AGENDA #4c
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Bid: Street Flusher Truck
DATE: May 22, 2000
The attached resolution would accept the bid of A.E. Finley Inc. in the amount of $82,716.00 for a street flusher truck for use in the Public Works Department's Drainage and Right-of-Way Division.
Funding for this purchase is available from the FY 99-00 Fleet Replacement Fund.
The street flusher truck will be used in the Drainage and Right-of-Way Division of the Public Works Department. The primary mission of this truck will be street cleaning and flushing.
The Drainage and Right-of-Way Division presently operates one street flusher and one sweeper to clean approximately 200 curb miles of streets. The flusher truck would also be used for special events and storm cleanup. This truck would replace the present street flusher, a 1988 model. The old truck would then be sold at auction in accordance with our current policy of "one in - one out."
The Fleet Replacement Fund for FY 99-00 includes $85,000 for the flusher truck. The cost of the flusher truck recommended for purchase is within the budgeted amount.
A different bid procedure from the formal bid process is being used in this equipment procurement. It is commonly referred to as "piggy backing" and is explained in the general statute below:
N.C. General Statute 143-129(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. 143-129(g) shall apply with respect to participation in State term contracts.”
The City of Salisbury, North Carolina went through the formal bid process for a street flusher truck on April 18, 2000. The low bid was from A.E. Finley Inc. for the sum of $82,716.00 for a 2000 Freight Liner truck with an Etnyre Flusher body. We believe that using this method of procurement is in the best interest of the Town for several reasons. This method ensures us a favorable price about 2.7% below the amount estimated in the fleet replacement budget. (Our estimate was based on research among buyers and vendors as well as with the State purchasing contract.) Procuring this vehicle by a formal bid process would delay the acquisition and expose the Town to the risk of inflationary market pressures that may result in a higher purchase price. The piggyback method also has the advantage of an earlier delivery time than a formal bid. By placing the new vehicle in service earlier, we avoid some of the maintenance costs of the aging vehicle and reduce the operational downtime associated with older vehicles. A notice of waiver was advertised in the Chapel Hill Herald on May 12, 2000, in accordance with N.C General Statute 143-129(g).
The City of Salisbury received three formal bids as follows:
Adams International $84,672.25
Tarheel Ford $84,505.00
A.E. Finley $82,716.00
The bid by A.E. Finley Inc. meets all of the Town’s specifications for a street flusher truck and is the lowest responsive bid.
That the Council adopt the attached resolution awarding the street flusher bid to A.E. Finley Inc. in the amount of $82,716.0.
A RESOLUTION ACCEPTING THE BID
FOR THE PURCHASE OF A STREET FLUSHER TRUCK (2000-05-22/R-3)
WHEREAS, the Town of Chapel Hill has advertised notice of wavier of the formal bid process by legal notice in The Chapel Hill Herald on May 12, 2000, in accordance with G. S. 143-129-G for the purchase of a street flusher truck; and
WHEREAS, the following formal bids were received by the City of Salisbury, North Carolina on April 18, 2000, in accordance with G. S. 143-129:
Adams International $84,672.25
Tarheel Ford $84,505.00
A.E. Finley $82,716.00;
and
WHEREAS, the bid from A.E. Finley Inc. was found to be the lowest bid responsive to the specifications; and
WHEREAS, the Town Council has determined that using this method of procurement under G.S. 143-129(g) is in the best interest of the Town;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town implements the wavier of formal bid process in accordance with G. S. 143-129(g) and accepts the offer to sell of A.E. Finley Inc. in the amount of $82,716.00.
This the 22nd day of May, 2000.