SR-503-002
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6-11
Purch:PW:ds/cctrash.word.purch
Council Meeting: May 14, 1991
5tP 3-oo~ MAY , . .c,{'t
Santa Monica, California
TO: Mayor and City Council
FROM: City staff
SUBJECT: Recommendation to Award Contract to Provide Financing
for the Purchase of Automated Collection Trash
Containers
Introduction
This report requests that City Council award a contract to Circle
Business Credit to provide financing for the purchase of
automated collection trash containers for the Solid Waste
Management Division, General Services Department, in the amount
of $399,427.00.
Background
In June 19B9, City council approved initial funding for the
transition from manual to automated trash collection in single
family zones. The move to automated collection for City
customers who currently use various types of individual trash
containers (mostly single family households) is an important part
of the City's Integrated Waste Management Master Plan which was
adopted by the City Council in May 1989.
Current plans call for the semi-automated collection to be fully
implemented as of July 1, 1991, which will entail the
distribution of the city-provided trash containers to all
affected customers during the latter part of June. The advantages
of this semi-automated system are increased
productivity, 6-11-
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reduction of worker accidents and ultimately, that it will allow
the city to implement a volume-based rate structure which will
charge customers more for a higher volume of refuse and less for
a lower volume of refuse. The fee-far-volume concept is an
integral part of the City's long range waste reduction strategy.
In response to the city's request for proposals to provide
lease-purchase financing over five years for automated collection
trash containers, four proposals were received and read on April
26, 1991. These four proposals were as follows:
MONTHLY RATE
ANNUAL
INTEREST RATE
circle Business Credit, Inc.
Saddleback Financial Corp.
Edgewater Financial Group
Dimension Funding
$ 8,064.43
$ 8,088.40
$ 8,091.19
$ 8,160.96
7.81%
7.95%
8.25%
8.62%
staff has evaluated the low proposal and finds that it represents
the best lease-purchase cost.
BUdget/Financial Impact
Funds for the initial payment for lease-purchase of automated
trash collection containers were budgeted in 1989-90 ($152,000)
and 1990-91 ($11,000). This full amount of $163,000 has already
been committed as a down payment on the containers. This staff
report recommends approval of the financing mechanism for the
remaining lease-purchase payments.
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Recommendation
It is recommended that a contract to provide financing for the
purchase of automated trash collection containers be awarded to
Circle Business Credit, Inc. as the best bidder.
Prepared by: Pam Wortham, Acting Purchasing Agent
craig Perkins, Admin. & Environmental Srvcs Manager
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