Title
RESOLUTION AMENDING RESOLUTION 15-0209, AUTHORIZING A LEASE CONTRACT FOR A 54 MONTH LEASE OF 20 MOTOR GRADERS, TO AMEND THE NAME OF THE LESSOR.
Body
CITY PROPOSAL:
RESOLVED, that Resolution 15-0209 authorizing a lease contract with Ziegler be amended authorizing the proper city officials to execute two lease contracts, addendums to lease and related documents, in substantially the form of those documents attached as Exhibit A, with Caterpillar Financial Services Corporation for the 54 month lease of 20 motor graders at the same cost and funding as previously approved by Resolution 15-0209.
RESOLVED FURTHER, that the authorization granted by this resolution is predicated on the end of lease repurchase guarantee letters dated October 8, 2015, that have been provided by Ziegler, Inc., and are attached as Exhibit B.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution will amend resolution 15-0209R to correct the name of the leasing company that will hold these contracts. Ziegler Inc. (Ziegler) submitted the winning bid for the lease of the motor graders, however, based on the relationship between Caterpillar Financial Services Corporation (CFSC) and Ziegler, Ziegler will actually “sell” the graders to CFSC, which will then lease them to the City on a “lease-purchase” contract. At the end of the lease-purchase contract term, Ziegler has agreed as per the attached commitment to pay the “purchase price” to CFSC and take ownership of the equipment. Thus, the city will effectively end up with a lease only for the 54 month term.
There are no changes to the quantity or type of graders being leased, the lease cost, nor the funding. There are ten motor graders listed on each proposed lease agreement. Ziegler has provided end of lease repurchase guarantee letters that are intended to relieve the city of any obligation to purchase the graders at the end of the lease term.