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HomeMy WebLinkAbout05-15-17 City Commission Packet Materials - C2. NOA to CAT Tractor & Equipment for Forestry Loader Backhoe Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Alex Nordquest, City Forester Mitch Overton, Parks & Recreation Director SUBJECT: Notice of Award and Purchase Agreement for One (1) New Current Model Year 2017 Forestry Loader Backhoe. MEETING DATE: May 15, 2017 AGENDA ITEM TYPE: Consent   RECOMMENDATION: Award bid and authorize City Manager to sign Purchase Agreement for a Loader Backhoe for a total of $83,911.00 to CAT Tractor and Equipment. BACKGROUND: The FY17 Forestry Capital Improvement Program (CIPFOR08) plans for the replacement of our 1974 Loader Backhoe. We rely heavily on the 1974 model as a versatile piece of equipment suited for a wide variety of tasks. This new model will allow us to maintain a responsive level of service. We received 3 bids which were CAT Tractor and Equipment for $83,911.00, Titan Machinery for $86,519.00, and RDO Equipment Co. for $88,385.00. Each bidder offered a similar product, thus CAT Tractor and Equipment was chosen for the best price. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: This item is in the FY17 Forestry Budget (CIPFOR08) for $90,000.00. CAT Tractor and Equipment offered a bid price of $83,911.00, resulting in a savings of $6,089.00. Attachments: Notice of Award, Purchase Agreement and Bid Tab Report compiled on: 5/4/2017 52 NOTICE OF AWARD Dated: TO: CAT Tractor and Equipment ADDRESS: P.O. Box 2147 CONTRACT FOR: One (1) 2017 Loader Backhoe You are notified that your Bid opened on March 15, 2017 for the above Contract and has been considered. You are the apparent Successful Bidder and have been awarded a Contract for the: 2017 Forestry Loader Backhoe. The Contract Price of your Contract is: Eighty three thousand nine hundred eleven dollars ($83,911.00). You must comply with the following conditions precedent within fifteen (15) days of the date of this Notice of Award, that is, by May 30, 2017. 1. You must deliver to the OWNER Two (2) fully executed counterparts of the Agreement including all the Contract Documents and Drawings. CITY OF BOZEMAN, MONTANA ATTEST: BY: __________________________________ BY: ____________________________ (INTERIM CITY MANAGER) (CITY CLERK) DATE: _______________________________ 53 One (1) New 2017 Loader Backhoe Purchase Agreement Page 1 of 4 BID PURCHASE AGREEMENT THIS AGREEMENT is made this _____ day of ______________, 2017, by and between the CITY OF BOZEMAN, a municipal corporation organized and existing under the laws of the State of Montana, 121 North Rouse Ave., Montana 59715, hereinafter referred to as “City,” and CAT Tractor and Equipment, with a mailing address of PO Box 2147, Great Falls, MT 59403, hereinafter referred to as (“Seller”). In consideration of the mutual promises and agreements hereinafter contained, the parties agree as follows: 1. PROPERTY PURCHASED: Seller agrees to sell and City agrees to purchase the property requested and described in the Bid Specifications for One (1) New Loader Backhoe, from the Seller all of which is incorporated into this Purchase Agreement by this reference. By accepting this Purchase Agreement, Seller hereby agrees that the sale, use, or incorporation into manufactured products of all machines, software, hardware, materials and other devices furnished under this Purchase Agreement which are not of the Seller’s design, composition, or manufacture shall be free and clear of infringement of any valid patent, copyright, or trademark. Seller shall hold the City harmless from any and all costs and expenses, including attorney fees, liability, and loss of any kind growing out of claims, suits, or actions alleging such infringement, and Seller agrees to defend such claims, suits, or actions. The property being purchased (“Property”) consists of One (1) New Loader Backhoe TOTAL PRICE (including shipping): $83,911.00 2. SPECIFICATIONS: The Seller agrees that all material and workmanship in and upon this Property complies with the City’s Bid Specifications as shown on the Seller’s Big Form and the Seller’s response thereto as accepted by the City. Unless otherwise agreed to by the City, the City’s Bid Specifications as shown on the Seller’s Big Form govern in the event of inconsistencies with the Seller’s response to the same. 3. PRICE: The City agrees to pay Eighty Three Thousand, Nine Hundred Eleven Dollars ($83,911.00) as the purchase price. All prices include any applicable local, state or federal taxes that may be applied to the Property to be purchased. This price is firm and not subject to escalation under agreed to in writing by the City. 4. DELIVERY AND PAYMENT: Time is of the essence in the performance of this Purchase Agreement. Seller assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other served associated with delivery of the Property. 54 One (1) New 2017 Loader Backhoe Purchase Agreement Page 2 of 4 Seller agrees to delivery to the City in a fully operational status and all accessories properly installed no later than September 12, 2017. Delivery will occur at the Vehicle Maintenance Shop, 1812 North Rouse Avenue, Bozeman, MT 59715, or at a place otherwise selected by City. If delivery of the Property and/or performance of services required under this Purchase Agreement cannot be made Seller shall promptly notify the City of the earliest possible date for delivery or performance. Notwithstanding such notice, if Seller for any reason fails to deliver the Property or perform required services within the time specific or to the City’s satisfaction the City may terminate this Purchase Agreement or any part therefore without liability except for good or services previously provided and accepted. The City’s receipt or acceptance of any part of a non-conforming delivery or service shall not constitute a waiver of any claim, right or remedy the City has under this Purchase Agreement or applicable law. Upon delivery and for a reasonable period thereafter, City has the right to inspect the Property to ensure that it meets Specifications as modified by Seller’s responses which have been accepted by City. If the Property meets the Specifications, City shall tender the purchase price stated above to Seller through the City’s normal claim process. Unless otherwise agreed to in writing, payment terms shall be net thirty (30) days from the date of receipt of invoice or acceptance and delivery of goods and services by the City, whichever occurs last. Payment will be made to Seller at the address previously stated unless Seller provides a different address in writing. Invoices must be mailed to City of Bozeman, Attn: John Van Delinder at P.O. Box 1230, Bozeman, MT 59711-1230. 5. NONDISCRIMINATION: Seller will not discriminate in the performance of this Agreement on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and shall ensure this provision applies to all subcontracts let by the Seller in fulfillment of this Purchase Agreement. 6. DEFAULT/ TERMINATION/ REMEDIES: In the event of Seller’s breach of this Purchase Agreement, including if Seller fails to deliver the Property as set forth herein or fails to meet City’s Specifications, City may, at its option, take any or all of the following actions without prejudice to any other rights or remedies available to the City by law: (i) declare the Seller in default and immediately cancel and rescind this Purchase Agreement; (ii) require Seller to repair or replace any equipment or materials used in the Property, and upon Seller’s failure or refusal to do so, repair or replace the same at Seller’s expense; (iii) reject any material or equipment included in the Property containing defective or nonconforming equipment or material and return for credit or replacement at Seller’s option; or (iv) cancel any outstanding deliveries and treat such breach by Seller as Seller’s repudiation of this Purchase Agreement. Thereafter, City may procure substitute property to replace the Property described herein. In such event, Seller is liable to City for the difference between the price set forth herein and the price paid by City for the replacement property. Additionally, the City may pursue any other remedy it has at law or in equity. 55 One (1) New 2017 Loader Backhoe Purchase Agreement Page 3 of 4 In the event of the City’s breach hereunder, Seller’s exclusive remedy shall be Seller’s recovery of the material or equipment or of the Purchase Price or portion of the Purchase Price payable for equipment and material delivered to the City prior to such breach. 7. CHANGE ORDERS: The City shall have the right to revoke, amend, or modify this Purchase Agreement or the equipment or material included in the Quotation at any time. Seller’s receipt of City’s written change order without response received by the City within 10 (ten) business days or Seller’s shipment or other performance reflecting the change, whichever occurs first, shall be Seller’s acceptance of the change without any price or other adjustment. 8. WARRANTY: THE SELLER SHALL WARRANTY THE PROPERTY INCLUDING ALL COMPONENT PARTS IN ACCORDANCE WITH WARRANTY SPECIFICS LISTED IN ADDENDUM B AND SHALL ASSIGN TO THE CITY ALL WARRANTIES FOR ALL COMPONENT PARTS OF THE PROPERTY NOT WARRANTIED BY SELLER. IN ADDITION, THE SELLER AGREES THE PROPERTY IS COVERED BY IMPLIED WARRANTIES FOR MERCHANTABILITY AND FITNESS FOR THE PARTICULAR PURPOSE FOR WHICH IT HAS BEEN PURCHASED. IN ADDITION TO ANY OTHER EXPRESSED OR IMPLIED WARRANTIES AND UNLESS OTHERWISE AGREED IN WRITING, SELLER ALSO WARRANTS THAT ALL EQUIPMENT DELIVERED HEREUNDER WILL BE NEW, SUITABLE FOR USE AS DESCRIBED, OF THE GRADE AND QUALITY SPECIFIED, FREE FROM ALL DEFECTS IN DESIGN, MATERIAL AND WORKMANSHIP; IN CONFORMITY WITH ALL SPECIFICATIONS FURNISHED; IN COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS AND FREE FROM ANY LIENS AND ENCUMBRANCES. THESE WARRANTIES SHALL NOT BE DEEMED TO EXCLUDE SELLER’S STANDARD WARRANTIES OR OTHER RIGHTS OR WARRANTIES WHICH THE CITY MAY HAVE OR OBTAIN. 9. INSURANCE/INDEMNIFICATION: The Seller shall insure the Property for a minimum of the purchase price against all damages during the delivery period per the Specifications. In addition to and independent from the above, during the delivery period Seller shall defend, indemnify, and hold the City, its officers, employees, and agents harmless against claims, demands, suits, damages, losses, and expenses connected therewith that may be asserted or claimed against, recovered from or suffered by the City by reason of any injury or loss, including but not limited to, personal injury, including bodily injury or death, property damage, occasioned by, growing out of, or in any way arising or resulting from any intentional or negligent act on the part of Seller, it’s agents or employees. This provision shall survive delivery and acceptance by the city of the Property. 10. ASSIGNMENT: Seller may not delegate, subcontract, or assign any duties and services or assign any rights or claims under this Purchase Agreement without the express written consent of City. 56 One (1) New 2017 Loader Backhoe Purchase Agreement Page 4 of 4 11. ENTIRE AGREEMENT: This Agreement, including its appendices, if any, embodies the entire understanding between the parties relating to the subject matter contained herein. No agent or representative of either party has authority to make any representations, statements, warranties or agreements not herein expressed and all modifications or amendments of this Agreement, including the appendices, must be in writing and signed by an authorized representative of each of the parties hereto. 12. APPLICABILITY: This Agreement and any extensions hereof shall be governed and construed in accordance with the laws of the State of Montana, venue shall be in the Eighteen Judicial District, Gallatin County Montana, and the same is binding upon the parties, their heirs, successors, and assigns. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives the day and year first above written. CITY OF BOZEMAN SELLER By___________________________ Date: ____ By___________________________ Date: ___ Dennis M. Taylor, Interim City Manager Print Name: ___________________ Print Title: ____________________ APPROVED AS TO FORM: By________________________________ Greg Sullivan, City Attorney 57 58 59