HomeMy Public PortalAboutAB 12-181 PW 2013 Winter Equipment Rental
McCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 12-181
Meeting Date September 27, 2012
AGENDA ITEM INFORMATION
SUBJECT:
2012-2013 Winter Snow Removal Equipment Lease
Department Approvals
Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer
Community Development
Police department
Public Works
originator
Golf Course
COST IMPACT: $67,225
Parks and Recreation
FUNDING SOURCE: Street Department
Airport
Library
TIMELINE: 2012 - 2013
Information Systems
Grant Coordinator
SUMMARY STATEMENT:
Each year the Public Works Department requires additional heavy equipment for snow removal. At a minimum, two Loaders and one Grader are required. In FY12 the City paid CESCO $67,225
for three pieces of equipment for five months. The FY13 Budget provides $68,000 for equipment rental. Bids were solicited and firms bidding were asked to provide monthly rental rates
for all three pieces of equipment or an alternative bid proposal. Three bids were received (Burks Tractor, CESCO and Western States).
The bid from Burks Tractor included an alternate bid for a lease/purchase on a motor grader. This bid totaled $13,126 per month or a total of $65,630 for the 5 month winter season. The
yearly cost with the included lease /purchase of the motor grader would be $92,412. The bid from CESCO was $17,375 per month or a total of $86,875 for the 5 month winter season for
the required three pieces of equipment.
Western States submitted an alternate bid which is actually a five (5) year lease. This lease is structured with a guaranteed buy back of the residual value at the end of the five (5)
year lease. The City’s costs would be fixed with 5 annual payments with the appropriate non-appropriations clause. The monthly cost for the equipment would be $4,726. The annual cost
would be $56,703.27. If a skid steer loader with snow blower is included, the annual cost would be $63,218.67. Legal counsel has reviewed the bids.
RECOMMENDED ACTION:
Adopt Resolution 12-19 authorizing the Mayor to enter into, on behalf of the City of McCall, a “Governmental Equipment Lease-Purchase Agreement” and a “Non-Appropriation Addendum” between
the City of McCall and Caterpillar Financial Services Corporation.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION
Sept. 13, 2012
City Council tabled AB 12-169