Loading...
HomeMy WebLinkAboutAgenda - 05-04-2006-5kORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 4, 2006 Action Agenda Item No. 5- K SUBJECT: Resolution Authorizing Installment Financing Contract far Equipment Purchases DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Resolution Ken Chavious, 919-245-2450 PURPOSE: To consider adopting a resolution required by SunTrust Bank to facilitate the financing of equipment approved for purchase by the Board in April 2006, BACKGROUND: At meetings on April 18 and April 20, 2006, the Board approved the purchase of vehicles and equipment totaling $1,551,318. Board action also accepted a proposal from SunTrust Bank to finance the approved equipment that included bath a 36 month transaction ($950,255) related to vehicles and a 59 month transaction ($600,900) related to the heavy equipment. In order to accomplish the financing, the bank requires that the County adapt an official resolution authorizing the execution and delivery of the installment financing contracts and other documents, The resolution necessary to complete the financing has been reviewed by County staff and the County Attorney and is attached, including copies of the proposed amortization schedule for both the 36 and 59-month transactions. FINANCIAL IMPACT: As mentioned above, the total amount to be financed under the transactions with SunTrust is $1,551,318, The County received excellent interest rates on both transactions. For the 36-month transaction totaling $950,255, the interest rate is 3,70% and annual payments are approximately $337,574, depending on closing date, Far the 59-month transaction totaling $600,900, the interest rate is 3,74%, and the amount paid annually would be approximately $146,326. These amounts have been factored into the County's debt issuance schedule and fall within the Board's self-imposed debt capacity parameters. The debt service amounts will be included in the County Manager's recommended budget for 2006-2007. RECOMMENDATION(S): The Manager recommends that the Board adopt the resolution and authorize the Finance Director and County Attorney to execute documents as required to accomplish the financing with SunTrust Bank, EXHIBIT C-1 [Escrow] Lease Number: 03532 Equipment Schedule: 01 At a duty called meeting of the governing body of Lessee held in accordance with all applicable legal requirements, including open meeting laws, on the _ day of ,the following resolution was introduced and adopted: RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A MASTER LEASE AGREEMENT, EQUIPMENT SCHEDULE NO. Ol, AN ESCROW AGREEMENT, AND RELATED INSTRUMENTS, AND DETERMINING OTHER MATTERS IN CONNECTION THEREWITH. WHEREAS, the governing body of ORANGE COUNTY, NC ("L,essee") desires to obtain certain equipment (the "Equipment") described in Equipment Schedule No. 01 to the Master Lease Agreement (collectively, the "L.ease") with SUNTRUST LEASING CORPORATION, the form of which has been available for review by the governing body of Lessee prior to this meeting; and WHEREAS, the Equipment is essential for the Lessee to perform its governmental functions; and WHEREAS, the funds made available under the Lease will be deposited with SUNTRUS7 BANK (the "Escrow Agent") pursuant to an Escrow Agreement between Lessee and the Escrow Agent (the "Escrow Agreement") and will be applied to the acquisition of the Equipment in accordance with said Escrow Agreemenh, and WHEREAS, Lessee has taken the necessary steps, including those relating to any applicable legal bidding requirements, to arrange for the acquisition ofthe Equipment and WHEREAS, Lessee proposes to enter into the Lease with SUNTRUST LEASING CORPORATION and the Escrow Agreement with the Escrow Agent substantially in the forms presented to this meeting, NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF LESSEE AS FOLLOWS: Section 1. It is hereby found and determined that the terms of the Lease and the Escrow Agreement (collectively, the "Financing Documents") in the forms presented to this meeting and incorporated in this resolution are in the best interests of Lessee for the acquisition of the Equipment. Section 2. The Financing Documents and the acquisition and financing of the Equipment under the terms and conditions as described in the Financing Documents are hereby approved. The Finance Director of Lessee and any other officer of Lessee who shall have power to execute contracts on behalf of Lessee be, and each of them hereby is, authorized to execute, acknowledge and deliver the Financing Documents with any changes, insertions and omissions therein as maybe approved by the officers who execute the Financing Documents, such approval to be conclusively evidenced by such execution and delivery of the Financing Documents. The Clerk to the Board of Counri Commissioners of the Lessee and any other officer of Lessee who shall have power to do so be, and each of them hereby is, authorized to afI"ix the official seal of Lessee to the Financing Documents and attest the same. Section 3. The proper officers of Lessee be, and each of them hereby is, audhorized and dueeted to execute and deliver any and all papers, instruments, opinions, certificates, affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper For carrying out this resolution and the Financing Documents. aner~?w?a~us;i?.~nw,.rvnp~cscs7n ooctrcv Dims sTt c V The undersigned fiuther certifies that the above resolution has not been repealed or amended and remains in full force and effect and further certifies that the Lease and Escrow Agreement executed on behalf of Lessee are the same as presented at such meeting of the governhrg body of Lessee, excepting only such changes, insertions and omissions as shall have been approved by the officers who executed the same. Date: , ORANGE COUNTY, NC, Lessee Name: Kenneth T. Chavious Title: Finance Director Attested By: Name: Donna Baker Title: Clerk to the Board of Countv Commissioners 4/30/SOUGH:R2~U1411006:N6Q~GSC NOClrcv UI/US sic