Consideration and Adoption of Ordinance No. 2017-02:  An ordinance of the Council of the City of Flagstaff, Coconino County, Arizona, approving the form and authorizing the execution and delivery of a non-bank-qualified, appropriation-based tax-exempt Master Equipment Lease-Purchase Agreement for certain equipment; delegating authority to the Management Services Director of the City to determine certain matters and terms with respect to the foregoing and authorizing the taking of all other actions necessary to the consummation of the transaction contemplated by this ordinance.

To provide authorization to enter into a ten-year capital lease for financing of parking meters, software, signage, and installation for the parking district.  

Approval of this capital lease agreement allows the City to expend up to $1,000,000 for certain items needed for the parking district which include the parking meters, necessary software, and installation of all necessary items.  The current financing rate from Signature Public Financing is for 2.90% for ten years with semi-annual payments, however this rate may increase prior to closing on March 10, 2017, as outlined in the Background/History section. Financing is necessary as revenues will not be sufficient in the initial years of the program to pay for these expenses.  Future parking revenues will be used to make debt service payments over the next ten years. This financing and debt service is budgeted in the current five-year plan for the ParkFlag Fund. 

None

- Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
- Provide a well-managed transportation system
- Continue to implement the Flagstaff Regional Plan and focus efforts on specific plans

REGIONAL PLAN:
Policy LU.12.11. Develop a residential parking program to address the impacts of on-street parking on public streets in the downtown and surrounding areas, while considering the needs of residents, public events, and enterprises in and around the impacted areas.

Policy T.3.4.Actively manage parking, including cost and supply, to support land use, transportation, and economic development goals.

In January of 2016, the City Council adopted a Comprehensive Parking Management Plan and established several polices with regard to parking and parking management. 
On November 15, 2016, Council approved the contracts to purchase parking equipment, installation of signs and meters,  and related software.
First reading of this ordinance occurred at the January 17, 2017, Council Meeting.

• Approved the contract as submitted.
• Amend the contract submitted, this may delay the financing and could effect the interest rate.
• Do not approve the contract and provide direction to staff for alternative financing. 

The City of Flagstaff Purchasing Department posted a formal solicitation in a Request for Proposal format. The RFP was posted to the City of Flagstaff's website as of September 21, 2016. The posting closed as of Thursday October 13, 2016, at 3:00 pm local time. The purchasing department received two responses. The evaluation team recommended Signature Public Funding after an extensive evaluation of both proposals. A copy of the scoring sheet that was done on a weighted average scoring system is included with this staff summary. The overall parking proposal was approved by City Council November of 2016. After negotiations with Signature Public Funding, both parties agreed upon 2.90% and semi-annual payments as long as the contract is finalized by February 10, 2017. Because of the thirty-day wait period of an ordinance, further negotiations with Signature Public Finance occurred. Signature Public Funding and the City of Flagstaff have agreed upon a rate that states for every 2 basis points upward movement in the Average Life Swap on March 7, 2017, from today's Average Life Swap, the lease rate will increase by 1 basis point with the final lease interest rate not to exceed 3.00%.

City Charter Article VII, Section 5 requires approval by Ordinance for authorization to borrow money. 

The interest rate offered by Signature Public Financing is available until close of business March 10, 2017.  Further delay of issuing a contract could have a negative impact to the interest rate.  

By providing financing for the ParkFlag Fund, the City is allowed to purchase and install the necessary equipment and signage earlier than waiting for the necessary cash flow to pay as you go.  This allows for revenues to begin later this fiscal year and stay on track with the implementation of the parking district. 

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