AGENDA CAPTION:
Title
Consider approval of Resolution 2023-52R, approving an addendum to the Master Lease-Purchase Financing Agreement with US Bancorp Government Leasing and Finance Inc. that adds a Freightliner vac truck for the Public Works Department as equipment to be financed under the agreement in the amount of $602,300.11, inclusive of interest for a seven-year term; authorizing the City Manager or her designee to execute all appropriate documents associated with this transaction; and declaring an effective date.
Body
Meeting date: March 21, 2023
Department: Public Works - Sabas Avila, Director (by Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: Annual payment of $86,042.87 from April 2024 - April 2030 for a total of $602,300.11 across the seven-year repayment term.
Account Number: 20006301-52112
Funds Available: VEHICLE/EQUIP FINANCE PYMNTS
Account Name: Capital Outlay
Fiscal Note:
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Background Information:
The City received one proposal to finance the following equipment for the Public Works Department. Santander Bank did not provide a bid. U.S. Bancorp Government Leasing and Finance, Inc offered an interest rate of 4.62% for a seven (7) year term. The total amount to be paid over the seven-year financing term is $602,301.11, comprised of the equipment cost of $504,805.82 and the interest to be paid over the financing term of $97,494.29. Payments will be made annually with the first payment due April 11, 2024.
This item provides the financing for the equipment. City Council will also consider the procurement of the 2024 Freightliner Vac Truck from Doggett Freightliner of South Texas, LLC - Austin on March 21, 2023.
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Recommendation:
Approve the equipment addendum amending the finance purchase agreement between the City and U.S. Bancorp Government Leasing and Financing, Inc.