TITLE
Recommendation to adopt Specifications No. RFP FM15-076 and award a contract to Banc of America Public Capital Corporation, of Scottsdale, AZ, to provide master lease services on an as-needed basis, in an amount not to exceed $111,000,000, for a period of five years, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract (Master Lease Agreement) with Banc of America Public Capital Corporation (BAPCC), to provide the City with master lease services on an as-needed basis, to facilitate the acquisition of eligible assets. The Master Lease Agreement allows the City to lease-finance assets such as computers, software systems, and higher-cost equipment purchases such as fire trucks, in an efficient low-cost manner. The City would enter into multiple individual lease agreements, whose terms will be governed by the Master Lease Agreement. Terms for individual leases may range from three to fifteen years, depending on the useful life of the asset. The interest rates on individual lease agreements are established through an agreed pricing formula, which provides for a fixed interest rate spread over the U.S. Treasury curve of like terms, adjusted to a tax-exempt rate. Rates may be locked-in up to five business days before funding is needed, thereby providing additional pricing flexibility for new acquisitions. Each acquisition and related individual lease under the Master Lease Agreement must be approved by the City Council.
A Request for Proposals (RFP) was advertised in the Press-Telegram on March 23, 2015, and 3,536 potential vendors specializing in equipment financing were notified of the RFP opportunity. Of those proposers, 45 proposers downloaded the specifications via our electronic bid system. The document was made available from the Purchasing Division located on the seventh floor of City Hall and the Division’s website at www.longbeach.gov/purchasing
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