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Home My WebLink About11 Forklift Lease 11 Agenda Item # UCKEE w DONNER Public Utdity I ,tit Memorandum To: Board of Directors From: Kathy Neus Date: June 14, 2002 Subject: Lease purchase of a forklift For the past three years the Warehouse has rented a forklift from Cashmen Equipment. The rental forklift is considered a heavy-duty, rough terrain piece of equipment. The increased requirements of the forklift are due to the size and weight of the material the District now receives, such as vaults, pipe, wire and more. The rough terrain is due to Teichert's yard, the Martis yard and the temporary storage yard here; the small forklift gets stuck on the uneven ground. We need a forklift able to lift more than 3300 pounds, the maximum weight allowable on the small electric forklift. Sam Re has been receiving more large on-site shipments which the little forklift is not capable of handling due to weight restrictions and the terrain. This new forklift is not a replacement for the electric forklift; the little forklift is all that will work inside the warehouse. I have budget $6000.00 the past couple of years for a forklift rental expressly for the summer construction season. Unfortunately we are beginning to see needs for the same piece of equipment in the winter months. I approached Cashman on a potential lease-purchase plan. The cost of the used forklift is $29,500.00, financed for 36 months with a residual of $2,950.00 (10%) due in the last year. This is the cost of the forklift less $3000.00, less the money we have paid for rentals in the past two plus years. In this same time frame the District has had the same forklift and has put most of the hours on it, this is the same forklift that we would purchase. Cashman's proposal 2002 $5760.00 2003 $9600.00 2004 $9600.00 2005 $7993.60 —with a residual payment of $2950.00 at the end These costs do not include sales tax but do include interest (6.9569%). The loan would be financed through Caterpillar Corporation, the parent company of Cashman and the manufacturer of the forklift. The rental cost for the construction season runs approximately $6000.00 a year. The lease-purchase option is a small increase and it would be for a 12-month period instead of just six months. In the current budget money has been budgeted for rentals that would cover 2002 dollars and the following years could be budgeted with the correct needed dollars. RECOMMENDATION: I recommend that the district accept the Cashman proposal for the lease purchase of the heavy duty forklift F 20M ; CASHMPN FAX NO . : 7026334671 06-06-02 12:31 P .03 Caterpillar Fsnaae111 Se ry is ca Cor po rat6an Finance Proposal : CUSTOMER Namr. TRUCKEE DOWNIER PUBLIC UTILITY DI.rT Good if Au Its-0: A4tlres4 ... ........ ...... Acknowledgedby City ... ........ Funded by .. .... Aug.05-02 state ........... ..... ....... Zip Ode ... Cnunty ........... ... .. -- D E A L F R l t a-g54 Owlac Fax number ... -.. .- ..n610b12D02 Cn814MAN F'QUIPMENT CO ... �11,11W .... S.1w Person ........... ..... QuOtc time .......... Fhsm mtenMr ................". FINANCE PROPOSAL . ..... -:...-_ 1.This Is a PrOPOs3i Only This is Cio"Pillat Pinime l Services Comoratiorts contirmation Of the frrllowing fitsance DYOP°b" aryl;a subject to aunt app%Owt,extcutinn of documentation,and exeeat:m and approval Of the application acvvcy. Financel¢aae Quoted by .._........................ .. hIY Number ofpaymams ............. 7h lfvl Pnymtnrs ..... ........._.......... m,tirwears gown Amount Rlrcht Fixed Am Financed Payment option Ram Model Flours Qty Sale Price poYmcm _ _...__.-. Used 940 600 1 29,5n0.00 960.On 28.540-ao 806.' 6.9569 Payment Model [n.4ueance w;tnsurimoc Lscd Wn 3277 09-51 Tne estbnntc for inaurotxe iv provided thratgh American''/.urich In.%uaanee Cornperry an d a mt an otire to eonttact lb' insurance. C O N O 1 T 10 N S a mn7. :::.::::::::::......_..._...... I.Osaee's resooas;bitiry(May Out be included in the above payment amo U1"A;WFyOpettp Mrs wrana is tha responsibility ortlte Borrower or Leoat t I"Wanee: 7u Physical damage covaagc is minimum all equipment wbethcr financed ar leased.On leaxd equipment.Renml liability Co'xragq S 1,oGil'i 00 per oc urtimce is required. Please nom 11 This finance PNPnsal is acceptable only in its eydilety and is Wblcet to final cord"apPronal by torn. tear Financial Serv+cea Callptn t c3p rxial cmi ees Corpora tnd CataP 2y E4niptncnt csrmot be ddiverad utnit dxumed%$arc cxeeu 27 Corponoiun. at all linos. 31 Equipment must reside in USA We apprccmte the opportunity to PO 'de you a P'OpO"t fur thixtransacnrm. Ack»)wlerlgcd by: Proposed by'' .___._ _._.__,..____......_....._..__......_._._.. .. TR1Y"KEE DONNFR PUBLIC UTILITY DEPT. arc Caterpillar Finericial 5emres COrpo1 anon Caw pip'Financial Services Corporation 114-354 Pagel c,o Quote Software N-0l 06/04/2002 Page 1 Trucke Donner PUD Compound Period ........ : Monthly Nominal Annual Rate ....: 6.880 % Effective Annual Rate ... 7.101 % Periodic Rate ..................: 0.5733 % Daily Rate ....................... : 0.01885% CASH FLOW DATA Event Start Date Amount Number Period End Date 1 Loan 06/04/2002 29,500.00 1 2 Payment 06/04/2002 960.00 1 3 Payment 07/04/2002 800.00 36 Monthly 06/04/2005 4 Payment 07/04/2005 3,193.60 1 AMORTIZATION SCHEDULE - Normal Amortization Date Payment Interest Principal Balance 2002 Totals 5,760.00 926.63 4,833.37 24,666.63 2003 Totals 9,600.00 1,443.04 8,156.96 16,509.67 2004 Totals 9,600.00 863.79 8,736.21 7,773.46 2005 Totals 7,993.60 220.14 7,773.46 0.00 Grand Totals 32,953.60 3,453.60 29,500.00 0.00