REPORT TO THE CITY COUNCIL
FROM: MICHAEL LIMA, Finance Director/Controller
Finance Department
BY: PHILLIP L. HARDCASTLE, Principal Accountant - Debt Administration
Finance Department
SUBJECT:
Title
Actions pertaining to executing the Master Equipment Lease Purchase Agreement and Resolution:
1. RESOLUTION - Authorizing the execution and delivery of a Master Equipment Lease Purchase Agreement and certain separate lease schedules with respect to the acquisition, purchase, financing and leasing of equipment for the public benefit; and authorizing the execution and delivery of documents required in connection therewith.
2. Approve an agreement of the Master Equipment Lease Purchase Agreement (MELPA) with Banc of America Public Capital Corp. (BAPCC)
Body
RECOMMENDATION
Staff recommends that the Council adopt the resolution approving a Master Equipment Lease Purchase Agreement with Banc of America Public Capital Corp. This agreement is necessary to provide the City with a lease-purchase financing mechanism to purchase equipment, vehicles, and other items.
EXECUTIVE SUMMARY
The City has utilized a Master Equipment Lease Purchase Agreement (MELPA) for several years. A MELPA provides a ready-to-use mechanism to finance equipment purchases over time. The City's previous MELPA expired on December 31, 2021. Staff conducted a procurement process to find a lender that would finance a new MELPA. As a result of that process, it is recommended that the Council approve a new MELPA with Banc of America Public Capital Corp (BAPCC). Proceeds from this MELPA will be used to fund upcoming equipment purchases which will be approved as part of current and future Adopted Budgets, and other equipment as approved by the City Council.
BACKGROUND
A MELPA is a common form of financing that the City has utilized for several years to lease-purchase fire apparatus, police vehicles (including helicopters), telecommunications, computers, building improvements, and software licenses. ...
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