HomeMy WebLinkAboutItem 09 - Finance ExpendituresITENt 0 _„ 67
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
MEETING DATE: NOVEMBER 20, 2001
SUBJECT: RESOLUTION EXPRESSING INTENT TO FINANCE
EXPENDITURES TO BE INCURRED AND PROVIDING AN
EFFECTIVE DATE
RECOMMENDATION:
City Council to consider approving a resolution expressing intent to finance expenditures
to be incurred and providing an effective date.
FUNDING SOURCE:
Future issue of Equipment Acquisition Notes for the purpose of acquisition of equipment
approved for purchase in the FY 2002 Budget, Account Number 325-48910-000000-05
and 325-48860-000000-05.
BACKGROUND:
This item is recommended for approval in order to allow for the placement of orders for
equipment items which were approved FY 2002 Budget and which are scheduled for
purchase with equipment notes. These are tax exempt obligations similar to the equipment
notes which were issued in prior years for equipment purchases. A copy of the complete
equipment list is attached.
This method of financing equipment continues to be economically viable for the City. Staff
anticipates the interest rate to be paid on the notes to be approximately 3.5%. Currently
we are. investing City funds at a 3.88% yield. While the yield differential is small at this
time, staff anticipates that the differential will increase substantially as the economy
improves in the future. An improved economy will increase the return on the City's
investments while debt obligations will remain fixed as bid.
The reimbursement resolution provides that the City can reimburse itself for expenditures
incurred for equipment prior to the actual equipment note sale. The sale is planned for
December or January, depending upon fluctuation of rates.
Staff recommends approval.
WAG/cjc
H AGMEquipNotes11-20-01
November 13, 2001 (3:52PM)
EXHIBIT "A"
PROPOSED EQUIPMENT NOTE PURCHASE ITEMS
FY 2001-02 Proposed Operating Budget
CMO - Admin
Laptop, software and zip drive for Council Chambers
2,200
CMO - IT
50 replacement monitors
10,000
75 replacement PCs
105,000
8 replacement laptop PCs
17,600
8 replacement Laser Jet printers
12,000
10 replacement print servers
2,500
Windows 98 software for 60 PCs
6,000
2 hard drive upgrades to 70 gigabytes
4,000
6 replacement servers
24,000
Replacement DLT backup tape unit
9,000
POLICE - Admin
Replacement full-size sedan, non -patrol
23,000
POLICE - Uniform Ops
4 replacement motorcycles
62,000
3 replacement full-size patrol sedans
72,000
POLICE - CID
3 replacement full-size sedans, non -patrol
72,000
Replacement full-size van
29,000
POLICE - Technical Svcs
HP Photosmart DeskJet I I00xi
450
Replacement printer for patrol; LAN capable
1,600
"
2 [17"] monitors for CID
1,200
2 PCs with VisionAIR software
10,000
Forensic Recovery of Evidence Device [FRED]
4,500
2 printers for Crime Scene and SRO; LAN capable
3,300
2 laptop PCs with VisionAIR software, Windows NT, 64 MB RAM, LAN capable
9,000
Replacement mobile computers
80,699
Replacement portable radios
32,000
Replacement mobile radios
11,500
Replacement motorcycle radios
5,400
FIRE - Admin
3 replacement laptop PCs l 2 additional laptop PCs
15,000
8 remote administration software licenses
1,600
6 replacement,' 5 additional color inkjet printers
1,650
7 Palm Pilot IIIc devices
1100
Replacement sports utility vehicle
25,000
FIRE - Prevention & Training
Additional sports utility vehicle
25,000
FIRE - Operations Replacement 4x4 cab and chassis for brush fire use 36,000
10 portable radios 33.000
Replacement fire hose 41,500
Muti gas detectors 5,000
LifePak Ni -Cad batteries with charger 9,255
PARKS - Maintenance DeskJet printer 500
PROPOSED EQUIPMENT NOTE PURCHASE ITEMS
FY 2001-02 Proposed Operating Budget
PUBLIC WKS - Engineering 2 replacement light duty trucks
42,000
3 laptop PCs
6,600
PUBLIC WKS - Streets Replacement gradall
239,000
Replacement concrete saw
16,000
PUBLIC WKS - Traffic Additional concrete saw
15,000
UTILITY - Water Distribution Replacement light duty truck 25,000
UTILITY - Water Treatment Replacement golf utility cart 3,000
UTILITY - WW Collection Replacement sewer jet truck 72,000
UTILITY - WW Treatment 3 Palm Pilots 1,200
GOLF - Course Maintenance Replacement tee box mower 17,500
Replacement greens aerifier 16,000
Replacement walk -behind greens mower 4,350
Replacement rotary mower 16,500
Walk -behind de -thatcher for greens 6,500
TOTAL 1,286,204
Summary by expenditure tvpe:
Fleet vehicle replacement schedule
716,000
Additional vehicles requested by departments
25,000
IT computer equipment replacement schedule
190,100
Additional computer equipment requested by departments
60,900
Departmental equipment requests
294,204
Total 1,286,204
a
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS EXPRESSING INTENT TO FINANCE
EXPENDITURES TO BE INCURRED AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas (the "Issuer") is a home rule city
authorized to finance its activities by issuing obligations the interest on which is excludable
from gross income for federal income tax purposes ("tax- exempt obligations") pursuant to
Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"); and
WHEREAS, the Issuer will make, or has made not more than 60 days prior to the
date hereof, payments with respect to the acquisition, construction, reconstruction or
renovation of the property listed on Exhibit "A" attached hereto; and
WHEREAS, the Issuer has concluded that it does not currently desire to issue tax-
exempt obligations to finance the costs associated with the property listed on Exhibit "A"
attached hereto; and
WHEREAS, the Issuer reasonably expects to issue tax-exempt obligations to
reimburse itself for the costs associated with the property listed on Exhibit "A" attached
hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the preamble are true and correct and are
incorporated into the body of this resolution as if copied in their entirety.
Section 2. The Issuer reasonably expects to reimburse itself for all costs that
have been or will be paid subsequent to the date that is 60 days prior to the date hereof
and that are to be paid in connection with the acquisition, construction, reconstruction or
renovation of the property listed on Exhibit "A" attached hereto from the proceeds of tax-
exempt obligations to be issued subsequent to the date hereof
Section 3. The Issuer reasonably expects that the maximum principal amount of
tax-exempt obligations issued to reimburse the Issuer for the costs associated with the
property listed on Exhibit "A" attached hereto will not exceed $1,300,000.00
Section 4. That this resolution shall become effective from and after the date of
its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 20th day of November, 2001.
Is,
DESCRIPTION OF PROPERTY
Description
Amount
Equipment acquisition for police, fire, $1,300,000
administrative, parks, golf, public works
and utility departments