SR-6G (20)
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PURCH:PW:DH:kf/srbd2495 Santa Monica, California
Councll Meeting: June 28, 1994 6G
TO: Mayor and City Counc~l
FROM: City Staff JUN 2 8 199't
SUBJECT: Recommendation to Award Bid to Provide Lease/Purchase
F~nancing of Five (5 ) New and Unused Custom-Built Triple
Combination Flre Trucks, Bid #2495
Introduction
This report concerns award of bid to provide lease/purchase
flnancing of five (5) new and unused custom-built triple
combination fire trucks for the Flre Department, in the total
amount of $271,760.83 per year, including interest, over a five
year period.
Background
In response to published Notices Inviting Bids (published May 25
and 26, 1994) to provide lease/purchase financing of five (5 ) new
and unused custom-bu~lt trlple comb~nation fire trucks in
accordance wlth City specifications, bids were received and
publicly opened and read on June 8, 1994. Proposal forms were
mal led to fourteen vendors and notlces were advertised in
accordance with C~ty Charter and Municipal Code provisions. Nine
proposals were recelved as follows:
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ANNUAL
VENDOR YEARL Y PAYMENT INTEREST RATE
Municipal Services Group, Inc. $271,760.83 5.29%
Koch Financial Corporation $273,145.62 5.475%
Munlcipal Leasing Assoclates $273,183.09 5.48%
Access Public Fundlng, Inc. $273,557.88 5.53%
Muni-Group $273,857.87 5.57%
United Financial
of Illinois, Inc. $274,758.65 5.69%
Kinnard Capital Corporation $276,209.15 5.8723%
GE Cap1tal Public Finance, Inc. $276,865.25 5.97%
Pan Lease (WMBE) $279,719.71 6.348%
These five tr~ple combination fire trucks will replace fire units
that range in age from nineteen to thirty-seven years old. The
acqulsltlon of this equipment wlll increase equipment reliability,
standardize equipment and modernize the Fire Department fleet.
Staff has evaluated the low bid and finds that it meets City
specifications.
Budqet/Financial Impact
Funds for the purchase of the vehicles were budgeted in the Capital
Improvement Program Budget, account number 01-730-313-20091-8900-
99260 "Purchase Tr~ple Combination Pumper 11 in the amount of
$50,000.00 and 01-730-312-20094-8900-99513 lILease/Purchase Five (5 )
Fire Engines and One (1) Haz-Mat Truck" in the amount of
$400,000.00. This total amount of $450,000.00 w~ll be used as a
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down payment. Staff is recommending the remainlng balance owed on
the vehicles ($1,167,209.59) be financed over a five-year period at
an annual interest rate of 5.29%.
Recommendatlon
It is recommended that the award of Bid #2495 be made to Municipal
Services Group, Inc. in the total amount of $271,760.83 per year
including interest, over a flve year period, as the lowest and best
bidder to lease-purchase this equipment over the next flve years..
Prepared By: Pam Wortham, Purchasing Agent
Diane Howell, Buyer
6/17/94
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