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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 M IN 1, arch 12 1996 �� �J 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