R2004-58 ACCEPTING BID AND AUTHORIZING AGREEMENT

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COUNCIL COMMUNICATION FORM PURCHASING & I�ITERNAL SERVICES i�1EMORANDUM #04 - 14 March 18, 2004 TO: Honorable Mayor Osborne and City Council II FROM: Steve Garman, City Manager Beth Couter, Financial Management Director Deborah M. Perry, Purchasing Superviso� SUBJECT: Bids for tandem axle chassis/sewer and catch basin cleaner SUMMARY RECOMMENDATION: Staff recommends awarding contract to Coe Equipment for Alternate 3, which is a 7 year total cost bid of Coe Equipment, to furnish one (1) 2004 2110J6F/2005 7400 SBA 6 x 4 Navistar tandem axle chassis with a Vactor sewer and catch basin cleaner for $229,177. The maximum cost of repairs will not exceed $8108 for 7 years or 9100 operating hours. Coe Equipment also guarantees to buy back the truck chassis with the sewer and catch basin cleaner at the end of l years or 9100 hours for $83,793, thus the total cost is $153,492. '� BACKGROUND: Replaces a 1999 International chassis with a Vactor body sewer and catch basin cleaner that is on a buyback plan. Bid specifications requesting three bids were prepared due to the previous success the City has experienced on total cost bidding for equipment. Alternate 1 - Purchase sewer and catch basin cleaner Alternate 2 - Guaranteed buyback at end of 5 years or 6500 hours Alternate 3 - Guaranteed buyback at end of l years or 9100 hours Coe Equipment has provided the City with necessary bonding requirements. POTENTIAL OBJECTION: None. INPUT FROM OTHER SOURCES: Sewer and catch basin cleaner was requested by Street Division and Fleet Maintenance wrote bid specifications. Both recommend approval of bid. STAFF REFERENCE: Tom Serfass, Fleet Supervisor 875-5718, Deborah M. Perry, � Purchasing Supervisor 424-2762. Phil Wilhelm will be at the council meetin� to answer questions the council may have about this purchase. BUDGET: $229,177 from Equipment Replacement Fund.