AGENDA #4g
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Award of Bid for Financing of Mobile Data Equipment for the 2003-04 Fiscal Year
DATE: March 22, 2004
The attached resolution would authorize the Manager to enter into an installment contract with SunTrust Leasing Corporation for the financing of ten mobile data terminals and the associated communications equipment and software included in the current year budget totaling $133,510 with an average life of 3 years.
BACKGROUND
On November 24, 2003 and January 12, 2004, the Council approved the financing and purchase of 28 mobile data terminals for use in patrol cars. The mobile data terminals enable officers driving cars to prepare police reports in the car and submit them directly to the Department’s records system. The mobile data terminals increase police officers’ efficiency and increase their personal safety. We are now able to transmit pictures of suspects and wanted persons directly from our records system to the mobile data terminal in the police car. The Council approved financing the mobile data units over three years. Below we discuss the financing proposals that we received.
FINANCING PROPOSALS
Requests for proposals for financing the purchase of the mobile data equipment were sent to eight financial institutions with responses requested by March 8. The proposals specified quotes for three-year fixed rate installment payments on $133,510 for ten mobile data terminals and the associated communications equipment and software with an expected life averaging 3 years.
Responses were received from five financial institutions on March 8 as follows:
|
Financial Institution |
Interest Rate |
Principal & Interest |
Fees (not to exceed) |
Total Cost |
|
1.98% |
138,174 |
- |
138,174 |
|
|
First Citizens |
2.08% |
138,412 |
100 |
138,512 |
|
RBC Centura |
2.28% |
138,887 |
350 |
139,237 |
|
Branch Banking &Trust |
2.51% |
139,435 |
- |
139,435 |
|
Ashford Capital Corporation, Inc. |
3.975% |
142,950 |
- |
142,950 |
RECOMMENDATION
We recommend that the Council adopt the attached resolution authorizing the execution of a lease-purchase contract for the mobile data equipment purchase in the current year totaling $133,510.
ATTACHMENTS
1. Memorandum of January 12, 2004 and Memorandum of November 24, 2003 (p. 4).
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A LEASE-PURCHASE CONTRACT FOR THE MOBILE DATA EQUIPMENT PURCHASE FOR THE 2003-2004 FISCAL YEAR (2004-03-22/R-8)
WHEREAS, the Town of Chapel Hill solicited and received competitive proposals from financial institutions for the financing of ten mobile data terminals and the associated communications equipment and software for the Police Department; and
WHEREAS, SunTrust Leasing Corporation offers the lowest total interest cost of 1.98% for the 3-year term for the purchase of this equipment totaling $133,510;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to enter into a contract with SunTrust Leasing Corporation on behalf of the Town for the financing of mobile data equipment totaling $133,510 at a fixed interest cost of 1.98% for a three-year term with total principal, interest and fees cost of $138,174.
BE IT FURTHER RESOLVED that the aforesaid contract by and between the Town of Chapel Hill, various State contract and other vendors, and SunTrust Leasing Corporation, together with the amounts to be paid thereunder, are hereby designated as qualified tax-exempt obligations of the Town of Chapel Hill for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
BE IT FURTHER RESOLVED that the Council does not reasonably expect that the Purchaser will issue more than $10,000,000 in qualified tax-exempt obligations pursuant to such Sections 265(b)(3)(ii) during the current calendar year.
This the 22nd day of March, 2004.