Agenda - 04-12-2005-5f - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 12, 2005 Action Agenda Item No. ~~ SUBJECT: Resolutions Authorizing Contracts for Financing Vehicles and Equipment DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Resolutions Amortization Schedules March 15, 2005 Agenda Abstract INFORMATION CONTACT: Ken Chavious, ext 2450 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider adopting resolutions required by RBC Centura Bank to facilitate the financing of equipment to be purchased by the County, BACKGROUND: At the March 15, 2005 meeting, the Board authorized staff to purchase vehicles and other equipment totaling $1,520,331. A description of the approved equipment is contained on the attached abstract from the March 15 meeting. In addition, the Board authorized staff to pursue financing for the equipment with RBC Centura, consisting of two separate installment financing contracts -one with a three year term for passenger vehicles and a second with a 59 month term for heavy vehicles and equipment. The Finance Director has worked with RBC Centura to accomplish the vehicle and equipment financing as authorized.. Closing has been scheduled for April 20, 2005.. In order to accomplish the financing, the bank requires the County to adopt official resolutions authorizing the execution and delivery of the installment financing contracts, The resolutions necessary to close on the financings have been reviewed by County staff and the County Attorney and are attached, including copies of the proposed amortization schedules, FINANCIAL IMPACT: The County will be entering into two separate financing contracts.. The three-year contract will provide $1,100,691 in funds far the purchases authorized.. Principal and interest payments will total $389,166 annually, The 59-month contract will provide $419,640 to fund the purchases authorized. Principal and interest payments on this contract will total $92,532 annually. Semi-annual payments on both contracts will begin in October of 2005. Funds will be included in the Manager's recommended budget for 2005-06 and future years to cover the annual costs for both contracts. RECOMMENDATION(S): The Manager recommends that the Board adapt the resolutions and authorize the Finance Director and County Attorney to execute documents as required to accomplish the financing with RBC Centura.