REPORT TO THE CITY COUNCIL FROM: SANTINO DANISI, MBA, City Controller/Finance Director Finance Department BY: KALEB NEUFELD, MBA, Assistant Controller/Assistant Director Finance Department SUBJECT ..Title Actions pertaining to executing the Master Tax Exempt Equipment Lease Purchase Agreement 1. Affirm the City Manager's determination that Banc of America Public Capital Corp (BAPCC, LLC), which falls under Bank of America, is Uniquely Qualified 2. ***RESOLUTION - Authorizing the execution and delivery of a Master Tax-Exempt Equipment Lease Purchase Agreement and related lease schedule; and authorizing the execution and delivery of documents required in connection therewith (Subject to Mayor's Veto) 3. Approve the Master Tax-Exempt Equipment Lease Purchase Agreement (MELPA) with Banc of America Public Capital Corp, LLC (BAPCC) for a term of five years ..Body RECOMMENDATION Staff recommends that the Council 1) affirm the City Manager's determination that Banc of America Public Capital Corp (BAPCC, LLC), which falls under Bank of America, is Uniquely Qualified to provide lease purchasing financing services and this agreement is necessary to provide lease-purchase financing of City equipment; 2) Authorizing the execution and delivery of a Master Tax-Exempt Equipment Lease Purchase Agreement and related lease schedule; and authorizing the execution and delivery of documents required in connection therewith; 3) Approve the Master Tax-Exempt Equipment Lease Purchase Agreement (MELPA) with Banc of America Public Capital Corp, LLC (BAPCC) for a term of five years; and authorize the City Controller, or designee, to sign and execute the agreements and all related required documents. EXECUTIVE SUMMARY The City of Fresno is relocating its Police Department 911 dispatch operations to a new facility that requires a complete build-out of data center and network infrastructure to support 911 dispatch, computer-aided dispatch (CAD), and other public safety systems. To fulfill these requirements, the City will acquire the necessary equipment from AMS.NET, LLC through the Merced County FOCUS cooperative purchasing agreement and finance the procurement through a lease-purchase arrangement. BACKGROUND The City regularly uses a Master Equipment Lease-Purchase Agreement (MELPA) to finance a broad range of equipment and capital needs, including fire apparatus, police vehicles, telecommunications systems, computers, building improvements, and software. A MELPA does not authorize the purchase or financing of equipment on its own; rather, it serves as the funding mechanism once the City Council approves both the purchase and the related financing. Bank of America currently provides MELPA-based financing to the City. After a competitive RFP process, the City awarded Bank of America a four-year agreement in January 2025 with a maximum leasing capacity of $55 million, giving the City a reliable and efficient structure for obtaining equipment financing. In addition to this existing MELPA, Bank of America, through a partnership with Cisco Capital, has offered a separate but related program with more advantageous terms, allowing the City to lease-purchase equipment totaling $2,075,399.99 at an effective interest rate of 0%. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not applicable as BAPCC is uniquely qualified. FISCAL IMPACT The Police Department's approved FY27 budget includes funding for the initial annual lease payment, with subsequent payments to be budgeted in future years. The total lease obligation will not exceed $2,075,399.99 and will be paid over five years. Attachments: Uniquely Qualified Memo Resolution - attached Equipment Lease/Purchase Agreement