HomeMy WebLinkAboutS2- Purchasing CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: John P. Murphy, Purchasing Manager Subject: Automated Refuse/Recycling Containers
Dept: Purchasing �b—'?I
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IN 1,
arch 12 1996 ��
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Date: t id: F-95 qR1
Synopsis of Previous Council action:
1-12-94 Resolution No. 94-6 - to purchase 6 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
2-6-96 Resolution No. 95-31 - to purchase eighteen (18) automated side loading refuse
vehicle bodies
5-3-95 Resolution No. 95-137 - to finance same
7-27-95 Resolution No. 950268 - to purchase 84,000 automated refuse containers
10-2-95 Resolution No. 95-345 - to finance same
HAR 1 3'96 0 945
Recommended motion:
Adopt Resolution
John P. Murph
Sig ature
Contact person: P. Murphy Purchasing Manager Phone: 384-5085
Supporting data attached: Yes Ward:_ N/A
FUNDING REQUIREMENTS: Amount: -0-
Source:(Acct. No.) 127-412-5803
Acct. Description) Lease Payments
Finance:
Council Notes:
75-0262
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
F-95-28
Resolution Number 95-268 authorized the purchase of 62 , 000 trash
containers. Resolution Number 95-345 authorized the lease to
finance these trash containers. Associates Commercial Corporation
(Associates) was the approved leasing company to finance all 62, 000
containers for a total amount of $2 , 964 , 824 . 70, at 5. 390.
To date, Associates has only financed $1, 000, 000 worth of
containers. They have recently communicated to staff that in order
for them to complete the balance of the lease agreement
($1, 964 , 824 . 70) signed with the City they require an additional
capital and revenue pledge from the City. Staff does not recommend
pledging capital and revenue to Associates.
Koch Financial was the next lowest bidder and has been contacted.
They are willing to lower their original bid on this deal from
5.43% to match Associates rate of 5. 390 on the remaining
$1, 964 , 824 . 70.
As a result of Associates non-performance, Council is asked to set
aside the remaining $1, 964)824 . 70 of Associates $2 , 964 , 824 . 70 lease.
Staff will complete new lease documents with Associates making our
lease with them for $1, 000, 000. 00. Then award a new lease to the
next lowest and best bidder, Koch Financial, for the remaining
$1, 964, 824 . 70.
Staff recommends adoption of the attached resolution.
Account Number: 127-412-5803
es R. Howell
John P. Murphy
irector of Public Services Purchasing Manager