HomeMy WebLinkAbout5A OCRDate:
Subject:
From:
City Council Staff Re{Jort
December 10, 2020 NEW BUSINESS
AUTHORIZE THE LEASE-PURCHASE OF 2 NEW FIRE ATTACK
ENGINES WITH CAPITAL ONE PUBLIC FUNDING AT A TOTAL
FINANCED COST NOT TO EXCEED $1,000,000; AND AUTHORIZE
PURCHASE OF 4 NEW VEHICLES FOR THE AIRPORT AT A COST
NOT TO EXCEED $160,000
David H. Ready, City Manager
Prepared by: Marcus L. Fuller, Assistant City Manager
SUMMARY
This action will authorize (i) the lease-purchase of two new Fire Department Wildland
Units (Fire Attack Engines) at purchase price including outfitting of $867,145; and (Ii) 4
vehicles for the Airport at an estimated cost of $152,000.
Funding for the lease-purchase of the two new Fire Attack Engines is budgeted and
available in the Motor Vehicle Fund (Fund 510). Funding for the purchase of new
vehicles for the Airport is budgeted and available in the Airport Fund (Fund 416).
No funding for this action is required from the General Fund.
RECOMMENDATION:
1. Authorize an expenditure not to exceed $1,160,000 to purchase 2 new Fire Attack
Engines and 4 vehicles for the Airport, inclusive of outfitting and equipment costs,
with an allowance for new model year increased costs due to pricing changes
imposed by car manufacturers at the time of purchase;
2. In accordance with Section 7.09.010 "Cooperative Purchasing Programs," of the
Palm Springs Municipal Code, authorize issuance of Purchase Orders with 72 Hour
LLC dba National Auto Fleet Group pursuant to Cooperative Purchasing Contract
120716-NAF for new fleet vehicles;
3. In accordance with Section 7.09.010 "Cooperative Purchasing Programs," of the
Palm Springs Municipal Code, authorize issuance of Purchase Orders with Boise
Mobile Equipment through a Cooperative Purchasing Agreement with the State of
2City Council Staff Report December 10, 2020 -Page 2 Authorization to Purchase Vehicles California -Department of General Services (Contract Number 1-1-23-21 B) for the new Type 3 Fire Apparatus (Fire Attack Engines); 4. Authorize the City Manager to execute the Capital One Public Funding term sheet, accepting the interest rate and other terms and conditions of their offer to finance the acquisition of two new Type 3 Fire Apparatus (Fire Attack Engines) at an initial cost of $867,145 for a term of 1 O years at an interest rate of 1.69%; 5. Authorize preparation of financial documents relating to the financing of the Type 3 Fire Apparatus (Fire Attack Engines), and schedule for City Council approval on January 14, 2021; and 6. After delivery of new vehicles, declare existing vehicles being replaced as surplus vehicles and authorize the City Manager, or designee, to sell at public auction in accordance with Chapter 7.07 of the Palm Springs Municipal Code; and 7. Authorize the City Manager to execute all necessary documents. BUSINESS PRINCIPAL DISCLOSURE: The lease agreement to finance the vehicles will be entered into with Capital One Public Funding LLC. Capital One Public Funding LLC is a corporation and wholly-owned subsidiary of Capital One, National Association, which is a wholly-owned subsidiary of Capital One Financial Corporation, a Delaware Corporation. Capital One Financial Corporation is a diversified financial services holding company with banking and non-banking subsidiaries, offering a broad array of financial products and services to consumers, small businesses and commercial clients. According to financial information from March 2020, the largest shareholder of Capital One Financial Corporation stock is an investor management fund, Dodge & Cox, with just under 9% of the company, followed by mutual fund operator The Vanguard Group Inc., with a reported 7.82% ownership. No individual owns 5% or more of Capital One Financial Corporation stock. A copy of the Public Integrity Disclosure Form for 72 Hour LLC dba National Auto Fleet Group and for Boise Mobile Equipment is included as Attachment 1. BACKGROUND: On June 5, 1996, the City Council adopted Resolution No. 18834, establishing a new Equipment Replacement Policy. Section II "Replacement Schedule" outlined a requirement to replace vehicles within a certain number of years or mileage varying on the type of vehicle (safety vehicles replaced more frequently vs. general staff vehicles). A copy of Resolution No. 18834 is included as Attachment 2.
3City Council Staff Report December 10, 2020 -Page 3 Authorization to Purchase Vehicles Pursuant to the City Council's adopted policy, vehicles are scheduled to be replaced based on years in service or mileage, as follows: • Staff cars; 6 years or 70,000 miles • Police patrol units; 3 years or 90,000 miles • Police detective units; 6 years or 70,000 miles • Light duty trucks; 8 years or 80,000 miles • Heavy duty trucks; 1 O years (any mileage) • Specialized equipment (Fire Trucks); as necessary Since the economic recession, as part of its adoption of the City's budgets the City Council has suspended Section II of Resolution No. 18834 deferring mandatory vehicle replacement solely on vehicle age or mileage. Annually, vehicle replacement has generally focused on an emergency basis focused on replacing vehicles damaged in accidents, or replacement of public safety vehicles. On September 21, 2016, the City Council authorized the purchase of one new Aerial Ladder Truck, and three new Fire Engines for the Fire Department. On March 21, 2018, the City Council authorized 3 new Police patrol vehicles (Downtown Area), 1 new Fire Department command vehicle, and 1 new Fire Department rapid response paramedic unit. On November 6, 2019, the City Council authorized the purchase of 2 new Fire Engines. Purchase of miscellaneous vehicles for various City Departments has also occurred over the last few years, focused on the oldest vehicles with the highest mileage and accumulated repair costs. The City's Fire Department operates an entire fleet of aerial ladder trucks, fire engines and related apparatus, for each of its five fire stations. The Fire Department has front-line apparatus used for a period of 10 years, and then used as reserve capacity for 5 years, for a useful life of 15 years. Recently, the Department requested to retain apparatus for training purposes and back-up to reserve apparatus. The next apparatus to be replaced are 2 Fire Attack engines. The Department's list of existing Fire Department apparatus and proposed replacement schedule is provided as Attachment 3.
4City Council Staff Report December 10, 2020 -Page 4 Authorization to Purchase Vehicles STAFF ANALYSIS: The City's fleet of vehicles is aging, and the various City Departments have stretched to use older vehicles with higher mileage as a means of deterring the higher capital cost of new vehicles. However, as the age of the City's existing fleet of vehicles increases, the annual cost to maintain these vehicles also increases. Staff monitors the ongoing operational and maintenance cost of its older vehicles, and has identified an inventory of vehicles that should be replaced with new vehicles given the accumulated cost of repairs in comparison to the current value of the vehicle. In certain cases, new vehicles are required to support additional staff. Staff has identified the following lists of replacement or new vehicles, and related outfitting and equipment, for the following Departments. These vehicles represent some of the oldest vehicles in the City's fleet, have the most mileage or the most accumulated vehicle repair costs. Airport: The Airport currently has 4 existing vehicles that are 19 to 20 years old and require replacement, as listed below. ~ . .. Unit# Vear Make/Model Mileage 800700 2000 Ford Ranger 55,403 805301 2001 Ford F-150 61,392 805001 2001 Ford F-150 87,190 805201 2001 Ford F-150 51,033 These 4 vehicles will be declared surplus and replaced with the following new vehicles: ] ... Make/Model · Cost ··'' ,. (2) Ford F-150 XL 2WD Reg Cab 2 X $34,000 (2) Ford F-150 XL 4WD Crew Cab 2 X $42,000 Total Estimated Cost $152,000
5City Council Staff Report December 10, 2020 -Page 5 Authorization to Purchase Vehicles Fire Department: The Fire Chief is recommending replacement of the following 2 Fire Attack Engines, at 19 and 20 years old, originally scheduled for replacement in 2015 and 2016. -----_,. -~ _ _.1,,----·~-~zi l!Jnit # Year Make/Model Mileage ' ,'l .. ~ 1A4300 2000 Ford F-550 (Type 111) 8,158 1A4101 2001 Ford F-550 (Type 111) 14,115 These 2 Fire Attack engines will be declared surplus and replaced with the following 2 new Type 3 Fire Apparatus from Boise Mobile Equipment through a Cooperative Purchasing Agreement with the State of California -Department of General Services (Contract Number 1-1-23-21 B) for Type 3 Fire Apparatus sold to CalFire. . -· ... , ... , .. -. ·-Make/Model Cost •' " Type Ill Fire Apparatus $434,000 Type Ill Fire Apparatus $434,000 Total Estimated Cost $868,000 Due to the high cost and replacement schedule for fire suppression equipment, this cost will be financed over a 10-year term at an interest rate of 1.69%. An image of the Type Ill Fire Apparatus is shown below.
6City Council Staff Report December 10, 2020 -Page 6 Authorization to Purchase Vehicles ENVIRONMENTAL IMPACT: The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: Airport Fund The 2020/2021 Fiscal Year budget includes an appropriation of $250,000 in the Airport Capital Fund (Fund 416) for purchase of new vehicles to be used specifically by the Airport. Sufficient funds are budgeted and appropriated in account 416-6501-56132 for purchase of the 4 new vehicles at an estimated cost of $152,000. Fire Engine Lease Financing Due to the high cost and replacement schedule for fire suppression equipment, the City historically finances this equipment. In this case, and to take advantage of historically low financing rates, Staff recommends the City Council authorize the financing of the initial cost of $867,145 for the 2 Fire Department Wildland Units (Fire Attack Engines) with Capital One Public Funding for a 10-year term at an interest rate of 1.69%. The lease financing incurs a debt issuance cost of $34,000 for bond counsel, Financial Advisor, legal and escrow costs. The financed cost of $901, 145 at 1.69% interest will incur annual debt payments of $98,350 for 10 years. The annual debt payments will be incorporated into the Fiscal Year 2021-2022 Motor Vehicle Fund budget for these types of lease payments. The terms of the Capital One lease require the City to execute a Term Sheet stating the conditions of the lease by December 11, 2020, in order to lock the interest rate, and to enter into the new lease to purchase the vehicles by January 25, 2021. A copy of the Term Sheet is included as Attachment 4. Staff requests authorization for the City Manager to execute the Term Sheet. There is no issuance of bonds involved in this financing. Final lease documents for the City Council's consideration and approval will be included in the January 14, 2021, City Council agenda, in sufficient time to close the transaction by the January 25, 2021 deadline outlined in the Term Sheet. If those deadlines cannot be met, Capital One just reserves the right to change the interest rate.
7City Council Staff Report December 10, 2020 -Page 7 Authorization to Purchase Vehicles Motor Vehicle Fund The purchase of new vehicles is budgeted separately from the General Fund in the Motor Vehicle Fund. Annually, the City Council appropriates funding in the Motor Vehicle Fund for new vehicles, with this funding carried forward into subsequent years. Currently, a balance of $3,008,768 is available for purchase of new vehicles. Staff is currently reviewing an inventory of existing vehicles requiring replacement and vehicles for new personnel that includes 14 vehicles in the Fire Department, 24 vehicles in the Police Department (including 16 patrol cruisers), 2 vehicles for the City's Building Inspectors, and 2 heavy-duty trucks for the Maintenance & Facilities Department. The overall cost of the deferred vehicle replacement is approximately $3,000,000. Staff will evaluate these vehicles and discuss with the City Council Budget liaisons the alternatives for purchasing or financing all or portions of this new fleet of vehicles for the City. Future action to purchase these new vehicles may be scheduled for City Council consideration in January 2021. SUBMITTED: Marcus L. Ful r, MPA, P.E., P.L.S. Assistant City Manager Attachments: 1. Business Disclosure Forms 2. Resolution No. 18834 < David H. Ready, Es . City Manager 3. Fire Department Apparatus Replacement Schedule 4. Capital One Public Funding Term Sheet
8ATTACHMENT 1
91. 2. 3. 4. Name of Entity PUBLIC INTEGRITY DISCLOSURE APP~ICANT DISCLOSURE FORM Addre$$ of Entity {Pri.,ciple Pl.ac;e of 81Jsin•ss) Local or California Address (if different than #2) ~ '-'O c/«,ve State where Entity is Registered with Secretary of State Ca /;f .Jr{lf,i a... _ ff other than California, is the EntitY also realstered In Califomla? n Yea r:, No 5. Type of Entity D Corporation &Limited Liability C9mpany O Partnership •Trust D other (please apecify) 6. Officer&, Dlreclora, Memberst Managers, Trustees, Other Fiduciaries (please specify) Note: If any rssponu is not a natural person, plsase Identify all officers, dlr«itors, mt1mbers, manage"fs and other fiduciaries for the member, manager, ·trust or ot/HN entity __ /ll_e_l_v,_·IA_C:x.,_~~;...;....;.., ________ [8l_ Officer D Director O Member O Manager lname) D General Partner D limited Partner •Other ___________ _ ___,,,~}e::;;.;ft;e.:ic;=.;=---Ca✓i-~~'--------'8l Officer D Director D Mem~r O Manager lname] D General Partner D limited Partner 00ther ____ __,;. __________ _ ________________ 00ffle.er •Director D Member OMan•ger . (Revt$ed 09 13 18) (name] D General Partner O Limited Partner 0 other ___________________ _ CITY OF PALM SPRINGS -PtJBUC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM Page lof 2
10I ' ' I i i ; 7. owners/uwestors With a 5'6 beneficial interest in the Aoolicant Entity or a related entity . EXAMPLE JANE DOE 509', ABC COMPANY, Inc. --, [name of owner/investor] (percentage of beneficial interest in entity and nam·e of entity) A. tufe,/v ,111 Co,,f;,fr;; (name of ow ~estor] .5o~ I 1i. H~ L~ -[percentage of beneficial interest ih entity · and na_me of entity] B. ~~ Sc/% , 1 l Ht,c,,.r L,/,,C (name o'.owner/investor] {percentage of beneficial interest in entity and name of entity] ,. C. . --(name of owner/investor] [percentage of beneficial interest in entity and name of entity) 0. --. (hame of owner/investor) (percentage pf beneficial Interest in entity and name of entity] E. [name of owner/investor) [percentage of beneficial interest in entity and name of entity) .. -._ I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THATTHE FOREGOING IS TRUE AND CORRECT. (Revised 09 13.18) CITY OF PALM SPRIN<iS-PUBLIC INTEGRITY DISCLOSURE FORM APPLICANT DJSCLQSURE FORM Page2of 2 ' .,
111. Name of Entity ~ PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM BOISE MO~ILE EQUIPMENT, INC. 2. Address -of Entity (Principle Place of Business) 5656 W MORRIS HILL RD, BOISE, ID 83706 3. Local or California Address (if different than #2)" 4763 SPRUCE AVE, FRESNO, CA 9~72_2 _ 4. State where Entity is.Reg1stered with Secretary of State IDAHO If other than California, is the Entity also reaistered in California? lxl Yes n No 5. -Type of Entity ~ Corporation D Limited Liability Company D Partnership D Trust D Other (please specify) 6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please Identify all officers, directors, members, managers and other fiduciaries for the member, manage~ trust or other entity _C_H_A_D_M_O_F_F_A_T ___________ ~Officer D Director D Member D Manager [name] D General Partner D Limited Partner ,tother OWNER/PRESIDENT ___________________ D Officer D Director D Member D Manager [na D General Partner D Limited Partner •Other _____________ _ _____ ---------------------D Officer D Director D Member D Manager [name] D General Partner D Limited Partner i .\ ' •Other ...... _______________ , (Revised 05/16/19) CITY OF PALM SPRINGS-PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM Page lof 2 I
12--· 7. Owners/Investors with a 5% beneficial interest in the Ai)blic~nt Entity or a related entity1' -EXAMPLE-· . -·-----JANEDOE I 50%, ABC COMPANY, Inc. ' I -~ -==----=·----[name of owner/investor] __ , [percentage ofbeneficial interest in entity :.'""-="••c8lU:tname of entitvl _ --! • ~::. • A. ----. --~ --·· ...... _ . -------. -.I CHAD MOFFAT 100% BOISE MOBILE EQUIPMENT, INC;, I ~..=-• ---. -[name of owner/investor] -[percentage of 6en-eficial interest ·in entity -.. I and name of entity] -! ---B~ .. .. .------.--' I ' --·--------i I ' j I ! [name of owner/investor] I [percentage of beneficial interest in-entity -and name of entity] ---C. -;I --. ---I -[name of owner/investor] [percentage of ben~eficial interest in entity and name of entity) D. ------=-=-.--;-I -[name of owner/investor] I [percentage of beneficial interest in entity I and name of entity] E. i' --.:.., _...;:;.._..,._ ---•--[name of owner/investor] 1 [percentage of beneficial int~rest in entity ,. . .. and name of entitvl ---· -------I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.-Signature of :· closing Party, Printed Name, Title Date :• r ,,.. ",I , •;/ , _--i~~~~NT Nov 11, 2020 PENALTIES Falsification of information or failure to report information required to be reported may·subject you to administrative action by the City. (Revised 05/16/19} CITY OF PALM SPRINGS-PUBLIC INTEGRITY DISCLOSURE APPLICANT DISCLOSURE FORM Page2of2 ~ I I I ,I ,' l
13ATTACHMENT 2
14RESOLUTION NO. 18834 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, EST ABLISHJNG A NEW REPLACEMENT POLICY FOR CITY EQUIPMENT. WHEREAS Resolution No. 14138, adopted on February 3, 1982, modified the City Equipment · Replacement Policy established by Resolution No. 8521, adopted November 8, 1965; and WHEREAS equipment reliability and longevity has increased as technology has been perfected subsequent to the last update of the Equipment Replacement Policy; and WHEREAS staff, utilizing best management practices during the City's continuing efforts to balance its budget, has endeavored to extend the service of City equipment beyond the established policy life of the equipment; and WHEREAS it is now desirable to establish a new Equipment Replacement Policy to formally increase the length of time or mileage the vehicles will be operated by the City before replacement; and WHEREAS it is also desirable to incorporate language related to the introduction of alternate fuel vehicles in the City fleet, NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs that: Section I: Section II. Resolution #14138 and any and all other previous Resolutions related to the City Equipment Replacement are hereby rescinded. Replacement Schedule: City vehicles shall be replaced in accordance with the following schedule, provided that the Assistant Director of Transportation, Surface Transportation & Energy (Fleet Manager) shall have the responsibility of determining whether exceptionally good or exceptionally poor vehicles shall be replaced in accordance with the Replacement Schedule or possibly retained for a greater or lessor period, and upon such determination, departure from the schedule is allowed, subject to the approval of the Director, Department of Transportation: REPLACEMENT SCHEDULE Vehicle Type Replacement 1. Motorcycles 4 years* 2. Staff cars 6 years or 70,000 miles (Bought Used) 3. Police Patrol Units 3 years or 90,000 miles 4. Police Detective Units 6 years or 70,000 miles (Bought Used) 5. Truck & Pickups A. Light Duty 8 years or 80,000 miles (Up To 3/4 Ton) B. 1 Ton & Over 10 years *Note: Age is based on model year. I I I
15I I I Rl8834 Page 2 6. Specialized Equipment (Such as Fire Trucks Sweepers, etc.) 7. Equipment Loss Due To Accident To be determined by the Fleet Manager in consultation with the user Department, subject to the approval of the Director, Department of Transportation based on physical inspection and analysis of current operating cost data and mandated Regulations. Immediately. Section Ill. Vehicle Assignment/Rotation: Authorized vehicles are assigned to the various user departments via the budget process. User departments shall determine whom within their department utilizes which vehicle, except that the City Manager shall authorize and assign take-home vehicles. The Fleet Manager, after consulting with user departments, and with the consent of the Director, Department of Transportation, may rotate vehicles between user departments for operational efficiency or to extend the useful life of said vehicle. Section IV. Methods of Acquisition: The Fleet Manager shall acquire City equipment in accordance with the City's Procurement Ordinance. Section V. Methods of Disposal: The Fleet Manager shall dispose of surplus equipment in accordance with the City's Procurement Ordinance. Surplus equipment may be traded in on new or used equipment provided that the value of the trade shall be included as part of the total expenditure for the purpose of determining Procurement Ordinance limits compliance. Section VI. Alternate Fuel Vehicles: The Fleet Manager shall make every effort to incorporate alternate fuel vehicles within the fleet via purchase or conversion. Whenever a vehicle is replaced, that operationally is suited for alternate fuel usage, there is a proven track record for the specific type of vehicle being replaced, and the specific "engine family" is approved for use in California by the California Air Resources Board, the bid shall include a comparison of gasoline/diesel equipment vs alternate fuel equipment. Section VII. Accessories: After market accessories that are purchased to properly equip a piece of equipment to carry out its designated function, shall be included in the overall capital cost component of the City's Motor Vehicle Replacement account for the particular vehicle to ensure the vehicle user department bears the full cost of its equipment. Section VIII. Reporting Format: When a vehicle is being replaced requiring City Council approval, the Staff Report shall include the following information: ADOPTED this 5th Vehicle type, Identification Number of the vehicle (except for undercover vehicles), vehicle use characteristics, description of why it is being replaced, special needs or equipment, alternate fuel options/discussion. day of June I 1996, AYES: Members Barnes, Hodges, Oden, Spurgin and Mayor Kleindienst NOES: None ABSENT: None ATTEST: LIFORNIA ·~c \ / By--:. ~--c..-CityCierk -< REVIEWED & APPROVED AS TO FORM----'-tv._.W_. ____________ _
16ATTACHMENT 3
17FIRE APPARATUS SERVICE LIFE and REPLACEMENT SCHEDULE (TABLES BASED ON A 15 YEAR TOTAL LIFE SPAN) FIRE SUPPRESSION PRIMARY UNITS/ HEAVY FLEET 10 YR. 5 YR. YEAR TYPE FIRE# FLEET# FRONTLINE RESERVE REPLACE -------2000 PIERCE ENGINE 8 1E4300 2000 -2009 2010 -2014 2015 ENGINE 2003 OSHKASH 151 1ARF51 2003 -2012 2013 -2017 2018 ARFF 2003 OSHKASH 152 1ARF52 2003 -2013 2013 -2017 2018 ARFF 2003 OSHKASH 153 1ARF53 2003 -2014 2013 -2017 2018 ARFF 2005 PIERCE ENGINE 6 1 E4118 2005 -2014 2015 -2019 2020 ENGINE 2007 PIERCE TRUCK2R 1T4207 2007 -2016 2017 -2021 2022 AERIAL 2009 PIERCE ENGINE 5 1E4509 2009 -2018 2019 -2023 2024 ENGINE 2009 PIERCE ENGINE 7 1E4309 2009 -2018 2019 -2023 2024 ENGINE 2018 PIERCE ENGINE 1 1 E4118 2018 -2027 2028 -2032 2033 ENGINE 2018 PIERCE ENGINE 3 1 E4318 2018 -2027 2028 -2032 2033 ENGINE 2018 PIERCE ENGINE 4 1 E4418 2018 -2027 2028 -2032 2033 ENGINE 2018 PIERCE TRUCK2 1T4218 2018 -2027 2028 -2032 2033 AERIAL * AERIALS ARE AN APPROXIMATE 12 MONTH BUILD TIME FROM DATE OF ORDER. * ENGINES ARE AN APPROXIMATE 10 MONTH BUILD TIME FROM DATE OF ORDER. Page 1 of 2
18FIRE APPARATUS SERVICE LIFE and REPLACEMENT SCHEDULE (TABLES BASED ON A 15 YEAR TOTAL LIFE SPAN) FIRE SUPPRESSION AUXILLIARY 1996 INTERNATIONAL MCI TRUCK 1R4296 1996 -2005 2006 -2012 2011 1999 INTERNATIONAL WATER 1WT442 1999 -2008 2009 -2013 2014 TENDER 2000 FORD ATTACK3 1A4300 2000 -2009 2010 -2014 2015 2001 FORD ATTACK 1 1A4101 2001 -2010 2011 -2015 2016 2004 FREIGHTLINER COMMAND 1CM442 2004 -2013 2014 -2018 2019 442 2007 FORD ATTACK4 1A4407 2007 -2016 2017 -2021 2022 2011 INTERNATIONAL RESCUE 442 1 R4210 2011 -2020 2021 -2025 2026 2014 INTERNATIONAL INCIDENT 1IS442 2014 -2023 2024 -2028 2029 SUPPORT * AUXILLIARY UNITS ARE SPECIALIZED UNITS WITH A LOWER UTILIZATION FREQUENCY THAN PRIMARY UNITS. Page 2 of 2
19ATTACHMENT 4
20ATTACHMENT 4
21ea;;,..,& 7 Public Funding December 2, 2020 Suzanne Harrell s.harrell@harrellco.com Subject: City of Palm Springs, California Lease Purchase Agreement (the "Loan") Dear Suzanne: This term sheet is presented in connection with our discussions regarding the above-referenced potential Loan transaction. Capital One Public Funding, LLC ("COPF") is very interested in working with City of Palm Springs, California, ("Borrower") in connection with the above-described potential Loan transaction and are pleased to present the following summary terms: Structure Eauipment lease-purchase between COPF as lessor and Borrower as lessee. Estimated Amount $900 000 Use of Proceeds Finance the purchase of various vehicles and related equipment. Security Provisions/ Security interest in equipment (UCC filing). Lease payments subject to appropriation. Reoayment Sources Fixed Interest Rate 1.69% Payment Assumptions Approximately level semi-annual payments of principal and interest beginning 02/01/22; final maturity 02/01/31. The Loan will be payable in installments on the dates and in the amounts set forth on the payment schedule identifying payment dates, principal, interest and total payment due, which shall be attached to the lease. Call Provisions Callable beginning 02/0 l/26 in whole at par on any interest payment date. Tax Treatment Tax-exempt Interest Rate Assumptions The above-quoted interest rate is based upon the assumptions set forth above regarding average life and final maturity. Any changes from the assumptions may require an adjustment to the quoted rate. The rate may also be subject to change if the contemplated Loan is not closed by January 25, 2021. Documentation Loan documentation shall be prepared by COPF counsel subject to review by Borrower's counsel. Borrower shall provide, at its expense, an opinion of legal counsel ( acceptable to COPF) attesting to the legal, valid, and binding nature of the transaction and the tax-exempt nature of the interest component of the Loan payments. Upon selection of COPF, the Borrower shall provide COPF the draft authorizing document for its review and comment. Costs of Issuance The Borrower shall be responsible for normal borrower costs of issuance including a financial advisor, placement agent and bond counsel. No fees will be due to COPF, which shall be responsible for the costs of its own legal review.
22Direct Purchase The Loan shall be directly funded/purchased by (and registered in the name of) COPF and delivered in physical, non-book-entry, certificated form. The Loan shall not be (i) assigned a separate rating by any rating agency; (ii) registered with the Depository Trust Company or any other securities depository; (iii) issued pursuant to any type of official statement, private placement memorandum or other offering document; or (iv) assigned a CUSIP number. Audited Financial Statements Upon request, as soon as available, the Borrower shall send COPF a copy of its audited financial statements as of the end of the fiscal year. Municipal Advisor Rules This term sheet is provided to the Lessee pursuant to and in reliance upon the "bank exemption" provided under the municipal advisor rules of the Securities and Exchange Commission, Rule 15Bal-1 seq. Role of Capital One Public Funding, LLC The Borrower acknowledges and agrees that: (i) the information contained in this term sheet is for discussion purposes only and sets forth certain proposed terms and conditions of an arm's-length commercial transaction between the Borrower and COPF and does not constitute advice, an opinion or a recommendation by COPF; (ii) the Borrower will make its own determination regarding whether to enter into the proposed transaction and the terms thereof, and will consult with and rely on the advice of its own financial, accounting, tax, legal and other advisors; (iii) COPF is acting solely for its own account in connection with the proposed transaction, and is not acting as a municipal advisor, financial advisor, agent or fiduciary to the Borrower or any other person or entity (including to any financial advisor or placement agent engaged by the Borrower) and the Borrower, its financial advisor and placement agent are free to retain the services of such advisors (including as it relates to structure, timing, terms and similar matters and compliance with legal requirements applicable to such parties) as it deems necessary or appropriate; (iv) COPF has no fiduciary duty pursuant to Section 15B of the Securities Exchange Act of 1934 to the Borrower with respect to the transaction contemplated hereby and the discussions, undertakings and procedures leading thereto; (v) neither COPF nor any of its affiliates is acting as a broker, dealer, underwriter or placement agent with respect the transactions contemplated hereby; (vi) the only obligations COPF has to the Borrower with respect to the transaction contemplated hereby expressly are set forth in this term sheet; and (vii) COPF is not recommending that the Borrower take an action with respect to the transaction contemplated by this term sheet. Before taking any action with respect to the Loan, the Borrower should discuss the information contained herein with the Borrower's own legal, accounting, tax, financial and other advisors, as it deems appropriate. If the Borrower would like a municipal advisor in this transaction that has legal fiduciary duties to it, Borrower is free to engage a municipal advisor to serve in that capacity. Other Information To the extent that updated financial and other credit materials have not already been provided to COPF or are not available through public resources, COPF may require and request the following: audited and unaudited financial statements; budgets; information on outstanding bond issues, lease transactions, and contingent/material liabilities; tax base details; and other reasonable and customary information relevant to the Borrower's credit quality and the source of repayment. Confidentiality The information contained herein is strictly confidential and is intended for review by the parties, their advisors and legal counsel only and may not be disclosed to any other person or entity, except as required by law or otherwise consented to by COPF. City of Palm Springs, California Lease Purchase Agreement December 2, 2020 Page2
23Closing Closing is anticipated to take place on January 25, 2021. This is not a commitment, rather, the funding of the Loan will occur only after, among other things, COPF, the Borrower, and their respective counsels are fully satisfied with the terms of the Loan documents and all of the terms and conditions contained herein and in the Loan documents have been met. Term Sheet Expiration This term sheet shall expire if not accepted by the Borrower by December 11, 2020. Once accepted, this Term Sheet shall expire if the transaction has not closed by January 25, 2021, unless extended by COPF at its sole discretion. Subiect to Final Credit Approval Specifically, but without limitation, this Term Sheet has not yet received all necessary internal and committee approvals of COPF. Any obligation of COPF to provide financing or otherwise shall arise only upon the execution of final Loan documents signed by authorized signatories of COPF and not from statements (oral or written) made during the course of discussions among the parties (whether or not prior to or after the date hereof). Should the above-stated terms be acceptable to you, formal approval through COPF's internal credit process will be pursued as quickly as possible. Thank you for the opportunity to offer this term sheet. Should you have any questions, please do not hesitate to contact me at 505.503.7629 or jeffrey.sharp@capitalone.com. Sincerely, J,~q,JJ+ Jeffrey D. Sharp Senior Vice President, Director of Business Development Capital One Public Funding, LLC cc: Jonathan Lewis, Capital One Public Funding, LLC Brenda Barnes, Capital One Public Funding, LLC ACCEPTED BY: City of Palm Springs, California By Name Title City of Palm Springs, California Lease Purchase Agreement December 2, 2020 Page 3