HomeMy WebLinkAbout1994-05-10 - AGENDA REPORTS - JOHN DEERE MUNI LEASE CONTRACTAGENDA REPORT
CONSENT CALENDAR
DATE: MAY 10, 1994
City Manager Approval
Item to be presentediby:
Rick Putna
SUBJECT: JOHN DEERE MUNICIPAL LEASE CONTRACT
DEPARTMENT: PARKS, RECREATION, AND COMMUNITY SERVICES
BACKGROUND
Motorized equipment used in park maintenance has been operated on a nearly daily basis for the
past five years. In the last year, a considerable amount of landscaping, such as Bouquet Canyon
Park, has been added to the system, further stressing the aging equipment. Some of the most
used pieces of equipment within the Parks Division are the utility vehicles. These vehicles
transport personnel, drag ballfields, haul materials and equipment, and serve as indispensable
tools for maintenance. Currently, the Division does not have an adequate number of these
vehicles, and one of them has been in disrepair'for over nine months.
An alternative to purchasing the relatively expensive units (approximately $6,200) would be to
consider a municipal lease/purchase program. Staff recommends that at least two vehicles be
acquired: one for Bouquet Canyon Park, and one to replace the dysfunctional unit. Terms of the
lease/purchase have been reviewed and approved by the City Attorney and Finance Director.
The lease/purchase rates offered by the John Deere Corporation are more favorable than the
rates offered by other commercial lenders available to the City. Two units will cost $3,491.61 per
anum for four years. At the end of the lease, the units become the property of the City.
Cancellation of the lease may occur at any time without additional financial obligation by the City.
Funding for the leases would be taken from Bouquet Canyon Park maintenance funds as well as
existing landscape maintenance funds within account 01-9210-241.
RECOMMENDATION
City Council approve execution of the John Deere lease/purchase contract for two utility vehicles.
REP;FCH.dis
council/agdeere.1ch
APPROWED