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97-63 Resolution No. 97-63 RESOLUTION ACCEPTING THE PROPOSAL OF AIR ONE EQUIPMENT, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert O. Malm, Interim City Manager, be and is hereby authorized and directed to accept the proposal on behalf of the City of Elgin of Air One Equipment, Inc . for the purchase of one Compair Mako BAM07H breathing air compressor system, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: February 26 , 1997 Adopted: February 26 , 1997 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk AIR ONE EQUIPMENT, INC. - 1680 Wright Blvd., Schaumburg, IL 60193 Telephone: 847-301-7296; Fax: 847-301-7298 AIR ONE January 20, 1997 Chief J. Henrici Elgin Fire Department 550 Summit Street Elgin, IL 60120 Dear Chief, Air One Equipment, Inc. agrees to hold pricing of $25, 000. 00 * on one Compair Mako BAM07H breathing air compressor system. Included in this price would be all equipment, materials, labor, trade-in and removal of existing air system. This new system, pri ced at the 1996 bid price, would be the same exact air system that was installed in the Summit Street fire station. To complete this installation, we would need the City of Elgin to replace the existing door in the air compressor room. Thank you for your support. Please give me a call if you should have any questions. sincerely, AIR ONE EQUIPMENT, INC. 1 David F. Frey *Net Cost is $24,500 ($25 ,000 less 2%-20 day prompt payment discount) per D. Frey. C Agenda Item No. City of Elgin February 6, 1997 TO: Mayor and Members of the City Council FROM: Robert 0. Malm, Interim City Manager SUBJECT: Extension of 1996 Breathing Air Compressor Contract PURPOSE The purpose of this memorandum is to request Mayor and City Council authorization to extend the 1996 contract with Air One Equipment for the purchase and installation of a new breathing air system for the Fire Department for Fire Station #2 . BACKGROUND At the March 27, 1996 meeting, the Elgin City Council ap- proved the purchase of a new breathing air compressor for Fire Station #1. At that time, three fire equipment dealers submitted bids for the purchase and installation; a copy of last year' s memorandum and Bid Tabulation sheet is enclosed for Council 's information. A Fire Department committee headed by Deputy Chief Bill Grant, reviewed the bids and found several critical deficiencies with the apparent low bidder. These deficiencies are detailed in the "Bid Evalua- tion Summary that was included with last year' s memorandum. The second low bidder, Air One Equipment, was awarded the bid. This year, the Fire Department needs to replace its only other air compressor. Air One Equipment has submitted a letter proposal indicating that they would honor last year' s price on the identical unit. This would benefit the City in several ways . First, Air One's bid last year was $6,552 lower than the only other responsive bidder. Secondly, Air One is allowing us a $5,000 trade in for the unit we are replacing, which is of lesser value than the unit we traded last year due to its poor mechanical condition. Thirdly, it is to the Fire Department' s advantage to have both air com- pressors identical for ease of operation and repairs . Final- ly, industry wide prices have increased from six (6) to eight (8) percent across the board for compressors . This purchase will reflect the stated percentage as a savings to the city. The next low bidder has advised that it would hold its 1996 price until March 1. As indicated above that price is $6,552 more than Air One' s . Breathing Air Compressor Contract February 6, 1997 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. FINANCIAL IMPACT Funds for this purchase are included in the approved 1997 Fire Department budget. The monies have been allotted in account #276-0000-791 . 93-46, project #289060 out of Riverboat lease funds in the amount of $30,600. The cost of the new unit will be $24,500 . LEGAL IMPACT None. ALTERNATIVES The City could solicit for bids in 1997 with only two known acceptable bidders . However, when taking into consideration the most favorable trade-in value being given our existing equipment by Air One, it is unlikely that competitive bidding would result in a lower price. RECOMMENDATION The recommendation is to award a contract extension to last year' s overall, low, responsive bidder, Air One Equipment without seeking new bids . Air One' s bid is for a total of $24,500 ($25,000 less 2%-20 day discount) for their MAKO BOMTHE model system which meets all essential bid specifica- tions . Respectfully submitted, `John E. Henrici Fire Chief Michael A. Sarro /.P_u sing Director ob . Malm Int rim City Manager WG/st