TITLE
Recommendation to adopt Specifications No. RFP FM18-124 and award a contract to Banc of America Public Capital Corporation, of Charlotte, NC, for as-needed lease financing services, in an amount not to exceed $200,000,000, for a period of five years, with an option to extend the contract for three additional one-year periods, 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 lease financing 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, fire trucks, public safety equipment, and street sweepers in an efficient, low-cost manner. The City will enter into multiple individual lease agreements governed by the Master Lease Agreement. Terms for individual lease financings may range from 3 to 15 years, depending on the useful life of the asset. The interest rate on an individual lease financing will be established through an agreed upon pricing formula, as outlined in the BAPCC RFP response, which consists of a publicly published swap rate index (based on the average life of the lease financing), adjusted to a tax-exempt rate, plus a fixed spread. Each acquisition and related individual lease financing under the Master Lease Agreement must be approved by the City Council.
A Request for Proposals (RFP) was advertised in the Long Beach Press-Telegram on July 27, 2018, and 5,620 potential vendors specializing in equipment financing were notified of the RFP opportunity. Of those proposers, 39 downloaded the RFP via the City’s electronic bid system. The document was made available from the Purchasing Division, located on the seventh floor of the City Hall, and the Division’s website at www.longbeach.gov/purchasing
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