Title: Master Lease, Escrow Agreement

Recommendation:
I recommend the School Board adopt a Resolution authorizing execution of a Master Lease, Escrow Agreement and other related documents associated with a lease to purchase equipment required for the voice/data system in an aggregate principal amount not to exceed $6,500,000. 

Description:

·        This Resolution delegates authority to the Superintendent to negotiate the terms of the transaction with CIT Leasing Corporation within the parameters set forth in the Resolution.  The Resolution also authorizes the execution and delivery of all instruments and documents necessary to complete the transaction.

·        CIT Communications Finance Corporation has partnered with Avaya, one of the vendors involved in the voice/data system.  They have offered the financing at 0% for a three-year period.  The School District does have another equipment lease that was used to purchase fitness equipment in 2003.  That lease was bid with offers received from four banks.  At the time, the best offer was 2.35%.  Current market pricing for such a transaction is approximately 3.5%.   This represents savings of approximately $300,000.

·        The transaction was discussed at the Finance Committee meeting on September 7, 2005. 

·        The remaining equipment needed to complete the project will be included in another financing in the next few months.

Financial Impact:
The issuance of the lease is to provide the funding needed to purchase equipment required for the voice/data system.  Revenue source of approximately $6,500,000.

For Additional Information, contact:
Joseph Moore (jmoore@palmbeach.k12.fl.us)

Attachments (list):
Palm Beach Project.pdf
Cost Benefit.pdf
Presentation.pdf
Resolution 1-20-06.pdf