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 Three Fire Trucks and Related Equipment
Purpose
PURPOSE/BACKGROUND:
See Discussion below.
Discussion:
The Division of Fire & Rescue (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 fire 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 three (3) fire trucks. The IFB requested proposals for a tax-exempt, non-bank qualified direct bank equipment lease backed by the equipment being purchased based on a financing period of up to ten (10) years, depending on the useful life of the Equipment. The estimated cost of the Equipment is approximately $3,250,000; in addition, the principal sum ultimately financed may also include costs of issuance.
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.
Impact:
See Discussion above.
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 fire 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 proce...
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