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City Council Meeting
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Meeting Date:
05/22/2023
Capital Lease - New Medic - Fire 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.:
2023-O-2585
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 An Emergency Medical Vehicle For Use By The City, And Declaring An Emergency.
(first reading)
Purpose and Background
The Fire Division has been notified that the new medic ordered in 2021 will be ready for delivery the first week of July, 2023. City Staff recommend that the City enter into a capital lease for the purchase of the new medic. Seven timely proposals were received by the Finance Department and are included as an attachment. City Staff recommends the lowest and best proposal for a five-year lease with an interest rate of 4.34% and variable declining semi-annual payments of no more than $32,218.55, and a total financing of $296,596.00 from Cogent Leasing & Financing, Inc. be approved. The Master Lease Purchase Agreement, including the Addendum, Fiscal Officer Certificate, Escrow Agreement and Payment Schedule are included. 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 early July, 2023 and financing that is only guaranteed until June 5, 2023, City Staff request 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:
Fire Capital Fund
Cost:
$32,219
Recurring Cost? (Yes/No):
Yes
Funds Available in Current Budget? (Yes/No):
No
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
Master Lease Purchase Agreement
Addendum/Fiscal Officer Certificate
Fiscal Officer Certificate - Updated
Escrow Agreement
Lease Payment Schedule
Ordinance
2023-O-2585
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