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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: August 19, 2008 <br />Action Agen a <br />Item No. ~--~g~ <br />SUBJECT: Final Resolution for Financing of Solid Waste Equipment <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/NJ No <br />ATTACHMENT(S): <br />Resolution <br />INFORMATION CONTACT: <br />Gary Humphreys, 245-2453 <br />Robert Jessup, 919-755-1800 <br />PURPOSE: To adopt a resolution required to authorize the final steps to complete the financing <br />of equipment purchased by the County's Solid Waste Department. <br />BACKGROUND: On June 24, 2008, the Board authorized and directed the Financial Officer to <br />take all appropriate steps toward the completion of up to $9.3 million in financing, $1.3 million for <br />Solid Waste equipment and $8 million for the construction of the Animal Shelter Facility. <br />Proposals were requested from seven institutions and four institutions responded with <br />proposals. The County's request provided that the financing for the Solid Waste equipment and <br />the Animal Shelter Facility could be awarded to different institutions. Based on the proposals <br />received, the result with the lowest cost for the County was to award the financings separately. <br />The solid waste financing is for 59 months (less than five years and therefore it does not require <br />Local Government Commission approval). The solid waste financing is for four pieces of <br />equipment that the Board has authorized to be purchased and financed. The Board has also <br />approved the required reimbursement resolutions for all of the equipment in the event it was <br />received before the financing was completed. The equipment being financed totals $1,191, 638 <br />and consists of the following: <br />1) Hook Lift Truck authorized December 3, 2007 $144,821 <br />2) Two front loading garbage trucks authorized February 19, 2008 $401,592 <br />3) Landfill compactor authorized April 1, 2008 $645,225 <br />The proportion of the debt service related to the hook lift truck and one of the garbage trucks, <br />which are for Sanitation, will be allocated to the General Fund and the remainder will be paid for <br />by the Solid Waste Fund. <br />The lowest cost financing proposal was from RBC Centura at a rate of 3.27%. Debt service <br />payments will be paid annually; therefore there will be no debt service payment until fiscal year <br />2009-10. The attached resolution was prepared by bond counsel in accordance with statutory <br />