AGENDA CAPTION:
Title
Consider approval of Resolution 2021-93R, approving an addendum to the Master Lease-Purchase Financing Agreement with US Bancorp Government Leasing and Finance, Inc. that adds a hydro excavator for use by the Public Services Water Distribution Division to be financed under the agreement in the amount of $475,324.69, inclusive of interest, for a ten-year term; authorizing the City Manager or his designee to execute all appropriate documents associated with this transaction; and declaring an effective date.
Body
Meeting date: May 18, 2021
Department: Public Services Department - Tom Taggart, Director (By Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $475,324.69
Account Number: 22003635.52112
Funds Available: Click or tap here to enter text.
Account Name: Vehicle/Equipment Leasing
Fiscal Note:
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City Council Strategic Initiative: [Please select from the dropdown menu below]
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Background Information:
Quotes were obtained from two lenders and the best interest rate was from U.S. Bancorp Government Leasing and Finance, Inc., at 2.15% for a ten (10) year term; the amount financed is $432,741.00 with the total interest amount of $42,583.69. Total amount paid at the conclusion of the financing agreement will be $475,324.69. The procurement of capital equipment being financed is as follows:
1) Hydro Excavator: The Public Services Department’s Water Distribution Division is purchasing a hydro excavator to minimize risk of damaging underground utilities, while maintaining continuity of operations. This purchase is being made from Freightliner of Austin of Austin, TX, in the amount of $432,741.00, through the BuyBoard cooperative contract #593-19. The purchase of the Hydro Excavator was approved by City Council Resolution 2021-02R.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends the approval of financing agreement US Bancorp Government Leasing and Finance, Inc. for a hydro excavator in the amount of $475,324.69.