AGENDA ITEM SUMMARY

1. Consider approval of a Resolution authorizing the acquisition of a new Caterpillar 950K Wheel Loader from Yancey Brothers Co., in the amount of $354,835.00, and authorizing a Multiyear Lease, pursuant to O.C.G.A. Sec. 36-60-13, with Caterpillar Financial Services Corp., for an Initial Term expiring 12/31/14 and 5 annual renewal terms, at rate not to exceed 3.2%. Amount Financed is $355,835.00 (includes equipment price and document fee of $500.00); Total Obligation not to exceed $418,836.60 (includes balloon payment of $85,354.00, due 11/3/19).

2. Consider Resolution amending the FY15 Budget to transfer funds between accounts in order to pay the lease payment due December 3, 2014; this is the only lease obligation due in FY15.

Central Services Director Phill Francis, Finance Director Markus Schwab & City Attorney Andrew J. Whalen, III will address.   Approved

This piece of equipment is essential to operate the City Transfer Station and meet operational requirements for the Recycling Program. This equipment will replace a 2001 Volvo L120 Loader, which is no longer fiscally feasible to repair as cost of engine replacement exceeds net value of the unit. Staff asks it be declared surplus and sold at auction on GovDeals.com.

Staff recommends approval of the Resolution. Lease documentation is being processed and equipment delivery is anticipated by Thursday, October 30, 2014.

The lease obligation for FY15, in the amount of $60,346.36, was not previously budgeted. The Authorizing Resolution appropriates funds for the FY15 payment; however, a separate budget resolution is also attached to transfer funds between Solid Waste accounts.