2002 AGN JUN 18 I22 - Laserfiche WebLink

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CITY OF COLTON Item #22 AGENDA REPORT For the City Council Meeting of June 18, 2002 TO: Honorable Mayor and City CouncilMembers FROM: Dilu DeAlwis, Finance Director �" SUBJECT: Award of Bid for Dump Trucks for the Public Services Department to Rush Peterbuilt, Inc. in the Amount of $85,708.66 and to Dieterich International Truck Sales, Inc. in the Amount of $138,463.06 DATE: June 11, 2002 BACKGROUND The City's Public Services Department, Streets Division, has a requirement for one 14 -ton dump truck and two 5 -yard dump trucks. These dump trucks were approved in the City of Colton's Master Lease Purchase Program. The dump trucks currently used by the Streets Division have been in service in excess of twenty years. Effective July 1, 2002, Rule 1196 of the SCAQMD will go into effect. This rule requires new heavy-duty vehicles added to an existing fleet shall be of an alternate -fuel type. This requirement will increase the purchase/lease cost of the equipment. DISCUSSION/ ANALYSIS Section 3.08.100 of the City's Purchasing Ordinance allows the City to enter into agreements with other agencies for the purchase of supplies, services and equipment. In such instances, the procedures of that agency shall satisfy all city requirements for the bid and award of those purchases. The City of Colton can piggyback onto the City of Moreno Valley's Bid #01/02-02 for the 14 -ton dump truck and to the city of Corona's Bid #02-03 for the two 5 -yard dump trucks under their cooperative purchasing provisions. This will save the City the cost of the formal bid process and allow us to place an order for this equipment prior the July 1, 2002 effective date of SCAQMD Rule 1196. ALTERNATIVES The City can solicit sealed proposals for these vehicles and award the bid after July 1, 2002. However, the City will have to purchase alternate -fuel dump trucks to comply with the new SCAQMD regulations, which will result in higher pricing and less competition as not all manufacturers have developed alternate -fuel engine for this type of equipment. FINANCIAL IMPACT Funds have been identified in the City's Master Lease Purchase program for this equipment. Budget savings from FY 2001-02 will cover any shortages in the funding from the Master Lease Purchase.