Submitted by: Ron Brooks
Submitting Department: Finance
Agenda Section: Consent
Item Title:
title
Lease Finance Funding for Six FY20 Police Vehicles and Related Equipment
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Suggested Action:
recommendation
I move that the Mayor and Council authorize the City Administrator to execute a lease finance agreement with Tax-Exempt Leasing Corp. in an amount not to exceed $331,311 at a rate of 3.78% for five (5) years to finance the lease purchase of six (6) police vehicles and related equipment approved in the FY-2020 Capital Improvement Plan and upon legal review and approval by the City Attorney.
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Summary Background:
In the FY20 Capital Budget, City Council approved $334,777 for the Police Department to purchase new vehicles including related equipment. Due to COVID-19, the manufacturers delivery for vehicles under the State Contract to the vendor Hertricht Fleet Services was delayed until recently. The City was notified that the previously ordered (6) FY20 vehicles were available and received delivery of them last week. To reduce pressure on using cash reserves, funding for the vehicles and equipment will be provided via lease financing. As required per the City’s procurement policy, we received three (3) price quotes that included rates and terms. Upon final review we recommend Tax-Exempt Leasing who provided the lowest interest rate over five (5) years.
Next Steps:
Execute the lease agreement.
Fiscal Impact:
Twenty quarterly lease payments of $18,258.
City Administrator Comments:
Recommends support
Community Engagement:
N/A
Strategic Goals:
Goal 4 - Foster Excellence in all City Operations
Legal Review Required?
Pending