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10-19-04 Item 4CITY OF SOUTH MIAMI Inter - office Memorandum RESOLUTION: South Miami kriftyl AII•Ameriea City 2001 DATE: October 19, 2004 AGENDA ITEM No.4/ RE: Authorizing the City Manager to purchase One Automated Garbage Truck A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO FUND THE FIRST OF FIVE ANNUAL INSTALLMENT PAYMENTS NOT TO EXCEED $35,521.77 FOR PURCHASE OF ONE AUTOMATED SIDELOADING GARBAGE TRUCK FROM GENERAL GMC TRUCK SALES AND SERVICES, INC., FOR A TOTAL AMOUNT OF $165,049, TO BE CHARGED TO PUBLIC WORKS DEPARTMENT LEASE /PURCHASE- TRUCKS ACCOUNT, NUMBER 001- 1720 -534 -4455; PROVIDING FOR AN EFFECTIVE DATE BACKGROUND & ANALYSIS: As approved within this year's budget, we are submitting the attached resolution to purchase a new Automated Garbage Collection truck for the Public Works Department. For the purchase of this truck, we intend to "piggyback" on our contract for the two trucks purchased last year. However, the vendor increased the price by $13,866 due to EPA's imposed mandatory raw steel surcharge and the increase in material costs. The proposed vehicle will also be a HEIL truck, Python model, with a 9 -foot reach automated arm and a total of 33 cubic yards (28 cubic yard body & 5 cubic yard hopper). General GMC Truck Sales & Services, Inc. submitted the attached October 2, 2004 letter explaining the additional cost. The estimated total cost of the truck, with a 5 -year extended warranty for engine and transmission, plus applicable financing fee is $165,049.00. We recommend that the first year's lease payment of $35,521.77 be funded from account number 001 - 1720 -534 -4455 (Public Works Department Lease /Purchase- Trucks Account) with a current budget balance of $160,000 before this request. RECOMMENDATION: It is recommended that the City Commission approve the resolution. ATTACHMENTS: ❑ Proposed resolution Quotation from General GMC Truck Sales & Services, Inc. Letter from General GMC Truck Sales & Services, Inc. U Copy Of The City's Last Purchase Requisition 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO FUND THE FIRST OF FIVE ANNUAL INSTALLMENT PAYMENTS NOT TO EXCEED $35,521.77 FOR PURCHASE OF ONE AUTOMATED SIDELOADING GARBAGE TRUCK FROM GENERAL GMC TRUCK SALES AND SERVICES, INC., FOR A TOTAL AMOUNT OF $165,049, TO BE CHARGED TO PUBLIC WORKS DEPARTMENT LEASE/PURCHASE- TRUCKS ACCOUNT, NUMBER 001 -1720- 534 -4455; PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the Mayor and City Commission wish to purchase one additional Automated Side - loading Garbage Truck for the Public Works Department; and, WHEREAS, the Mayor and City Commission wish to fund the first year's installment of five annual payments, not to exceed $35,521.77 for the purchase of the Automated Side- loading Garbage Truck, and; WHEREAS, the Mayor and City Commission authorize the City Manager to execute purchase agreements and financing contracts in an amount of $165,049. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section 1: The Mayor and City Commission authorize the City Manager to execute a purchase agreement with General GMC Truck Sales and Services, Inc. and financing contract in an amount of $165,049.00, including estimated five -year engine and Transmission warranty cost. Section 2: The purchase will be funded, with the first year's installment of $35,521.77, through the Public Works Department Lease /Purchase account number 001- 1720 -534 -4455, with a current account balance of $160,000. Section 3: This resolution shall be effective immediately upon its adoption. PASSED AND ADOPTED this APPROVED: CITY CLERK READ AND APPROVED AS TO FORM: CITY ATTORNEY day of , 2004. ATTEST: MAYOR Commission Vote: Mayor Russell: Vice Mayor Palmer: Commissioner Birts- Cooper: Commissioner Wiscombe: Commissioner Sherar: DAVID STEGEMAN 661 SSG 5350 10101104 02:SSpm P. 001 9/22/2004 CITY OF SOUTH MIAMI 4795 SOUTH WEST 75 AVE. SOUTH MIAMI, FLORIDA 33143��,j- ALINA MENOCAL, GENERAL GMC WILL SUPPLY AN ADDITIONAL REFUSE TRUCK THE SAME MAKE, MODEL AND BODY AS THE TWO YOUR CITY PURCHASED EARLY THIS YEAR UNDER RESOLUTION #200 -03- 11750. THE PRICE IS A LITTLE MORE DUE TO STEEL SURCHARGE. THE PRICE USING THE 2003 CHASSIS IS $ 162,249.00 THE PRICE FOR THE SAME BODY MOUNTED ON AN 2004 CHASSIS IS $168,881.00. IF I CAN BE OF FURTHER HELP PLASE CALL ME, DAVI i 360 South Military Trail • West Palm Beach, Florida 33415 - Phone: 561 - 686 -8906 • FAX: 561 - 697 -8429 DAVID STEGEMAN 561 656 5350 10/01/04 02:SSpm P. 002 Hey Envy nmental y T"tr es Ltd A gyres COWANr 10-02 -04 David, This letter is a follow up to our phone conversation this morning regarding price increases on Heil refuse bodies. 1. The Homestead bid that was used for the South Miami piggyback was at 2002 pricing. Heil released its 2004 pricing effective February 2004 which caused to large of a gap to continue to sell the product at 2002 pricing. 2. Effective March, 2004 a steel surcharge was implemented due to and unprecedented increase in steel which has impacted all manufactures who produce products from steel Some of the raw steel used in the production of Heil bodies has increased over 200 %, and continues to go up. For these reasons Heil is unable to provide bodies at less than our current pricing level Best regards, Steve Bell Heil Environmental Industries, LTD 321 -676 -1202 phone 321 - 676 -1203 fax 423 - 580 -6096 cell 5751 Cornelison Road, 6400 Building- B, Chattanooga, TN 37411 Phone 8K4*4,*,5