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HomeMy WebLinkAboutAgenda Statement 1974 /07/02 Item 14 AGENDA ITEM NO. [ 14 ] CHULA VISTA CITY COUNCIL MEETING OF: July 2, 1974 ITEM TITLE: Resolution - Appropriating Funds and Authorizing Advertising for Bids for One Bituminous Distributor INITIATED BY: Director of Public Works/City Engineer(±/:- BACKGROUND At the City Council meeting June 25, staff was directed to readvertise for bids for a bituminous distributor if revenue sharing funds would be lost due to the non-expenditure Of previously appropriated funds for this item. Staff research indicates that the previously appropriated revenue sharing funds will not be lost if subject item is not purchased in fiscal year 73-74. As the previously appropriated funds are not carried forward from fiscal. year 73-74 to fiscal year 74-75, it is necessary to authorize the expenditure of new funds for this purpose in fiscal year 74-75, to readvertise for bids and follow the normal routine bidding procedure. The Purchasing Agent anticipates that the asphalt distributor price will increase by about $1,000 in the-fiscal year 74-75. The submitted low bid for the asphalt distributor, including tax and freight was $13,205. Therefore an appropriation of $14,500 is requested. The following information is presented to the City Council for the possible reconsideration of its decision at the June 25 meeting. Some of this information was not available to you at that meeting. 1. The primary reason for Council's decision was the apparent lack of competitive bidding by the bidders . This apparent discrepancy was caused by the Mustang Equipment Company's submittal of their bid F.O.B. Minneapolis, Minn. Following (Continued on Supplemental Sheet ) ATTACHED: Resolution [xi Ordinance [ ] Agreement [ ] Plat [ ] See EXHIBITS [X] No. 1 Financial Statement: Funds are available in Account No. 49 8900-5568. Commission-Board Recommendation: N.A. Department Head Recommendation: Accept bids opened on June 10, 1974 and award contract to Mustang Equipment Company. City Manager Recommendation: • Form No. F-229 11/73 CERTIFICATE OF CITY/DIRECTOR OF FINANCE Certification of Unaparopriated Balance I HEREBY CERTIFY that the money required for the hed the atta t t forth in t c appropriation of funds for the purpose se or or hnincthetad to resolution is available in the Treasury, come into the Treasury, and is otherwise unappropriated. Amount 04,500 Fund Federal Revenue Sharing purpose Appropriating Funds and Authorizing Advertising. forBids for one i um ous is r u or Bidder Mustang Equipment Company Director of Finance The City of Chula Vista Date June 27, 1974 Be Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the .attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State ^of California, that sufficient monies have been apeeopriate4 ror the purpose of said contract, that sufficient ponies to meet the obligaticns of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually, in the Treasury, together with the monies anticipated to come into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed • yDirector. et Finance eity of Chula Vista Date By Fund Dept./Activity Purpose Bidder -- _ — w ' Supplemental Sheet No. 1 the opening of their bids, this firm submitted a specified freight charge which, when added to the equipment cost , was approximately. $1500, less than the cost of the high bidder, United Equipment Company. Through phone conversations with the Interstate Commerce Commission and the Western Traffic Rates Company it was determined that freight rates must coincide with published rates approved by the I.C.C. Although different carriers have different rates, these rates are generally very competitive and can be determined. They are not subject to negotiation or bidding processes. The Purchasing Agent contacted Universal Car Loading & Distributing Company in order to determine a freight rate for the asphalt distributor from Minneapolis to San Diego. The total frieght charge given by this company, based on telephone information, is approximately $1,043.28. When this charge is substituted for the freight rate quoted by Mustang Equipment Company, the new cost for the low bidder is about $1100 less than the cost submitted by the high bidder. It should be noted that the Purchasing Agent contacted only one source and does not necessarily have the lowest available freight rate from Minneapolis to San Diego. 2. When the bids were opened on June 10, 1974 , neither bidder had previous knowledge of the bid submitted by the other bidder. If the freight rate computed by the City is substituted and added to the •bid submittal as mentioned above, then the comparison of bids between Mustang Equipment Company and United Equipment Company is valid. If the City discounts the first bidding process and readvertises then each bidder has foreknowledge of his competitors initial bid. Since only 2 bids were received, this seems detrimental to the City's standard competitive bidding process .