HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
FILE ID: 09" Ot55//
Date: 4/3/2009 ,0?5 Requesting Department: Solid Waste
Commission Meeting Date: 6/W2009 District Impacted: All
Type: X Resolution ❑ Ordinance ❑ Emergency Ordinance [] Discussion Item
❑ Other
Subject: Proposed Resolution Authorizing a Request to Finance up to $6.0 Million for the Purchase of
Equipment
Law Department
Matter ID No.
Purpose of Item:
It is respectfully recommended approval of the attached Resolution authorizing the City Manager to
solicit proposals from financial institutions to finance the purchase of needed equipment for the
department of solid waste, in an estimated amount not to exceed $6.0 million; stipulating that said
amount will be repaid at an annual interest rate not to exceed 5.5%; directing the City Manager, upon
completion of the selection process, to present a contract with the selected proposer to the City
Commission for its consideration.
Background Information:
SEE ATTACHMENT
Budget Impact Analysis
NO Is this item related to revenue?
YES Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact: $6.0 Million
Final Approvals
,(UGN AND DATE)
CIP Budget
If using or receiving capital funds
Grants
Purchasing `
Chief / "i.-,I� d\ o'6/%�
Risk Management
Dept. Director
City Manager
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AGENDA SUMMARY FORM ATTACHMENT
Subject: Resolution Authorizing a Request to Finance up to $6 Million to
Purchase Equipment
Background Information:
Recently, a report on the status of Solid Waste Operations was distributed to the City
Commission. The Department of Solid Waste is over 65 pieces of equipment behind
schedule for equipment replacement the department's equipment needs are still hovering
at a critical state.
The Commission approved $2.5 million for equipment replacement this fiscal year
which, will be delivered in August 2009, and still leaves us lacking equipment in order to
efficiently and effectively manage the Operations Division of the department.
After careful consideration of the available options it is recommended that the
Department of Solid Waste be authorized to solicit financing up to $6 million to be used
towards the purchase of the necessary solid waste equipment. The depai lnient will repay
the loan via a portion of the annual solid waste fee collections.
This approach, at a maximum, will save money by being able to purchase the equipment
utilizing this year's prices and will allow the Director of the department to fully
complement the fleet to its appropriate level sooner providing more timely service to our
customers and reduce overtime by 30% due to downtime of existing equipment. The
equipment requires 9 months to purchase, fabricate and delivery. Therefore, continuing
annual pay as you go purchases will not meet the department equipment needs.
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