Loading...
HomeMy WebLinkAbout11/02/1999, C7 - FIRE ENGINE PURCHASE council " fi`°�11/2/99 j acEnaa Report 1�N,,-� C I T Y O F SAN L U IS O B I S P O FROM: Robert F.Neumann,Fire Chie f Prepared By: William R.Dugger,Fire Apparatus Mechanic Viv R.Dilts,Administrative Assistant,%oO�g SUBJECT: FIRE ENGINE PURCHASE CAO RECOMIYIENDATION • Approve the use of cooperative purchasing in acquiring a replacement fire engine by "piggy- backing" onto a recent purchase by the City of Bountiful Utah of a Pierce Lance 2000 pumper. • Authorize the Mayor to execute an agreement with Pierce Manufacturing Company in the amount of$294,976. DISCUSSION In the 1999-01 Financial Plan, the Council appropriated $295,000 for the purchase of a replacement fire engine. In accordance with the City's policy of using cooperative purchasing whenever possible, City staff researched recent fire engine acquisitions in order to benefit from the administrative work of others. We discovered that the Bountiful Fire Department in Utah recently went out to bid and purchased a Pierce Lance 2000. Out of the five vendors who were sent invitations to bid, only two companies replied. Pierce met 100% of the total intent of the specifications and came in low bid. The only other vendor that replied took four and one half pages of exceptions to the specifications. The major components of Bountiful's unit(chassis, model, drive-train and pump) are exactly the same as the unit we are proposing to purchase. After adjusting for optional auxiliary equipment which the City does not require, the unit price offered to the City is exactly the same as Bountiful's, and is within the adopted budget amount. In addition to administrative efficiencies, there are several reasons for"tagging" onto Bountiful's agreement with Pierce: • The proposed price is based on a competitive process, and reflects no price increases since December of 1998. • There is general consensus among Fire professionals that Pierce is the leading, most reliable, reputable manufacturer of fire equipment in the country. • .Pierce has always insured that their apparatus is at or beyond the cutting edge of the industry. • Pierce operates a Quality Management System under Insurance Services Office 9001. CM Council Agenda Report-Fire Engine Purchase Page.2 • Pierce assures the Pierce Lance is fully Y2K compliant. • Pierce is a single .source manufacturer that adds value by providing a fiilly engineered product under one roof. Additionally, it would:. • Further standardize the City's current'fire fleet. o Reduce our engine parts inventory.: • Allow the mechanic to deal.with one vendor over technical and warranty concerns. FISCAL IMPACT The Council approved $295,000 for this purchase in 1999-00 as part of the 1999-01 Financial Plan(Page E-4). Theproposed cost, including the chassis prepayment credit,is $294,976. ATTACHMENT Agreement with Pierce Manufacturing Company C;7-2 ATTACENMNT 1 AGREEMENT THIS AGREEMENT is made.and entered into in the City of San Luis Obispo on this day of , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation,hereinafter referred to as City,and PIERCE MANUFACTURING COMPANY, hereinafter referred to as Contractor. WITNESSETB: WHEREAS, the City's purchasing procedures allow for cooperative purchasing, including "piggy- backing"onto another agency's contract;and WHEREAS, the City of Bountiful, Utah awarded a contract on December 10, 1998 for a Pierce Lance 2000 pumper after soliciting formal bids for the purchase of a fire engine;and WHEREAS,the Contractor has offered to sell to the City the same pumper it sold to Bountiful at the sane price,after adjusting for options that Bountiful ordered that the City does not need. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained,the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date of this Agreement is made and entered, as first written above,until acceptance of said equipment. 2. INCORPORATION BY REFERENCE. Contractor's agreement with Bountiful, Utah dated December 10, 1998, Reconciliation of Cooperative Purchase Costs (Exhibit A) and Contract Performance Terms (Exhibit B),are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing equipment as specified in this Agreement,City will pay and Contractor shall receive therefore compensation in a total sum not to exceed $294,976.00 as follows: ninety (90) days after contract execution, the City agrees to pay a chassis prepayment in the amount of $148,772.00; the remaining balance of$146,204.00 will be paid 30 days from the receipt of an original invoice and acceptance of the equipment by the City. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by this Agreement 5. AMENDMENTS. Any amendment,modification,or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Administrative Officer of the City. C7m3 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail,postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93401 Contractor Pierce Manufacturing Company 2600 American Drive Appleton,WI 54913 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO,Municipal Corporation By: City Clerk Mayor Allen Settle APPROVED AS TO FORM: PIERCE MANUFACTURING COMPANY By: ?tY ey C7-4 EXHIBIT A RECONCILIATION OF COOPERATIVE PURCHASING COSTS Cost comparisons and differances Bountiful Utah Pierce Lance base price Total base price of Pierce Lance as specified by Bountiful Utah. Note:price excludes tax and chassis pre-payment options 348,039.00 Options not required by S.L.O.specified on Bountiful unit 1) Hydraulic.Drive generator 12,995.00 2) Light tower 12,973.00 3) Breathing air reel 2,197.00 4) Hydraulic reel and hose 3,314.00 5) Elec.Cord reel 2,688.00 6) David Clark intercom system 7,245.00 7) Pierce Husky foam system 18,603.00 8) Enclosure around light tower 1,574.00 9) Hatch compartments 1,447.00 10) Transmission output retarter 5,024.00 11) Automatic tire chains 3,147.00 12) Cold weather engine insulation 1,072.00 13) Engine heater 829.00 14) speedometer at officers position 329.00 15) Extra chassis/electrical diagrams and manuals 584.00 16) Vinyl map pockets on cab/crew doors 394.00 17) Special equip.ramp 452.00 Total deleted options 74,877.00 Bountiful Pierce Lance base price 348,039.00 Total deleted options -74,887.00 Bountiful Pierce Lance base price minus options 2739162.00 San Luis Obispo Pierce Lance base price Base price quoted by South Coast Fire.Note:price excludes tax and chassis pre-payment options 273,162.00 Additional loose equip.asked for by San Luis Obispo 1) Kentwood radio 2,424.00 2) Stem-Light +3.514.00 Total loose equipment 5,938.00 Sub-total 279,100.00 Calif. State sales tax @.0725% +20,235,00 Total 299,335.00 Minus chassis pre-payment discounts -4,359.00 Total cost fully delivered to San Luis Obispo 294,976.00 C7-5—5 EXHIBIT B-1 Oct-06-99 03 : 03P South Coast Fire�7 Eq . g, 00/21%98 1'L :uu rry a ov. a 4wY vv" gCOOU[YTInG ^ ri,iy e4.30 , PIr.itCE OUTPUT AREA: Pisres Manufacturing Inc. prepayment O:scount CWMdvL-On TO. Maw FROM: Laura Kober OA►TE: 11130198 CiJSTOMER7 bountiful QUOTATION; Contract S 348,433 Interest biscotnt (6,356) Chassis Discount ABrial DiSCOWS% Other Oue With Cont=t: S 334,624 Ousts based an 7 rn0S (shake sure YOU iMd"te . this Kfien you send the order Ir). The price differences reflect optional equipment asked for by Bountifill in their specifications totaling$74,877.00. These options are not desired by San Luis Obispo and reflect the difference in total cost of each unit. C7-6 Oct-05-99 08:12A Souti-i ')ast Fire Eq. 909 E 9700 P.01 EXHIBIT -2 SOUTH COAST TO : BILL D &ER FROM : NICK RUSSO SOUTH COAST FIRE EQUIP. OFFICE : 909 673 9900. FAX : 9096139100 CEL : 949 466 0.402 DATE : 10 / 5 / 99 PAGES : 1 Bill, The pricing for the Pierce Lance pumper with the changes we discussed is . as follows Pierce Lance contract.price $ 273, 162.00 Loose Equipment in Proposal 5, 938.00 $ 2x9, ioo-oo 5ales tax 7.250 20,_235.00 Total t 299, 335.00 Chassis Discount Deduct 4, 359.00 - _-_ --- $ 294, 976.00 —. C7� Oct-05-94 08e1:2A Soutt. mast Fire Eq_ 909 9700 P_02 As a reminder the Chassis prepayment is due ninety (90)days after Pierce . receives the purchase order or aligned controct,;all payments should be made to Pierce Manufacturing Inc. If you should have any questions, please do not hesitate to call. Sincerely, c-\ Z0Ss0 C7-8 CONTRACT PERFORMANCE TERMS E)ECIBIT C 1) Business Tax. Contractor must have a valid City of San Luis Obispo business tax certificate prior to execution of the contract Additional information regarding the City's business tax program may be obtained by calling(805)781-7134. 2) Ability to Perform. Contractor warrants that it possesses,or has arranged through subcontracts,all capital and other equipment,labor,materials,and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 3) Laws to be Observed. Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 4) Payment of Taxes. The contract prices shall include full compensation for all taxes which Contractor is required to pay. 5) Permits and Licenses. Contractor shall procure all permits and licenses,pay all charges and fees,and give all notices necessary. 6) Safety Provisions. Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 7) Public and Employee Safety. Whenever Contractors operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, famish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 8) Preservation of City Property. Contractor shall provide and install suitable safeguards, approved by the City,to protect City property from injury or damage. If City property is injured or damaged as a result of Contractor's operations, it shall be replaced or restored at Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 9) Immigration Act of 1986. Contractor warrants on behalf of itself and all sub-contractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 10) Contractor Non-Discrimination. In the performance of this work, Contractor agrees that it will not engage in,nor permit such sub-contractors as it may employ,to engage in discrimination in employment of persons because of age,race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 11) Work Delays. Should Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act,or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City s sole option,be extended for such periods as may be agreed upon by the City and the Contractor. 12) Payment Terms. Ninety(90) days after Contractor receives the purchase order or a signed contract City agrees to pay a chassis prepayment in the amount of$148,772. Balance of the payment, minus the pre- chassis prepayment credit, will be paid 30 days from the receipt of an original invoice and acceptance by the City of the services provided by Contractor(Net 30). C7-9 13) Inspection. Contractor shall fiunish City with every reasonable opportunity for City to ascertain that the services of Contractor are being performed in accordance with the requirements and intentions of this contract All work done and all materials furnished, if any, shall be subject to the Citys inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 14) Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 15) Interests of Contractor. Contractor covenants that it presently has no interest, and shall not acquire any interest direct or indirect or otherwise,which would conflict in any manner or degree with the performance of the work hereunder. Contractor further covenants that, in the performance of this work, no sub- contractor or person having such an interest shall be employed. Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that,in the performance of the work hereunder,Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 16) Hold Harmless and Indemnification. Contractor agrees to defend,indemnify,prated and hold the City and its agents,officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provider however, that Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 17) Year 2000 Compliance. The Contractor warrants that the goods or services provided to the City, including those provided through subcontractors, are "Year 2000 compliant" For the purpose of this contract, "Year 2000 compliant"means that goods or services provided to the City will continue to fully function, fault-free, before, at and after the Year 2000, without interruption or human intervention; and if applicable,any data outside of the date range 1990-1999, including leap years,will be correctly processed in any level of computer hardware or software, including, but not limited to, microcode, firmware, application programs,files and data bases.This warranty supersedes all warranty disclaimers or limitations, and all limitations on liability,otherwise provided by the Contractor. 18) Upon request by the City, the Contractor will provide the City with a description of its Year 2000 compliance strategy,or statement of why this is not relevant to contract performance. 19) Contract Assignment.Contractor shall not assign,transfer,convey or otherwise dispose of the contract,or its right,title or interest,or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 20) Termination. If, during the term of the contract, the City determines that Contractor is not faithfully abiding by any term or condition contained herein,the City may notify Contractor in writing of such defect or failure to perform;which notice must give Contractor a 10(ten)calendar day notice of time thereafter in which to perform said work or cure the deficiency. If Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to Contractor to said effect Thereafter, neither party shall have any further duties, obligations,responsibilities,or rights under the contract In said event, Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination,minus any offset from such payment representing the City's damages from such breach. "Reaso t�bde�valaisQ 1. v1VV includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by Contractor shall be based solely on the City s assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event,however,shall Contractor be entitled to receive in excess of the compensation quoted in its proposal. 21) Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of Contractor as part of the work or services under these specifications shall become the permanent property of the City,and shall be delivered to the City upon demand. 22) Insurance Requirements-Supply and Equipment Contracts.The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the products and materials supplied to the City. The cost of such insurance shall be bome by the Contractor. a) Minimum Scope of Insurance. Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage("occurrence"form CG 0001). b) Minimum Limits of Insurance. Contractor shall maintain limits no less than $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit c) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers;or the Contractor shall procure a bond guaranteeing payment of losses and related investigations,claim administration and defense expenses. d) Other Insurance Provisions. The general liability policy is to contain,or be endorsed to contain,the following provisions: The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: products and completed operations of the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City,its officers, officials, employees, agents or volunteers. The Contractor's insurance coverage .shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers,officials,employees,agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought,except with respect to the limits of the insurer's liability. C7-11 Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either parry, reduced in coverage or in limits except after thirty (30) days'prior written notice by certified mail,return receipt requested,has been given to the City. e) Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.Best's rating of no less than ANIL f) Verification of Coverage. The Contractor shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. 25) Accuracy of Specifications. The specifications for this engine are believed by the City to be accurate and to contain no affirmative misrepresentation nor any concealment of fact. Contractor is cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the Contractor all subcontractors shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the plans and specifications which could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of Contractor to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder,assuming reasonable skill,ability, and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposaL To the extent that these specifications constitute performance specifications,the City shall not be liable for costs incurred by the successful bidder to achieve the project's objective or standard beyond the amounts provided therefor in the proposal. in the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing,and the Contractor and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major,material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of contractor's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert tine causative role of the defect or ambiguity in the plans or specifications concerning the dispute. C7-12