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JUN 23 ..
Santa MOnica. Callforma
PURCH PW BR sd f \finance\purch\strfrpts\srbd2690
Council Meeting June 23, 1998
TO Mayor and City Council
FROM City Staff
SUBJECT RecommendatIon to Award BId to ProvIde Lease Financing of One New
Tractor Drawn Aerial Fire Apparatus, Bid #2690
Introduction
This report recommends an award of bid to provide lease financing of one new tractor
drawn aerral fire apparatus for the Fire Department In the amount of $117,501 85 per year,
including Interest, over a five-year period
Backaround
The City IS purchasing an aerial fire apparatus The bid for the apparatus was awarded on
May 13, 1997 The CIty must finance thiS purchase In response to published Notices
Invltlng Bids (published May 20 and 21,1998) to provide lease financing for the acqulsltlon
of one new tractor drawn aerial fire apparatus In accordance with City specifications, bids
were received and publicly opened and read on May 29, 1998 Proposal forms were
mailed to sIxteen vendors and notices were advertIsed In accordance wIth CIty Charter
and Municipal Code provIsions Eight proposals were received as follows
Vendor
MUnlclpal Services Group
United Financial of illinOIS, Inc
MFG MUniCipal Funding Group
MUniCipal LeaSing ASSOCiates, Inc
Koch Fmanclal Corporation
Amerrcan Leasellne Corporation
Munl Group
Pan Lease
Yearlv Payment
$117,501 85
$117,567 16
$117,75900
$118,01499
$118,679 86
$118,989 85
$119,172 15
$119,20500
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Annual
Interest
Rate
467%
469%
4 749%
4 827%
503%
5 124%
5 180%
519%
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JUN 23 .
The tractor drawn aerral fire apparatus will replace a 38-year-old aerial apparatus which IS
non-repaIrable
Staff has evaluated the low bId and finds that It meets City specifications
BudaetlFlnancrallmoact
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Funds for the purchase of this Unit were budgeted In the Capital Improvement Budget,
account number 01-730-313-20097-8900-99111, "Aenal Ladder Apparatus Lease
Purchase" In the amount of $135,000 00 ThiS amount represents the down payment for
the lease purchase The balance due on the equipment IS $513,39585 Staff IS
recommending the remaining balance owed on the vehIcle be financed over a fIVe-year
period at an Interest rate of 4 67% Funds for the FY 1998-99 lease payment are Included
In the FY 1998-99 Proposed City Budget at account number 01-730-313-20099-8900-
99069
Recommendation
It IS recommended that award of Bid #2690 be made to MUnicipal Services Group In the
total amount of $117,501 85 per year including Interest, over a five-year penod, as the
lowest responsIble bIdder
Prepared By Pam Wortham, Purchasing Agent
Brenda Reed, Buyer
Wilham Kolberg, Deputy Fire Chief
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