Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT WITH SOUTHEASTERN EQUIPMENT COMPANY, INC. FOR A CASE WHEEL LOADER AND TO ENTER INTO A LEASE-PURCHASE AGREEMENT WITH KS STATEBANK TO FINANCE SAID PURCHASE.
Brief Description: This resolution provides for the replacement of an existing wheel loader for use in the Public Works Department.
Body
Legislative History
Resolution 19-185, approved 12/17/19, authorizes staff to seek competitive pricing on goods and services including equipment.
Purpose & Explanation
One bid was received in January for the replacement of an existing wheel loader within the PW area of operation. A wheel loader is a large vehicle with a bucket attachment on the front which is used to load salt and perform other bulk materials loading functions within the right of way including earth moving. This machine is twelve years old and has reached the end of its useful life. Accessories for this unit are not required. Below is the Service Department budget estimate per the 2020 budget along with the respective bid for the annual lease payments.
Service Budget Estimate: $41,325.00 annually
Southeastern Equipment Company, Inc. - $176,919.52
KS StateBank Lease-to-Own Annual payments - $37,654.55.
The City Administration is requesting City Council approval to authorize the City Manager to enter into a purchase agreement with Southeastern Equipment Company, Inc. and a lease to own agreement with KS StateBank for the replacement of a wheel loader. The total purchase price for the equipment will be $176,919.52. Lease payments will not exceed $37,654.55 annually. Staff did explore several financing options and found KS StateBank to offer the lowest financing rate of 3.12%. The wheel loader will be purchased through Ohio State Term Schedule Pricing STS 515-800585. The lease term will be for five (5) years. Staff wishes to include a contingency of $1,000.00 per year to account for any changes in interest rates...
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