Subject:
Title
Award Capital Lease Contract (IFB 20-09) for Financing of FY 19-20 Vehicle and Equipment Replacement Program
Body
EXPLANATION AND SUMMARY:
On July 1, 2019, Council approved a resolution to issue vehicle and equipment replacement financing for FY 2019-20. IFB 20-09 has been issued for a four-year capital lease in an amount not to exceed $860,000 in principal 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 the four responses met the bid requirements. Financing and other costs ranged from a low of $41,332.01 to a high of $46,101.94. Interest rates ranged from 1.904% to 2.122%, lower than 2019 due to the current economic climate of lower interest rates.
We recommend award of IFB 20-09 to Sandy Spring Bank as it submitted the lowest responsive and responsible bid.
A copy of IFB 20-09 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 received competitive bids for the proposed Capital Lease Contract, and Town Council may award the 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 20-09 to Sandy Spring Bank, as presented.
Cost and Financing: $860,000 in principal and $41,322.01 in interest for a total of $901,322.01 over a 4-year term
Account Number: 400-000-0000-49590-49110 through 49590-49185
Decision Needed by This date: September 16, 2019
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to award Capital Lease Equipment Purchase Contract IFB 20-09 to Sandy Spring Bank at an ...
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