Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE-PURCHASE AGREEMENT WITH TCF EQUIPMENT FINANCE TO FINANCE THE PURCHASE OF TWO LEAF VACUUM TRAILERS FOR USE BY THE DEPARTMENT OF PUBLIC WORKS; TO AUTHORIZE THE PURCHASE OF TWO LEAF VACUUM TRAILERS FROM CONCORD ROAD EQUIPMENT, MFG.; AND DECLARING AN EMERGENCY.
Brief Description: This resolution provides for the purchase and financing of two replacement leaf vacuum trailers for use in the Public Works Department.
Body
Legislative History
Resolution 18-188, approved 12/18/18, authorizes staff to seek competitive pricing on goods and services.
Purpose & Explanation
Bids were received on April 4, 2019 for the replacement two existing 2007 Old Dominion Brush leaf trailer vacuums within the PW area of operation. These machines have reached the end of their useful lives. Accessories for these units are not required. Below is the Service Department budget estimate per the 2019 budget along with the respective bid for the annual lease payments.
Service Budget Estimate: $31,580.00 annually
Concord Road Equipment, MFG. $180,812.42/ Lease-to-Own Annual payments of $41,000.00.
The City Administration is requesting City Council approval to authorize the City Manager to enter into a purchase agreement with Concord Road Equipment, MFG. and a lease to own agreement with TCF Equipment Finance for the two replacement leaf vacuum trailers. The total purchase price for the pieces of equipment will be $180,812.42. Lease payments will not exceed $41,000.00 annually. Staff did explore several financing options and found TCF Equipment Finance to offer the lowest financing rate of 4.76%. The leaf vacuum trailers will be purchased through Ohio State Term Schedule Pricing STS 515-800507. The lease term will be for five (5) years.
Total Contract = $180,812.42 divided over five years (five payments) not to exceed $41,000.00.
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 last year. During the long leaf season this past fall, 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 Ohio STS 515-800507
Professional Services
Other [provide explanation]
Fiscal Impact
X Currently Budgeted 201-6241-52520, $31,580.00
X Supplemental Appropriation Required 201-6241-52520, $9,420
Appropriation Not Required.
Does this legislation require use of an emergency clause?
X Yes - To expedite ordering and lock in lease interest rate.
No
Recommendation
Suggested Action
Staff recommends that City Council approve this Resolution authorizing the City Manager to award and enter into a contract with Concord Road Equipment, MFG. for the purchase of two (2) leaf vacuum trailers at the Ohio STS price of $180,812.42 and for the execution of a five (5) year lease to own contract with TCF Equipment Finance at an annual payment not to exceed $41,000.00 for the purchase of the leaf vacuum trailers, and declaring an emergency.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Assistant City Manager-Operations
Eric Hutchinson, Assistant Public Works Director-Services