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Date: October 14, 2024 Item: 10 <br />Presenter: Maggie Jin, Finance Director <br />Section: Consent Agenda <br /> <br />Title: Capital Equipment Lease Approval <br /> <br /> <br />1.Purpose: <br />The purpose of the action item is to gain approval for staff to enter a lease agreement with <br />Huntington Bank for the purchase of the new brush medical response utility for the Orono Fire <br />Department. <br />2.Background: <br />On August 28, 2023 the Council approved the purchase of the new brush medical response utility. <br /> The Council also directed staff to obtain competitive lease proposals for the financing of the <br />vehicle. Staff contacted Huntington Bank and Community Leasing Partners for proposals. <br /> Bridgewater, the City’s current bank, does not offer lease programs. Staff reviewed proposals by <br />Community Leasing Partners and Huntington Bank. The rates are as follows: <br /> <br />Financial Institution Rate Term Interest Amount <br />Huntington Bank 4.31%5 years $27,551 <br />Community Leasing Partners 5.69%5 years $29,065 <br />3.Cost: <br />Funding will be from the Fire Capital Fund. The total cost of the lease will be the amount of the <br />interest, $27,551, with an additional $250 documentation fee. <br />4.Staff Recommendation: <br />Staff recommends that Council grants staff the authority to negotiate and enter into a lease with <br />Huntington Bank based on the attached term sheet. <br />AGENDA ITEM <br /> <br /> <br /> <br /> <br /> <br /> <br />COUNCIL ACTION REQUESTED <br />Motion to allow staff to negotiate and enter into a lease agreement with Huntington Bank. <br />Exhibits <br />Exhibit A. Term Sheet and Payment Schedule <br />84