STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: April 14, 2021
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
title
Authorize a (1) sixteen-month extension of the Master Equipment Lease/Purchase Agreement for the financing of personal property purchases with Banc of America Public Capital Corp; and (2) approving other matters in connection therewith including annual legal fees therewith - Not to exceed $30,000 - Financing: General Fund (subject to appropriations)
body
BACKGROUND
This will authorize a sixteen-month extension of the current Master Equipment Lease/Purchase Agreement (Master Lease). The Master Lease program, last authorized on August 26, 2015, provides financing for fleet and equipment purchases. The use of a tax-exempt master lease line of credit permits a cost-efficient use of financing as funds are borrowed to closely match the amount and timing of the payment for equipment. Interest rates are comparable to tax-exempt short-term note issuance. The annual cost of the program is 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 master lease is considered a private placement. The only expense associated with the program is for legal services, such as reviewing the Master Lease agreement, correspondence with government agencies regarding the Master Lease agreement, and issuing an opinion that purchases through the Master Lease program are tax-exempt obligations.
The following items are financed using the Master Lease 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 associ...
Click here for full text