COUNCIL AGENDA ITEM
SUBJECT:
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Approval of the authorizing resolution (2019-R-25) for execution and delivery of a Master Lease Agreement for an amount not to exceed $625,000 with Branch Banking & Trust Company (BB&T) to purchase of the Fire Engine and Police Patrol Vehicles.
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DEPARTMENT:
Finance
SUMMARY:
The FY 2020 Operating Budget included the purchase of 2 Police Interceptors and a Fire Engine. The estimated purchase price of these vehicles is $595,000.To finance these vehicles per the City’s Purchasing Policy Staff solicited bids from qualified financial institutions. The bid specifications asked for an amount not to exceed $625,000 (including financing costs). The RFP asked for both a 5 year lease for a $100,000 for two (2) Police Interceptors and separate 10 year lease $525,000 for the Fire Engine. After receiving 5 bids it was determined based on the recommendation of the City’s Financial Advisor (Hilltop Securities Inc.) and in consultation with City Staff that Branch Banking and Trust Company (BB&T) had the lowest and best overall proposal. A summary of the various proposals received is attached. The BB&T proposal rate was 2.38% for the 5 year lease and 2.45% for the 10 year lease. Their proposal also provided for the ability to prepay the leases at any time without a penalty. The lease payments for FY2020 will be approximately $47,696.
Based on that recommendation the City’s Bond Counsel (Nelson Mullins Broad and Cassel) in coordination with City Staff, its Attorney and our Financial Advisor have prepared the attached Resolution for the City Council adoption.
BUDGETED ITEM: ☒ Yes ☐ No ☐ Not Applicable
BUDGET AMENDMENT REQUIRED: ☐ Yes ☒ No ☐ Not Applicable
RECOMMENDED ACTION:
Motion to approve the Resolution permitting the City Manager to enter into a Master Lease Agreement with BB&T for an amount not exceed $625,000 and authorization for the City Manager to execute the Master Lease Agreement documents.