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
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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.
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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
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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
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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.
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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 —.
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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
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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).
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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
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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.
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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.
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