200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: NOVEMBER 13, 2024
FROM: FINANCE DEPARTMENT
SUBJECT: APPROVE, AUTHORIZE, AND DIRECT THE EXECUTION,
DELIVERY, AND PERFORMANCE OF THE LEASE
AGREEMENT (AGREEMENT) WITH BANC OF AMERICA
PUBLIC CAPITAL CORPORATION (BAPCC) AND THE CITY
OF ANAHEIM (CITY) FOR A MAXIMUM PRINCIPAL AMOUNT
NOT-TO-EXCEED $1.5 MILLION TO FUND EMERGENCY
TRANSPORT AMBULANCES AND VARIOUS EQUIPMENT
ATTACHMENT (Y/N): YES ITEM # 18
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council:
1. By Resolution, authorize the execution and delivery of a Schedule to the Master Equipment Lease/Purchase Agreement for the Acquisition, Financing and Leasing of three (3) Emergency Transport Ambulances and various equipment for a total principal amount not to exceed $1.5 million, with Banc of America Public Capital Corporation (BAPCC), authorizing the execution and delivery of other documents required in connection therewith and authorizing all other actions necessary to the consummation of the transactions contemplated by this Resolution; and
2. By Motion, approve Contract Number MA#106-498218 with Republic EVS LLC, and the City for the purchase of three (3) Emergency Transport Ambulances, in an amount not to exceed $688,088.59. This procurement is established by cooperative agreement in accordance with Council Policy 4.0.
DISCUSSION:
The Finance Department is recommending the use of an existing Master Equipment Lease/Purchase Agreement with BAPCC to finance ambulances and various equipment critical to the Fire and Rescue Department’s Ambulance Program.
The new Lease/Purchase schedule is based on the expected useful life of the equipment and offers a competitive financing structure and favorable terms.
Approve, authorize, and direct the execution, delivery, and performance of the Lease Agreement (Agreement) with Banc of America Capital Corporation (BAPCC) and the City of Anaheim (City) for a maximum principal amount not-to-exceed $1.5 million to fund three (3) emergency transport ambulances and various equipment November 13, 2024
The following represents anticipated terms under the agreement.
Purchase Term Principal Estimated
Interest Rate
Estimated
Annual
Payment
Emergency Transport
Ambulances and various
equipment
5 Years $700,000 3.9146% $151,750
Ambulance Program
City Council approved the transition to an Anaheim Emergency Transportation Model at their regular meeting on July 28, 2020. Under this model, ambulance services previously provided via contract with Care Ambulance were replaced with in-house ambulance services. Over time and with the added demands placed on safety personnel to help address the complexities around homelessness, the need for additional ambulances has become necessary to maintain transportation coverage and response time standards. At this time there is an immediate need for three (3) ambulances, and it is anticipated that within the next year, operations can be leveraged to support the activation of additional ambulances should the need arise.
The cost of three (3) ambulances for near-term placement into service is approximately $700,000. The remaining balance of approximately $800,000 could be used for future equipment needs during the year, should City Council approve additional purchases. The approximate annual payment for the set of three (3) ambulances needed at this time is $151,750.
IMPACT ON BUDGET:
Repayment of the Emergency Transport Ambulances will be offset by increased EMS Transport cost recovery revenues generated by the Ambulance Program.
Respectfully submitted, Concurred by,
Deborah A. Moreno Patrick Russell
Finance Director/City Treasurer Fire Chief
Approve, authorize, and direct the execution, delivery, and performance of the Lease Agreement (Agreement) with Banc of America Capital Corporation (BAPCC) and the City of Anaheim (City) for a maximum principal amount not-to-exceed $1.5 million to fund three (3) emergency transport ambulances and various equipment November 13, 2024
Attachments:
1. Resolution
2. Contract Number MA #106-498218
3. Schedule of Property No. 6
4. Master Lease/Purchase Agreement dated November 30, 2015
5. Anaheim Emergency Medical Transportation Program Staff Report, July 28, 2020