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.