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PURCH:PW:TB:br/f:\finance\admin\stfrpts\srbd2508 Santa Monica, Ca
Council Meeting: November 15, 1994 NOV 1 5 ..
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Rej ect All Bids to Provide Lease/Purchase
Financing of a Unicolor 2400 Chlorine Generation System for
the Municipal Pool and to Appropriate $50,200 for the
Purchase of the System, Bid #2508
Introduction
This report concerns rejection of all bids to provide lease/purchase
financing for a Unicolor 2400 Chlorine Generation System for the Parks
and Sports Division, Commun1. ty and Cultural Services Department, and
the appropriation of funds to direct purchase the system in order that
financing expenses may be avoided.
Backqround
In response to published Notices Inviting Bids (published September 26
and 27, 1994) to provlde lease/purchase financlng of a Unicolor 2400
Chlorine Generation System, in accordance with City specifications,
bids were received and publicly opened and read on October 10, 1994.
Proposal forms were mailed to seventeen vendors and notices were
advertised ln accordance with Clty Charter and Municipal Code
provisions. Four proposals were recelved as follows:
Yearly Annual
Payment Interest Rate
Muni-Group Inc. $12,060.30 6.44%
Municipal Services Group $12,174.55 6.79%
MPA Leas1ng $12,217.10 6.92%
MLC Group $12,739.04 8.50% NOV 1 5 199It
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This system is used to chlorinate the munlcipal pool and replaces a gas
chlorl.ne system.
The lowest responsible bld, from Muni-Group, Inc. would result in a
total system acquisition cost of $60,301. 50 and is $10,101.50 (20.1%)
more than the outright purchase price for the system ($50,200). While
lease/purchasing the system reduces the amount of funding the City
would have to spend on system acquisition in anyone (1) fiscal year,
staff believes that the amount of savings associated with the direct
purchase of the system is sufficiently large to warrant rejection of
all bids and purchase of the system directly from its supplier,
Chemical Services Company.
Budqet/Financial Imoact
It will be necessary to appropriate $50,200 at account number 01-740-
511-20095-99760 from General Fund reserves in order to pay for the
chlorinat~on system.
Recommendation
Staff recommends that all bids for lease/purchase financing of the pool
chlorlnation system be rejected and that $50,200 be appropriated from
the General Fund reserves to capital improvement project account number
01-740-511-20095-8900-99760 to provide funds for the direct purchase of
the system.
Prepared By: Pam Wortham, Purchaslng Agent
Ted Baxter, Buyer
11/10/94
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