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Department of Finance
Reference: Financing Heavy Equipment
To: Mayor Richard N. McLean and Members of City Council
Through: Philip Rodriguez, City Manager
Prepared By: Jean Starr, Finance Director
Date Prepared: October 4, 2017
PURPOSE
To update Mayor McLean and members of City Council on the RFP process for financing the acquisition of heavy equipment. To introduce the City Municipal Financial Advisor, Ehlers, Inc. To confirm presentation of a resolution regarding such financing at the October 17, 2017 City Council session.
BACKGROUND
The Fleet Division has made presentations to Council regarding the acquisition of needed fleet replacements. On May 2, 2017 a budget amendment was passed authorizing purchases of $1.5 million for fleet replacement equipment.
This Summer Assistant Director Streets and Fleet Michael Woodruff, brought forward additional "best practices" regarding acquisition/leasing of the proposed dump trucks that were part of the $1.5 million dollar appropriation. These practices allow the City of Brighton to secure new and replacement heavy equipment in a cost effective manner. Leasing will significantly stretch and maximize capital funds, allow for additional needed purchases to address the aging fleet and allow greater flexibility in managing the fleet replacement program in the future.
In order to assist and evaluate a competitive bid for such financing and obtain legal counsel on the leasing contract, advice from a municipal financial advisor and legal counsel would be required. In summer 2016, we competitively bid and selected Kutak Rock as City bond counsel. Tom Peltz at Kutak will provide legal counsel on the leasing transaction.
In July 2016, the City had no active engagement with a municipal financial advisor. Our prior engagement with PFM, Inc had expired December 31, 2016 and the consultants working with the City had taken positions with other entities. Therefore, an RFP for "as needed" Financial Advisor services wa...
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