Item 9BCity of Southlake, Texas
M E M O R A N D U M
TO: Billy Campbell, City Manager
FROM: Sharen Elam, Director of Finance Ext. 1713
Resolution No. 03-073, Authorize the City Manager to enter into a Texas
SUBJECT:
Municipal Lease-Purchase Agreement with Government Capital Corporation for
the procurement of an excavator for the Public Works department
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Action Requested:
Approval of attached resolution
Background
Information:
If you will recall for the past several budget years, the excavator (gradall) was
an unfunded need. On September 16, 2003, City Council approved, through its
budget adoption, the expenditure of $78,000 for the lease-purchase of an
excavator. The financing structure of the lease is a tax exempt lease purchase
with an interest rate of 4.498%. This is a replacement excavator for the
existing unit that is more than 12 years old and in poor condition. The public
works department intends to use this equipment extensively for the
maintenance of drainage channels (i.e. cleaning, debris removal, mowing, etc.)
city-wide in areas not accessible to tractors or other equipment due to rough
terrain and/or wet conditions.
Financial
Conditions:
The agreement requires a commitment of the City over the next three years
with annual payments of $76,350
Citizen Input/
Board Review:
Not required
Legal Review:
The agreement has been review by our attorneys
Alternatives:
N/A
Supporting
Documents:
Texas Municipal Lease-Purchase Agreement
Staff
Recommendation:
Approval of Resolution No. 03-073
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