HomeMy WebLinkAboutItem 06- Authorization to Execute a Lease Purchase Agreement for Ariel Truck
AGENDA ITEM SUMMARY Meeting Date: 6/17/2024
Meeting Type: Regular Meeting
Staff Contact/Dept.: Kristina Kraaz/CAO
Staff Phone No: 541-744-4061
Estimated Time: Consent Calendar
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Strengthen Public Safety
by Leveraging
Partnerships and
Resources
ITEM TITLE: AUTHORIZATION TO EXECUTE A LEASE PURCHASE AGREEMENT FOR
AERIAL TRUCK
ACTION
REQUESTED:
Adopt/not adopt the following Resolution:
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A 10-
YEAR LEASE PURCHASE AGREEMENT WITH PNC BANK, NATIONAL
ASSOCIATION, FOR NEW PIERCE VELOCITY 107’ ASCENDANT AERIAL
TRUCK
ISSUE
STATEMENT:
PNC Equipment Finance requires a Council Resolution to authorize Eugene-
Springfield Fire Department (ESF) to lease-purchase a fire apparatus.
ATTACHMENTS: 1. Proposed Resolution
DISCUSSION/
FINANCIAL
IMPACT:
The proposed Resolution authorizes the City to enter into a lease-purchase
agreement for a new Pierce Velocity fire apparatus. The City Council reviewed and
approved the purchase by motion at the October 16, 2023, meeting. However, the
financing company, PNC Equipment Finance, requires the City Council adopt a
Resolution as a condition to closing on the lease-purchase transaction. If the
Council adopts the proposed Resolution, closing is planned for June 21, 2024.
The total cost of the new apparatus is $1,496,785.00. Lease payments of
$209,236.53 will take place in FY25 through FY35. The lease will be governed by
a Master Lease Agreement with PNC Equipment Finance that has been in place
since a prior lease-purchase of a Pierce apparatus in 2016.
“Engine 5” is a 2010 pumper that will be replaced with a 107’ medium duty ladder.
In 2016, funding constraints prevented former Ladder 14’s replacement and a
pumper was ordered instead. As Springfield plans development of the Glenwood
area and high-rise buildings in the City’s core, returning a ladder to the Springfield
battalion will be an important tool for response reliability.
PAGE 1 OF 2
CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. ___________
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A 10-YEAR LEASE
PURCHASE AGREEMENT WITH PNC BANK, NATIONAL ASSOCIATION, FOR NEW PIERCE
VELOCITY 107’ ASCENDANT AERIAL TRUCK
Municipality/Lessee: City of Springfield, Oregon
Principal Amount Expected to be Financed: $1,496,785
WHEREAS, the Municipality is a political subdivision of the State of Oregon (the “State”) and is duly
organized and existing pursuant to the Constitution and laws of the State;
WHEREAS, pursuant to ORS 271.390, the governing body of the Municipality (“Governing Body”) is
authorized to enter into lease purchase agreements to finance real or personal property that the
Governing Body determines is needed for the operations of the Municipality, so long as the estimated
weighted average life of the financing agreement does not exceed the estimated dollar weighted
average life of the property that is financed;
WHEREAS, the Governing Body hereby finds and determines that the execution of one or more
Master Lease-Purchase Agreements (“Leases”) in the principal amount not exceeding the amount
stated above for the purpose of acquiring the property (“Equipment”) to be described in the Leases is
appropriate and necessary to the functions and operations of the Municipality; and
WHEREAS, PNC Bank, National Association (“Lessor”) shall act as Lessor under said Leases,
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD:
Section 1: Either the City Manager or City Manager ‘Acting-in-Capacity’ (each an
“Authorized Representative”) acting on behalf of the Municipality, is hereby authorized to negotiate,
enter into, execute, and deliver one or more Leases in substantially the form set forth in the document
presently before the Governing Body, which document is available for public inspection at the office of
the Municipality. Each Authorized Representative acting on behalf of the Municipality is hereby
authorized to negotiate, enter into, execute, and deliver such other documents relating to the Lease as
the Authorized Representative deems necessary and appropriate. All other related contracts and
agreements necessary and incidental to the Leases are hereby authorized.
Section 2: By a written instrument signed by any Authorized Representative, said
Authorized Representative may designate specifically identified officers or employees of the
Municipality to execute and deliver agreements and documents relating to the Leases on behalf of the
Municipality.
Section 3: The aggregate original principal amount of the Leases shall not exceed the
amount stated above and shall bear interest as set forth in the Leases and the Leases shall contain
such options to purchase by the Municipality as set forth therein.
Section 4: The Municipality’s obligations under the Leases shall be subject to annual
appropriation or renewal by the Governing Body as set forth in each Lease and the Municipality’s
obligations under the Leases shall not constitute general obligations of the Municipality or indebtedness
under the Constitution or laws of the State.
PAGE 2 OF 2
Section 5: Reserved.
Section 6: This Resolution will take effect upon its adoption and approval.
ADOPTED by the Common Council of the City of Springfield this ___ day of _________, 2024,
by a vote of _____ for and ____ against.
The undersigned Secretary/Clerk of the above-named Municipality hereby certifies and attests that
the undersigned has access to the official records of the Governing Body of the Municipality, that the
foregoing resolutions were duly adopted by said Governing Body of the Municipality at a meeting of
said Governing Body and that such resolutions have not been amended or altered and are in full force
and effect on the date stated below.
LESSEE: City of Springfield
_____________________________________________ [SEAL]
City Recorder
Date: _______________________________________