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CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF MARCH 16, 1999 <br />TO: HONORABLE MAYOR & CITY COUNCIL <br />APPROVAL: HENRY T. GARCIA, CITY MANAGE <br />FROM: DILU DE ALWIS, ACTING FINANCE DIRECTOR <br />SUBJECT: AWARD OF BID FOR A LOADER FOR THE WASTEWATER TREATMENT FACILITY TO RDO <br />EQUIPMENT COMPANY AND ADOPT THE ATTACHED RESOLUTION TO ENTER INTO A <br />FIVE-YEAR LEASE AGREEMENT WITH DEERE CREDIT, INC. FOR THE ANNUAL AMOUNT <br />OF $25,853.49 <br />DATE: MARCH 4, 1999 <br />BACKGROUND <br />The Wastewater Division loader is beyond repair and they have been renting a loader to remove sludge at the <br />treatment facility. The City Council appropriated $27,500 for this years lease payment on a new loader. Purchasing <br />solicited sealed bids for a five-year lease purchase of a new four-wheel drive loader on February 16, 1999. Bid <br />packages were mailed to thirteen vendors. <br />DISCUSSION/ANALYSIS <br />Bid opening was held at 2:30 p.m., March 2, 1999, in the Purchasing office. The following two bids were received <br />and evaluated: <br />PURCHASE INTEREST ANNUAL <br />VENDOR PRICE RATE LEASE <br />1. RDO Equipment $114,559.80 6.25% $25,853.49 <br />2. Contractors Equipment Co. $122,446.02 5.75% $27,300.85 <br />Staff is recommending award to the low bidder, RDO Equipment, and five-year lease purchase at 6.25% per annum <br />interest rate with annual payments of $25,853.49. Attached is a copy of a resolution and the five-year lease <br />agreement with Deere Credit, Inc. for your review and approval. <br />ALTERNATIVES <br />None <br />FINANCIAL IMPACT <br />The City Council approved an appropriation of $27,500 in the FY 98-99 budget for the lease of a four-wheel drive <br />loader in account number 522-8200-8200-4910. <br />ENVIRONMENTAL IMPACT <br />Will prevent excessive build-up of sludge at the treatment plant. <br />RECOMMENDATION <br />Staff recommends bid award to RDO Equipment for the loader and adopt the attached resolution to enter into a five- <br />year lease purchase agreement with Deere Credit, Inc. for the annual amount of $25,853.49. <br />Report prepared by Mary J. Milroy, Purchasing Coordinator <br />Attachments: Resolution <br />Lease Agreement <br />Page 1 <br />Item # 13 <br />