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A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF POMPANO BEACH, FLORIDA, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A LEASE PURCHASE AGREEMENT BETWEEN THE CITY OF POMPANO BEACH, AS LESSEE, AND TD EQUIPMENT FINANCE, INC., AS LESSOR, WITH RESPECT TO THE ACQUISITION, PURCHASE, FINANCING AND LEASING OF CERTAIN EQUIPMENT; AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS REQUIRED IN CONNECTION THEREWITH; AND AUTHORIZING ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
(Fiscal Impact: $9,441,031 over 5 year lease term; $1,888,206 annually)
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(Staff Contact: Allison Feurtado)
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Summary Explanation/Background:
After carefully evaluating financing options for the acquisition of equipment for the Fire, Park & Recreation, Public Works, and Facilities Maintenance departments, it has been concluded that lease-purchase financing is the most beneficial option for the City. Following a thorough solicitation of proposals from several banks, TD Bank was selected, offering the most favorable terms. TD Bank provides a competitive fixed rate of 3.839% for a 5-year term through a tax-exempt lease, ensuring both cost-effectiveness and long-term financial stability for the City. This selection aligns with our goal to secure the best financing option for these essential capital acquisitions in fiscal year 2024-2025. These capital outlay items were approved by the City Commission in the approved and adopted fiscal year 2025 budget. Purchase of these items will be handled by the City’s Purchasing Department in concurrence with the City Manager including the utilization of joint bids, cooperative bids, state contract prices, and prices obtained by other governmental agencies through competitive bidding. This allows the City to take advantage of negotiated prices obtained by large agencies (i.e. the state or the Sheriff) or cooperative arrangements, whereby multiple entities have worked together to buy goods and services at a lower cost.
Origin of request for this action: Finance Department
Fiscal impact and source of funding: Subject to annual appropriation. Approximately, $1,888,206 annually (over the 5-year lease term) from the General Fund (001-9910-599-71-62 and 001-9910-599-72-42), as approved by the City Commission in September 2024 and as budgeted.
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