REPORT TO THE CITY COUNCIL
FROM: SANTINO DANISI, MBA, Finance Director/City Controller
Finance Department
SUBJECT
Title
Approve the First Amendment to Master Equipment Lease Purchase Agreement to increase the borrowing capacity.
Body
RECOMMENDATION
Approve the first amendment to the Master Equipment Lease Purchase Agreement to increase the borrowing capacity to meet existing and future needs of the City
EXECUTIVE SUMMARY
The City of Fresno (City) currently has a Master Equipment Lease-Purchase Agreement (MELPA) with Banc of America Public Capital Corporation (BAPCC) for financing equipment purchases. On January 13, 2022, Council awarded a three-year contract with two one-year extensions. The City would like to amend the original agreement by increasing the borrowing capacity from an aggregate amount of $35 million to an aggregate amount of $55 million. The capacity increase will enable staff to fund approved equipment and vehicle purchases, including anticipated future needs. The need is also largely related to the accelerated pace of fleet acquisition through the General Services Department's work to meet demand.
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. The MELPA does not approve the purchase of this equipment nor authorize the financing of any equipment. It simply provides a mechanism to fund equipment once approval for purchase and authorization to finance is given by the City Council.
On January 13, 2022 after going through an extensive request for proposals process for lenders, the City approved a new Master Equipment Lease-Purchase Agreement with BAPCC. 359 firms were asked to submit a proposal; including local firms; 16 of whom have previously solicited the City for these types of services. Out of all that outreach, only BAP...
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