INTER-OFFICE MEMO
To: From: Subject:
Committed to Service
Accounting/Finance May 12,2008
ACHD Commission J. Schweitzer, ACHD Director Michael L. Brokaw, Deputy Director/Treasurer Lease of Three New Vacuum Sweepers
Facts And Findings: The ACHD Commission approved the purchase of three new vacuum sweepers from Metroquip for $167,994.00 per unit, with a buy-back amount of $27,700.00 per unit at the end of four years. The Commission approved this purchase in November, 2007. Governmental leases in Idaho were all but curtailed when Wells Fargo Bank decided to exit from governmental leases on equipment when the Idaho Supreme Court issued its’ decision on the Frazier vs Boise City case. This case centered on the financing of a new airport parking garage. Staff requested proposals from four companies that had contacted the District and stated that they were willing to complete a governmental equipment lease in Idaho. The results are as follows: CitiCapital Victory Mountain CG Commercial Funding Jules & Associates Fiscal Impact: The Operations Division budgeted $550,000 for the purchase of this equipment. Leasing of the three new vacuum sweepers will free up approximately $400,000 this budget year. Recommendation: Staff submitting recommends the ACHD Commission authorize the President of the Commission to execute and sign the lease documents with CitiCapital. 3.98% $114,639 4.30% $115,580 4.50% $115,834 $118,583 4-year term 4-year term 4-year term 4-year term
RESOLUTION NO. 854 BY THE ADA COUNTY HIGHWAY DISTRICT BOARD OF COMMISSIONERS: CAROL A. MCKEE, SHERRY R. HUBER, DAVE BIVENS, JOHN S. FRANDEN, AND REBECCA W. ARNOLD.
A RESOLUTION APPROVING THE FORM OF EQUIPMENT LEASE PURCHASE AGREEMENT WITH CITICAPITAL COMMERCIAL CORPORATION AND AUTHORIZING THE EXECUTION AND DELIVERY OF THAT AGREEMENT. WHEREAS, the Commissioners for the Ada County Highway District (“District”) met at its regularly scheduled meeting on May 21st, 2008, and determined that the lease/purchase of the property (hereinafter the “Equipment”) described in that certain State and Local Government Lease/Purchase Agreement (hereinafter the “Agreement”) with Citicapital Commercial Corporation, Attachment 1, Attachment 2, attached to this Resolution, is essential to the purpose of the District and such purpose is a valid public purpose; and WHEREAS, the Commissioners reviewed the form of the Agreement and found the terms and conditions therein acceptable to the District; and WHEREAS, either there are no requirements under applicable law for arranging for the lease/purchase of the Equipment or the Commissioners have already taken the steps required to comply with such law. BE IT RESOLVED by the Commissioners as follows: The provisions set forth in the Agreement with Citicapital Commercial Corporation are in the best interest of the District for leasing/purchasing the Equipment; The President is now authorized and directed to execute and/or deliver the Agreement in substantially the form presented at the meeting and any related documents necessary to consummate the contemplated transaction. The President may make such changes to the Agreement and related documents as she deems necessary or desirable. The District and its agents are hereby authorized and directed to fulfill all obligations under the provisions of the Agreement. ADOPTED AND APPROVED this _____ day of May, 2008.
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BOARD OF HIGHWAY DISTRICT COMMISSIONERS OF ADA COUNTY, IDAHO:
______________________________ Carol A. McKee, President
Sherry R. Huber , 1st Vice President
______________________________ Dave Bivens, 2nd Vice President
John S. Franden, Commissioner
______________________________ Rebecca W. Arnold , Commissioner
ATTESTED:
By: _________________________________________ Print Name: __________________________________ Title: ________________________________________
C:\Documents and Settings\kmcdonagh\Local Settings\Temporary Internet Files\Content.Outlook\12HX3SGH\Citicapital Commercial Corporation Lease Purchase Agreement Resolution.docx