City of Oak Creek

Common Council Report

Meeting Date:  August 2, 2004

Item No.:

 6

Recommendation:  That the Common Council approve the recommendation of the Street Department to lease two (2) Sebright 7460-2 stationary compactors from Stepp Equipment in the amount of $1,250.00  per month for five (5) years.

Background:  When the Engineering Department bid out the new recycling yard, it was determined that the cost of leasing these containers versus buying them outright was more cost effective.

The lease program will provide the City with five (5) years of preventative maintenance at no cost to the City.  The cost to lease, with the City of Oak Creek owning the containers at the end of the five (5) year period would be $75,000.00.  This would include Stepp Equipment performing the preventative maintenance at no cost to the City.  To purchase these compactors outright the cost would be $67,700.00 and the City would be responsible for maintenance. 

We also received a price quote from Rnow Equipment.  Their cost is $1,368.00 per month for a five (5) year total of $82,080.00 including the same preventative maintenance for the compactors.

Waste Management had also shown some interest in the compactors however decided not to submit a quote.

Fiscal Impact:  Funding will come from Project No. 00019, Oak Creek Recycling Yard.

Prepared by: Bill Schaper Street Superintendent	Respectfully submitted, Barbara S. Blumenfield City Administrator
Fiscal Review by: Beverly A. Buretta, CMC City Clerk

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