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RESOLUTION AUTHORIZING A FIVE-YEAR LEASE AGREEMENT WITH LEASE SERVICING CENTER, INC. DBA NCL GOVERNMENT CAPITAL FOR ONE STREET SWEEPER FOR A TOTAL LEASE AMOUNT NOT TO EXCEED $298,194.40.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a lease agreement with Lease Servicing Center, Inc dba NCL Government Capital (NCL) for a five-year lease a street sweeper for Street Maintenance, for a total contract amount not to exceed $298,194.40, payable from 290-500-5415 (street system maint utility, Public Works & Utilities, vehicle/equip rent (short-term)).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a five-year lease agreement with NCL for a 2021 Global M3 street sweeper for Street Maintenance. The annual lease cost is $41,638.88, with a balloon payment of $90,000 should the City decide to purchase the sweeper at the end of the lease. Should the City opt not to purchase the sweeper, a guaranteed purchase agreement is in place with Koenig and Sons, Inc. in the amount of the balloon payment.
This Global M3 street sweeper is being leased to determine if it will stand up to our needs and have a longer life and lower maintenance costs than the sweepers currently in the fleet. This does not replace any street sweepers as the additional equipment is needed in order to comply with stricter environmental requirements pertaining to clean water.
This equipment price is per Minnesota Sourcewell Contract 093021-GEP and the lease services are per Minnesota Sourcewell Contract 011620-NCL.