Title
Awarding bid for lease purchasing financing of a 2017 Freightliner M2-106-80 garbage truck for the Sanitation Department.
Body
Summary:
Bids were opened on Wednesday March 15, 2017 for the financing of the 2017 Freightliner M2-106-80 garbage truck for the Sanitation Department. The City received five bids in response to the request for this financing. As requested, each bidder provided information for a 3-year term and 5-year term to compare options. The comparison is attached.
Bidder, Interest Rate, Monthly Payment, and Total Payment:
3-Year Term
Signature Public Funding Corp. @ 1.84%; $5,182.39/month; Total = $186,566
US Bancorp Government Leasing & Finance, Inc. @ 1.98%; $5,193.15/month; Total = $186,953
Frost Bank @ 2.47%; $5,232.35/month; Total = $188,365, plus a one-time document fee of $400
Capital City Leasing @ 2.59998%; $5,242.69/month; Total = $188,737
Carlyle Capital Markets - No Bid
5-Year Term
Signature Public Funding Corp. @ 1.97%; $3,176.72/month; Total = $190,603
US Bancorp Government Leasing & Finance, Inc. @ 2.30%; $3,203.04/month; Total = $192,182
Frost Bank @ 2.70%; $3,234.95/month; Total = $194,097, plus a one-time document fee of $400
Capital City Leasing @ 2.800045%; $3,242.98/month; Total = $194,579
Carlyle Capital Markets - No Bid
Signature Public Funding Corp. is the lowest bidder.
Fiscal/Budgetary Impact:
Based on the lowest cost option the Signature Public Funding Corp. 3-year lease - the current fiscal year’s cost would be $25,912 for the five months of May - September 2017. The lease financing cost for the first full year (next fiscal year) would be $62,189. The Fiscal Year 2016-2017 budget includes an amount of $40,800 in the General Fund, Account No. 10-402-4908 - Lease Purchase.
Recommended action:
Award the bid for the lease purchase financing of the 2017 Freightliner M2-106-80 garbage truck to Signature Public Funding Corp. for a 3-year term.