HomeMy WebLinkAbout16- Public Services CITY OF SANS BERN&RDINO - REQUEST FOR COUNCIL ACTION
From: James R. Howell, Acting Director Subject: Automated Refuse/Recycling
Containers
Dept: Public Services
Bid: F-95-28
Date: September 14, 1995
Synopsis of Previous Council Action:
1/12/94 Resolution No. 94-6 to purchase six automated refuse trucks
1/12/94 Resolution No. 94-7 to finance same
9/20/94 Resolution No. 94-292 to purchase 9,800 90-gallon automated refuse containers
9/20/94 Resolution No. 94-291 to finance same
2/6/95 Resolution No. 95-31 to purchase eighteen (18) automated side loading refuse
vehicle bodies
5/3/95 Resolution No. 95-137 to finance same
7/24/95 Resolution No. 95-268 to purchase 84,000 automated containers
7/24/95 Resolution No. 95-269 to finance same
Recommended Motion:
Adopt Resolution
igna r
Contact person:James Howell. Actin Director Phone 4-5140
Supporting data attached: Yes Ward: N/A
FUNDING REQUIREMENTS: Amount: $342.179.51
Source:(Acct. No.) 127-412-5803
Acct. Description) Lease Pa ments
Finance.
Council Notes: Annrove five year lease FY 95/96 will have one lease payment in the amount of$342,179.51.
IF?
Agenda Item No.
CITY OF SAN BERNA RDINO - REQUEST MO. COUNCIL ACTION
STAFF REPORT
Resolution Number 95-268 authorized the ultimate purchase of 84,000 automated refuse
collection containers and the lease for financing of the initial order of 12,000. This
resolution will approve the lease financing of 62,000 more containers broken down as
follows:
30,000 Green 96 gallon containers
30,000 Blue 96 gallon containers
1,000 Blue 64 gallon containers
1,000 Green 64 gallon containers
The total amount of the lease to finance is $2,964,824.70. This will be financed over five
years and will require semi-annual payments in arrears of $342,179.51($684,359.02
Iannually). The interest rate is 5.39%. The total interest paid will be $456,790.35.
All lease companies with approved master lease agreements were solicited. Four vendors
responded with bids ranging from 5.39% to 5.99%.The lowest and best bid was received
from Associates Commercial Corporation.
There will be at least one more order to follow this one. However, this large order will
facilitate the main implementation of the City-wide residential commingled recyclables
and green materials collection program.
Staff recommends adoption of the attached resolution.
es R. H ell Jo P.�Murphy cting Director of Public Services Pur ager
LEASE/P,_ACHASE FINANCING PROPu iAL FOR
CITY OF SAN BERNARDINO, CALIFORNIA
PROPOSAL # 21669
OPTION #1
Payments In arrears
Number of Payments 10
Payment Timing Semi-annual
Payment Amount $342,179.51
Payment Factor 0.115413
Total Amount Funded $2,964,824.70
Annual Percentage Rate 5.39°
DOCUMENTATION AND FUNDING MUST BE COMPLETED BY JANUARY 31, 1996
EQUIPMENT DESCRIPTION
DESCRIPTION MANUFACTURER QNTY, DELIVERY EQUIPMENT COST sf
Trash Containers Toter 62,000 12/95 $2,964,824.70
TOTAL EQUIPMENT COST AFTER DOWN/TRADE: $2,964,824.70
The above financing has been arranged by The Associates, for submission to: -
the City of San Bemardino, Califomia
This proposal is for financing only and is subject to:
1. Completion of mutually acceptable documentation substantially in the form of the enclosed
sample documents.
2. A review of the proposed essential use of the equipment and a final credit approval for
the City of San Bernardino, California, prior to funding.
3. No material adverse change in the financial condition of the City of San Bernardino, California,
prior to funding.
4. Receipt of a copy of the last three years' audited financial statements and the current years
budget for the City of San Bernardino, California.
09/11195 03:42 PM 21669.WK4/lrf 1
LEASE/P. XHASE FINANCING PROPL-,AL FOR
CITY OF SAN BERNARDINO, CALIFORNIA
P
PROPOSAL # 21669
5. No change in Federal or applicable state or local tax law, regulations, case law, rulings, or
other interpretations by the Internal Revenue Service that would affect adversely any
Federal, state or local tax benefit assumed in determining the above proposal.
6. That the City of San Bernardino, California, qualifies as a political subdivision as defined in the
Internal Revenue Code.
ASSOCIATES COM,..,ERCIAL CORPORATION, MU".4.'FIPAL FINANCING
SCHEDULE A-3
Lessee: the City of San Bernardino, California
Lease Number: 21669 Amount Funded: $2,964,824.70
Interest rate: 5.39% Payment Amount: $342,179.51
Lease Lease
Payment Payment Lease Interest Principal Concluding
Number Date Payment Portion Portion Payment
arrears 0- Dec-95 $2,964,824.70
1 0- Jun-96 $342,179.51 $79,902.03 $262,277.48 $2,702,547.22
2 0- Dec-96 $342,179.51 $72,833.65 $269,345.86 $2,433,201.36
3 0- Jun-97 $342,179.51 $65,574.78 $276,604.73 $2,156,596.63
4 0- Dec-97 $342,179.51 $58,120.28 $284,059.23 $1,872,537.40
5 0- Jun-98 $342,179.51 $50,464.88 $291,714.63 $1,580,822.77
6 0- Dec-98 $342,179.51 $42,603.17 $299,576.34 $1,281,246.43
7 0- Jun-99 $342,179.51 $34,529.59 $307,649.92 $973,596.51
8 0- Dec-99 $342,179.51 $26,238.43 $315,941.08 $657,655.43
9 0- Jun-2000 $342,179.51 $17,723.81 $324,455.70 $333,199.73
10 0- Dec-2000 $342,179.46 $8,979.73 $333,199.73 $1.00 { ,.
Totals $3,421,795.05 $456,970.35 $2,964,824.70
09111/95 03:42 PM 21669.WK4/lrf 2