HomeMy WebLinkAboutR-98-0593LT- 98-582
6/9/98
RESOLUTION NO. 9 8 - 593
A RESOLUTION BY A FOUR -FIFTHS (4/5THS)
AFFIRMATIVE VOTE OF THE MEMBERS OF THE CITY
COMMISSION, RATIFYING, APPROVING AND
CONFIRMING THE CITY MANAGER'S FINDING OF
EMERGENCY AND WAIVER OF COMPETITIVE BIDDING
PROCEDURES IN THE PROCUREMENT OF A TAYLOR
TM-120 FORKLIFT FROM KELLY TRACTOR COMPANY FOR
THE MARINE STADIUM MARINA, AT A PURCHASE PRICE
OF $157,998; FURTHER AUTHORIZING THE CITY
MANAGER TO INSTRUCT THE CHIEF PROCUREMENT
OFFICER TO ISSUE A PURCHASE ORDER FOR SAID
EQUIPMENT; ALLOCATING FUNDS THEREFOR FROM
ACCOUNT CODE NO. 402003.350508.840 FOR SAID
PURPOSE.
WHEREAS, on October 3, 1997, the City Manager approved the
emergency acquisition from Kelly Tractor Company ("Lessor") of a
new Taylor TM-120 forklift (the "Equipment") for the Marine
Stadium Marina, on a lease/purchase basis, at the rate of $3,040
per month, over a 60 month period, with a purchase price at the
end of the term of $1.00; and
WHEREAS, pursuant to the emergency finding and the City
Manager's approval, since October, 1997, the Department of
Conferences and Conventions has been leasing the Equipment from
the Lessor at the rate of $3,040 per month; and
WHEREAS, as a result of the City's then financial condition,
the Lessor was unable to obtain the financing for the Equipment
CITY CONV SSION
MEETING OF
JUN 0 9 1998
Rew1ution no.
As-
on the terms approved by the City Manager, and a contract for the
Lease/Purchase was never executed; and
WHEREAS, the Lessor has offered to continue to rent the
Equipment to the City at the rate of $3,040 per month, for a term
of 60 months, and to grant the City the option to purchase the
Equipment, at the expiration of the term, at a price of $75,800;
and
WHEREAS, the Administration has evaluated the economic
benefits in purchasing said equipment and has concluded that the
purchase will be a greater benefit to the City; and
WHEREAS, based upon the Administration's evaluation, the
City Commission has determined that it is more economically
beneficial for the City to purchase said forklift, and wishes to
ratify the City Manager's emergency finding, as modified herein,
and authorize the purchase of said Equipment from Kelley Tractor
Company at the terms set forth in this Resolution;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. By a four -fifth (4/5ths) affirmative vote of
the members of the City Commission, the City Manager's finding
of an emergency and waiver of competitive bidding procedures in
the procurement of a Taylor TM-120 forklift from Kelly Tractor
Company for the Marine Stadium Marina, at a purchase
- 2 -
98- 593
price of $157,998 is hereby ratified, approved and confirmed.
Section 3. The City Manager is hereby authorized to
instruct the Chief Procurement Officer to issue a purchase
order for said Equipment, with funds therefor hereby allocated
from Account Code No. 402003.350508.840.
Section 4. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 9th day of June , 1998.
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of
this legislation by signing it in the designated place provided, said legislations
becomes effective with the elapse often (10) days from the date of Cc missicn aC;:Cn
regarding same, without the Mayor exercisi to.
ATTEST: C_
Wafter . Foeman, City Clerk
WALTER J. FOEMAN
CITY CLERK
APPROVED AS F AND CORRECTNESS-t
J
TY TTORNEY
621:BSS
- 3 - 98 -- 593
CITY OF MIAMI, FLORIDA 17
INTER -OFFICE MEMORANDUM
Honorable Mayor and
TO: Members of the Commission
L/AA�ar --
FROM
City Manager
DATE: June 9, 1998 FILE:
SUBJECT: Resolution Ratifying Emergency
Finding and Authorizing the
Lease/Purchase of a
REFERENCES: T-M120 Forklift
ENCLOSURES:
It is respectfully recommended that the City Commission adopt the attached resolution ratifying
the emergency finding of the previous City Manager and authorizing the acquisition of a T-M120
Forklift from Kelly Tractor under a lease agreement for a term of sixty (60) months, commencing
in October, 1997 at $3,040 per month, with an option to purchase at the end of the term at a
purchase price of $75,800.
BACKGROUND
The Department of Conferences, Conventions and Public Facilities has been leasing a forklift
from Kelly Tractor Company for $3,040 per month. The leasing of the forklift was authorized by
the former City Manager, Ed Marquez, and determined to be an emergency. Notwithstanding the
emergency finding, the corresponding legislation was never prepared to authorize the execution
of a contract. This was due to the difficulties encountered by Kelly Tractor in attempting to
obtain financing on competitive terms in light of the City's then financial condition, and the
City's inability to agree to a security interest.
Being unable to obtain financing on the terms originally quoted, Kelly has agreed to lease the
equipment to the City on a straight basis, for a term of sixty (60) months, at the agreed amount of
$3,040 per month. Kelly has further agreed to credit one half of the lease payments, less taxes
paid by Kelly, toward the purchase of the equipment should the City desire to do so. The
purchase price at the end of the lease would be $75,800.
ANALYSIS
The Marine Stadium Marina requires the forklift for its operations. Kelly's quote continues to be
the most favorable. This Resolution allows the Marina to continue its operations by leasing the
forklift, and provides the opportunity to purchase it at the conclusion of the lease term.
JGP:CPA:yp
98- 593
RECEIVED
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Jose Garcia -Pedrosa
TO:
City Manager
-; Z7
FROM: Christina P. Abrams, Director
Conferences, Conventions & Public Facilities
DATE: May 19, 1998
SUBJECT
REFERENCES:
ENCLOSURES:
MAY 19 1998
FILE :
Lease Agreement for Forklift at
Marine Stadium Marina
Since October, 1997, the Department of Conferences, Conventions & Public Facilities has been
leasing a forklift from Kelly Tractor Company for $3,040 per month. The leasing of the forklift
was authorized by the former City Manager, Ed Marquez, as an emergency as set forth in the
memo dated October 1, 1997, a copy of which is attached.
Notwithstanding the emergency finding, the corresponding legislation was never prepared to
authorize the execution of a contract. This was due to the difficulties encountered by Kelly
Tractor in attempting to obtain financing on competitive terms in light of the City's then
financial condition, and the City's inability to agree to a security interest.
Being unable to obtain financing on the terms originally quoted, Kelly agreed to lease the
equipment to the City on a straight basis, for a term of sixty (60) months, at the agreed amount of
$3,040 per month. Kelly further agreed to credit one half of the lease payments, less taxes paid
by Kelly, toward the purchase of the equipment should the City desire to do so. The purchase
price at the end of the lease would be $75,800.
The Marine Stadium requires the forklift for its operations. Kelly's quote continues to be the
most favorable. Kelly has not yet been paid any lease payments since October, 1997.
Your authorization is requested to present the attached resolution to the City Commission,
ratifying the emergency finding of the previous City Manager, as modified in this memorandum,
authorizing the acquisition of Forklift T-M120 from Kelly Tractor under a lease agreement for a
term of sixty (60) months, commencing in October 1997 at $3,040 per month, with an option to
purchase at the end of the term at a purchase price of $75,800.
Please indicate your preference by signing below.
Approv isapproved: _ Date 1 '2
A/
Jose -Pedrosa, City Manager
CPA:OSR:yp
98- 593
CITY OF MIAMI, FLORIDA
E
TO :
Edward Marquez
City Manager
INTER -OFFICE MEMORANDUM
FRAM : Christina P. Abrams, Director
Conferences, Conventions & Public Facilities
to i*N1dt114r1H-r4d4#Nr41i;k16ris 4+n+64L
DATE: October 1, 1997 RLE :
sue,;ec-; Emergency Acquisition
For Marine Stadium Marina
REFEAENCE$;
ENCLCSUPES:
This memo serves to request your authorization for the emergency acquisition of a new Taylor TM-120
forklift for the Marine Stadium Marina, on a LeasmTurchase basis payable in the amount of S3,040 monthly
over a-60=month period. --
The Marine Stadium Marina provides dry dock storage space and hauling serviczs to 274 vessels.
Approximately 150 vessels are hauled in and out of the water during a typical weekend- In order to
effectively haul these vessels, two forklifts must be operational at all times. This facility currently has a
Taylor Model T-520 forklift, owned by the City of Miami, and a small Model T-90 forklift used to haul
vessels in the back section of the marina where the larger model cannot operate. The T 90 is an older model
Ieased at a monthly cast of S2,900. In the past two years this forklift has experienced a great deal of
breakdowns resulting in the interruption of service to our clients. Recently, the vendor, Gallo Equipment,
advised us that the monthly rate for leasing the forklift will be increased to $3,600 effective October I st.
Further, during this past weekend the forklift again experienced mechanical failure that rendered the
equipment inoperable. The unit will require significant repairs and will not be operational for
approximately two weeks.
Based on the increased cost of the equipment, the continual breakdowns, and the poor service to our clients,
we recommend a new model TM-120 be purchased. The TM-120 is the recommended model based on its
capabilities.
We have contacted the foIlowing vendors who deal with marine forklifts to obtain price quotes to determine
the most viable option for the City.
VENDOR
NEW/USED
Model 1-M-120
PURCHASE PRICE
AVAI LABI LrrY
WARRAINT Y
MG Forklift
New
S153,737
6 - 8 Mths.
I Yr.
Cayon
Used
S101,500
8 Wks.
6 Mths_
Kelly Tractor
Used
$109,998
4 Mths.
120 Days
New
SI57,998
Immediately
1 Yr.
Kelly Tractor is the only vendor that has a model TM-120 available for immediate delivery, and offers a
Lease/Purchase option payable in the amount of $3,040 monthly for 60 months, with purchase price of
S1.00 at that time_ This will result ih an annual cost increase of fl—.6-8'0over the previous year's monthly
costs. For this fiscal year, due to the increased lease cost, there w-il be a savings of $6,720, which includes
I1 MF 4;z, 11 I1 1
L
98- 593
11., .�.+.J Z •O •OOJ
Memo to Edward Marquez
October 1, 1997
Page Two
a one year warranty for parts and labor further reducing our maintenance costs. Kelly Tractor offers the
lowest price, and the -most responsive and responsible bid based on our delivery requirement. We
recommend the purchase of the new TM-120 forklift, which would enable us to acquire new equipment,
with a one year warranty, for only S140 more a month than we were paying to lease an older model_
The Marinas Manager who retired earlier this month failed to address this situation with sufficient time to
follow the City's procurement process. The forklifts are essential to the operation of this facility. The
Nfarina would not be able to operate without a forklift in good working condition, and the tenants, as well as _
the boating public, would be adversely affected. As a result, we require your approval to authorize the
emergency acquisition of the new Taylor TM-120 forklift at a cost of 53,040 monthly, and to waive the
requirement for competitive sealed bids- Legislation will be prepared for ratification by the City
Comtmission at the next available Commission Meeting. Funds are available from account code
402003.350508.610.
If this meets with your approval, please sign below.
6P
Approv
Edward Marque' Ci M aver
Date:
21-
Q- 593
Analysis of Lease versus Purchase of
T-M120 Forklift
Lease Purchase
Cost Present Value, Variance
Lease Cost 182,400.00 $159,537.85 22,862.15
Purchase Cost 75,800.00 $55,287.32 20,512.68
$258,200.00 $214,825.17 $43,374.83
Outright Purchase
Equipment Cost 157,998.00
$205,520.26
(47,522.26)
Maintenance Plan• 21,360.00
18,682.72
2,677.28
$179,358.00
$224,202.98
($44,844.98)
Summary
Lease Cost over 5 Years (PV) $ 214,825.17
Purchase Cost 157,998.00
Maintenance Cost over 5 Years (PV) 18,682.72 176,680.72
Difference $ 38,144.45
Notes:
Interest Rate calculated at 5.4%
Monthly Cost of $356
Does not include repair costs