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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 ___________________________________________________________________________ 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 ØØØ ØØØ ØØØ ØØØ ØØØ ØØØ ØØØ ØØØ ØØØ ØØØ ØØØ ØØØ ØØØ