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HomeMy WebLinkAboutAgenda - 03-05-2003 - 8cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 5, 2003 Action Agenda Item No. �- SUBJECT: Bid Award: Front Loading Refuse Truck for Recycling Operations DEPARTMENT: Purchasing /Solid Waste PUBLIC HEARING: (Y /N) No ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, 245 -2652 Bid Tabulation Gayle Wilson, 968 -2885 TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336- 227 -2031 PURPOSE: To consider awarding a bid to Volvo and GMC Truck Center of Carolina of Charlotte, North Carolina for one front loading refuse truck for recycling operations. BACKGROUND: Orange County Solid Waste utilizes front loading refuse collection trucks for Corrugated Cardboard from the County's 6 convenience center drop -off sites plus the 6 unstaffed drop -off sites within the County and other Government office buildings. It also collects newspaper, magazines, and mixed paper from the drop sites to deliver to market. The 2002 -2003 Solid Waste Operating budget calls for the replacement of one of these trucks. The 1993 Crane Carrier with129,116 miles has been identified as the unit to be replaced. The bid specifications, produced collaboratively by the Purchasing and Solid Waste Departments, included an option for vendors to consider trade in of the 1993 unit. Fifteen vendors were solicited for Orange County's bid number 245. A pre -bid conference held for this vehicle was attended by five vendors and seven responded with bids. Pursuant to the attached bid tabulation, Volvo and GMC Truck Center of Carolina of Charlotte, North Carolina submitted the lowest responsible bid that was responsive at a delivered cost of $160,504 for Volvo /Autocar cab & chassis and Heil 28 cubic yard front loader body. This cost includes a trade -in allowance of $1,250 for the 1993 unit. However, the truck proposed for trade is in better condition than the back up truck currently in use in the Public Works Department. Public Works desires to pay the trade -in value to the Solid Waste Enterprise Fund, take ownership of the truck for use as a back up unit, and then surplus a unit currently being used for back up. FINANCIAL IMPACT: While sufficient funds were included in the Solid Waste Management Department FY 2002 -03 operating budget to pay outright for the acquisition of this vehicle, staff recommends that the Board authorize the Finance Director to arrange for an installment purchase agreement for this equipment through a local financial institution. Several months ago, the Finance Director concluded such an arrangement for a large amount of equipment (including that associated 2' with implementation of the Regulated Recyclable Materials Ordinance) at a very favorable interest rate of 3.75 %. Staff believes that financing in the 4% range should be obtainable in view of prevailing low interest rates. Five -year debt financing of this equipment will spread the cost impact over its useful life and will preserve additional short-term cash resources in.the Solid Waste Enterprise Fund. RECOMMENDATION(S): The Manager recommends that the Board: 1) award bid number 245 to Volvo and GMC Truck Center of Carolina of Charlotte, North Carolina at a delivered cost of $161,754; 2) authorize the Purchasing Director to execute the necessary paperwork; and 3) authorize the Finance Director to solicit and execute all administrative actions and documents associated with completing an appropriate installment financing agreement for this equipment with a local financial institution. BID TABULATION BID # 245 BID FOR: FRONT LOADING REFUSE TRUCK BID AWARDED TO: CLOSING DATE: 9 -03 -2002 BID PRICE: CLOSING TIME: 3:00 PM BUDGETED AMOUNT: VENDOR BID UNIT COST TRADE IN NET BID BOND ALLOWANCE VOLVO & GMC OF CHARLOTTE YES $161,754.00 - $1,250.00 $160,504.00 CHARLOTTE,NC CAROLINA YES $167,306.00 - $1,250.00 $166,056.00 ENVIRONMENTAL SYSTEMS KERNERSVILLE, NC LODAL -SOUTH NOW RESPONSIVE BID, DID NOT MEET SPECS KERNERSVILLE, NC NULIFE ENV. NOW RESPONSIVE BID, DID NOT MEET SPECS EASLEY, SC AMICK EQUIP. NOW RESPONSIVE BID, DID NOT MEET SPECS LEXINGTON, SC CAVALIER EQUIP. NOW RESPONSIVE BID, DID NOT MEET SPECS CLOVERDALE,VA TRANS- SOURCE NOW RESPONSIVE BID, DID NOT MEET SPECS RALEIGH, NC