AGENDA CAPTION:
Title
Consider approval of Resolution 2016-169R, approving a lease-purchase agreement between the City and Santandar Bank, N.A. which authorizes the lease/purchase of mowers and accessories for the Community Services Department-Parks and Recreation division in the total financed amount of $231,551.20 for a five year term inclusive of interest; authorizing the City Manager or his designee to execute all appropriate documents associated with this transaction; and declaring an effective date.
Body
Meeting date: December 6, 2016
Department: Community Services Department - Rodney Cobb, Executive Director (By Cheryl Pantermuehl, Purchasing Manager)
Funds Required: $23,551.12 FY17, $197,086.74 FY18-21
Account Number: CAPF.GENERALC.EQUIP.PARD
Funds Available: $49,500
Account Name: Capital Outlay Financing
CITY COUNCIL GOAL:
Goal #2 - Beautify and Enhance the Quality of Place
Goal #5 - Maintain and improve City’s infrastructure
Goal #7 - Maintain Fiscal Responsibility
Goal #8 - Provide for the efficient and effective delivery of services
COMPREHENSIVE PLAN ELEMENT(s): [add the Plan elements and Goal # and Objective(s)]
BACKGROUND:
The City has obtained quotes for the financing for Mowers and Accessories for the Community Services Department - Parks and Recreation Division. Santander Bank, N.A., was the most responsive, most responsible vendor and submitted a quote for an interest rate of 2.10% for a five (5) year term. Payments will be semiannual with the first payment of $23,155.12 due on January 15, 2017. The total amount financed will be $220,637.86, with a grand total of $231,551.20 which include interest.
This item is only for the approval of the financing, the approval of the Mowers and Accessories is another action item on this City Council Agenda.