1993-10-06 Work Session
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
CONTINUED MEETING, OCTOBER 6, 1993
BOOK 23
PAGE 754
ASSEMBLY
The New Hanover County Board of Commissioners reconvened the
continued meeting of October 4, 1993, on Wednesday, October 6,
1993, at 7:30 A.M. in the Health Department Library located at 2029
South 17th Street, Wilmington, North Carolina.
Members present were: Commissioners Sandra Barone; Wi11iamA.
Caster; William E. Sisson, Jr.; vice-Chairman E. L. Mathews, Jr.;
Chairman Robert G. Greer; County Manager, Allen 0' Neal; County
Attorney, Wanda P. Copley; and Clerk to the Board, Lucie F.
Harrell.
Chairman Greer called the meeting to order to consider a bid
award for the purchase two roll off trucks to be used at the
Landfill, and to consider a resolution authorizing and approving
the issuance and sale of hospital revenue bonds.
AWARD OF BID AND CONTRACT #94-0082 TO TOM BAILEY MOTORS, INC. FOR
PURCHASE OF TWO ROLL OFF TRUCKS FOR THE NEW HANOVER COUNTY LANDFILL
County Manager 0' Neal commented on the memo prepared by
Purchasing Agent, Amy Akin, and inquired as to whether the
Commissioners had any questions.
vice-Chairman Mathews requested a brief summary on the events
of the bid process.
Purchasing Agent, Amy Akin, reported only one bid was received
at the first bid opening. The bid submitted by Triple T Parts &
Equipment Company, Inc. was opened but did not have a sufficient
bid bond; therefore, the bid did not comply to the State bidding
law and could not be accepted. The entire bid package was returned
to the vendor with no public record of the bid. Staff was directed
to re-bid the project.
Chairman Greer reported he was under the impression that the
bid became public record, which was one of his concerns.
County Manager 0' Neal commented on the importance of returning
the bid package to a vendor in order to allow him to re-bid the
project and stated NCGS Statute 143-129 clearly states that when
only one bid is received and is insufficient, the County cannot
accept the bid. Therefore, no bid of record is on file. If the
bid package had been kept, the bid would have become public record.
Mr. Tom Gore, representing Triple T Parts & Equipment Company,
inquired as to why a record was not kept of the first and only bid.
Concern was expressed for the bid being opened at the first bidding
process with everyone seeing the bid proposal.
County Manager O'Neal reported the only persons who saw the
bid were staff members. No copies were forwarded to the Board of
County Commissioners nor did the bid become public record.
Mr. Gore, again questioned, the first bid being opened and now
hearing that the bid opening never happened.
Purchasing Agent Akin reported when receiving the second bid
packages, several factors were considered in the computation of the
bid bond. The bid bond had to be 5% of the total amount of the
highest bid; therefore, Triple T's bid bond was insufficient and
the alternate bids for the two other trucks could not be considered
because the first base bid was insufficient. In order to comply
with State bidding law, the entire bid package had to be rejected.
Chairman Greer reported, for clarification, Mr. Gore submitted
a bid on one type truck and a bid on another type truck with one
type of truck being more expensive than the other; therefore, the
bid bond was not sufficient for one of each type of truck
submitted. In order for the bid bond to have been sufficient, the
least expensive trucks would have to be considered by the County.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
CONTINUED MEETING, OCTOBER 6, 1993
BOOK 23
PAGE 755
vice-Chairman Mathews inquired as to whether this matter was
discussed with Mr. Gore?
Purchasing Agent Akin reported this matter was discussed with
Mr. Gore and at that time he agreed that the bid bond was
insufficient; that the bid was not public record; and that the bid
package was being returned. When the second bids were opened and
staff recommended award of the bid to Tom Bailey Motors, Inc.,
complaints were received from Mr. Gore.
As to the second bid openings, staff
bid to Tom Bailey Motors, Inc. because
contract from the time of placing the
delivery, the County would save $7,952.94.
recommended award of the
over the course of the
order to the date 0 f
Chairman Greer asked if Tom Bailey, Inc. had assured delivery
of the vehicles within 60 to 90 days?
Purchasing Agent Akin reported she has been assured by Tom
Bailey, Inc. that the vehicles will be delivered as promised with
one vehicle being available within 45 days. The other vehicle will
be delivered within 60-90 days.
County Manager O'Neal reported funds for the purchase of the
trucks were included in the FY 1993-94 Budget and the bidding
process began after July 1, 1993. The Board is aware of the time
delay in the bidding process, and the County has not been negligent
in the process of ordering the vehicles.
Mr. Gore inquired as to how the Purchasing Agent computed the
$7,952.94 figure?
Purchasing Agent Akin reported the bid from Tom Bailey Motors,
Inc. is $4,507.06 more than the Triple T bid; however, the County
will have to wait an additional 3 1/2 months for the delivery of
trucks from Triple T. During this period of time, the County will
save $12,460 in maintenance costs with the early delivery of the
trucks, which will provide a net savings of $7,952.94.
Mr. Gore inquired as to the monthly cost of maintenance for
the trucks being presently used?
Purchasing Agent Akin reported approximately $3,500 per month.
Mr. Gore reported if the County was aware of the funds
required for maintaining the present trucks in August, and a bid
was submitted with compliance to specifications as requested in the
bid proposal, why was the bidding process prolonged, at a cost of
$3,500 monthly to the taxpayers, just to see what two other firms
may have to offer.
Chairman Greer reported the Purchasing Agent must follow the
State bidding law and could not accept the bid since the bid bond
was insufficient.
Mr. Gore, agaln, stated he could not see why the bid bond was
insufficient.
Chairman Greer reported the bid bond covered only two of the
cheaper trucks; however, Triple T submitted a bid quoting a figure
on a more expens i ve truck and a figure on a cheaper truck.
Obviously, Triple T intended to use a combination of the trucks
quoted in responding to the bid, whether with one expensive truck
and one cheaper truck or with two cheaper trucks. The bid bond
only covered the two cheaper trucks which was insufficient and
could not be accepted.
Mr. Gore reported the bid proposal stated the lowest bidder
would be awarded the contract, and Triple T was the lowest bidder
with a White truck, instead of a Mack truck.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
CONTINUED MEETING, OCTOBER 6, 1993
BOOK 23
PAGE 756
Chairman Greer inquired as to why the Mack truck was submitted
ln Triple T's bid response?
Mr. Gore stated the Mack truck was included because he was
informed that a Mack truck and Hei1 Hoist were desired; however, a
truck of equal value could be quoted, which was a White truck;
therefore, the performance bond in this case did not actually
apply. County staff agreed the performance bond did not apply;
however, when the proj ect was re-bid for the second time, a
performance bond was not included because he had been told the bond
did not apply. If the performance bond is removed from the figure,
the bid bond would be more than sufficient.
Motion: After discussion of being required to comply to the State
bidding law, Vice-Chairman Mathews MOVED, SECONDED by Commissioner
Sisson to adopt the resolution awarding the bid to Tom Bailey
Motors, Inc. in the amount of $150,893 for purchase of the two roll
off trucks for the Landfill. Upon vote, the MOTION CARRIED AS
FOLLOWS:
Voting Aye: Commissioner Caster
Commissioner Sisson
Vice-Chairman Mathews
Chairman Greer
Voting Nay: Commissioner Barone
A copy of the resolution is hereby incorporated as a part of
the minutes and is contained in Exhibit Book XXI, Page 20.
ADOPTION OF BOND ORDER AUTHORIZING THE ISSUANCE OF HOSPITAL REVENUE
BONDS OF THE COUNTY OF NEW HANOVER
Chairman Greer reported the Board is requested to consider and
take action on a Bond Order authorizing the issuance of hospital
revenue bonds of the County secured by net revenues of the County's
Health Care System.
Motion: Commissioner Caster introduced the Bond Order entitled "AN
ORDER AUTHORIZING THE ISSUANCE OF HOSPITAL REVENUE BONDS OF THE
COUNTY OF NEW HANOVER, NORTH CAROLINA TO PROVIDE FUNDS FOR THE
PURPOSES, INTER ALIA, OF FINANCING THE ACQUISITION AND CONSTRUCTION
OF ADDITIONS AND IMPROVEMENTS TO THE COUNTY-OWNED HOSPITAL IN NEW
HANOVER COUNTY, KNOWN AS NEW HANOVER REGIONAL MEDICAL CENTER AND
PROVIDING FOR THE ISSUANCE OF ADDITIONAL INDEBTEDNESS FOR VARIOUS
PURPOSES", a copy of which with draft dated October 1, 1993, was
submitted to the meeting, and MOVED that it be adopted with such
revisions as the Chairman or Vice-Chairman of the Board and the
Clerk to the Board, with advice of counsel, may deem necessary and
appropriate. Following discussion of the Bond Order, Commissioner
Sandra Barone SECONDED THE MOTION AND THE BOND ORDER WAS ADOPTED
UNANIMOUSLY.
Chairman Greer advised the members of the Board that the next
order of business was to consider and take action on a series
resolution providing for the issuance of the County's Hospital
Revenue Bonds (New Hanover Regional Medical Center Project) Series
1993 in the principal amount not exceeding $30,000,000 including
approvals respecting a lease agreement, an official statement and
a bond purchase agreement and providing for other matters ln
connection therewith.
Chairman Greer stated the Series Resolution delegates to the
Finance Director of the County the authority to determine certain
terms of the Bonds subject to limitations set forth in the Bond
Order and such Series Resolution.
Motion: Commissioner Caster introduced the Series Resolution
entitled "SERIES RESOLUTION AUTHORIZING AND APPROVING THE ISSUANCE
AND SALE OF NOT EXCEEDING $30,000,000 AGGREGATE PRINCIPAL AMOUNT OF
THE COUNTY OF NEW HANOVER, NORTH CAROLINA HOSPITAL REVENUE BONDS
NEW HANOVER COUNTY BOARD OF COMMISSIONERS
CONTINUED MEETING, OCTOBER 6, 1993
BOOK 23
PAGE 757
(NEW HANOVER REGIONAL MEDICAL CENTER PROJECT) SERIES 1993, TO
PROVIDE FUNDS TO ACQUIRE, CONSTRUCT AND EQUIPMENT IMPROVEMENTS TO
THE HEALTH CARE FACILITIES OWNED BY THE COUNTY, AND AUTHORIZING AND
APPROVING THE FORM AND TERMS OF THE LEASE AGREEMENT, THE OFFICIAL
STATEMENT AND THE BOND PURCHASE AGREEMENT AND THE EXECUTION AND
DELIVERY OF THE LEASE AGREEMENT, THE OFFICIAL STATEMENT AND THE
BOND PURCHASE AGREEMENT AND THE DISTRIBUTION AND USE OF THE
PRELIMINARY OFFICIAL STATEMENT, THE OFFICIAL STATEMENT AND THE BOND
ORDER IN CONNECTION WITH THE PUBLIC OFFERING OF THE BONDS, a copy
of which with draft dated October 1, 1993, was submitted to the
meeting, and MOVED that it be adopted with such revisions as the
Chairman or Vice-Chairman of the Board and the Clerk to the Board,
with the advice of counsel, many deem necessary and appropriate.
Following discussion, Vice-Chairman Mathews SECONDED THE MOTION and
the Series Resolution was adopted by UNANIMOUS VOTE.
A copy of the Bond Order and Resolution are hereby
incorporated as a part of the minutes and are contained in Exhibit
Book XXI, Page 21.
ADJOURNMENT
Chairman Greer adjourned the meeting at 7:50 A.M.
Respectfully submitted,
Lucie F. Harrell
Clerk to the Board