AGENDA CAPTION:
Title
Consider approval of Resolution 2021-120R, approving an addendum to the Master Lease-Purchase Financing Agreement with Santander, Inc. that adds three mowers for use by the Parks and Recreation Department to be financed under the agreement in the amount of $143,178.50, inclusive of interest, for a five-year term; authorizing the City Manager or his designee to execute all appropriate documents associated with this transaction; and declaring effective date.
Body
Meeting date: July 6, 2021
Department: Parks and Recreation Department, Drew Wells, Director (by Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $28,592.31 annual amount with first payment in FY21
Account Number: 10001280-52112
Funds Available: $28,092.55
Account Name: Vehicle/Equipment Finance Payments
Fiscal Note:
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Background Information:
Under separate City Council Agenda Item on this date July 6, 2021 are the procurement of the following equipment to be purchased and financed by the Parks and Recreation Department: John Deere 7700A Fairway Mower from Deere & Company via authorized dealer, Austin Turf & Tractor, Inc. and two (2) Ventrac MK960 Wide Area Mowers from Austin Turf &Tractor, Inc. through BuyBoard cooperative contract 611-20.
The City received proposals to finance the following equipment for the Parks and Recreation Department. Of proposals received with the best interest rate, Santander, Inc. offered an interest rate of 2.04% for a five (5) year term. The total amount for the equipment of $137,566.93 plus interest of $5,611.57 equals the total amount to be financed. The total amount to be paid by the City is $143,178.50 at the conclusion of the five-year term. Payments will be made annually with the first payment due July 20, 2021.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approving an equipment addendum to the Master Lease Finance Agreement with Santander, Inc.