Title
Awarding bid for lease purchase financing for a new 2021 Freightliner M2-160 Garbage Truck for the Sanitation Division.
Body
Summary:
Bids were opened on Tuesday May 26, 2020 for the lease purchase financing for a 2021 Freightliner M2-160 Garbage Truck for the Sanitation Division. The City received 4 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 bid comparison is attached.
Bidder, Interest Rate, Monthly Payment, and Total Payment:
3-Year Term
US Bancorp @ 1.63%; $5,462.83/month; Total = $196,662
Signature Public Funding @ 2.25%; $5,514.72/month; Total = $198,530
Municipal Leasing Consultants @ 2.61%; $5,505.19/month; Total = $198,187
(*Fee of $250 for escrow. Also, included an option for annual payments, which was not requested)
Ripple Creek Capital @ 3.38%; $5,610.07; Total = $201,963
5-Year Term
US Bancorp @ 1.85%; $3,349.32/month; Total = $200,959
Signature Public Funding @ 2.31%; $3,387.97/month; Total = $203,278
Municipal Leasing Consultants @ 2.61%; $3,413.00/month; Total = $204,780
(*Fee of $250 for escrow. Also, included an option for annual payments, which was not requested)
Ripple Creek Capital @ 3.15%; $3,459.27; Total = $207,556
Fiscal/Budgetary Impact:
Based on the lowest cost option, the US Bancorp 3-year lease is the best option. The current fiscal year’s cost would be $16,388 for three months (July - September). These lease payments are budgeted in the General Fund, Account No. 010-402-49080 - Lease Purchase. In FY 2019-2020, the amount of $30,250 was budgeted for this lease purchase, which is more than adequate to cover the funding for the current fiscal year. In FY 2020-2021, an amount of $65,600 will be budgeted for this lease purchase financing.
Recommended action:
Award bid for lease purchase financing of the 2021 Freightliner M2-160 Garbage Truck for the Sanitation Division to the US Bancorp for a 3-year term.