File #: 18-1036    Version: 1 Name:
Type: Action Item Status: Agenda Ready
File created: 10/1/2018 In control: Town Council Meeting
On agenda: 10/15/2018 Final action:
Title: Award of Capital Lease Contract (IFB 19-05) for Financing of FY 18-19 Vehicle and Equipment Replacement Program
Attachments: 1. IFB19-05FINAL, 2. ATTACHMENT A 2019, 3. IFB 19-05 LABELS, 4. Signed Resolution 2019, 5. IFB 19-05 Capital Lease Bid Summary, 6. Bid Tabulation 2019

Subject:

Title

Award of Capital Lease Contract (IFB 19-05) for Financing of FY 18-19 Vehicle and Equipment Replacement Program

Body

EXPLANATION AND SUMMARY

 

As approved on August 20, 2018, IFB 19-05 has been issued for a four-year capital lease in an amount not to exceed $820,000 to finance this year's vehicle and equipment replacement items as approved by Council as part of the Town's Vehicle and Equipment Replacement Program.  As noted in the bid summary attachment, the Town received four responses from financial institutions.  All responses met the bid requirements.  Financing and other costs ranged from a low of $62,197.72 to a high of $101,880.68. Interest rates ranged from 2.99% to 4.75%.  These rates are higher than past years as a reflection of the current economic climate of rising interest rates.

 

We recommend award of IFB 19-05 to Bank Funding LLC, as it submitted the lowest responsive and responsible bid.

 

A copy of IFB 19-05 and responses are available for inspection in the Office of the Town Clerk.

 

Departmental Recommendation:  Recommend approval.

 

Finance Recommendation:  Recommend approval.

 

Purchasing Recommendation:  Recommend approval

 

Town Attorney Recommendation:  The Town has competitively bid the proposed Vehicle and Equipment Replacement Program capital lease and the Town Council may award the lease contract to the lowest responsive and responsible bidder in its discretion.

 

Town Manager's Recommendation:  I recommend the Town Council award Capital Lease Equipment Purchase Contract IFB 19-05, as presented.

 

Cost and Financing:  $820,000 plus interest over a 4-year term

Account Number:  400-000-0000-49590-49110 through 49165                    

Decision Needed by This date:  October 15, 2018

 

PROPOSED/SUGGESTED MOTION

Recommended Action

"I move to award Capital Lease Equipment Purchase Contract IFB 19-05 to Bank Funding LLC at an interest rate of 2.99%,"

Or

Other action deemed necessary by Council.