REPORT TO THE CITY COUNCIL
December 6, 2018
FROM: MICHAEL LIMA, Finance Director/City Controller
Finance Department
BY: PHILLIP L. HARDCASTLE, Principal Accountant - Debt Administration
Finance Department
SUBJECT:
Title
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.
Body
RECOMMENDATION(S)
Staff recommends that the Council adopt the accompanying resolution and thereby approve a Master Equipment Lease Purchase Agreement with Banc of America Public Capital Corp. This agreement is necessary to provide lease-purchase financing of City equipment.
EXECUTIVE SUMMARY
Staff is recommending that Council approve a Master Equipment Lease Purchase Agreement (MELPA) with Banc of America Public Capital Corp (BAPCC) in order to fund equipment purchases which have been/will be approved as part of current and future Adopted Budgets, and other equipment as approved by the City Council. A MELPA provides a ready-to-use mechanism to finance equipment purchases over time. The City has had this type of lease arrangement in place for several years. This agreement is necessary to provide quick lease purchase financing of City equipment. Rates will be determined at the time of financing, based on a Spread that is between 0.5902% and 1.0151% above an agreed upon index (the "Average-Life Swap Rate x 79%") effective immediately upon approval of the Council.
BACKGROUND
On September 18, 2018, the City requested proposals for a Master Equipment Lease Purchase Agreement ("MELPA") from local, regional and national financing institutions. An MELPA provides a ready-to-use mechanism to finance equipment purchases over time. The City has had this type of lease arrangement in place for several years. A n...
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