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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 JPMORGAN CHASE BANK, N.A., 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: $6,030,094 over 5-year lease term; maximum $1,225,685 per fiscal year - inclusive principal and interest)
staffcontact
(Staff Contact: Allison Feurtado)
summary
Summary Explanation/Background:
After carefully evaluating financing options for the acquisition of equipment for the Strategic Communication, 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, JP Morgan Chase Bank N.A. was selected, offering the most favorable terms. JP Morgan Chase provides a competitive rate of 3.235% 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 2025-2026. These capital outlay items were approved by the City Commission in the approved and adopted fiscal year 2026 budget. The 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...
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