STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: April 10, 2024
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
Authorize a five-year Public Property Finance Contract (“Finance Contract”), with two one-year renewal options, for the financing of personal property purchases - JPMorgan Chase Bank, N.A., most advantageous qualifying proposer of three - Not to exceed $200,000 ($60,000 upfront legal costs, plus annual legal fees of $20,000) - Financing: General Fund (subject to annual appropriations)
Body
BACKGROUND
This resolution will authorize the execution of a Finance Contract providing financing for the purchase of capital equipment, fleet, and technology items. The City utilizes a Finance Contract as a means to purchase or otherwise acquire, use, and finance public property, pursuant to the Public Property Finance Act, Texas Local Government Code §§ 271.001 - 271.009. Additionally, the use of a tax-exempt Finance Contract providing a line of credit permits more cost-efficient use of financing as funds are borrowed to closely match the amount and timing of the payment for equipment, or “just-in-time” borrowing. Currently, Finance Contract interest rates are comparable to tax-exempt short-term note issuance and the initial and annual costs of the program are less than other types of debt issuance, such as tax-exempt commercial paper. There are no fees for financial advisory, rating agency, paying agent, or liquidity facility services since the Finance Contract is considered a private placement. The only expense associated with the program is for legal services, such as reviewing the Finance Contract and issuing an opinion that the lease is a tax-exempt obligation.
The following items are financed using the Finance Contract program, including but not limited to:
• Sanitation collection and landfill vehicles
• Fire apparatus - fire engines and aerial trucks
• General purpose fleet - light, medium, and heavy-duty vehicles
• Information technology (IT) - items associated with fleet management, City equipment fuel management, computer aided dispatch, public safety, customer service/performance management applications, budget/finance enterprise applications, and replacing/upgrading the City’s computers and IT infrastructure
Legal services associated with the establishment of the Finance Contract will be provided by the City Attorney’s Office in conjunction with the City’s contracted municipal finance counsel. The legal fees associated with the establishment of the Finance Contract includes an initial payment of $60,000 and $5,000 per quarter if the draw exceeds $5,000,000.
A five-member evaluation committee from the following departments reviewed and evaluated the proposals:
• City Controller’s Office (1)
• Department of Aviation (1)
• Budget and Management Services (1)
• Small Business Center Department (1)*
• Office of Procurement Services (1)**
*Small Business Center Department only evaluated the Business Inclusion and Development Plan.
**Office of Procurement Services, with the assistance of the City Controller's Office, evaluated cost.
The successful proposer was selected by the committee based on the ability to comply with all requirements of the City, and on the basis of demonstrated competence and qualifications under the following criteria:
• Experience and qualifications 30 points
• Fees 30 points
• Approach 20 points
• Business Inclusion and Development Policy 15 points
• Local Preference 5 points
On November 10, 2015, the City Council authorized a living wage policy that requires contractors to pay their employees a “living wage” rate as established annually by the Massachusetts Institute of Technology Living Wage Calculator for Dallas County by Resolution No. 15-2141. The calculated living wage during the solicitation process of this contract is $18.24; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On August 26, 2015, the City Council authorized a five-year master municipal lease agreement for the financing of personal properly purchases with Banc of America Public Capital Corp. by Resolution No. 15-1523.
On March 22, 2017, the City Council authorized an amendment to the five-year master municipal lease agreement for the financing of personal property purchases with Banc of America Public Capital Corp. Resolution No. 17-0493.
The Government Performance and Financial Management Committee was briefed regarding this matter on the “FY 2023-24 Debt Issuance Overview” on October 23, 2023.
The Government Performance and Financial Management Committee was briefed by memorandum regarding this matter on March 25, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=12780760&GUID=1EF8A166-99E4-4852-83AE-43E4B921E489>
FISCAL INFORMATION
|
Fund |
FY 2024 |
FY 2025 |
Future Years |
|
General Fund |
$80,000.00 |
$20,000.00 |
$100,000.00 |
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$200,000.00 |
Other Services |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
N/A |
N/A |
N/A |
|
• This contract does not meet the M/WBE goal. |
|
• JPMorgan Chase Bank, N.A - Non-local; Workforce - 0.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Request for Competitive |
• Utilized for high technology procurements, insurance procurements, and other goods and services |
|
Sealed Proposal |
• Recommended offeror whose proposal is most advantageous to the City, considering the relative importance of price, and other evaluation factors stated in the specifications |
|
|
• Always involves a team evaluation |
|
|
• Allows for negotiation on contract terms, including price |
The Office of Procurement Services received the following proposals from solicitation number BTZ23-0022376. We opened them on July 7, 2023. We recommend the City Council award this contract in its entirety to the most advantageous qualified proposer.
*Denotes successful proposer
Proposers Address Score
*JPMorgan Chase 1111 Polaris Parkway 73.00
Bank, N.A. Floor 1A
Columbus, OH 43240
Banc of America Public 11333 McCormick Road 77.20
Capital Corp. Hunt Valley, MD 21031
Truist Equipment Finance 303 Peachtree Street 32.40
Corp. Atlanta, GA 30308
OWNER
JPMorgan Chase Bank, N.A., a wholly owned subsidiary of JPMorgan Chase & Co.
James Dimon, President