Minutes 01/27/2004 - Laserfiche WebLink

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January 27, 2004 - City Manager's Report - 04 - 35 - Adoption of a resolution authorizing lease financing for various equipment purchases over the next five years, in an amount not to exceed $24,000,000. This financing agreement will provide funding for rolling stock, computer, related information technology equipment, and other miscellaneous equipment purchases. Recommendation: · Adoption of a resolution authorizing lease financing for various equipment purchases over the next five years, in an amount not to exceed $24,000,000. Purpose and Need: · This financing agreement will provide funding for rolling stock, computers and related information technology equipment, furniture and fixtures and miscellaneous equipment purchases. other · Responses to the RFP will be received on January 30, with selection of the bank/ financial institution to be made during the first week of February. Closing is currently scheduled for the final week of February. A complete financing schedule is attached. · Interest on the financing will be paid semi-annually, with the term of the lease based on the useful life of the equipment, ranging from three to seven years. · Each fiscal year, the City Council will be asked to appropriate funds for lease payments. Financial Impact: · The annual interest payment on the lease agreement will be approximately $1.4 million per $6 million in annual financing under the master lease agreement. Motion by Mr. Benn, and seconded by Mr. Griffin, to adopt the following resolution, and was adopted by the following vote: "A RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA AUTHORIZING THE LEASE FINANCING OF CERTAIN EQUIPMENT. WHEREAS, The Council of the City of Portsmouth, Virginia (the "City") has determined that it is necessary and advisable to acquire certain equipment for the City (the "Equipment") and to obtain financing for the Equipment through a master financing lease providing financing for the Equipment (the "Lease"). NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: ]. Proposals to Provide Financinq. The City Manager and the City's Chief Financial Officer, or either of them, is authorized and directed to solicit proposals to provide financing for the Equipment and to accept the proposal that such officers, or either of them, determine to be in the best interest of the City, provided that the maximum principal amount of the financing shall not exceed $24,000,000, the interest rate used to calculate the interest component of rental payments under the Lease shall not exceed 6% and the term of the Lease shall not be longer than fifteen years. 2. Authorization and Execution of Documents. The City Council authorizes and directs the City Manager and the Chief Financial Officer of the City, or either of them, to execute on behalf of the City, the Lease, and, if required, the Clerk or any Deputy Clerk of the City Council is authorized and directed to affix or to cause to be affixed the seal of the City to the Lease and to attest such seal.