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Topics Of Discussion  
Council Work Session
 
Meeting Date:
05/16/2023
Capital Lease - Street Sweeper - Public Works Division
Submitted By:
Jim Bell
Department:
Division:
Accounting
Council Committee Review?:
Council Work Session
Date(s) of Committee Review:
05/16/2023
Audio-Visual Needs:
None
Emergency Legislation?:
Yes
Motion/Ordinance/
Resolution No.:
Agenda Item Description or Legislation Title
Capital Lease - Street Sweeper - Public Works Division
Purpose and Background
The Public Works Division has been notified that the new street sweeper ordered last year will be ready for delivery in the next 2-3 weeks. City Staff recommend that the City enter into a capital lease for the purchase of the street sweeper. Six timely proposals were received by the Finance Department and are included as an attachment. City Staff recommends the lowest and best proposal for a 7-year lease with an interest rate of 4.34% and semi-annual payments of $28,191.69 from Cogent Leasing & Financing, Inc. be approved. The draft documents for the Master Lease Purchase Agreement, including the Term Sheet and Fiscal Officer Certificate are being prepared and will be ready prior to Council consideration for the May 22, 2023 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 delivery in the next 2-3 weeks, and financing that is only guaranteed until June 5, 2023, City Staff requests that the second reading of this legislation be waived on May 22, 2023, with an emergency clause, so the legislation can be effective immediately.
Fiscal Impact
Source of Funds:
Storm Water Management Fund
Cost:
$28,191.69
Recurring Cost? (Yes/No):
Yes
Funds Available in Current Budget? (Yes/No):
Yes
Financial Implications:
The semi-annual lease payments will begin in December 2023, and a full year of lease payments will be included in the proposed 2024 Budget.
Attachments
Lease Proposals
Ordinance
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