City of Fayetteville
File #: 24-4074    Version: 1 Name:
Type: Consent Status: Agenda Ready
File created: 5/30/2024 In control: City Council Regular Meeting
On agenda: 6/10/2024 Final action:
Title: Approval of Installment Financing and Adoption of Resolution for Various Vehicles and Equipment Purchases
Attachments: 1. Fayetteville, NC - 2024 Installment Financing RFP (Vehicles_Equipment), 2. Fayetteville Bank Bid Summary 5.14.pdf, 3. Vehicle list FY24 financing, 4. Installment Financing Agreement - Fayetteville 2024 IFA (Vehicles) (00473942-2xBAC86), 5. Security Agreement - Fayetteville 2024 IFA (Vehicles) (00473963-2xBAC86), 6. Approving Resolution - Fayetteville 2024 IFA (Vehicles) (00473925-2xBAC86)
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TO: Mayor and Members of City Council

THRU: Jeffrey Yates, Assistant City Manager

FROM: Jody Picarella, Chief Financial Officer

DATE: June 10, 2024

Approval of Installment Financing and Adoption of Resolution for Various Vehicles and Equipment Purchases


Council District(s)

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 TD Equipment Finance, Inc., to finance these purchases.

In the Approved FY 2024 Budget, City Council authorized staff to move forward with the purchase of various vehicles.

On April 23, 2024, staff electronically distributed an RFP to financial institutions. The RFP was for an amount not to exceed $3,200,000 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 May 14, 2024, the City received financing proposals from nine financial institutions. Staff evaluated the proposals and recommend that Council authorize the execution of a financing agreement with TD Equipment Finance, Inc., 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 $3,186,000 with an interest rate of 4.360% 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....

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