DISCLAIMER

 

06-0209R


RESOLUTION AWARDING CONTRACT TO MTI DISTRIBUTING, INC., FOR FIVE YEAR LEASE PURCHASE OF ASSORTED GOLF COURSE MAINTENANCE EQUIPMENT TO BE PAID IN SIX MONTHLY INSTALLMENTS OF $16,873.86 ANNUALLY FOR A PERIOD OF FIVE YEARS ON A PRINCIPAL AMOUNT OF $463,005 AT 3.95 PERCENT ANNUALLY.

BY COUNCILOR KRAUSE:

     RESOLVED, that MTI Distributing, Inc., be and hereby is awarded a contract for five year lease purchase of assorted golf course maintenance equipment for the parks and recreation department in accordance with specifications on its low specifications bid of $16,873.86 monthly for six months of a five year period on a principal amount of $463,005 at 3.95 percent annually, terms net 30, FOB Duluth, payable out of Enterprise Fund 503, Department/Agency 400, and $250,023 from Enger Object 5580 and $212,982 from Lester Object 5580.


STATEMENT OF PURPOSE:  This resolution will authorize proper city officials to enter into a lease purchase agreement with MTI Distributing, Inc., for the lease purchase of golf course equipment. This agreement includes the trade-in of used equipment. This is in accordance with its low specifications bid of $16,873.86 monthly for six months of a five year period on a principal amount of $463,005 at 3.95 percent annually, terms net 30, FOB Duluth, payable out of Enterprise Fund 503, Department/Agency 400, and $250,023 from Enger Object 5580 and $212,982 from Lester Object 5580. Bid No. 06-0005A


Tabulation of bids received Friday, March 3, 2006

 

Annual percentage rate for principal of $463,005

MTI Distributing, Inc., Bannockburn, IL

3.95%

US Bank, St. Paul, MN

4.82%

US Bank, St. Paul, MN

4.80%

Carlton Financial, Wayzata, MN

5.62%