AGENDA ITEM April 7, 2015 Subject: Public Works Equipment Lease Purchase Department: Finance Bids were solicited from eight vendors for the lease purchase of public works equipment as listed in Exhibit A. The results are as follows: Arvest Bank –Nevada, MO Commerce Bank – St. Louis, MO First National Bank – Nevada, MO Great Southern Bank – Nevada, MO Heritage State Bank- Nevada, MO Metz Banking Company – Nevada, MO Tax-Exempt Leasing Corporation – Libertyville, IL U.S. Bancorp Government Leasing and Finance, Inc. – Denver, CO 1.75% 1.72% no response 2.55% 2.20% no response no response 1.76% The Street, Water and Sewer Funds budgeted to lease purchase the following equipment: salt spreader attachments, one ton pickup, backhoe, skid-steer loader and sludge truck. The Street Fund has adequate funds to pay cash for their percentage of the pickup, backhoe and skid-steer and purchase the salt spreader attachments. The remaining balance would be financed and repaid from the Water and Sewer Fund. If approved, the total cash outlay from the Street Fund will be $71,118.00. Commerce Bank is the best rate and meets the specifications of our request. The amount to be financed under Exhibit A Option 1 is $248,138 with an annual payment of $52,217.49. General Ledger Accounts: 200-5-4401-319 200-5-4401-320 500-4-6501 500-5-4201-319 500-5-4201-320 500-5-4401-319 500-5-4401-320 Exhibit A Year 2015 2015 2015 2015 Equipment List Option 1 Make and Model Description Chevrolet 3500 HD Silverado CK36043 1 ton dually 4x4 crew cab John Deere 310 SL Backhoe Loader backhoe Bobcat Skid‐Steer Loader S650 T4 skid‐steer Western Star w/ 3000 carbon steel tank sludge truck Price $ 41,300.00 $ 83,991.00 $ 40,595.00 $ 137,548.00 Total $ 303,434.00 Less down payment $ 55,296.00 Total lease purchase $ 248,138.00 Year 2015 2015 2015 2015 2015 Equipment List Option 2 Make and Model Description Chevrolet 3500 HD Silverado CK36043 1 ton dually 4x4 crew cab John Deere 310 SL Backhoe Loader backhoe Bobcat Skid‐Steer Loader S650 T4 skid‐steer Western Star w/ 3000 carbon steel tank sludge truck Hyrdaulic Control Salt Spreader 2 salt spreader attachments Total lease purchase Price $ 41,300.00 $ 83,991.00 $ 40,595.00 $ 137,548.00 $ 15,822.00 $ 319,256.00 BILL NO. 2015-018 ORDINANCE NO. A SPECIAL ORDINANCE AUTHORIZING THE CITY OF NEVADA, MISSOURI TO ACCEPT THE BID AND ENTER INTO A LEASE/PURCHASE AGREEMENT WITH COMMERCE BANK FOR THE ACQUISITION OF PUBLIC WORKS EQUIPMENT. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NEVADA, MISSOURI THAT: Section 1. The City Council hereby authorizes the City of Nevada, Missouri to accept the bid and enter into a lease / purchase agreement with Commerce Bank for the acquisition of Public Works equipment as listed in Exhibit A Option 1 for the amount of $248,138.00. Section 2. The City Manager is hereby authorized and directed to execute any and all documents associated with the lease / purchase of the equipment for the City of Nevada, Missouri. Section 3. The form of the documentation will be substantially as submitted to and reviewed by the City Council subject however to such improvements and clarifications as are agreed to between the City administration and City Attorney on behalf of the City and Commerce Bank and its legal advisors. Section 4. This Ordinance shall be in full force and effect from and after its final passage. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Nevada, Missouri on this 21st day of April, 2015. ________________________________ , Mayor (seal) ATTEST: ______________________________ Bev Baker, City Clerk BID TABULATION DATE: DEPARTMENT: ITEM: TERMS: 03/31/2015 Finance Public Works Equipment Lease Purchase see below INTEREST RATE FIVE (5) YEAR TERM P & I ANNUAL PAYMENT GRAND TOTAL FINANCIAL INSTITUTION Option 1: $248,138 @ 5 yrs, first payment due one year from contract date Commerce Bank‐ St. Louis, MO Arvest Bank‐Nevada, MO U.S. Bancorp Government Leasing and Finance, Inc.‐ Denver, CO Heritage State Bank‐Nevada, MO Great Southern Bank‐Nevada, MO First National Bank‐Nevada, MO Metz Banking Company‐Nevada, MO Tax‐Exempt Leasing Corporation‐Libertyville, IL 1.72% 1.75% 1.76% 2.20% 2.55% no response no response no response x x x x x $ 52,217.49 $ 52,284.66 $ 52,278.41 $ 53,001.12 $ 53,546.72 $ 261,087.45 $ 261,423.30 $ 261,392.06 $ 265,005.60 $ 267,733.60 Option 2: $319,256 @ 5 yrs, first payment due one year from contract date Commerce Bank‐ St. Louis, MO Arvest Bank‐Nevada, MO U.S. Bancorp Government Leasing and Finance, Inc.‐ Denver, CO Heritage State Bank‐Nevada, MO Great Southern Bank‐Nevada, MO First National Bank‐Nevada, MO Metz Banking Company‐Nevada, MO Tax‐Exempt Leasing Corporation‐Libertyville, IL 1.72% 1.75% 1.76% 2.20% 2.55% no response no response no response x x x x x $ 67,183.38 $ 67,269.80 $ 67,261.75 $ 68,191.59 $ 68,893.57 $ 336,916.90 $ 336,349.00 $ 336,308.76 $ 340,957.95 $ 344,467.85
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