AGENDA CAPTION:
Title
Consider approval of Resolution 2021-111R, approving an addendum to the Master Lease-Purchase Financing Agreement with Santander Inc. to add a tractor, trailer, roadway patcher, and two dump trucks for use by the Streets Division of the Public Works Department to be financed under the agreement in the amount of $793,977.94, inclusive of interest, for a seven-year term; authorizing the City Manager or his designee to execute all appropriate documents associated with this transaction; and declaring an effective date.
Body
Meeting date: July 6, 2021
Department: Public Works Department, Sabas Avila, Interim Director (by Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $113,425.42 October 1, 2021 (FY22)
Account Number: 10001280.52112
Funds Available: $28,092.55 (FY21)
Account Name: Vehicle/Equipment Finance Payments
Fiscal Note:
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Background Information:
Under separate Agenda Item on this date July 6, 2021, are the following equipment to be purchased and financed: Dumptruck (2) and Tractor from Rush Truck Centers, Trailer from Cooper Equipment Co., and a Roadway Patcher from Santex Truck Center.
The City received proposals to finance the listed equipment for the Transportation Division, Public Works Department. Of proposals received with the best interest rate, Santander, Inc offered an interest rate of 1.69% for a seven (7) year term. The total amount or the equipment of $752,890.60 plus interest of $41,087.34 equals the total amount to be financed and paid by the City is $793,977.94 at the conclusion of the seven-year agreement. Payments will be made annually with the first payment due October 1, 2021 (FY22).
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Recommendation:
Recommend approving an equipment addendum which amends the financed purchase agreement between the City and Santander Bank.