Title
RESOLUTION AUTHORIZING A LEASE CONTRACT FOR THE THIRTY-SIX MONTH LEASE OF A CATERPILLAR ASPHALT PAVER FOR AN ANNUAL PAYMENT OF $65,437.30 AND TOTAL LEASE PAYMENTS NOT TO EXCEED $196,311.90.
Body
CITY PROPOSAL:
RESOLVED, that the proper City officials are hereby authorized to execute a lease contract, Addendum to Lease, and related documents, in substantially the form attached as Exhibit A, with Caterpillar Financial Services Corporation for the thirty-six (36) month lease of a 2016 Caterpillar Model AP555F Asphalt Paver, for an annual lease payment of Sixty-Five Thousand Four Hundred Thirty-Seven and 30/100th Dollars ($65,437.30) payable from Street System Maint Utility Fund 290; Public Works & Utilities 500; Vehicle/Equip Rental 5415.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a lease contract with Caterpillar Financial Services Corporation for the thirty-six (36) month lease of a 2016 AP555F Asphalt Paver with a Weiler 8F Front Mount Screed. Streets Maintenance rented the paver in May of 2016 to enable crews to repair more street miles at a lower cost than hiring additional outside contractors. Since it is expected that the City will continue to focus on street maintenance and improvement for at least the next several years, leasing the paver will save the city approximately $20,000 annually compared to the cost of continuing to rent the machine each summer.
This purchase is against NJPA contract #032515-CAT, which provides a 20% discount off the list price of used equipment. In addition, by agreeing to lease the paver that the city had previously rented for the summer 2016 season, the city received a credit for a portion of the rental payments paid to Ziegler CAT in the amount of $51,883. At the end of the lease term, the city will have the option to purchase the paver or return it to Ziegler CAT. If the decision is made to purchase, the city will receive a credit for the annual lease payments less the applicable fin...
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