Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE ONE LEAF VACUUM TRAILER FROM BEST EQUIPMENT CO., INC. AND TO ENTER INTO A RELATED LEASE-PURCHASE AGREEMENT WITH TCF EQUIPMENT FINANCE TO FINANCE THE PURCHASE OF THE SAME FOR USE BY THE DEPARTMENT OF PUBLIC WORKS.
Brief Description: This resolution provides for the purchase and financing of one replacement leaf vacuum trailer for use in the Public Works Department.
Body
Legislative History
Resolution 19-185, approved 12/17/19, authorizes staff to seek competitive pricing on goods and services including this equipment. This equipment was budgeted to be replaced in 2020, but the purchase was paused due to the pandemic.
Purpose & Explanation
Bids were received in February for the replacement of an existing 2007 Old Dominion Brush leaf trailer vacuums within the PW area of operation. This machine has reached the end of its useful life. Accessories for these units are not required. Below is the lease to own option which includes details.
Leaf Vacuum Trailer Outright Purchase: $98,464.00
Leaf Vacuum Trailer Lease-Purchase Option: Five (5) annual payments of $21,118.00
• 3.62% interest rate
• $105,590.00 total cost including interest
The City Administration is requesting City Council approval to authorize the City Manager to enter into a purchase agreement with Best Equipment Co., Inc. for one leaf vacuum trailer. This price is through Sourcewell (previously NJPA) and the contract number is 041217-ODB. The total purchase price for the piece of equipment will be $98,464.00. Furthermore, staff requests that City Council authorize the City Manager to enter into a lease to own financing agreement with TCF Equipment Finance. Staff wishes to include a contingency of $2,000.00 to account for any changes in the interest rates between the time the staff report is written and the contract is formally executed.
Total Contract = $105,590.00 + $2,000 contingency divided over five years (five payments) not to exceed $21,518.00.
The cost of this equipment has risen in price since last year primarily due to the need to meet Tier 4 Emission Standards. But these hydraulically operating units offer the following benefits:
1. Public Works switched to these units three years ago. During the long leaf season the past three falls, Public Works employees did not experience any significant injuries. In the previous two leaf seasons, employees suffered three shoulder injuries requiring surgery.
2. The hydraulically operated units increase productivity. These units were able to be filled four times per day. Traditional units are only filled twice in an eight-hour work- day.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
X Joint or Cooperative Purchase Program: Sourcewell (Previously NJPA) Contract-041217-ODB
Professional Services
Other [provide explanation]
Fiscal Impact
X Currently Budgeted 201-6241-52520, $21,518.00
Supplemental Appropriation Required
Appropriation Not Required.
Does this legislation require use of an emergency clause?
Yes
X No
Recommendation
Suggested Action
Staff recommends that City Council approve this Resolution authorizing the City Manager to award and enter into a contract with Best Equipment Company, Inc. for the purchase of one (1) leaf vacuum trailer at the Sourcewell (previously NJPA) purchasing #041217-ODB at a price of $98,464.00 and for the execution of a five (5) year lease to own contract with TCF Equipment Finance at an annual payment not to exceed $21,518.00 for a not to exceed total amount of $107,590 for the procurement of one leaf vacuum trailer.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Assistant City Manager-Operations
Eric Hutchinson, Assistant Public Works Director-Services