HomeMy WebLinkAboutTom Kuntz- Small Utility TractorMERIDIAN CITY COUNCIL MEETING:--APRIL-7 ...
APPLICANT: ITEM NUMBER:
REQUEST:.,- REPORTS OM KUNTZ - LEASE/PUROSMALL
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UTILITY ,
AGENCY
CITY CLERK:
CITY ENGINEER:
CITY PLANNING DIRECTOR:
CITY ATTORNEY:
CITY POLICE DEPT:
CITY FIRE DEPT:
CITY BUILDING DEPT:
MERIDIAN SCHOOL DISTRICT:
MERIDIAN POST OFFICE:
ADA COUNTY HIGHWAY DISTRICT:
ADA COUNTY STREET NAME COMMITTEE:
CENTRAL DISTRICT HEALTH:
NAMPA MERIDIAN IRRIGATION:
SETTLERS IRRIGATION:
IDAHO POWER:
US WEST:
INTERMOUNTAIN GAS:
BUREAU OF RECLAMATION:
OTHER: TOM KUNTZ - SEE ATTACHED MEMOS
All Materials presented at public meetings shall become property of the City of Meridian.
Date: 3/27/98
To: Charles Rountree
Cc: Mayor Corrie
From: Tom Kuntz
RE: Lease/Purchase of a new utility Tractor
I am requesting authorization to purchase a small utility tractor through a four-year municipal lease
program. This request is being made half way through our budget year for the following reasons:
(1) $4000.00 was budgeted in 1998 for tractor rental and our cost to lease for the remainder
of this fiscal year would be $3600.00
(2) We will own the tractor after four years and it will enable us to work more efficiently
Leasing the tractor will make a difference in the number and types of tasks that our park crew can
accomplish each day. Renting is more expensive, time consuming, and allows less flexibility due to
availability of equipment. We test drove the tractor that we are interested in leasing and found it had
a variety of uses including the following:
(1) Removing old playground equipment and installing new equipment
(2) Tilling playgrounds and removing old concrete.
(3) Hauling sand or soil from a stockpile.
(4) Excavating or backfilling park irrigation or electrical lines.
(5) Tilling and leveling new turf areas and softball infields.
(6) Aerating, fertilizing, top dressing, and rolling turf areas.
(7) Removing old trees and planting new ones.
(8) Spraying weeds, grading park access roads, and removing snow.
-2- Memo
The small utility tractor is a model B-21 Kubota with a loader, bucket, leveling box, and tiller
attachments. The financial information is as follows:
(1) Our current yearly tractor rental of $4000.00 to maintain 20 acres of park could almost
double next year to $7600.00 with the addition of Tully parks 18 acres.
(2) The lease would be $3600.00 for the first six months, followed by a yearly lease of
$7200.00 starting October 1998 for 3.5 years.
(3) Lease/purchase price is $25800.00 and interest of $3200.00 at 5.9% on a four-year lease
for a total pay out of $29000.00. The lease can be paid off at any time without penalty.
(4) The life of the tractor is approximately 10-15 years with proper care. We would expend
$40000.00 over ten years of renting using this year's rental amount.
We received price quotes from two companies on the Kubota and Idaho Tractor of Nampa was the
lowest price. Your reply on this matter is appreciated.