HomeMy WebLinkAboutAgenda Report - June 16, 1999 E-08AGENDA TITLE: Purchase Digger -Derrick Truck ($189,180)
MEETING DATE: June 16, 1999
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt the attached resolution awarding the bid for the
purchase of one Digger -Derrick Truck to the low bidder Altec Industries, Inc.
Dixon, CA in the amount of $189,180.00 and authorize the transfer of
additional funds for this purchase.
BACKGROUND INFORMATION: On April 21, 1999, the City Council approved specifications and authorized
advertisement for bids. The City Council also directed staff to solicit bids for
a purchase or a lease of this equipment. Bids were received and opened on
May 19, 1999. A summary of the bids is tabulated below:
Bidder
Price incl. Tax
Price incl. Tax
Comments
w/o optional tools
with optional tools
Altec Industries, Inc.
$181,776.41
$189,180.00
Dixon, CA
MTI Insulated Products, Inc.
$183,227.80
$190,583.89
Does not meet
Fort Wayne, IN
Specifications
Pacific Utility Equipment Co.
$202,340.49
$208,866.91
Sacramento, CA
Utility Equipment Leasing Corp.
Offering lease
Waukesha, WI
only
The bidders were requested to submit bids on three different methods by which the City could acquire this equipment,
namely: purchase; a lease -purchase indicating semi-annual or annual payments based on either a 5, 7 or 10 year
lease -purchase all having a 1 dollar buy out at the end of the lease and finally a lease (only) with semi-annual or
annual payments on a 10 year lease. The various bids received have been tabulated and are shown as Exhibit A. For
each bidder three rows are shown indicating the actual payment and the Present Value of the payments for the
various lease terms at two different interest rates. The interest rates are representative of the City's cost of money.
Based on the Present Value analysis of the bid data it is recommended to purchase the vehicle. All of the lease
options, on bids meeting the specifications, have a greater Present Value than the purchase option.
The City Council's authorization to advertise for bids was based on an estimated purchase price of $175,000.00. In
order to fund the above recommendation i.e. purchase the truck at a cost of $189,180.00, it is requested that the City
Council authorize the transfer of $14,180 from the excess funding for a Bucket Truck presently being purchased.
Funding for this Bucket Truck with the truck equipped for service was appropriated at $120,400.00. However, based
on bids received the actual in service price will be $87,033.80 leaving an excess of $33,366.20.
APPROVED:
H. Dixon hynn -- City nager
Purchase Digger -Derrick Truck (continued)
FUNDING: Electric Utility Capital Budget
(See Page E-44 of the 1997-99 Financial Plan and Budget)
Account Number: 1611201.7851 233 E
Funding Approval:_ Yl `C�' "-k-_
Vicky McAthi , Finance Director
1 , V�
AlanW. Vallow
Electric Utility Director
PREPARED BY: Hans Hansen, Manager, Engineering and Operations
ANV/HH/hh
Attachment (1)
c: City Attorney
Purchasing Officer
APPROVED:
6-19-99 HH MG DERTRK H. Dixon Flynn -- City Manager
Exhibit A
Acquisition Evaluations
Digger -Derrick Truck
Digger Derrick Eval 06/09/1999
Option #1
Option #2
Option #3
Bidder
Purchase
Lease -Purchase
Lease
w/o Optional
5 Years
7 Years
10 Years
Tools
Semi -Ann. I Annual
I Semi -Ann. Annual
Semi -Ann. I Annual
Semi -Ann.
Annual
Monthly
Payments
181,776.41
21,378.00
43,395.45
16,348.16
33,148.24
12,634.60
25,578.52
2,084.08
Altec Industries, Inc.
Present Value (5%)
187,101.54
187,879.73
191,124.87
191,807.98
196,962.80
197,510.43
196,489.88
Present Value (6%)
182,358.62
182,797.26
184,669.96
185,046.07
187,970.88
188,260.21
187,720.28
Payments
202,340.49
24,792.71
50,247.03
18,966.07
38,418.80
14,629.70
29,600.63
14,629.70
29,600.63
Pacific Utility Equipment Co.
Present Value (5%)
216,987.29
217,543.51
221,730.62
222,305.39
228,064.73
228,568.07
228,064.73
228,568.07
Present Value (6%)
211,486.77
211,658.58
214,242.05
214,468.34
217,652.92
217,863.30
217,652.92
217,863.30
Payments
23,553.24
46,470.17
17,881.11
35,252.76
N/A
N/A
N/A
N/A
Pacific Utility Equipment Co.
Present Value (5%)
206,139.37
201,191.67
209,046.45
203,985.51
(Optional Financing)
Present Value (6%)
200,913.85
195,749.09
201,986.27
196,794.30
Payments
20,012.41
39,436.83
15,046.00
29,631.04
11,352.83
22,337.52
N/A
N/A
MTI Insulated Products, Inc.
Present Value (5%)
183,227.80
175,149.81
170,740.97
175,901.43
171,456.16
176,981.08
172,484.30
Present Value (6%)
170,709.86
166,122.13
169,960.67
165,411.73
168,901.39
164,406.16
Payments
22,899.36
46,263.36
17,248.17
34,844.63
13,033.94
26,317.631
13,172.50
25,597.99
Utility Equipment Leasing Corp.
Present Value (5%)
N/A
200,416.57
200,296.29
201,646.80
201,623.92
203,188.18
203,217.63
205,348.21
197,660.77
Present Value (6%)
195,336.12194,877.93
194,836.54
194,515.97
193,912.05
193,700.13
195,973.47
188,403.51
Interest Rate
Present Value Factors
5%
8.75206
4.32948
11.69091
5.78637
15.58916
7.72173
94.28135
6%
8.5302
4.21236
11.29607 1
5.58238
14.87747
7.36009
90.07345
Digger Derrick Eval 06/09/1999
RESOLUTION NO. 99-83
A RESOLUTION OF THE LODI CITY COUNCIL AWARDING
THE BID FOR THE PURCHASE OF ONE DIGGER -DERRICK
TRUCK, AND FURTHER APPROVING THE TRANSFER OF
ADDITIONAL FUNDS TO COVER THIS PROJECT
WHEREAS, in answer to notice duly published in accordance with law and the order of
this City Council, sealed bids were received and publicly opened on May 19, 1999 at 11:00 a.m.
for the purchase of one Digger -Derrick Truck, described in the specifications therefore approved
by the City Council on April 21, 1999; and
WHEREAS, said bids have been compared, checked, and tabulated and a report
thereof filed with the City Manager as shown below:
Bidder
Price incl. Tax
Price incl. Tax
Comments
w/o optional tools
with optional tools
Altec Industries, Inc.
$181,776.41
$189,180.00
Dixon, CA
MTI Insulated Products, Inc.
$183,227.80
$190,583.89
Does not meet
Fort Wayne, IN
Specifications
Pacific Utility Equipment Co.
$202,340.49
$208,866.91
Sacramento, CA
Utility Equipment Leasing Corp.
Offering lease only
Waukesha, WI
WHEREAS, the City Manager recommends that award of the bid for the purchase of one
Digger -Derrick Truck, be made to the low bidder whose equipment meets the City of Lodi
specifications, Altec Industries, Inc., of Dixon, California.
NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that the award of bid for the
purchase of one Digger -Derrick Truck, be and the same is hereby awarded to Altec Industries, Inc., of
Dixon, California, in the total amount of $189,180.00; and
BE IT FURTHER RESOLVED, that additional funds in the amount of $14,180.00 be
transferred from excess funding to cover this purchase.
Dated: June 16, 1999
I hereby certify that Resolution No. 99-83 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held June 16, 1999, by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Mann, Nakanishi, Pennino and
Land (Mayor)
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
&�u 1h . r 1i
ALICE M. REIMCHE
City Clerk
99-83