| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | | BILL NO. 20-510 | Ord.No: 19164 |
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| | | | | | | | Agenda Title:
20-510 - 1R. An ordinance authorizing the City of Independence, Missouri, to enter into an equipment lease-purchase agreement with Caterpillar Financial Services Corporation, the proceeds of which will be used to pay the costs of acquiring a small wheel loader; and to approve the execution of certain documents in connection therewith; and declaring and emergency.
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| | | | | | | | Recommendations:
Council action to issue a purchase order.
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| | | | | | | | Background:
This replacement loader is budgeted under the Street Sales Tax. The current loaders are unreliable and break down often. This loader will be utilized to load salt during winter operations, during Citywide clean up events, for limb & debris pick up, and other functions as necessary. Municipal Services will be trading in two unreliable loaders whose maintenance expenses keep escalating. This unit also has the scale for weighing salt during snow operations, which will be key as the department looks into the possibility of adding a second salt replenishment location for winter operations. This will greatly enhance equipment reliability and reduce high maintenance costs on the older equipment.
This purchase is being financed by Caterpillar Financial Services Corporation over a 5 year lease to own contract. There will be four annual payments of $40,427.37 and a one year payment of $40,428.37, for a total of $202,137.85.
The vendor providing the equipment and financing, Caterpillar Financial Services Corporation, provided a quote based on a Sourcewell Cooperative contract #032119-CAT. Purchases under cooperative agreements are authorized by Section 8.06.004, Paragraph 5, of the Independence City Code, which states that when cooperative bids or contracts are used, they will first have been established pursuant to generally accepted governmental purchasing practices and the competitive bidding process.
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Fiscal Impact:
Fiscal Impact. The fiscal impact to the City is $40,237.00. Funding is included in the fiscal year 2020/21 adopted budget, page 82, account numbers 5112-5404.
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| | | | | | | | | Department: Municipal Services | Contact Person: Lisa Phelps |
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| REVIEWERS: | | Department | Action | | Purchasing Division (Finance Department) | Approved | | City Clerk Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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