10/18/77 Board of Public Works Special Meeting Minutes

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370 SPECIAL MEETING OCTOBER 18, 1977 3. Kay Equipment's bid and the bid by Industrial Sanitation were for identical pieces of equipment (Clarke) with -Industrial's bid being lower. The alternate bid by Kay Equipment was comprised of equipment by two manufacturers, and was lower than either bid for the Clarke equipment. 4. Femco, Incorporated bid on Advance equipment. An error was made in the company's calculation of the monthly payment: $8,911.46 amortized over 36 months at 12% interest equals $295.99 per month as compared to the $336.66 per month listed. Femco also offered a full term warranty plus the treatment of all carpets with Carpet Guard. Femco offers end of term purchase at 5% compared with $1.00 by the other bidders; this difference is not considered to be significant in view of the above discussion and also because this option most probably would not be exercised - a new lease for new equipment or other similar arrangement will most likely be made. Recommendation: In view of all the proposals as discussed above, we recommend the award be made to Femco, Inc. s/ Brian R. Hedman Executive Director s/ Fred W. Lowel Building Engineer it TIr. McMahon noted that the Kay Equipment base bid of $11,841 included the application of a carpet guard on part of the carpeting, with a total material cost of $1180. Femco's bid extended the one-year warranty on all machines to the full three-year term for service, with parts and labor extra and all of the carpeting would be sprayed with carpet guard. Femco offered an option to purchase equipment at the end of the lease for 5% of the purchase price. Kay Equipment offered an option to purchase the equipment at the end of the lease for $1.00. He pointed out that the two bidders are less than $2.00 apart in the monthly lease figure and both are local firms, which is important in terms of service needed. He then asked both company representatives to give the Board the names of local firms with which they do business. Mr. George Nicholos, Femco, Inc., said the company has been in business for forty years and does business within a fifty -mile radius. Customers listed were South Bend schools, Mishawaka and Elkhart schools, Simplicity Pattern Company and National -Standard in Niles. Mr. Steven Katz indicated that Kay Equipment Company has been in business .for 31 years and does business within a seventy -mile radius. Local firms include Bendix, Martin's Super Markets, schools, and the Cook Nuclear Plant in Bridgeman, Michigan. Mr. McMahon asked Mr. Hedman for his comments regarding the recommendation submitted. Mr. Hedman said he visited various centers where Advance equipment is used and, based on the comments of those using the equipment, the full warranty and the aspect of having the carpeting treated, which is a major item, he recommended acceptance of the Femco bid.