TO: Mayor and Members of City Council
THRU: Telly Whitfield, Assistant City Manager
FROM: Cheryl Spivey, CPA, Chief Finance Officer
Debby Kerimian, Treasurer
DATE: January 22, 2018
RE:
Title
$3,223,745 Motorola Equipment Financing with U. S. Bancorp Government Leasing and Finance, Inc.
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
GOAL V: Fayetteville will have unity of purpose and sustainable capacity across the organization to ensure strong financial management with fiduciary accountability and plan for the future resource sustainability by aligning resources with City priorities.
Executive Summary:
In keeping with the FY18 Technology Improvement Plan, the City has requested and received proposals to finance 812 Motorola radio units, accessory equipment and associated financing issuance costs. U.S. Bancorp Government Leasing and Finance, Inc. provided the lowest overall financing costs.
Background:
On November 27, 2017, City Council approved the purchase of Motorola radio equipment totaling $3,508,994.60. City Council also approved the surplus of 625 radio units for trade-in to Motorola, the total trade-in value of $306,500, which reduced the net purchase price to $3,202,494.60.
Capital Project Ordinances 2018-30 and 2018-31 appropriated a total of $3,228,495 from future installment purchase debt proceeds to fund the purchase and associated financing issuance costs. Anticipated issuance costs totaling $26,000 have been included in proposed financing amount.
On December 12, 2017, staff electronically distributed a request for proposals (RFP's) to financial institutions. The RFP was for an amount not to exceed $3,228,495 for the purpose of financing the radio equipment. The desired term of financing was 48 months with a fixed interest rate for the entire term.
On January 11, 2018, the City received financing proposals from 11 financial institutions. Staff has evaluated the proposals and r...
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