Council Meeting: 2/27/96                     Santa Monica, CA

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Award Bid to Provide Lease/Purchase 
          Financing of One (1) Hazardous Materials Response
          Apparatus, Bid #2559.

Introduction
This report concerns award of bid to provide lease/purchase
financing of one (1) hazardous materials response apparatus for
the Fire Department, in the total amount of $162,830.15 including
interest, over a five (5) year period, with annual payments being
$32,566.03.

Background
In response to published Notices Inviting Bids (published
February 1 and 2, 1996) to provide lease/purchase financing of
one (1) hazardous materials response apparatus in accordance with
City specifications, bids were received and publicly opened and
read on February 9, 1996.  Proposal forms were mailed to sixteen
vendors and notices were advertised in accordance with City
Charter and Municipal Code provisions.  Ten proposals were
received as follows:

    
    
    
    VENDOR
    TOTAL COST OVER 
    FIVE (5) YEAR
    PERIOD
    
    
    Municipal Services Group, Inc.
    $162,830.15
    
    
    Municipal Funding Group
    $162,860.75
    
    
    Access Leasing Corporation 
    $163,599.30
    
    
    Municipal Leasing Associates, Inc.
    $164,005,60
    
    
    Koch Financial Corporation
    $164,595.65
    
    
    CNG Leasing
    $164,730.70
    
    
    Muni-Group
    $165,002.95
    
    
    Government Leasing Company
    $172,398.10
    
    
    American Leaseline Corporation
    $176,652.76
    
    
    United Financial of Illinois, Inc.
    $219,701.40
    
    
    This vehicle will be used to deliver personnel, equipment and
resources to the scene of a hazardous materials incident, and
enable Hazardous Materials Technicians to conduct the command,
control and mitigation of an incident from this vehicle.
    
    Staff has evaluated the low bid and finds that it meets City
specifications.

Budget/Financial Impact
After the purchase of five (5) fire engines in fiscal year 1994-95 (Capital Improvement Program budget, account number 01-730-312-20094-8900-99513), of the original budgeted amount of
$400,000.00, the remainder in the amount of $47,262.65 has been
used for a down payment on the Hazardous Materials Response
apparatus.

The remaining balance ($141,698.17) is to be financed over a
five- (5) year period at an annual interest rate of 4.82%.

Recommendation
It is recommended that the award of Bid #2559 be made to
Municipal Services Group, Inc. in the total amount of $162,830.15
including interest, over a five (5) 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