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AI- 2960   9. B. 2.    
BOC Regular
Meeting Date: 08/15/2019  
PNC Lease Purchase Authorizing Resolution
FROM: Megan Banning, Finance
Department: Finance  

Information
RESOLUTION:
Resolved, that the Calhoun County Board of Commissioners does hereby; (1) approve an additional Lease Schedule to be incorporated into the previously approved Master Lease-Purchase Agreement, dated August 22, 2018, with PNC Equipment, LLC, to finance four additional trucks, with the amount financed being $951,242.00; (2) approve the attached authorizing resolution; (3) authorizes the County Administrator/Controller to sign the lease schedule, and all other documents necessary to complete the transaction on behalf of the County, contingent upon the approval of the County Corporation Counsel, and (3) approve all future lease schedules for the Master Lease'Purchase Agreement, that have also been approved through the budget process. 
RECOMMENDATION:
The Road Department, County Administration, and the Corporation Counsel recommend approval of the resolution. It is recommended that the Board of Commissioners approve the Authorizing Resolution for the PNC Master Lease with Calhoun County and future leases covered under the Master Lease Document and authorize the County Administrator/Controller to execute the lease on behalf of the County contingent upon approval of the County Corporation Counsel.
BACKGROUND:
At your August 2, 2018, meeting you approved a Master Lease with PNC Equipment Financing, LLC, which established a Lease-Purchase financing protocol for the purchase of large capital items, particularly trucks necessary to equip the Road Department. This protocol is particularly appropriate for equipping plow trucks which are custom built, with the truck body produced by one manufacturer, and the plow equipment installed by another, The PNC program set out in the Master Lease permits what is essentially single source funding of the build-out of these trucks, assuring prompt payment of both suppliers. Having already approved the financing protocol in the Master Lease on August 2, 2018, and approved the purchase of these four trucks in 2020 Budget Resolution approved on December 6, 2018, this resolution completes the transaction by authorizing a resolution confirming to PNC that the County Board has authorized the execution and delivery of the Master Lease, the Original Lease Schedule, the Original Escrow Agreement, the Additional Lease Schedules and certain other matters concerning these four trucks at a meeting that was held in compliance with Michigan law relating to the holding of open and public meetings. Schedule, the Original Escrow Agreement, the Additional Lease Schedules and certain other matters concering these four trucks at a meeting that was held in compliance with Michigan law relating to the holding of open and public meetings. Attached item 01, the PNC Proposal, details the transaction and incudes the financing schedule and the lease payments necessary unde that schedule. Item 2 is the resolution that will be forwarded to PNC to confirm the Board of Commissioner's autorization to finance the trucks thought the Master Lease. 
ALTERNATIVES:
None. Authorization of this resolution is necessary to complete the financing of the four Road Department Plow Truck authorized for purchase in the 2020 Budget. 
SUMMARY:
The Road Department, County Administration, and the Corporation Counsel recommend approval of the resolution confirming the financing of four plow trucks for use by the Calhoun County Road Department, and future lease schedules to purchase items that are also approved through the budget process.

Fiscal Impact
BUDGETARY IMPACT:
The lease payments and plow purchases were included in the approved CCRD budget and will be included in subsequent budgets through the term of the lease schedules
Attachments
PNC Lease Proposal
PNC Master Lease Resolution

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