HomeMy WebLinkAbout#13 Service trucks
To: Board of Directors
From: Mary Chapman, Administrative Services Manager
Date: January 12, 2001
Consideration of approving the necessary documents for the financing of
three service trucks for the water department
On April 5,2000, the Board of Directors authorized the purchase of three service trucks
from Jones-West Ford for the water department. The three trucks have arrived and are
at the Jones-West Ford lot. The purchase price for the three trucks is $100,680. The
water department will be going out to bid soon for the construction of truck beds which
will be mounted on the trucks. Ed expects that the cost should be approximately
$64,320. The total cost for all three trucks will be approximately $165,000.
In the 2001 budget, we have scheduled to finance the trucks for five years. I have
contacted Municipal Services Group (MSG) to arrange for financing. We currently have a
master lease with them and four outstanding loans. They will issue a check immediately
for payment of the three trucks. They will open an escrow account with the balance of
the proceeds which will be disbursed as soon as the truck beds are constructed and
installed. The earnings on the escrow account balance will be used to offset the interest
cost on the loan.
Attached are copies of the documents that we will need to execute. Steve Gross has
been provided a copy to review and will comment at the meeting. In addition, MSG
requires that the Board pass a resolution approving the acquisition of the trucks and
authorizing the execution of the loan documents.
Recommendation:
1. To approve the attached resolution entitled Approving Agreement to Acquire
Equipment for the acquisition and financing of the three service trucks.
2. Authorize the General Manager to execute the loan documents after approval
of the documents by legal counsel.