HomeMy WebLinkAboutAgenda Report - May 3, 2000 E-09AGENDA TITLE: Lease Agreement for Purchase of Turf Mower for Parks Division
MEETING DATE: May 3, 2000
PREPARED BY: Parks and Recreation Director
RECOMMENDED ACTION: That City Council adopt the attached resolution authorizing the City
Manager to enter into an agreement with Farmers and Merchants Bank
for the lease -purchase of one (1) turf mower.
BACKGROUND INFORMATION: The lease -purchase of a mower to replace a 1995 Toro 580D
mower was approved in the 1999-2001 Budget and has been
through the Fleet Committee.
The purchase will be made under a rider to a contract between the City of San Jose and H.V. Carter
Co., Inc. Contract provisions allow all government agencies to "piggyback" to take advantage of the
favorable pricing. Lodi City Code, Section 3.20.070 allows for the purchase of equipment, supplies, and
services when the method of purchase is determined by the City Council to be in the best interest of the
City.
The City solicited competitive proposals for the lease -purchase financing of this equipment. Farmers &
Merchants Bank of Lodi was the only lender responding prior to the April 3, 2000 proposal due date,
offering a four-year financing package at a 6.75% rate of interest. Other respondents were TransOcean
Funding, Burlingame, whose proposal was received on April 10 (too late to be considered), and
California Communities Municipal Finance, Walnut Creek, whose response was that the loan amount
was too small for them to submit a proposal.
Although Farmers & Merchants was the sole responsive bidder, staff recommends approval of the lease
since the 6.75% rate is well below the current 9.00% Prime Rate, the interest rate banks charge their
most creditworthy customers. The four-year lease amount is $51,150.00 with a total cost of $59,027.18.
Lease payments will be made annually, due on March 1' of each year, beginning March 1, 2001.
FUNDING: Vehicle Replacement Fund
Funding available:
cc: City Attorney
Purchasing Agent
Fleet Manager
�0
Parks and Recreation Director
APPROVED:
Dixon Flynn -- City anager
04126100
RESOLUTION NO. 2000-68
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING THE PURCHASE OF ONE JACOBSEN
HR9016 ROTARY TURF MOWER FOR PARKS DIVISION
WHEREAS, Lodi Municipal Code, §3.20.070, authorizes dispensing with bids for
purchases of supplies, services or equipment when it is in the best interest of the City to
do so; and
WHEREAS, the Purchase of One (1) Jacobsen HR9016 Rotary Turf Mower to
replace the existing 1995 Toro 580D mower was approved in the 1999-2001 Budget and
has been processed through the Fleet Committee; and
WHEREAS, staff solicited competitive proposals for the Purchase financing of this
equipment, and Farmers & Merchants Bank of Lodi was the only lender who responded
by the April 3, 2000 deadline; and
WHEREAS, staff recommended Lease -Purchase financing through Farmers &
Merchants Bank at an interest rate of 6.75°/x, piggybacking on a contract between the City
of San Jose and H.V. Carter Co., Inc.; and
WHEREAS, the City Council after much discussion, decided it was in the best
interest of the City to purchase the mower outright, through the contract between the City
of San Jose and H.V. Carter Co., Inc.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
approves the Purchase of one (1) Jacobsen HR9016 Rotary Turf Mower, piggybacking on
the contract between the City of San Jose and H. V. Carter Co., Inc., in the amount of
$59,027.18.
Dated: May 3, 2000
I hereby certify that Resolution No. 2000-68 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held May 3, 2000, by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Nakanishi, Pennino
and Mann (Mayor)
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — Land
ELINE�.,TA
City Clerk
2000-68