Agenda - 03-15-2005-9c - Laserfiche WebLink

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4 At this time, staff does not have solid cost estimates for two of the items listed above, the front- end loader and the dump truck with snowplow blades, Further analysis and research needs to be done before these items can be purchased, Staff anticipates bringing these items back to the Board within the next two-to-three months for consideration. FINANCIAL IMPACT: The estimated cost to purchase the equipment and vehicles (exclusive of the two items for Sanitation) totals $1,442,331. As outlined in the Background section above, staff proposes to enter into two private placement arrangements with RBC in order to fund the purchases outlined on Attachment 1 of this abstract, • Thirty-Six Month Arrangement -The estimated cost of proposed items for the thirty-six month arrangement totals $1,100,691. The projected annual debt service payments (over a 36 month period) related to this arrangement would consist of approximately $366,900 in principal payments and $23,600 in interest payments for a total annual projected payment of $390,500. The interest rate quoted by RBC for this arrangement is 3.42% annually.. The projected annual debt service payments were included in the most recent (October 25, 2004) debt capacity calculations presented to the Board. • Fifty-Nine Month Arrangement -The estimated cost of proposed items for the fifty-nine month arrangement totals $419,640, exclusive of the two outstanding items for the Sanitation Division, The projected annual debt service payments (over a 59 month period) related to this arrangement would consist of approximately $85,350 in principal payments and $11,650 in interest payments far a total annual projected payment of $97,000. The interest rate quoted by RBC for this arrangement is 3,6% annually. The projected annual debt service payments were included in the most recent debt capacity calculations presented to the Board. Projected annual debt service requirements for both financing arrangements total $487,500 and were included in the most recent debt capacity calculations presented to the Board on October 25, 2004, Funds to repay both loans would be addressed through the County's annual General Fund debt service appropriations in accordance with the Board's adopted County Capital Funding Policy. Should the Board decide to postpone the recommended action until a later date, it is very likely that defibrillator trade-in and discount opportunities ($60,000) and State vehicle contract prices would be lost thereby increasing the overall cost of purchasing the recommended vehicles and equipment. In addition, interest rates have increased slightly over the last thirty days (one-to- two tenths of a percent in last 30 days).. It is important to note that the interest rates quoted by RBC are good until April 1, 2005, RECOMMENDATION (S): The Manager recommends that the Board of County Commissioners: (1) Approve the equipment and vehicle purchases (outlined on Attachment 1 of this abstract); (2) approve the Equipment and Vehicle Capital Project Ordinance at Attachment 2; and