Agendas and Minutes
Meeting Officials
Print
Reading Mode
Back to Calendar
Return
C.
New Business  
City Council Meeting
City Manager  
Meeting Date:
04/10/2024
Lease Financing - Sewer Vac Truck - Veolia Water
Submitted By:
Jim Bell
Department:
City Manager
Division:
Finance/Tax
Council Committee Review?:
Council Work Session
Date(s) of Committee Review:
04/10/2024
Audio-Visual Needs:
None
Emergency Legislation?:
Yes
Motion/Ordinance/
Resolution No.:
2024-O-2632
Agenda Item Description or Legislation Title
An Ordinance Authorizing The Execution Of A Master Lease-Purchase Agreement And Related Payment Schedule For The Purpose Of Acquiring A Sewer Jet/Vacuum Truck For Use By The City, And Declaring An Emergency.
(first reading)
Purpose and Background
Veolia Water has informed the City Engineer that the current sewer jet/vacuum truck has reached the end of its useful life after 17 years of service. The monthly cost to rent a sewer vacuum truck is $14,000. Veolia Water has provided the City with a quote (attached) for a new Sourcewell sewer jet/vacuum truck from Best Equipment Company for $496,11600. There is a discount of $54,480.40 to purchase this truck, because it has been a demo unit (displayed at conferences, but never used on the road). City Staff recommend that the City enter into a capital lease for the purchase of a new sewer jet/vacuum truck. Five timely proposals were received by the Finance Department and are included as an attachment. City Staff recommends the lowest and best proposal for a 10-year lease with an interest rate of 4.85% and annual payments of $62,069.27 from Huntington Public Capital Corp. be approved. The draft documents for the Master Lease Purchase Agreement, including the Term Sheet and the Fiscal Officer Certificate, are being prepared and will be ready prior to Council consideration for the April 10, 2024 City Council Meeting. All of the documents have been thoroughly reviewed by an attorney at Squire Patton Boggs, as bond counsel for the City. Due to the current truck being out of service, the high cost to rent a truck during heavy rain events, and the financing that is only guaranteed until April 30, 2024, City Staff request that the second reading of this legislation be waived at the April 10, 2024 City Council Meeting, with an emergency clause, so the legislation can be effective immediately.
Fiscal Impact
Source of Funds:
Sewer Fund
Cost:
$62,069.27
Recurring Cost? (Yes/No):
Yes
Funds Available in Current Budget? (Yes/No):
Yes
Financial Implications:
The annual lease payments will begin in October, 2024. This amount will be included in the next supplemental appropriation to the 2024 City Budget.
Attachments
Proposals
Specs
Ordinance
2024-O-2632
AgendaQuick ©2005 - 2024 Destiny Software Inc.
All Rights Reserved.