HomeMy WebLinkAbout96-29 !
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RESOLUTION NO. 96-29
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH
AUTHORIZING THE LEASE-PURCHASE OF A CAT 627F SELF-LOADING,
AUGER SCRAPER FROM PETERSON TRACTOR AND FINANCING WITH
CATERPILLAR FINANCIAL SERVICES CORPORATION
WHEREAS, the City has in the past relied on service providers for furnishing and
operating a self-loading Scraper for earthwork purposes at Municipal Solid Waste Landfill;
and
WHEREAS, the current service provider has provided said Scraper services for the
last four (4) years and this service provider will nc,. longer be available to provide this service;
and
WHEREAS, there appears to' be a lack of service providers who can provide an
operated Scraper meeting the requirements and having the capabilities required at the landfill
at a unit cost which the City is accustomed to paying; and
WHEREAS, the Director of Public Works/City Engineer has submitted a
recommendation that the City purchase a new CAT 627F, self-loading, Auger Scraper which
can met the challenges at the landfill and at the same time produce savings in other landfill
operations; and
WHEREAS, the recommendation includes the acquisition of a Maintenance mid
Service Agreement with Peterson Tractor and an extended power-train warranty for the
purpose of securing a guaranteed buy-back of $195,000; and
WHEREAS, the recommendation presents the best option to ownership with the least
amount of fist< associated with equipment failure and breakdown; and
WHEREAS, the recommended Scraper with Auger is from a single source
manufacturer, and reasonable financing can be obtained from Caterpillar Financial Services
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Corporation.
NOW, THEREFORE, BE IT RESOLVED by the Ukiah City Council that a lease
purchase from Peterson Tractor for a CAT 627F, Self-Loading, Auger Scraper with options
as presented in the recommendation and report in the amount of $514,284.13, and the
purchase of an extended power-train warranty in the amount of $1.2,500 and the purchase of
a Maintenance and Service Agreement from Peterson Tractor in the amount of $13.86 per
running Scraper hour are hereby authorized. Financing with Caterpillar Financial Service
Corporation for lease purchase with the following terms is authorized:
1. Interest rate at 5.9%, total interest expense of $74,835.62.
2. Amortization over five (5) years with annual principal and interest payments
of $92,203.55 due at .the beginning of the year and a balloon payment of
$128,102 due with the fifth annual payment.
The Mayor, Director of Finance and City Attorney are hereby authorized to execute all
necessary purchase, financial and insurance documents to consummate the acquisition.
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
PASSED AND ADOPTED this 6th day of December, 1995, by the following roll call
Councilmembers Malone, Wattenburger, Shoemaker, and Mayor Schneiter.
None.
Councilmember Mastin.
None.
ATF~T:
B:I/RE~I
CAT627F
Mayor