HomeMy WebLinkAboutAgenda Report - January 16, 1991 (42),-11N
C u U N C I L C 0 M M U N I C A. 1 0 N
TO: THE CITY COUNCIL COUNCIL MEETING DATE: JANUARY 16, 1991
FROM: THE CITY MANAGER'S OFFICE
SUBJECT: PURCHASE OF 70 -FOOT AERIAL LINE TRUCK (ADDITIONAL FUNDING)
RECOMMENDED ACTION: That the City Council approve the additional expenditure of
for the purchase of a 70 -foot aerial line truck from TECO, Inc., Fort
Wayne, Indiana.
BACKGROUND INFORMATION: At the meeting of December 19, 1990, the City Council
approve the pure ase of a 70 -foot aerial line truck. This unit was being offered
to the City at the very favorable price of $91,996.56.
Subsequent to this action, the supplier discovered that a clerical error amounting
to $29,700 (deficiency), excluding taxes, had occurred in the price quote. The
supplier also indicated that the purchase order, as issued by the City, could not
be honored.
Following negotiations with the supplier, the unit is now being offered at the
modified price of $115,682.04 or at an increase of $23,685.48 including taxes.
For comparison, the 'correct' quoted price would be $123,262.10.
This purchase, even at the modified price, remains advantageous to the City, thus
the above recommendation. The modified purchase price ($115,682.04) is well
within the $128,814 appropriated in the Department's budget for this acquisition.
The City has been advised by other potential suppliers of this type of equipment
that bids would probably be in the $130,000 - $135,000 range. Thus, acquisition
in this manner will still save the City between $14,300 and $19,300.
Henry J. Rice
Electric Utility Director
cc: Assist Electric Utility Director
Purchasing Officer
CCTRUCK/CO.COM
RESOLUTION NO. 91-10
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A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING ADDITIONAL EXPENDITURE FOR 70 -FOOT AERIAL LINE TRUCK FOR T14E
ELECTRIC UTILITY DEPARTMENT
WHEREAS, the Lodi City Council at its December 19, 1990 regular
meeting approved the purchase of one 7O -foot aerial line truck from
TECO of Indiana for the Electric Utility Department, in the amount of
591,996.56; and
WHEREAS, subsequent to this action, the supplier discovered that
a clerical error had occurred in its price quote amounting to a
deficiency of S29,700, and has negotiated with the City to increase the
City's expenditure by $23,685.48 to partially cover the clerical error;
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
approves the additional expenditure of $23,685.48 towards the purchase
of the 70 -foot aerial line truck from TECO, Inc.
Dated: January 16, 1991
I hereby certify that Resolution No. 91-10 was passed and
adopted by the Lodi City Council in a regular meeting held Jan,..ary 16,
1991 by the following vote:
Ayes: Council Members - Pennino, Pinkerton, Sieglock, Snider
and Hinchman (Mayor)
Noes: Council Members - None
Absent: Council Members - None
1 t, %h } c )XCk -
Alice M. Reimche
City Clerk
91-10
RES911O/TXTA.02J