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HomeMy WebLinkAbout6.j. Approve Lease Agreement for Toro Mowersi:\city clerk\agenda items\approved items\6.j. approve lease agreement for toro mowers.docx EXECUTIVE SUMMARY City Council Meeting: March 16, 2021 AGENDA ITEM: Approve Lease Agreement for Toro Mowers AGENDA SECTION: Consent PREPARED BY: Brian Erickson, PE, Director of Public Works / City Engineer AGENDA NO. 6.j. ATTACHMENTS: Resolution APPROVED BY: LJM RECOMMENDED ACTIONS: Motion to approve a resolution leasing two Toro Groundsmaster 5910 mowers from MTI Equipment. BACKGROUND At their January 19, 2021 meeting, City Council approved a four-year lease of two Toro Groundsmaster 5910 mowers. After that approval, Toro provided additional lease information and one of the requested items was a Council resolution. The City of Rosemount’s Capital Improvement Plan includes the purchase of one large mower for 2021 and one large mower in 2022. The funding for this purchase would come from the Equipment Fund, and the total amount for these two units is $210,000 ($110,000 in 2021 and $100,000 in 2022). Staff has been reviewing the possibility of leasing equipment in addition to the light and medium duty vehicles. With the addition of a new large mower, that option was again reviewed. The proposed 4-year lease agreement with MTI Equipment would provide 2 new mowers, with appropriate equipment and a 48 month/2400 hour warranty. An existing 2015 mower would also be traded in as part of this agreement resulting in a $13,500 credit. The pricing is based on Minnesota state-bid contracts and at the end of the lease agreement the city would have the option of purchasing the mowers at fair market value. Staff will review the mowers in 2023, prior to lease termination and make a recommendation on whether to purchase. The City Attorney has reviewed the lease agreement and staff is working with the vendor on minor adjustments to the lease documents. Those changes are centered around the proper signature blocks and date corrections. RECOMMENDATION Staff recommends Council pass a resolution approving the lease of two Toro Groundsmaster 5910 mowers from MTI Equipment. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2021 – 20 A RESOLUTION APPROVING A FOUR-YEAR LEASE FOR TWO TORO GROUNDSMASTER 5910 MOWERS. WHEREAS, the City of Rosemount (the “Lessee”) is a political subdivision duly organized and existing pursuant to the Constitution and laws of the State of Minnesota; and, WHEREAS, the Lessee is duly authorized by applicable law to acquire such items of personal property as are needed to carry out its governmental functions and to acquire such personal property by entering into lease-purchase agreements; and, WHEREAS, Lease No. 008-0819895-100 dated January 28, 2021 (the “Lease”) between the City of Rosemount and TCF National Bank, 1111 West San Marnan Dr., Suite A2 West, Waterloo, IA 50701- 8926 has been prepared; and, WHEREAS, the Lessee hereby finds and determines that the execution of a Lease for the purpose of leasing with the option to purchase the property designated and set forth in the Lease is appropriate and necessary to the function and operations of the Lessee; and, WHEREAS, TCF National Bank, (the "Lessor") shall act as Lessor under said Lease; and, WHEREAS, the Lease shall not constitute a general obligation indebtedness of the Lessee within the meaning of the Constitution and laws of the State; NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Rosemount, Minnesota, as follows: 1. The Lease, in substantially the form as presently before the governing body of the Lessee , is hereby approved, and the City Administrator, is hereby authorized to negotiate, enter into, execute, and deliver the Lease and related documents in substantially the form as presently before the governing body of the Lessee, with such changes therein as shall be approved by such officer, and which Lease will be available for public inspection at the offices of Lessee. 2. The Lessee shall, and the officers, agents and employees of the Lessee are hereby authorized and directed to take such further action and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Resolution, and to carry out, comply with and perform the duties of the Lessee with respect to the Lease. 3. The Lessee’s obligations under the Lease shall be expressly subject to annual appropriation by Lessee; and such obligations under the Lease shall not constitute a general obligation of Lessee or indebtedness of Lessee within the meaning of the Constitution and laws of the State of Minnesota. 4. All other related contracts and agreements necessary and incidental to the Lease are hereby authorized, ratified and approved. 5. This resolution shall take effect immediately upon its adoption and approval. ADOPTED this 16th day of March, 2021. William H. Droste, Mayor ATTEST: Erin Fasbender, City Clerk