Laserfiche WebLink
Au.qust 12, 2003 <br /> <br />03 - 274 - Adoption of a resolution authorizing the lease financing of certain equipment, <br />including waste management refuse vehicles and certain telecommunications <br />equipment, through one or more amendments to the Financing Lease in an amount not <br />to exceed $2,055,000. <br /> <br />Recommendation: <br /> <br />· Adoption of a resolution authorizing the lease purchase financing of certain <br />equipment, including waste management refuse vehicles and certain <br />telecommunications equipment, through one or more amendments to the Financing <br />Lease in an amount not to exceed $2,055,000. <br /> <br />Purpose and Need: <br /> <br />· Management has determined that it is necessary and advisable to acquire certain <br />automated refuse trucks and loaders, in accordance with the fleet vehicle replacement <br />plan, and new and replacement technology equipment for the Emergency 911 facility. <br /> <br />· On December 8, 2002, the City entered into an $8,800,000 Equipment Lease <br />Purchase Agreement (the "Financing Lease") with Banc of America Leasing and <br />Capital, LLC (the "Lessor"). The Lessor is willing to amend this Financing Lease to <br />include the financing of the additional equipment. <br /> <br />· Given the relatively small dollar value of the additional equipment purchase, the City <br />has determined that it is advantageous to negotiate an amendment to the 2002 <br />Financing Lease provided terms acceptable to the City can be negotiated. <br /> <br />· The approval of this accompanying resolution will authorize the City Manager and <br />the Chief Financial Officer to negotiate the amendment to the Financing Lease, and it <br />allows for the issuance of purchase orders for the additional equipment. <br /> <br />Financial Impact: <br /> <br />· The financing was anticipated in the FY 2004 budget and an adequate amount has <br />been appropriated to meet the debt service requirements; therefore, no additional <br />impact is expected. <br /> <br /> Motion by Mr. Whitehurst, and seconded by Ms. Randall, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br />"A RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA <br />AUTHORIZING THE LEASE FINANCING OF CERTAIN EQUIPMENT. <br /> <br /> WHEREAS, the City Council of the City of Portsmouth, Virginia ("City") has <br />determined that it is necessary and advisable to acquire certain equipment, including <br />waste management refuse trucks and certain telecommunications equipment (the <br />"Additional Equipment") for the City and to obtain financing for the Additional Equipment <br />through one or more amendments to the Financing Lease described below; <br /> <br /> WHEREAS, the City entered into an Equipment Lease Purchase Agreement (the <br />"Financing Lease") with Banc of America Leasing and Capital, LLC (the "Lessor") on <br />December 8, 2000; and <br /> <br /> WHEREAS, the Lessor is willing to amend the Financing Lease to include the <br />financing of the Additional Equipment. <br /> <br /> NOW, THEREFORE, BE IT RESOLVED by the Council of the City of <br />Portsmouth, Virginia: <br /> <br /> Terms of Financin.q. The City Manager and the City's Chief Financial Officer, or <br />either of them, is authorized and directed to negotiate one or more amendments to the <br />Financing Lease (the "Amendments") with the Lessor that such officers, or either of <br />them, determine to be in the best interest of the City, provided that the maximum <br />aggregate principal amount of the Amendments shall not exceed $2,055,000, and the <br />term of each Amendment shall not be longer than ten years. <br /> <br /> <br />