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Date
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July 14, 2008
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Agenda
Item No. 34 Roll
Call No. 08- Communication No. 08-398 Submitted by: Allen McKinley, Finance Director |
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AGENDA HEADING:
Setting date for Public Hearing
for Supplement C-2 to the City’s Master Lease-Purchase Agreement for the
purchase of various vehicles and equipment for the Public Works Department.
SYNOPSIS:
Setting
the date for a Public Hearing on July 28, 2008 to consider lease-purchasing five
recycling trucks and 40,000 recycling containers for the Public Works
Department. Council will approve the acquisition
of the recycling trucks at a subsequent council meeting(s). This action initiates the financing process
to align with the anticipated acquisition approvals.
FISCAL IMPACT:
Amount:
Not to exceed $3,025,000 plus
interest.
Funding
Source: 2008-2009 Operating Budget, Page 298, EN151,
PWK100119, Curbside Recycling
ADDITIONAL INFORMATION:
The
equipment to be purchased via the master lease agreement will allow the City to
move to an automated recycling system. To increase the amount of material recycled,
the Public Works Department is recommending an automated single-stream
recycling program. The convenience of
wheeled containers is expected to lead to increased quantities and automated
collection is expected to reduce overall program costs over time.
Twenty-two
lease supplements totaling $11,558,650.09 were approved by the City Council
under an earlier lease arrangement with Banc of America as a means to provide
flexible, affordable financing for City equipment. Under the current lease arrangement with
DeLage Landen LLC one lease supplement has been approved and executed by the
City Council totaling $750,000.
The advantages of using the Master Lease-Purchase Agreement include having
a credit facility in place that allows financing of equipment on an as-needed
basis instead of waiting until the annual general obligation bond issue each
June, not incurring issuance costs, and flexibility in the repayment term which
can be set for three to ten years, depending on the expected useful life of the
equipment. In addition, the debt has been structured to not count against the
City’s general obligation debt limit.
PREVIOUS COUNCIL ACTION(S):
Date: May 5, 2008
Roll Call Number: 08-794
Action: Master
Lease-Purchase Agreement with De Lage Landen Public Finance LLC. (Council
Communication No. 08-242) Moved by Vlassis to approve. Motion Carried
6-1.
Date: February 25, 2008
Roll Call Number: 08-317
Action: Issuance of Request for Proposals (RFP) for
single-stream recyclables processing. (Council Communication No. 08-081) Moved by Hensley to adopt; refer to the City
Manager to schedule a Council workshop to discuss solid waste and
recycling. Motion Carried 7-0.
BOARD/COMMISSION ACTION(S): NONE
ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:
Hearing and approval of Master Lease
Supplement C-2 and award of bids for recycling trucks.
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,