Agenda - 08-17-2004-5w - Laserfiche WebLink

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• Plastic • Aluminum/Steel Cans • Green Glass • Brown Glass In view of significant price increases that have occurred in the world market for steel, staff believe that it is in the best interests of Orange County to take advantage of this offer from Carolina Environmental Systems. Staff believe this approach will produce cost savings through a lower purchase price than would likely be achieved if new bids were sought for the trucks, and through the broader standardization of parts, training of operators, and service for all the recycling trucks. FINANCIAL IMPACT: The purchase price for the two trucks would be $287,178. As has been done during the past several years with other major Solid Waste equipment acquisitions, staff recommends that these trucks be purchased through 59-month installment financing. This approach spreads the cost of the equipment over its useful life, reduces the amount of cash needed upfront for the purchase, and takes advantage of the low interest rates available because of the County's excellent credit ratings. Depending on the precise financing terms that the Finance Director is able to obtain, the total principal and interest cost for the truck purchases is estimated to be about $310,000, with five annual payments on the order of $62,000 per year. Sufficient funds are allocated in the Solid Waste Management Department's FY 2004-05 operating budget to cover the first annual principal and interest payments. RECOMMENDATION(S): The Manager recommends that the Board authorize the purchase of two additional units from bid number 248 that was awarded to Carolina Environmental Systems of Kernersville, North Carolina at a delivered cost of $287,178 for two units; and authorize the Purchasing Director and Finance Director to execute all necessary paperwork associated with the acquisition and financing of the two trucks.