Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE-PURCHASE AGREEMENT WITH JOHN DEERE CONSTRUCTION & FORESTRY COMPANY TO FINANCE THE PURCHASE OF A BACKHOE FOR USE BY THE DEPARTMENT OF PUBLIC WORKS; TO AUTHORIZE THE PURCHASE OF THE BACKHOE FROM MURPHY TRACTOR AND EQUIPMENT; AND DECLARING AN EMERGENCY.
Brief Description: This resolution provides for the purchase and financing of a replacement backhoe for use in the Public Works Department.
Body
Legislative History
Resolution 18-188, approved 12/18/18, authorizes staff to seek competitive pricing on goods and services.
Purpose & Explanation
Bids were received on March 20, 2019 for the replacement an existing 1999 John Deere backhoe within the PW area of operation. This machine has reached the end of its useful life. The purchase will include the front bucket, rear bucket and pavement breaker. Below is the Service Department bedget estimate per the 2019 budget along with the respective bid for the annual lease payments.
Service Budget Estimate: $26,050.00 annually
Murphy Tractor & Equipment $108,688.99/ Lease-to-Own Annual payments of $20,204.17
The City Administration is requesting City Council approval to authorize the City Manager to enter into a purchase agreement with Murphy Tractor and Equipment and a lease to own agreement with John Deere Construction & Forestry Company for the replacement backhoe. The total purchase price for the piece of equipment and attachments will be $108,668.99. lease payments will be $20,204.17 annually. Staff did explore several financing options and found John Deere Construction & Forestry Company to offer the lowest financing rate of 4.5%. The backhoe will be purchased through Ohio State Term Schedule Pricing STS 515-800528. The lease term will be for five (5) years.
Total Contract = $108,668.99 divided over five years (six payments) of $20,204.17.
This piece of equipment is used for the following Public Works Tasks:
1. Citywide Storm Water S...
Click here for full text