Subject:
Title
Award Capital Lease Contract (IFB 19-05) for Financing FY 18-19 Vehicle and Equipment Replacement Program
Body
EXPLANATION AND SUMMARY:
As approved on August 20, 2018, IFB 19-05 was 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, three of which were responsive and responsible. Financing and other costs ranged from a low of $66,759.70 to a high of $101,880.68. Interest rates ranged from 3.206% to 4.75%. These rates are higher than previous years due to the current economic climate of rising interest rates.
We recommend award of IFB 19-05 to US Bancorp, 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 contract, and Town Council may award the lease contract to the lowest responsive and responsible bidder in its discretion.
Town Manager's Recommendation: I recommend that 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 the Capital Lease Equipment Purchase contract IFB 19-05 to US Bancorp at an interest rate of 3.206%."
Or
Other action deemed necessary by Council.