TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Bid: Street Sweeper
DATE: May 29, 2002
The attached resolution would accept the bid of Twin States Equipment, Inc., in the amount of $101,858 for a Tymco 600 Street Sweeper for use in the Public Works Department’s Drainage/Right-of-Way section. Funding for this purchase is available from the FY 2001-2002 Vehicle Replacement Fund and is within the budgeted amount.
This equipment is a budgeted addition to the fleet related to the Southern Village area annexation service plan adopted by the Council. State statutes require that municipal services be extended to annexed areas on the same basis as they are provided in the rest of the town. The Town currently has only one sweeper and it is insufficient to provide the budgeted level of service, which is once every six weeks for residential streets. The growth of the town is such that one sweeper cannot serve the approximately 150 centerline miles of our 700 streets in town at the desired frequency. When the current sweeper is down for service, no sweeping occurs.
Delaying this purchase would have a negative impact on our level of service and would not provide real monetary savings. The funds for the item have already been borrowed for the Vehicle Replacement Fund as part of an installment purchase contract, and the terms of the loan require that the funds be expended on vehicles and equipment. We could choose to purchase another vehicle or piece of equipment, but not use the funds for another purpose. The obligation for the sweeper is $7,300 in the first year and $14,600 in subsequent years until payments are completed.
The “piggy backing” bid procedure is being used to acquire this equipment. This process is authorized and explained in North Carolina General Statute 143-129(g), a copy of 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 a formal bid process. The North Carolina State University purchased a similar Street Sweeper on June 13, 2001. 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
The Street Sweeper purchased by NC State University meets all specifications for the Town of Chapel Hill and is within the budgeted amount in the Fleet Replacement Budget.
RECOMMENDATION
That the Council adopt the attached resolution accepting the offer of the Twin States Equipment, Inc., for the Tymco 600 Street Sweeper and the listed options at a total price of $101,858.
ATTACHMENT
A RESOLUTION ACCEPTING THE BID FOR THE PURCHASE OF A TYMCO 600 STREET SWEEPER. (2002-05-29/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/Village Advocate Classifieds on May 8, 2002, in accordance with G.S. 143-129-(g) for the purchase of a Tymco 600 Street Sweeper, and
WHEREAS, a formal bid competition was completed by North Carolina State University on March 29, 2001 in accordance with G.S. 143-129; and
WHEREAS, Twin States Equipment, Inc., offers the Town the Tymco Street Sweeper at the same price as offered to NC 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 Twin States Equipment, Inc.
This the 29th day of May, 2002.
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.