02-94 Resolution No. 02-94
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT WITH
KOVATCH MOBILE EQUIPMENT FOR A FIRE TRUCK
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that pursuant to Elgin Municipal Code Section
5 . 02 . 020B (9) the City Council hereby finds that an exception to the
requirements of the procurement ordinance is necessary and in the
best interests of the city; and
BE IT FURTHER RESOLVED that Olufemi Folarin, Interim City
Manager, be and is hereby authorized and directed to execute an
agreement on behalf of the City of Elgin with Kovatch Mobile
Equipment for a fire truck, a copy of which is attached hereto and
made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: March 13 , 2002
Adopted: March 13 , 2002
Omnibus Vote : Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
KNIE FIRE APPARATUS
By Kovatch Mobile Equipment Corp.
One Industrial Complex
Nesquehoning, PA 18240
(717) 669-9461 Phone
(717) 645-7007 Fax
www.kovatch.com URL
FIRE APPARATUS AGREEMENT OF SALE
THIS AGREEMENT is made between Kovatch Mobile Equipment Corp., of Nesquehoning, Pennsylvania,
("Company")and:
City of Elgin, IL
Legal Name of Buyer
150 Dexter Court Elgin Kane/Cook IL 60120
Address City County State Zip
847-931-6175 ("Buyer")
Phone Number
1. ACCEPTANCE: Company agrees to sell and Buyer agrees to purchase the fire apparatus and
equipment("Apparatus")described in the Specifications incorporated as Exhibit A of this contract and
in accordance with the terms and conditions set forth herein. In the event that both Company
Specifications and Buyer's Bid Specifications are incorporated and are in conflict, Company's
Specifications will apply.
2. DELIVERY SCHEDULE: The Apparatus will be ready for delivery F.O.B. To
Elgin IL
City State
in approximately 260-300 days after receipt of CONTRACT/9HA Shat Company's facilities in
Nesquehoning, Pennsylvania.
3. PRICE: Buyer will pay to Company as the Purchase Price for the Apparatus the sum of:
,l'Hg.EE HUNDRED FORTY EIGHT THOUSAND FOUR HUNDRED SIXTY FOUR
AND NO - - - - - - - - 00/100 Dollars ($ 348 ,464.00 )
This purchase price includes the following taxes:
None
Any applicable taxes not specifically noted above will be paid by the Buyer directly,or will be added to
the Purchase Price and paid by Company. If Buyer claims exemption from any tax, Buyer agrees to
furnish the applicable exemption certificate(s) (forms to be attached) and to indemnify and save
Company harmless from any such tax, interest or penalty, which may at any time be assessed
against Company.
PAGE 1.
4. TERMS OF PAYMENT: Terms of payment will be:
A Cash due upon signing $ -0-
Upon completion/receipt of chassis........$ -0-
Cash due upon delivery..........................$
(B) Check appropriate method of payment for balance due:
X Balance due at time of delivery
-- Conditional Sales Contract- Financing*
Lease-Purchase Agreement- Financing"
* Details of financing: simple interest rate of -- %for-- Years,with -- % down payment
required: at time of delivery-- /at time of signing --
All financing plans must be signed and received by Company prior to delivery.
(C) NO PAYMENT of any amount will be made to a Sales Representative without prior written
approval from Company.
5. CONTINGENCIES: Company will have no liability to Buyer for any loss or damage arising directly or
indirectly from any delay in delivery due to strikes,inability to obtain materials,fires,accidents,or any
other causes beyond Company's control.
6. WARRANTY: Company warrants new Apparatus of its own manufacture against defective
workmanship and materials for a period of one year from date of delivery to the original Buyer.
Under this Warranty,Company's liability and Buyer's remedy is limited to Company furnishing Buyer,
without cost,parts and labor required to replace defective material or workmanship when there is no
indication of misuse,neglect,improper maintenance,accident or overloading of KME manufactured
Apparatus. Defects must be reported to Company in writing by Buyer within the warranty period.
Parts and labor will be supplied after inspection by an authorized KME Fire Apparatus Service Center
or approved alternate with findings approved by the KME Service Manager. Defective parts are to be
shipped prepaid to Company when requested.
This Warranty does not apply to:
(1) Normal maintenance or upkeep items such as adjustment of pump,valves,belts, etc.,or items
subject to normal deterioration;
(2) Commercial chassis not manufactured by Company, items supplied by commercial chassis
manufacturer, or trade accessories not manufactured by Company. Warranty on these items is
limited to the supplying manufacturer's warranty, if any;
(3) Any vehicle that has received alterations or repairs without the express authorization of Company
which, in Company's reasonable judgment, affects the reliability or operation of the Apparatus.
SEE ATTACHED WARRANTY STATEMENTS
PAGE 2.
7. DISCLAIMER OF CONSEQUENTIAL DAMAGES: COMPANY EXPRESSLY DISCLAIMS ANY
LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES WHICH MAY BE SUSTAINED BY
BUYER, INCLUDING BUT NOT LIMITED TO THOSE ARISING FROM THE USE, INABILITY TO
USE, MAINTENANCE OR REPAIR OF THE APPARATUS, WHETHER UNDER THEORIES OF
BREACH OF EXPRESS OR IMPLIED WARRANTY; NEGLIGENCE, STRICT LIABILITY, OR
OTHERWISE.
8. CANCELLATION: This contract is subject to cancellation by Buyer only upon payment to Company of
reasonable cancellation charges, which will take into account expenses already incurred and
commitments made by Company and Company's anticipated profit.
9. ENTIRE AGREEMENT;AMENDMENTS: This contract,including its appendices,embodies the entire
understanding between the parties relating to the subject matter contained herein and merges all prior
discussions and agreements between them. No agent or representative of Company has authority to
make any representations, statements, warranties or agreements not herein expressed. All
modifications or amendments of this agreement,including the appendices,must be in writing signed
by an authorized representative of each of the parties hereto.
10. SEVERABILITY: If any provision hereof will for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other
provision,and this contract will be construed as if the invalid, illegal or unenforceable provision had
never been contained in it.
11. CHANGES IN COMMERCIAL SPECIFICATIONS: Specifications on commercial components of the
apparatus, manufactured by companies other than KME, are subject to change without notice.
Specifications for such components will be as available at the time of manufacture of the Apparatus.
Company will not be held liable for any specification deviations from the original contract
specifications on such components made by their original manufacturer.
PAGE 3.
EXPLANATION OF CONTRACT AMOUNT
BASE BID PRICE: $ 349 ,991. 00
The following options are selected additional to the apparatus bid price at the cost listed with each:
Deleted 100% Performance bond requirement - Deduct : $1 , 527 . 00
CONTRACT TOTAL WITH SELECTED OPTIONS: $ 348 ,464. 00
PAGE 4.
IN WITNESS WHEREOF,Buyer and Company have caused this contract to be executed by their duly
authorized representatives this x % day of�_ 20 L
City of Elgin, IL
Buyer's Legal Name
TITLE: tG�v►� C„v.� �'1a,.��� TITLE:
BY: BY:
TITLE: TITLE:
Kovatch Mobile Equipment Corp. ("Company")
BY: L*4 J °�•,^
Sales Representative
Nick D. Swartz
This proposal and contract is not a valid and binding obligation until accepted,dated and approved at Kovatch
Mobile Equipment Corp., Nesquehoning, Pennsylvania.
ACCEPTED AND APPROVED BY KOVATCH MOBILE EQUIPMENT CORP.,FIRE APPARATUS DIVISION:
BY.
TITL o
DATE.
PAGE 5.
City of Elgin Agenda Item No.
M
February 22 , 2002
SAFE COMMUNITY
TO: Mayor and Members of the City Council
FROM: Olufemi Folarin, Interim City Manager
SUBJECT: Purchase of Fire Truck
PURPOSE
The purpose of this memorandum is to provide the Mayor and members
of the City Council with information to purchase a rescue pumper
for the Fire Department .
BACKGROUND
In 2001, the Fire Department went out for competitive bids for a
rescue pumper. The specifications were extremely detailed and
described a customized piece of equipment . Four bids were
received; all bids had some deviations from the specifications .
Two bids had major deviations from the specifications that made
their bids non-responsive . Of the two remaining, acceptable bids,
Kovach Mobile Equipment (KME) was the lower priced by $20, 000 and
was awarded the contract for a pumper in the amount of $348,464 .
The Fire Department is scheduled to replace another pumper this
year. KME has informed the Fire Department that it is willing to
furnish another pumper, meeting the bid specifications, at the 2001
price . Since KME would build an identical unit, the engineering
savings can be passed to the City in the form of no price increase.
It is anticipated that if this unit were rebid, prices would
increase by at least three percent . KME has not indicated that it
would propose its 2001 bid price in a new bid.
KME has also stated that it could start production on this unit
almost immediately, thus ensuring an early delivery time.
This purchase would require an exception to the procurement
ordinance, which would be in the City' s best interest in this case .
Accepting KME' s bid extension would save the City a significant
?01111 amount of money, provide a vehicle specifically designed to meet
the needs of the City and be able to put the vehicle into service
in a shorter time frame .
Fire Truck Purchase
February 22 , 2002
Page 2
GROUPS/INTERESTED PERSONS CONTACTED
None.
FINANCIAL IMPACT
There was $350, 000 budgeted in 2001 in account number 275-0000-
�` 791 . 91-48 (Riverboat Fund) , project number 287100, to purchase a
fire engine. These funds are still available to cover the contract
cost of $348, 464 .
r EGAL 'IMPACT
This purchase would require an exception to the Procurement
Ordinance .
ALTERNATIVES
The Council could reject the recommendation and formal, sealed bids
would be solicited for the equipment .
RECOMMENDATIONS
It is recommended that the City Council grant an exception to the
procurement ordinance and award a contract for a pumper truck to
Kovach Mobile Equipment in the amount of $348, 464 .
Respectfully submitted,
Olufemi F a n
Interi y Manager
GAC
Attachment
FIRE DEPARTMENT RESCUE PUMPER
TABULATION OF BIDS
CITY OF ELGIN Kovatch Mobile Equipment Pierce Manufacturing Inc Seagrave dire Apparatus Truck Centers American
One Industrial Complex P O Box 2017 Division LaFrance
Invitption to Bid: 01-014 Nesquehoning PA 18240 Appleton WI 54913-2017 105 E 12th Street 2280 Formusa Road
Date of Opening: 2/21/01 Clintonville WI 54929-1590 Troy IL 62294
Department: Fire is
Descr k , unt" . t.. w Amount
Item"# i tion ' ' Amount
Amount" Amo
Price for one rescue pumper
as specified $349,991.00 $340,358.00 $369,211.00 $317,373.00
Less Trade-In for 1981
Ford/Pierce -6.000.00 -3,500.00 -5,000.00 -4,000.00
Net Price $343,991.00 $336,858.00 $364,211.00 $313,373.00
Delivery ARO 7 months
,Payment Discount if an