Title
Resolution Authorizing the Execution and Delivery of an Equipment Lease/Purchase Agreement, and Related Instruments, and Determining Other Related Matters to Acquire Up to Ten (10) Refuse Trucks and Related Equipment
Purpose
PURPOSE/BACKGROUND:
The City of Hampton, Virginia (the "City"), Department of Public Works (in consultation with the City Manager's Office, Finance Department and Fleet Management), has determined that there is a need to acquire through a lease/purchase arrangement additional refuse trucks and related equipment (the “Equipment”) to promote and enhance the welfare and public safety of the residents of the City.
On behalf of the City, Davenport & Company LLC ("Davenport") distributed an Invitation for Bid ("IFB") in order to assess current market interest rates for viable financing options as it relates to the City's potential purchase of ten (10) refuse trucks. The IFB requested proposals for a Tax-Exempt, Non-Bank Qualified Direct Bank Loan backed by the equipment being purchased for an amount of up to $2.6 Million based upon five (5) and seven (7) year amortizations.
Based upon their review of the proposals, related analyses and discussions with City Staff and Bond Counsel, Davenport has made a recommendation outlined on the attached Bank RFP Results.
Discussion:
See Purpose/Background above and Bank RFP Results from Davenport & Company attached.
Impact:
See Bank RFP Results from Davenport & Company attached.
Recommendation:
Rec
Approve the Resolution.
Body
WHEREAS, the City Council (the “City Council”) of the City of Hampton, Virginia has determined that there is a need to acquire through a lease/purchase arrangement additional refuse trucks and related equipment (the “Equipment”) to promote and enhance the welfare and public safety of the residents of the City; and
WHEREAS, after solicitation of bids and a description of such process being made to the City Council, the City Council desires to...
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