HomeMy WebLinkAboutAgenda Statement 1972/12/19 Item 11item no. 11
December 19, 1972
CHULA VISTA CITY COUNCIL MEETING OF: DECEMBER 19, 1972
Resolution -
ITEM TITLE: ACCEPTING BIDS AND AUTHORIZING EXECUTION OF LEASE AGREEMENT FOR COMPUTER
INITIATED BY: DIRECTOR OF FINANCE
BACKGROUND: On October 24, 1972, the City Council authorized the lease-purchase of
a Model B-2510 Burroughs Computer.
Approval was also given to secure competitive bids from major banks in California to
finance the lease-purchase agreement. Pursuant to this authorization bids were
received on December 14, 1972 from the following banks:
Bank Net Bid
Bank of America NT & SA, Third & E Sts., Chula Vista 3.9874%
Wells Fargo Bank, 399 "H" Street, Chula Vista 4.10%
United California Bank, 600 So. Spring St., Los Angeles 4.625%
It is also noted that Security Pacific National Bank bid on the lease-agreement
but deviated from specifications and has been ruled ineligible by the City Attorney.
Therefore, based on the lowest responsible bid of 3.9874% from the Bank of America,
it is recommended that this bid be accepted and that the mayor be authorized to sign
the lease-purchase agreement with the Burroughs Corporation and also the Consent to
Assign and the assignment agreement with the Bank of America NT & SA.
Terms of the seven-year lease call for an initial down payment of $16,000.00, budgeted
in Account No. 01-1430-5271, Rentals and Leases. Equal annual payments of $31,906.71
will be due July 1 during the terms of the lease. This amount includes both interest
and principal.
ATTACHED: Resolution ~] Ordinance [ ] Agreement [ ] Plat [ ]
See EXHIBITS ~ ] Nool
Financial Statement:
Adequate Funds (16,000.00) budgeted in Account 01-1430-5271 -
Computer Rentals and Leases
Commission-Board Recommendation:
Department Head Recommendation: Approval of Bank of America bid and execution of
Lease Agreement
City Manager Recommendation:
The bid by Security Pacific National Bank was contingent on significant
modifications of the lease specifications. Therefore, the City Attorney
ruled its bid ineligible. The Director of Finance and City Manager
concur in his decision. Recommend approval of Bank of America bid.