HomeMy WebLinkAboutAgenda Statement 1975/03/25 Item 12
AGENDA ITEM N0. [ 12 ]
CHULA VISTA CITY COUNCIL MEETING OF: March 25, 1975
ITEM TITLE: Resolution - Approving Negotiated Leases for Vehicles in
Support of CETA Title VI Personnel
INITIATED BY:
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Director of Public Works/City Engineer ~-,
By Resolution No. 7623 on February 4, 1975, the Chula Vista City Council
authorized the negotiation of leases for vehicles and equipment in support
of CETA Title VI personnel. The leases were negotiated on an informal
basis, but since the total leasing price was a substantial amount (it
exceeded $20,000), it was deemed preferable to rent most of the required
vehicles for a short period of time to allow interested leasers the
opportunity to submit formal bids.
Consequently, formal bids were requested on all the vehicles except the
five ton dump trucks. These trucks were not included in the formal
bidding procedure because it was advantageous to lease them as soon as
possible in order to take advantage of a lower buy-out price: the longer
the leasing period, the lower the final buy-out costs.
Since the five ton dump trucks had a total leasing cost of over $5,000
per vehicle, it was necessary to receive authorization from the Department
of Labor to spend CETA funds for their lease purchase. In a meeting on
February 21, 1975, a DOL representative indicated that the required
authorization would be forthcoming within a few days. With the assurance
of a quick response from DOL which would allow the City to lease purchase
the two five ton dump trucks immediately, it was decided to negotiate
for the dump trucks on a sole source basis, and proceed with formal bids
on the remaining vehicles. This would result in a savings to the City
because the dump trucks are by far the most expensive of the required
vehicles to lease purchase.
(continued on supplemental page 2)
ATTACHED: Resolution [X] Ordinance [ ] Agreement [ ] Plat [ ]
See EXHIBITS [ X] No. 1
Financial Statement:
A total of $10,600 in account No. 01-3220-5565 has been requested for the
purchase of the two five ton dump trucks in FY75-76.
Commission-Board Recommendation:
N.A.
Department Head Recommendation:
Recommends the City of Chula Vista lease purchase the two five ton dump
trucks from Fuller Ford in Ch»la Vista.
City Manager Recommendation:
Concur
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Agenda. Item No. 12
Supplemental page 2
Unfortunately, the Department of Labor was slow in granting authorization
for the use of CETA funds in this manner. It was only after repeated
telephone calls and a telegram that the Department of Labor responded.
A telegram was received on March 19, 1975 authorizing the City of
Chula Vista to proceed to lease purchase the five ton dump trucks on a
sole source basis, with the concurrence of the Regional Employment and
Training Consortium (RETC) and the County of San Diego. Both agencies
have expressed their approval for the lease purchase arrangement.
During the negotiating procedure, three leasing companies submitted
estimates for the lease purchase of two five ton dump trucks. The
estimates are based on a 10-month lease period and a vehicle usage of
1,000 miles per month per vehicle.
Total 10-mo.
Lease Fee
Fuller Ford $12,580.00
Courtesy Chevrolet $12,733.80
PHD $13,500.00
Purchase Price
After 10 mo.
$ 9,998.00
$16,000.00
Wholesale blue book
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