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RESOLUTION AUTHORIZING THE PURCHASE OPTION OF A 2020 CATERPILLAR WHEEL LOADER MODEL 930M FROM CATERPILLAR FINANCIAL SERVICES CORPORATION AT THE END OF THE LEASE AGREEMENT IN THE AMOUNT OF $115,395.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to exercise the purchase option at the end of the lease agreement with Caterpillar Financial Service Corporation for a 2020 Caterpillar Wheel Loader Model 930M in the amount of $115,395, payable from 210-030-3207-5580 (special projects, Finance, street maintenance grant, capital equipment).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the lease buyout of a 2020 Caterpillar Wheel Loader Model 930M Serial No. F5K00750. The City of Duluth street maintenance division received a credit of $93,973 for the trade-in of a paver in 2020 and entered into an agreement with Caterpillar Financial Services and Ziegler, Inc. for a three-year lease of a 930M Caterpillar wheel loader at no cost to the City with a buyout at the end of the three-year lease in 2023 at a cost of $115,395. A loader is a vital piece of equipment for the street maintenance division as it serves necessary functions throughout the year. The estimated cost to purchase this loader new in 2020 was $180,150.
In 2021 the City received $189,000 in COVID relief aid designated to street maintenance as part of its state aid for streets. Street maintenance staff recommends that $115,395 of this aid be used to complete the buyout of the above-mentioned lease.
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