Title
RESOLUTION AUTHORIZING A FIFTY-FOUR MONTH LEASE AGREEMENT WITH CATERPILLAR FINANCIAL SERVICES CORPORATION FOR 20 MOTOR GRADERS FOR A TOTAL LEASE AMOUNT NOT TO EXCEED $1,870,856.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a lease agreement with Caterpillar Financial Services Corporation for the fifty-four month lease of 20 motor graders for Street Maintenance, for a total contract amount not to exceed $1,870,856, as follows:
$1,417,138 110-500-1920-5418 (general fund, Public Works and Utilities, street maintenance, vehicle/equipment lease [long-term])
$ 453,718 290-500-5604 (street system maintenance utility, Public Works and Utilities, lease principal)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a lease agreement with Caterpillar Financial Services Corporation for the fifty-four month lease of twenty (20) new six-wheel Caterpillar model 140 AWD motor graders for Street Maintenance. The last fifty-four month lease was also for twenty graders at a total lease cost of $1,645,790.
The Purchasing Division posted a request for bids on March 10, 2025 and received two responses by the closing date. Zeigler submitted the lowest of the two bids. Ziegler offers municipal financing through Caterpillar Financial Services Corporation.
Vendor Total Lease
ZieglerCAT $1,870,856
McCoy Construction $3,416,439