Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE-PURCHASE AGREEMENT WITH TCF EQUIPMENT FINANCE TO FINANCE THE PURCHASE OF TWO LEAF VACUUM TRAILERS FOR USE BY THE DEPARTMENT OF PUBLIC WORKS; TO AUTHORIZE THE PURCHASE OF THE TWO LEAF VACUUM TRAILERS FROM CONCORD ROAD EQUIPMENT MFG.; AND DECLARING AN EMERGENCY.
Executive Summary: This Resolution will provide authorization for the City Manager to enter into a new 5-year agreement with TCF Equipment Finance for leasing of two (2) new leaf vacuum trailers for the Service Division. This Resolution will also provide authorization for the City Manager to purchase the two (2) leaf vacuum trailers through Ohio State Term Schedule Contract Pricing (STS 800507-515) with Concord Road Equipment.
Body
Legislative History
Resolution No. 17-200, which authorized staff to seek competitive bids on goods, services and equipment.
Purpose & Explanation
In 2007, the City of Hudson purchased nine leaf vacuum units to begin a citywide leaf removal program. The units have performed well and were originally planned to last nine years. The last several years as the equipment has aged, repairs have become more complex and costly. Staff purchased two replacement units in 2016 that matched our existing fleet. Staff purchased one replacement unit in 2017 with hydraulic controls designed to increase efficiency while reducing staff injuries. Staff hopes to replace two leaf vacuum units in 2018 with these same upgraded features.
In an effort to reduce large spikes in the capital budget and allocate the cost over time, staff has explored a lease to own option. The City will own the leaf vacuums after five annual payments. While our current estimate places the combined annual payment at $33,485.00, the actual annual payment is tied directly to the interest rate at the time the lease is executed. While interest rates have remained fairly level recently, there is a chance of a slight deviation day to day. As such...
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