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HomeMy WebLinkAboutC4. Lease Purchase for Flusher Truck Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: John Alston- Water/Sewer Operations Superintendent Craig Woolard- Director of Public Works Chris Kukulski- City Manager SUBJECT: Authorize City Manager to sign a Lease/Purchase Agreement with Titan Machinery and Merchant Capital for the amount of $57,809.93 per year for 6 years for one Sewer Flusher/Vacuum truck. MEETING DATE: June 8, 2015 AGENDA ITEM TYPE: Consent RECOMMENDATION: That the Commission Authorize City Manager to enter into a Lease/Purchase Agreement with Titan Machinery and Merchant Capital for the amount of $57,809.93 per year for a 6 year period for one Sewer Flusher/Vacuum truck, with a total of 7 payments with the first payment being due upon delivery and the final payment occurring in 2021. BACKGROUND: This sewer flusher/vacuum truck will replace our 1995 Vac Con flusher/vacuum truck which was recently sold to the Town Of Manhattan. It will be used for flushing and vacuuming sediment out of storm sewer mains and catch basins. With the approval of the “bronze” plan, flexibility was given to the Public Works Director to make some limited modifications as our operations developed. Leasing the vacuum/flusher truck, rather than purchasing, will help spread the equipment costs over 6 fiscal years, and will ensure that this important part of the maintenance program can proceed. UNRESOLVED ISSUES: None. ALTERNATIVES: None. FISCAL EFFECTS: This will be a 6 year full payout municipal lease funded out of the Storm Water budget. We will own this sweeper at the end of the lease. The annual costs of the lease will be incorporated into the Stormwater budget. Attachments: Lease/Purchase Agreement Report compiled on: May 26, 2015 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111