiTY MANAGER DEPARTMENT: PUBLIC WORKS 5 DATE:APRIL 17, 2000 CMR: 207:00 SUBJECT:AWARD OF CONTRACT TO EMPIRE EQUIPMENT COMPANY IN THE AMOUNT OF $425,000 FOR LANDFILL HEAVY EQUIPMENT MAINTENANCE AND REPAIR EQUIPMENT RECOMMENDATION Staffrecommends that Council: Approve and authorize the Mayor to execute the attached three-year contract with Empire Equipment Company in the amount of $425,000 for landfill heavy equipment maintenance and repair. Authorize the City Manager or designee to exercise the option to renew the contract for the second and third year, provided the contractor is responsive to the City’s needs, and the quality of the contractor’s work is acceptable during the first year of the contract. DISCUSSION Prqject Description The work to be performed under this contract is for the ongoing maintenance and repair of specialized landfill and compost processing equipment that includes two bulldozers, two loaders, a large compactor, a scraper, a tub grinder, a compost turner and a compost screener. The contractor provides a mechanic and a purpose-built service truck that is fully equipped with tools and supplies, so that the majority of the maintenance and repair work may be accomplished on-site. The contractor is also capable of transporting oversize equipment to its local repair facility for major repairs. Bid Process It was not possible to include in the bid documents a description of every job that might be requested during the term of the contract, so contractors were asked to bid the total cost of three years’ preventive maintenance service for all of the equipment, hourly labor rate, and parts discounts. The requested.contract amount of $425,000 was based on the total cost for preventive maintenance services, the cost for 4,500 repair labor hours, and CMR:207:00 Page 1 of 3 an anticipated cost increase of five percent for each successive year of the contract. A review of maintenance records indicates that an average of 1,500 repair labor hours are expended on this equipment annually. A notice inviting formal bids for heavy equipment maintenance was sent on March 1, 2000 to six contractors. The bidding period was 21 days. Bids were re~ived from two qualified contractors on March 28, 2000, as listed on the attached bid summary (Attachment A). Bids ranged from a high of $512,975 to a low bid of $389,042. Two of the contractors not responding indicated that they were not qualified to work Caterpillar equipment, one did not offer the service we were requesting and one claimed that they did not have enough time to prepare and submit a bid. Staff has reviewed all bids submitted and recommends that the bid of $389,042 submitted by Empire Equipment Company be accepted and that Empire Equipment Company be declared the lowest responsible bidder. The bid is 14 percent below the staff estimate of $ 450,000. Bids were solicited from all heavy equipment maintenance contractors in the Bay Area. Based on the response to this and past bids, it is apparent that this highly specialized service is only available from two contractors, which for the last ten years have been Peterson Tractor Company and Empire Equipment Company. Therefore, calling for bids again would be unavailing. Empire Equipment Company has maintained the City’s landfill equipment for more than 10 years, and has generally performed satisfactorily. RESOURCE IMPACT It is anticipated that the cost for maintaining the City’s landfill equipment will remain relatively stable during the term of this contract, as several pieces of equipment purchased during 1998-99 are still covered by extended warranty agreements. Funds have been budgeted in the FY 1999-00 Public Works Department Equipment Management Operations and Maintenance budget for this contract. 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: Attachment B: Bid Summary Contract PREPARED BY: Keith LaHaie, Fleet Manager CMR:207:00 Page 2 of 3 DEPARTMENT HEAD: CITY MANAGER APPROVAL: GLENN S. ROBERTS Director of Public Works E~Y H--AtS,~Sdl~ -- Assistant City Manager CMR:207:00 Page 3 of 3 ATTACHMENT A W W n Z n~ .~- z BY THIS AGREEMENT MADE AND ENTERED INTO ON THE BY AND BETWEEN THE CITY OF PALO ALTO "CITY", AND ~mpire Equipment Ccmpany (ADDRESS)38600 Cedar Blvd. AGREEMENT,ATTACI-IM~NT B DAY OF NO, 19__[DATE TO BE ENTERED I.BY CITY PURCHASING ,a (510) (C~TY) Newark (ZIP) 94560 (PHONE) 726-2506 "CONTRACTOR" IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES HERETO AGREE AS FOLLOWS: ¯ CONTRACTOR SHALL PROVIDE OR FURNISH THE FOLLOWING SPECIFIED 1) GOODS AND MATERIALS, 2) SERVICES OR 3) A COMBINATION THEREOF AS SPECIFIED IN THE EXHIBITS NAMED BELOW AND ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE: TITLE: (DESCRIPTION) Heavy equiprrent repair services at the City’s Refuse Disposal Area according to attached specifications. EXHIBITS THE FOLLOWING ATTACHED EXHIBITS HEREBY ARE MADE PART OF THIS AGREEMENT: Specifications Insurance Requfremm~ts Coatractor’ s Bid TERM THE SERVICES AND/OR MATERIALS FURNISHED UNDER THIS AGREEMENT SHALL COMMENCEON AND SHALL BE COMPLETED BEFORE ~.DI’il 30 ; 2003 COMPENSATION FOR THE FULL PERFORMANCE OF THIS AGREEMENT: [] CITY SHALL PAY CONTRACTOR:Monthly, upon receipt of invoices. Total contract ~T~Unt ~ot to exceed $425,000 [] CONTRACTOR SHALL PAY CITY: PAYMENT RECORD (DEPARTMENTUSEREVERSESIDE) CITY ACCOUNT NUMBER: May i, 2000 KEY CODE OBJECT PROJECT "PHASE NO.I DOLLAR AMOUNT 8153~640 3125 [ 425,000 GENERAL TERMS AND CONDITIONS ARE INCLUDED ON BOTH SIDES OF THIS AGREEMENT. THIS AGREEMENT SHALL BECOME EFFECTIVE UPON ITS APPROVAL AND EXECUTION BY (:IT¥. IN WITNESS TH~:REOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE.HOLD HARMLESS. CONTRACTOR agrees to indemnify, defend and hold harmless CITY, its Council Members, officers, employees, and agents from any and all demands, claims or liability of any nature, including wrongful death, caused by or arising out of CONTRACTOR’S, its officers’, directors’, employees’ or agents’ negligent acts, errors, or omissions, or willful m!sconduct, or conduct for which the law imposes strict liability on CONTRACTOR in the performance of or failure to perform this agreement by CONTRACTOR.ENTIRE AGREEMENT. This agreement and the terms and conditions on the reverse hereof represent the entire agreement between the parties with respect to the purchase and sale of the goods, equipment, materials or supplies or payment for services which may be the subject of this agreement. All prior agreements, representations, statements, negotiations and undertakings whether oral or written are superseded hereby. NAMEPROJEOT MANAGER AND REPRESENTATIVE FOR ClTYKefth LaP~ie COBy i~~( ~~3) ~" (3 ~’~V’P~ %~,~,e, , DEPT, l~/l~pm~t Manag~mnt TITLE C t (~, ,~’ P.O. BOX 10250 PALO ALTO, CA 94303 Telephone (550) 496-6948 INVOICING SEND ALL ~NVOICES TO THE CITY, AT[N: PROJECT MANAGER CITY OF PALO ALTO APPROVALS: (ROUTE FOR SIGNATURES ACCORDING TO NUMBERS IN APPROVAL BOXES BELOW) CITY DEPARTMENT (1) CITY OF PAL0 ALTO I--] Funds Have BeenBudgeted INSURANCE REVIEW (2) PURCHASING & CONTRACT ADMINISTRATION (3) APPROVAL OVER $25,000 I APPROVAL OVER $65,000 ~ATTEST:APPROVED AS TO FORM: ASSISTANT CITY MANAGER MAYOR CITY CLERK CITY ATTORNEY CONTRACTORCPA 02782 RETAIN GREEN COPY FOR YOUR FILES REV. 6/98 REQUISITIONER