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SR-6J (5) PURCH:PW:TB:brjsrbd2521 Santa Monica, Cal1forn1a Council Meet1ng: April II, 1995 - '" - ~ 6' r... , '" J 1, TO: Mayor and Clty Council FROM, Clty Staff APR 1 1 1995 SUBJECT: Recommendatlon to Award Bid to Provide Lease/Purchase Financing of Three (3) New CNG-powered Broom-Type Street Sweepers, Bid #2521 Introduction Th1S report concerns award of bid to prov1de lease/purchase flnanc1ng of three (3) new CNG-powered broom-type street sweepers for the Street Cleaning/Beach Ma1ntenance Division, EnV1ronmental & Public Works Management Department, 1n the total amount of $104,684.79 per year, includ1ng interest over a five-year period. Backqround In response to publ1shed Not1ces Invit1ng B1ds (published January 17, 18, 1995) to provide lease/purchase flnancing of three (3) new CNG-powered broom-type street sweepers in accordance w1th C1ty speciflcat1ons, bids were received and publicly opened and read on February 28, 1995. Proposal forms were ma1led to twenty- two (22 ) vendors and notices were advertlsed in accordance with City Charter and Municlpal Code provisions. Eleven proposals were rece1ved as follows: ANNUAL LEASE VENDOR PURCHASE AMOUNT 1) Mun1cipal Leasing Assoc. $104,684 79 2) ASSoclates Commerc1al Corp. $105,080 45 3) Butro & Co. $105,306.81 4) Pan Lease (WMBE) $105,420,07 5) Municlpal Services Corp. $105,505.05 6 J ; - 1 - j APR , 1 1995 ANNUAL LEASE VENDOR PURCHASE AMOUNT 6) G.E. Capltal Public $105,901. 97 7) Muni Group $105,987.20 8) Access Public Funding $106,256.88 9) Leaslng Innovatlons Inc. (WMBE) $106,356.98 10) Mark Pressman Assoc. $106,449.94 11) Smith Mitchell Leasing Service ( WMBE) $106,441 63 These vehlcles will be used to sweep City streets, alleys and parking lots, The purchase of these CNG-powered vehlcles is consistent wlth the City's reduced emisslon fuel policy. Staff has evaluated the low bid and flnds that it meets City speclflcatlons Budqet/FlnanClal Impact The City budget provldes for flnancing the lease/purchase of these three (3 ) vehlcles over a five-year perlod. Appropriation authorlty for the first year's lease/purchase payment is in account number 27-710-442-20095-8900-99322 ln the amount of $130,000 and the remaining balance of $434,684.43 will be financed over a five-year perlod at an annual payment of $104,684.79 (lnterest rate of 6.53%) - 2 - Recommendation It 1S recommended that the award of Bid #2521 be made to Municipal Leas1ng Associates in the total amount of $104,684.79 per year including 1nterest over a five-year period as the lowest and best bidder to lease/purchase this equipment over the next five years. Prepared By: Pam Wortham, Purchasing Agent Theodore Baxter, Buyer March 22, 1995 - 3 - CITY COUNCIL AGENDA 4/11/95 Revised paqe 2 - Item 6-J ANNUAL LEASE VENDOR PURCHASE AMOUNT 6) G.E. Capital Public $105,901.97 7) Muni Group $105,987.20 8) Access Public Funding $106,256.88 9) Leasing Innovatlons Inc. (WMBE) $106,356.98 10 ) Mark Pressman Assoc. $106,449.94 11) Smith Mitchell Leaslng Service (WMBE) $106,441.63 These vehicles will be used to sweep Clty streets, alleys and parking lots. The purchase of these CNG-powered vehlcles l8 cons~stent with the City's reduced emission fuel policy. Staff has evaluated the low bid and finds that it meets City speciflcatlons. Budqet/Financial Impact The Clty budget provides for f~nancing the lease/purchase of these three (3) vehlcles over a f~ve-year period. ApprOpr1.atlon authority for the first year's lease/purchase payment of $104,684.79 is in account number 27-710-442-20095- 8900-99322, As financed, the total cost of the lease/purchase wlll be $523,423 95 at an interest rate of 6.53%. - 2 -