AGENDA #4t

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Bid:  Five (5) Thermal Imaging Cameras

DATE:             August 28, 2000

The attached Resolution A would authorize the Manager to acquire five (5) thermal imaging cameras for use by the Fire Department based on the bid of FLIR Systems, Inc. at a cost of $94,900.  Resolution B would authorize the Manager to accept an installment purchase contract and low bid offered by Wachovia Bank to finance this purchase over four years at an interest rate of 5.46%.

Funding for this purchase was included in the 2000-2001 adopted budget, and will be from a cooperative effort of the Town of Chapel Hill, the University of North Carolina and UNC Hospitals.

BACKGROUND

Pursuant to direction from the Town Manager, a committee of Fire Department employees was formed to research thermal imaging camera technology.  The committee developed performance specifications used as an evaluation tool and invited representatives from thermal camera vendors to demonstrate their product against the performance specifications.  The testing including ease of use, durability, ability to upgrade technological advancements, and performance under smoke and fire conditions.  From this evaluation, the committee wrote the bid specification document.

Funding for the purchase is a cooperative effort between the Town of Chapel Hill, the University of North Carolina and the UNC Hospitals.  The University has agreed to contribute $30,000 and UNC Hospitals, $20,000 towards the purchase.  The remaining $44,900 needed for the purchase will come from the Town of Chapel Hill. 

THERMAL CAMERA TECHNOLOGY

Thermal imaging cameras were first introduced in the fire service approximately 10 years ago.  The cameras “see through smoke” by using heat instead of visible light.  The cameras allow firefighters to enter areas with little or no visibility and search for victims or the location of fire start and extension.  The value of the cameras is realized in accelerated searches for trapped victims and fire spread to reduce property loss.  Other uses of the cameras include detection of hazardous material leaks and large area searches for people lost in open areas obscured by darkness or dense vegetation.

The thermal imaging camera recommended is manufactured by FLIR Systems, Inc. and attaches to the helmet of the firefighter freeing up both hands for rescue or firefighting operations.  One of the five cameras will be equipped with a wireless transmitter for remote viewing used during training evolutions.  The purchase of five cameras will afford each responding fire apparatus thermal camera capability.

BID PROCEDURES

Notice To Bidders and specifications were distributed to six (6) vendors in North Carolina, New Jersey, Oregon, Kentucky, Georgia and New York, and to four (4) minority business organizations in North Carolina.

The Notice To Bidders was published in The Chapel Hill News on July 16, 2000.  Two bids were received and opened at 3:00 p.m., on Wednesday, August 16, 2000. The bids were submitted by FLIR Systems, Inc. and Wally’s Fire and Safety Equipment.  The bid submitted by Wally’s Fire and Safety Equipment did not include a 5% bid deposit as required by G. S. 143-129 for formal bids, therefore, the bid is non-responsive.  The bid from FLIR Systems, Inc. is as follows:

EVALUATION OF BIDS

The bids were reviewed by Town staff.  The bid submitted by FLIR Systems, Inc. was found to be responsive and meets the specifications of the Town of Chapel Hill.  Because this particular thermal imaging camera met the Chapel Hill specifications and the total bid is within budget the bid can legally be accepted.  We recommend acceptance of the bid.

FINANCING PROPOSALS

We propose to finance the purchase of the camera through an installment contract over a four-year period.  Requests for proposals for financing this purchase were sent to five financial institutions on August 17 with responses requested on August 22.  The proposals specified quotes for four-year fixed rate installments payments.

Five responses were received on August 22 as follows:

EVALUATION OF FINANCING PROPOSALS

Based on the above proposals, Wachovia Bank offers the lowest total interest cost with a bid of 5.46% for the 4-year term.

The attached resolution would authorize the Manager to enter into a lease-purchase contract with Wachovia Bank for the purchase of these five cameras.  The resolution confirms that the Town does not expect to issue more than $10 million in tax-exempt debt during the calendar year, which allows financial institutions to bid lower rates for governmental lease-purchase contracts. 

RECOMMENDATION

That the Council adopt:

·        Attached Resolution A awarding the bid for these cameras to FLIR Systems, Inc. in the amount of $94,900.

·        Attached Resolution B accepting the low bid of Wachovia Bank for an installment purchase contract for this purchase.

RESOLUTION A

A RESOLUTION ACCEPTING THE BID FOR FIVE THERMAL IMAGING CAMERAS (2000-08-28/R-15a)

WHEREAS, the Town of Chapel Hill has solicited formal bids by legal notice in The Chapel Hill News on July 16, 2000 in accordance with General Statute 143-129 for five Thermal Imaging Cameras; and

WHEREAS, the following bid was received and opened on August 28, 2000:

NOW, THERFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town accepts the bid of FLIR Systems, Inc. in the amount of $94,900 for the 5 Thermal Imaging Cameras for the Fire Department.

This the 28^th day of August, 2000.

RESOLUTION B

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A LEASE-PURCHASE CONTRACT FOR THE PURCHASE OF FIVE THERMAL IMAGINING CAMERAS FOR THE FIRE DEPARTMENT (2000-08-28/R-15b)

WHEREAS, the Town of Chapel Hill solicited and received competitive proposals from financial institutions for the lease-purchase of five thermal imaging cameras for operations of the Fire Department; and

WHEREAS, Wachovia Bank offers the lowest interest rate of 5.46% for this purchase;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to enter into a contract with Wachovia Bank on behalf of the Town for the lease-purchase of software packages at a fixed interest rates of 5.46% for a four-year term.

BE IT FURTHER RESOLVED that the aforesaid contracts by and between the Town of Chapel Hill, FLIR Systems, Inc., and Wachovia, together with the amounts to be paid thereunder, be and the same are hereby designated as qualified tax-exempt obligations of the Town of Chapel Hill for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.

BE IT FURTHER RESOLVED that the Council does not reasonably expect that the Purchaser (and any subordinate entities) will issue more than $10,000,000 in qualified tax-exempt obligations pursuant to such Sections 265(b)(3)(ii) during the current calendar year.

This the 28^th day of August, 2000.