Orange County NC Website
Browse       Search
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: .tune 7, 2005 <br />Action Agenda <br />Item No. _ ~~~_ <br />SUBJECT: Resolution Authorizing Installment Financing Contract for Equipment <br />Purchases <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Resolution <br />Amortization Schedule <br />INFORMATION CONTACT: <br />Ken Chavious, ext 2450 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider adopting a resolution required by SunTrust Bank to facilitate the <br />financing of equipment already purchased by the County's Solid Waste Department and <br />equipment to be purchased by the County's Public Works Department, <br />BACKGROUND: At meetings on April 19, 2005 and May 3, 2005, the Board approved the <br />purchase of Public Works vehicles including a Front Loader Refuse Truck ($164,726) and a <br />Tandem Axle Dump Truck ($92,964), These two items were a part of the major equipment <br />purchases proposed by staff and approved by the Board on March 15, 2005, In addition, the <br />Board is being asked in other action at this .June 7 meeting to award a bid for the purchase of <br />thirteen 20-yard containers for the solid waste convienience centers, at a cost of $43,485, <br />Acquisition of these containers was also approved by the Board on March 15, 2005. Exact <br />pricing was not available at that time, Therefore, these items were not included in the most <br />recent equipment financing proposal that was approved by the Board on April 12, 2005. <br />At meetings on December 6 and December 14 2004, the Board authorized staff to purchase <br />equipment for the Solid Waste Department. Approved equipment included a Crawler Dozer for <br />the construction and demolition (C&D) landfill ($274,700) and a Hook Lift Truck for the <br />Recycling Program ($111,632). Board action also authorized staff to pursue financing for the <br />purchase of these two equipment items. Financing agreements for this equipment were not <br />immediately pursued pending the other proposed equipment purchases mentioned above. With <br />the passage of time, the Solid Waste items were inadvertently omitted from the financing <br />proposal approved on April 12, 2005. Both of the pieces of equipment were acquired and paid <br />for in full with funds available in the Solid Waste Enterprise Fund. Staff propose to seek the <br />intended financing for that equipment retroactively. SunTrust is willing to loan those funds, with <br />the proceeds of the Solid Waste portion of the loan being returned to the Landfill Enterprise <br />Fund to reimburse it for the cash equipment purchases that were made. The future debt <br />service on this portion of the SunTrust loan would be paid over 59 months from the Landfill <br />Enterprise Fund, <br />