TO: Mayor and Members of City Council
THRU: Jeffrey Yates, Assistant City Manager
FROM: Jody Picarella, Chief Financial Officer
DATE: May 22, 2023
RE:
Title
Approval of Installment Financing and Adoption of Resolution for Various Vehicles and Equipment Purchases
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 5: Financially Sound City Providing Exemplary City Services.
Objective 5.1: Ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities.
Executive Summary:
The City has issued a Request for Proposal (RFP) for installment financing to be used for the purchase of various vehicles and equipment. Staff is recommending JP Morgan to finance these purchases.
Background:
In the Approved FY 2023 Budget, City Council authorized staff to move forward with the purchase of various vehicles.
On April 4, 2023, staff electronically distributed an RFP to financial institutions. The RFP was for an amount not to exceed $1,275,000 for the purpose of financing vehicles and equipment. The desired term of financing was 48 months with a fixed interest rate for the entire term.
On April 25, 2023, the City received financing proposals from 12 financial institutions. Staff have evaluated the proposals and recommend that Council authorize the execution of a financing agreement with JP Morgan which provided one of the lowest costs of financing and the most favorable non-financial terms, such as contract compliance with e-verify and title holding. The proposal terms include a financing amount of $1,265,000 with an interest rate of 3.700% for a term of 48 months and a fixed interest rate for the entire period.
With the attached resolution, the City Council would be approving the attached Installment Financing Agreement and Security Agreement in substantially the forms presented at this meeting. The Mayor, the City Manager and t...
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