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HomeMy WebLinkAbout12/6/2006 - STAFF REPORTS - 2.Q. ;o pALM sA4 c V N � A W City Council Staff Report DATE: December 6, 2006 CONSENT CALENDAR SUBJECT: APPROVE PURCHASE OF NEW AIRPORT BAGGAGE CART SYSTEM AND AIRPORT BUDGET AMENDMENT FOR FY 2006-2007 FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY The Airport provides an automated baggage cart system in order to serve the needs of the traveling public. Substantial revenue is generated through the rental of baggage carts as well as through advertising sales via cart-mounted ad displays. The current system is approximately 13 years old and is no longer serviceable. Approval of this purchase will result in a new up-to-date system, appropriate to the current needs of the traveling public. The requested action will approve the purchase of a new airport baggage cart system and the related budget amendment transferring $94,786,50 from the Airports Retained earnings account to its operating budget to purchase airport baggage cart system (Funds are available in the Airport Fund's Retained Earnings. (RECOMMENDATION: 1. Adopt Minute Order approving the purchase of a new airport passenger baggage cart system from Flight Services & Systems Inc., of Cleveland, OH in the amount of$04,786.50. 2. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2006-2007." 3. Authorize the City Manager to execute all necessary documents. City Council Staff Report December 6, 2006 -- Page 2 Airport Baggage Cart System STAFF ANALYSIS: The baggage cart system currently in place at the Airport is 13 years old. The original manufacturer no longer makes cart systems and does not supply spare parts, equipment, electronics or maintenance support of any kind. This has resulted in significant downtime, Airport Technician labor costs, intervening loss of revenue, and a less than satisfactory Airport customer experience in baggage claim. The system has outlived its' useful service life and requires replacement. The quoted cost for providing a new system, with 100 carts at two automated dispensing locations, is $94,786.50. The Airport currently collects over $30,000 per year in total revenue from the system. With the relatively low maintenance cost expected using the proposed new equipment, the Airport expects to recoup the investment within approximately three (3) years. The Procurement division conducted a formal Request for Proposals, RFP 02-07, posting it to the City's website, advertising in the AAAE publication, and sent notices to six manufacturers in the baggage cart industry. Two proposals were received by the due date and time and were evaluated by both Airport and Procurement staff. Based on criteria that included quality, maintenance, parts and service availability, references and cast, staff is recommending award to Flight Services & Systems Inc. of Cleveland, Ohio. At its regularly scheduled meeting on December 6, 2006, the Airport Commission recommended the City Council approve the purchase of the New Airport Baggage Cart System and related budget amendment. FISCAL IMPACT: Finance Director Review: Funds for this purchase will be available in Account # 415-6500-XXXXX as a result of the budget amendment proposed from the Airport Fund's Retained Earnings Account 415-29302. Richard S. Walsh, irector of Aviation David H. Ready, City M Attachments: Minute Order Resolution MINUTE ORDER NO. APPROVE THE PURCHASE OF A NEW AIRPORT PASSENGER BAGGAGE CART SYSTEM FROM FLIGHT SERVICES & SYSTEMS, INC. OF CLEVELAND, OH IN THE AMOUNT OF $94,786.50. I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order approving the purchase of a new Airport passenger baggage cart system from Flight Services & Systems, Inc. of Cleveland, OH in the amount of $94,786.50, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 6th day of December 2006. James Thompson, City Clerk RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2006-2007 WHEREAS, Resolution 21611 approving the budget for the fiscal year 2006-07 was adopted on June 7, 2006; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. ADDITIONS Fund Activity Account Amount 415 Airport 6500 Special XXXXX $94,786.50 Capital Proiects Purpose: To amend FY 2006-07 budget SECTION 2. SOURCE Fund Activity Account Amount 415 Airport Retained Earnings 29302 $94,786.50 ADOPTED THIS 6th day of December 2006. David H. Ready, City Manager ATTEST: James Thompson, City Clerk Resolution No. Page 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on December 6, 2006, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California ' RFP 02-07 COST SUBMITTAL FORM Responding to Request for Proposals for an Airport Passenger Baggage Cart System, the undersigned proposer agrees to furnish, deliver, and provide onsite technical installation supervision and training for, a new, complete, properly operating, fully functional,system in accordance with the specifications herein. IME propose and agree to furnish, deliver, provide onsite technical installation supervision and training, and accept as full payment the following amount: AIRPORT PASSENGER BAGGAGE CART SYSTEM PRICE: $ 83,151.88 "including on-site installation technical supervision and on-site factory authorized training. ' 7.75% CA SALES TAX: $ 6,444.27 DELIVERY CHARGES: (if any) $ 5,190.35 TOTAL COST: s 94,786.50 Delivery/Schedule for Performance: The proposer must indicate on this Cost ' Submittal Form the time required for delivery, in number of calendar days, after receipt of order (ARO). Delivery may be a factor in award of proposal and may be cause for rejection, as determined by the City. Vendor shall notify City promptly in writing if, at any time, Vendor has reason to believe that delivery of the equipment will not be made as scheduled stating the cause(s)for anticipated delay. Time is hereby expressly declared to be of the essence. Unless otherwise specified by the purchase order, all goods and services purchased under the purchase order must be tendered in a single delivery and not in phasing or lots from time to time. If delivery is not made as specified in this paragraph, City may terminate the Order as to all or any portion of the goods and services ordered. Delivery Time: Indicate time in calendar days, required for delivery, after receipt of order(ARO) : n DAYS *Delivery may be a factor in award. It is understood and agreed that this proposal may not be withdrawn for a period of ninety (90) days from the due date, and at no time in the case of the Successful Proposer. ADDENDUM (#) No.(s) IS/ARE HEREBY ACKNOWLEDGED. (Signatures): Name of firm submitting os I Fli t Se7ice)q&,r/ystems, Inc. Authorized signature / Printed name Robert P.Weltzel Title president Address 61 00 Rockside Woods Blvd., Suite 355 City, State, Zip Cleveland, OH 44131 Telephone No: 216-328-0090 1-866-634-0006 Fax No. 216-328-0091 E-mail info 0fsspeople.com 11