AGENDA #4d

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Bid:  Front Loading Refuse Trucks

 

DATE:             June 30, 2004

 

 

The attached resolution would accept the bid of Carolina Environmental Systems in the amount of $308,354 for two front loading refuse trucks for use in the Public Works Department’s Solid Waste Services Division.  Funding for this purchase is available from the FY 2003-2004 Fleet Replacement Budget.

 

DISCUSSION

 

These Refuse Trucks will be used by the Solid Waste Services Division as replacements for old trucks which are beyond their useful lives.  The “cab-over” design is required due to small turning radius in many of the areas to be served.

 

BID PROCEDURES

 

The “piggy backing” bid procedure is being used for this equipment.  This process is authorized and explained in North Carolina General Statute 143-129(g), which is attached.  In essence, it allows the Town to purchase this equipment at the same price as already bid to another government entity through the formal bid process.  These units will be priced at an additional cost of $10,734 over the price paid by North Carolina State University.   This increase is due to an EPA surcharge on the 2004 models and will apply to all future models.  This penalty is the result of a consent decree for engine manufactures who did not meet revised emissions requirements.  North Carolina State University purchased two of these trucks on February 22, 2004; however, this purchase was not subject to the newly established surcharge.  Using this method of procurement assures a known favorable price and a delivery time much shorter than what we would expect with a formal bid.

 

EVALUATION

 

These refuse trucks meet all specifications for the Town of Chapel Hill and are scheduled for replacement in the Fleet Replacement Budget. 

 

Recommendation:  That the Council adopt the attached resolution accepting the offer of the Carolina Environmental Systems for two front loading refuse trucks at a total cost of $308,354.


 

A RESOLUTION ACCEPTING THE BID FOR THE PURCHASE OF TWO FRONT LOADING REFUSE TRUCKS (2004-06-30/R-4)

 

WHEREAS, the Town of Chapel Hill had advertised notice of waiver of the formal bid process by legal notice in The Chapel Hill News on Sunday, June 13, 2004, in accordance with G.S. 143-129(g) for the purchase of two front loading refuse trucks; and

 

WHEREAS, a formal bid competition was completed by North Carolina State University in accordance with G.S. 143-129; and

 

WHEREAS, the Carolina Environmental Systems offers the Town two front loading refuse trucks at the same price as offered to North Carolina State University;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town implements the waiver of formal bid process in accordance with G.S. 143-129(g) and accepts the offer to sell of Carolina Environmental Systems in the amount of $308,354.

 

This the 30th day of June, 2004.


 

North Carolina General Statute 143-129(g):

 

(g)     When the governing board of any municipality, county, or other subdivision of the

State, or the manager or purchasing official delegated authority under subsection (a) of this section, determines that it is in the best interest of the unit, the requirements of this section may be waived for the purchase of apparatus, supplies, materials, or equipment from any person or entity that has, within the previous 12 months, after having completed a public, formal bid process substantially similar to that required by this Article, contracted to furnish the apparatus, supplies, materials, or equipment to:

 

(1)  The United State of America or any federal agency:

 

(2)     The State of North Carolina or any agency or political subdivision of the State: or

 

(3)  Any other state or any agency or political subdivision of that state, if the person or entity is willing to furnish the items at the same or more favorable prices, terms, and conditions as those provided under the contract with the other unit or agency.  Notwithstanding any other provision of this section, any purchase made under this subsection shall be approved by the governing body of the purchasing municipality, county or other political subdivision of the State at a regularly scheduled meeting of the governing body no fewer than 10 days after publication of notice, in a newspaper of general circulation in the area served by the governing body, that a waiver of the bid procedure will be considered in order to contract with a qualified supplier pursuant to this section.  Rules issued by the Secretary of Administration pursuant to G.S. 49(6) shall apply with respect to participation in State term contracts.