CITY COMMISSION AGENDA ITEM

Department:

Finance Department

Commission Meeting Date:  Nov 20, 2018

Staff Contact:

Danielle Buschkoetter, Interim Finance Director

Recommendations/Options/Action Requested:

Adopt Resolution No. 7274 declaring the City’s intent to reimburse costs of acquiring certain equipment from proceeds of a lease purchase agreement.

Executive Summary:

During the 2018 budget process, the City identified the following information technology projects in the Capital Improvement Plan.

Equipment	Cost
Access Layer Switch (IT1701CIP)	$56,000
Secondary Internet Connection (IT1801CIP)	$80,000
Total	$136,000

The Secondary Internet Connection was to be debt financed and the Access Layer Switches were budgeted in the Equipment Reserve Fund. However, due to limitations on what can be debt financed, staff is now recommending that a portion of debt eligible expenditures from both projects be financed through a lease purchase. The remainder of the project costs will be financed using Equipment Reserve funds.

Each of the items will be purchased following the City purchasing policy. The resolution will allow for the City to reimburse itself for those purchases. For the financing, the City will solicit proposals from interested local banks for a term of 5 years lease purchase. The timing of the lease will be contingent on the bidding out of the individual equipment items.

Strategic Plan Critical Success Factor

Effective Governance/Professional Administration

Safe, Healthy, and Welcoming Neighborhoods

Innovative Infrastructure and Asset Management

Sound Fiscal Stewardship

Fiscal Impact (Amount/Source):

The fiscal impact to the City will be five years of lease payments beginning in fiscal year 2019. These items were included in the 2018-2022 CIP and included in the debt service payments for the 2019 budget. 

Attachments:

Resolution No. 7274

Reviewed By: (for CMO use only)

☐TM ☐DS ☒CT ☐BM