ITEM 6-G

Council Meeting:  June 28, 1994

TO:        Mayor and City Council

FROM:      City Staff

SUBJECT:   Recommendation to Award Bid to Provide Lease/Purchase
           Financing of Five (5) New and Unused Custom-Built
Triple
           Combination Fire Trucks, Bid #2495

Introduction

This report concerns award of bid to provide lease/purchase
financing of five (5) new and unused custom-built triple
combination fire trucks for the Fire Department, in the total
amount of $271,760.83 per year, including interest, over a five
year period.

Background

In response to published Notices Inviting Bids (published May 25
and 26, 1994) to provide lease/purchase financing of five (5) new
and unused custom-built triple combination fire trucks in
accordance with City specifications, bids were received and
publicly opened and read on June 8, 1994. Proposal forms were
mailed to fourteen vendors and notices were advertised in
accordance with City Charter and Municipal Code provisions.  Nine
proposals were received as follows:

                                                    ANNUAL
     VENDOR                     YEARLY PAYMENT   INTEREST RATE

Municipal Services Group, Inc.   $271,760.83        5.29%
Koch Financial Corporation       $273,145.62        5.475%
Municipal Leasing Associates     $273,183.09        5.48%
Access Public Funding, Inc.      $273,557.88        5.53%
Muni-Group                       $273,857.87        5.57%
United Financial 
 of Illinois, Inc.               $274,758.65        5.69%
Kinnard Capital Corporation      $276,209.15        5.8723%
GE Capital Public Finance, Inc.  $276,865.25        5.97%
Pan Lease (WMBE)                 $279,719.71        6.348% 

These five triple combination fire trucks will replace fire units
that range in age from nineteen to thirty-seven years old.  The
acquisition of this equipment will increase equipment
reliability,
standardize equipment and modernize the Fire Department fleet.

Staff has evaluated the low bid and finds that it meets City
specifications. 
 
Budget/Financial Impact

Funds for the purchase of the vehicles were budgeted in the
Capital Improvement Program Budget, account number
01-730-313-20091-8900-99260 "Purchase Triple Combination Pumper"
in the amount of $50,000.00 and 01-730-312-20094-8900-99513
"Lease/Purchase Five (5) Fire Engines and One (1) Haz-Mat Truck"
in the amount of $400,000.00.  This total amount of $450,000.00
will be used as a down payment.  Staff is recommending the
remaining balance owed on the vehicles ($1,167,209.59) be
financed over a five-year period at an annual interest rate of
5.29%.

Recommendation

It is recommended that the award of Bid #2495 be made to
Municipal Services Group, Inc. in the total amount of $271,760.83
per year including interest, over a five year period, as the
lowest and best bidder to lease-purchase this equipment over the
next five years.

Prepared By:   Pam Wortham, Purchasing Agent

               Diane Howell, Buyer