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HomeMy WebLinkAboutAgenda Statement 1985/06/25 Item 8 COUNCIL AGENDA STATEMENT Item 8 Meeting Date 6/25/85 ITEM TITLE: Resolution /' 5,7 Accepting bids, awarding contract and appropriating additional funds for purchase of trucks SUBMITTED BY: Director of Finance Director of Public orks/City Engineer REVIEWED BY: City Manager (4/5ths Vote: Yes X No ) Bids were received and opened at 4:00 p.m. on June 10, 1985, for purchase of the following trucks: ITEM QTY DESCRIPTION DEPARTMENT 1 2 Cab and chassis with 45 foot aerial lift Public Works-Trees 2 1 Cab and chassis with dump body Public Works-Streets 3 1 Pickup truck with utility body and Parks roller top 4 1 Pickup truck with utility body less Public Works-Sewers roller top RECOMMENDATION: Item 1 - Cab and chassis with 45 foot aerial lift That Council award bid to Dion International Trucks and appropriate $12,252.85 from unappropriated General Fund reserves. Item 2 - Cab and Chassis with dump body That Council award bid to Dion International Trucks. Item 3 - Pickup truck with utility body and roller top That Council award bid to Ball Oldsmobile. Item 4 - Pickup truck with utility body less roller top That Council award bid to Ball Oldsmobile. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. I ' /_ by the City Council of Chula Visa, California Dated d7 `° s f:-S- i , Page 2, Item 8 Meeting Date 6/25/85 DISCUSSION: Bid proposal forms were mailed to fifteen (15) vendors. The following bids were received: ITEM 1 - Cab and Chassis with 45 foot aerial lift UNIT PRICE UNIT PRICE GASOLINE DIESEL TRADE-IN BIDDER ENGINE ENGINE ALLOWANCE DeAnza Chevrolet $61 ,044.25 $64,316.00 $13,000.00 Riverside (2 trucks) D & H Truck Equipment 59,553.00 No bid No bid San Diego Dion International Trucks, Inc. , No bid 67,394.20 7,000.00 San Diego (2 trucks) Miramar Ford Truck Sales, Inc. 62,395.00 68,540.00 500.00 San Diego (1 truck only) Telelect West 68,583.00 72,283.00 13,000.00 Baldwin Park (2 trucks) J. L. Enterprises 71 ,520.00 74,520.00 6,000.00 Irvine (2 trucks) ITEM 2 - Cab and Chassis with dump body UNIT PRICE DIESEL TRADE-IN BIDDER ENGINE ALLOWANCE DeAnza Chevrolet $31 ,011 .00 $ 600.00 Dion International 33,966.46 2,500.00 Miramar Ford Truck Sales, Inc. 34,050.00 1 ,200.00 ITEM 3 - Pickup truck with utility body and roller top BIDDER UNIT PRICE Ball Oldsmobile, National City $10,348.00 DeAnza Chevrolet 10,259.69 Page 3, Item 8 Meeting Date 6/25/85 ITEM 4 - Pickup truck with utility body less roller top TRADE-IN BIDDER UNIT PRICE ALLOWANCE Ball Oldsmobile $9,848.00 $1 ,001 .00 DeAnza Chevrolet 9,884.69 200.00 ITEM 1 DISCUSSION The FY 1934-85 budget provides for one truck and the approved FY 1985-86 budget provides for an additional one. Since the bid proposals were not due until June, the quantity was increased from one to two cab and chassis with 45 foot aerial lift to save re-bidding after July 1 , 1985, and take advantage of a quantity discount. Bids were requested on both gasoline and diesel operated trucks. On gasoline engine trucks, bid specifications were requested on a minimum 400 cubic inch engine which staff considered would be required to handle the load capacity. The biggest engine bid was a Ford 370 cubic inch engine. California emission standards restrict engine size according to Ford and General Motors Truck Divisions and they were unable to submit a bid for the requested 400 cubic inch engine. On the diesel engine specifications, a 9 liter engine was specified. Again, this engine size was specified to handle load capacity. Private and County tree crews using an 8.2 liter engine have complained that this size engine will not adequately handle the hydraulic system and load capacity of their aerial devices. Diesel operation versus gasoline is also a consideration in the recommendation. Based on approximately 6,300 road miles per year, and 650 hours power take off (PTO) use, estimated fuel usage is as follows: MILES PER PTO USAGE GALLON PER HOUR 370 cubic inch gasoline engine 4.25 4.25 gals 9 liter diesel engine 7.10 2.40 gals Total gasoline usage is 4,245 gallons and diesel 2,447 gallons for one year operation. Currently, gasoline costs the City $.96 per gallon and diesel $.94 per gallon. Based on fuel costs, the gasoline operated truck would cost $4,075.20 and the diesel operated truck $2,300.18. The fuel savings in purchasing a diesel engine would be $1 ,775.02. If fuel costs didn't increase over a five-year period, the savings could amount to approximately $8,875. Diesel engines require less maintenance and due to their running cooler than gasoline engines, they have double the expected life. Based on the above factors, the diesel operated truck is recommended for purchase. Page 4, Item 8 Meeting Date 6/25/85 DeAnza Chevrolet was low bidder on the diesel operated engine but doesn't meet specifications in engine size. They bid a 8.2 liter engine and specifications required a minimum 9 liter engine. As explained previously, the engine is not adequate to handle the load capacity. The number two bid of Dion International Trucks, Inc. meets specifications and it is the recommendation of the Director of Public Works/City Engineer that this unit be purchased from Dion International Trucks, Inc. The cost of purchasing the two vehicles with trade-in allowances will be $135,875. 70 (includes tax). The City is intending to trade in a 1957 International Truck with aerial lift and a 1974 GMC truck with aerial lift for $7,000. In the FY 1984-85 budget, $55,865 was appropriated for the purchase of one truck. An additional $12,252.85 appropriation is needed for the total purchase price of $67,937.85 for one truck. Funds for purchase of the second truck will come from 1985-86 Vehicle Replacement Fund. A big advantage of the purchase of these two cab and chassis trucks with 45 foot aerial lifts is that it will enable the City to eliminate and subsequently auction two dump trucks. In the existing system the dump trucks are necessary because the aerial tower and chipper box are on separate chassis. Th new trucks will have both the aerial tower and chipper box on a single chassis, eliminating the need for the dump trucks. The elimination of these two dump trucks will provide the City with a capital replacement savings of approximately $73,000 or an annual cost savings of $5,250. This savings will be generated by the elimination of the vehicle replacement charges for these two dump trucks. ITEM 2 DISCUSSION On Item 2, the low bidder DeAnza Chevrolet bid on an 8.4 liter diesel engine. The engine doesn't meet specifications as the City requested a minimum 9 liter engine. We presently have a 9 liter diesel operated dump truck that has been in service for two years that has met our requirements, and performed economically and with minimum maintenance. The number 2 bidder, Dion International Trucks, Inc. , meets our specifications. The cost of purchasing this truck from Dion International Trucks, Inc. with a trade-in allowance is $33,504.45 (includes tax). This is within the amount budgeted for FY 1984-85. ITEMS 3 and 4 DISCUSSION On Items 3 and 4, the only difference in the two units is that the Parks Division requires a roller top for security purposes and the Sewer Division unit doesn't. It is proposed to purchase the two trucks from one vendor. The low bidder on the two trucks is Ball Oldsmobile. The cost of purchasing these two trucks from Ball Oldsmobile with trade-in allowance is $20,406.76. This is within the amount budgeted for FY 1984-85. Page 5, Item 8 Meeting Date 6/25/85 FISCAL IMPACT: On Item 1 , the FY 1984-85 budget provides $55,685 in Account 100-1750-5565 for the purchase of one cab and chassis with 45 foot aerial lift. Funds need to be appropriated from the unappropriated General Fund in the amount of $12,252.85 to Account 100-1750-5565 for a total of $67,937.85 for the purchase. The funds for the FY 1985-86 budget unit will come from Account 705-7050-5575, the Vehicle Replacement Fund. The purchase order for the truck will be placed after July 1 , 1985. Funds are available for the balance of the trucks as follows: ITEM ACCOUNT NO. AMOUNT BUDGET APPROPRIATION 2 100-1740-5565 $33,504.45 $35,000 3 100-1520-5565 10,968.88 10,800 4 100-1760-5565 9,437.88 10,800 WPC 0144U