(13)AR 040709 Terex Utilities - Laserfiche WebLink

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manufacturer going out of business) that occurred after Terex submitted its original bid, it is appropriate to issue a Change Order to Terex for the new amount. ALTERNATIVE: There are two alternatives to approving a Change Order with Terex Utilities, Inc. The first is to reject the previous bid award and the proposed change order, and seek to award the contract to the next low bidder. The next low bidder has an annual cost of $22,871.81 higher than proposed change to Terex's price. The second alternative is to reject the proposed change order as well as all bids previously received and direct staff to solicit new bids for the same requirements and specified units. However, Staff has informally explored this option with the various bidders and has found that since this equipment is highly specialized, they have not seen price reduction and it is most likely that the costs will have increased in the last year. In addition, this option will delay receipt of the units for three to four months while a new bid process is completed, and we will have to continue to pay rent and maintenance on older equipment currently being used. FINANCIAL IMPACT: The first lease payment will be due when the trucks are delivered in late FY09/10. The Electric Department will include funds in the additional amount of $25,762.87 in the FY 09/10 budget for this lease. Budget Year -to -Date Expenditures Open Encumbrances Available Funds FY 09/10 N/A N/A FY 09/10 ENVIRONMENTAL IMPACT: None CONFLICT OF INTEREST: (Exact Company Name) President: (Name & Title) Contact: (Name) (Exact Company Name) President: (Name & Title) Contact: (Name) Terex Utilities, Inc. George Ellis, President Richard Sweeney/Richard Boardman Wells Fargo Equipment Finance, Inc. Lyndon Thompson, President Richard Boardman (Terex Utilities, Inc.) RECOMMENDATION: Staffs recommends City Council approve a Change Order in an Additional Annual Amount of $25,762.87, for the five-year lease purchase of three (3) new 60ft. digger derrick line trucks to Terex Utilities, Inc. and authorize the City Manager to execute the Lease Agreement with Wells Fargo Equipment Finance, Inc. in the new annual amount of $210,330.81 when the trucks are delivered. PREPARED BY: Rebecca Gallegos, Executive Assistant REVIEW TEAM ONLY City Attorney: City Manager: Finance Director: N. OTHER: