Board of Estimate & Contract:
RESOLVED, that a resolution adopted by the City Council on December 11, 2024, and signed by the Mayor on December 12, 2024, authorizing the Mayor to Enter into a Financing Agreement with Lease Servicing Center, Inc. dba NCL Government Capital for the Purchase of Essential Department of Public Works (DPW) Fleet Equipment - (The agreement shall include the following terms:
0. Down Payment: $100,000 from ARPA Budget Code: DPW A8160.203ARP.
1. Closing Costs: $50,000 to be paid from ARPA Budget Code: DPW A8160.203ARP.
2. Financed Amount: The remaining balance of $3,045,325.05 will be financed through NCL under terms negotiated with the City Comptroller and approved by the City Council.
The total of $150,000, comprising the $100,000 down payment and $50,000 closing costs, shall be charged to ARPA Budget Code: DPW A8160.203ARP); be, and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING THE MAYOR TO
ENTER INTO A FINANCING AGREEMENT WITH
LEASE SERVICING CENTER, INC. DBA NCL
GOVERNMENT CAPITAL FOR THE PURCHASE OF
ESSENTIAL DEPARTMENT OF PUBLIC WORKS
(DPW) FLEET EQUIPMENT
Whereas, by letter dated November 11, 2024, the Deputy Commissioner of the Department of Public Works has requested legislation authorizing the Mayor of the City of Mount Vernon to enter into a financing agreement with NCL for the purchase of DPW fleet equipment for $3,195,325.05. The agreement shall include the terms listed below in Section 2; and
Whereas, the City of Mount Vernon’s Department of Public Works (DPW) plays a critical role in maintaining city infrastructure, ensuring public safety, and providing essential municipal services; and
Whereas, a comprehensive fleet condition assessment report utilizing the American Public Works Association (APWA) replacement guidelines revealed that 62.8% of the current DPW fleet is classified as unsatisfactory, unsafe yet usable, virtually unusable, or decommissioned, and 66.1% of the fleet is over 11 years old, far exceeding the recommended operational lifespan of 5 to 14 years, depending on the type of equipment; and
Whereas, to address these deficiencies, the City has determined it is essential to acquire new fleet equipment to improve operational efficiency, ensure public safety, and meet industry standards; and
Whereas, Lease Servicing Center, Inc., dba NCL Government Capital (“NCL”), is a reputable, independently owned financing company that provides competitive equipment financing solutions for government and educational agencies nationwide; and
Whereas, NCL has demonstrated its willingness to support the City of Mount Vernon’s equipment financing needs during this economically challenging period and has agreed to enter into a contract for financing the acquisition of essential DPW fleet equipment; and
Whereas, previous efforts to identify other funding sources resulted in the purchase of two snow trucks funded by the American Rescue Plan Act (ARPA) Budget Code: DPW A8160.203ARP, reducing the total equipment required under this financing agreement; and
Whereas, the revised equipment acquisition plan focuses on obtaining large, high-priority apparatus not otherwise available through alternative procurement or fleet management programs; and
Whereas, it is in the best interest of the City of Mount Vernon to enter into a financing agreement with NCL to ensure timely procurement of essential fleet equipment to support critical municipal services; and
Whereas, the total purchase price of the fleet equipment is $3,195,325.05, with an initial down payment of $100,000 and an additional $50,000 in closing costs, totaling $150,000, to be funded immediately from ARPA Budget Code: DPW A8160.203ARP; Now, Therefore, Be It Resolved That
The City of Mount Vernon, in City Council convened, does hereby ordain and enact:
Section 1. Purpose. This ordinance authorizes the City of Mount Vernon to enter into a financing agreement with Lease Servicing Center, Inc. dba NCL Government Capital to procure essential Department of Public Works fleet equipment.
Section 2. Authorization to Enter into Agreement. The City Council hereby authorizes the Mayor of the City of Mount Vernon to enter into a financing agreement with NCL for the purchase of DPW fleet equipment for $3,195,325.05. The agreement shall include the following terms:
3. Down Payment: $100,000 from ARPA Budget Code: DPW A8160.203ARP.
4. Closing Costs: $50,000 to be paid from ARPA Budget Code: DPW A8160.203ARP.
5. Financed Amount: The remaining balance of $3,045,325.05 will be financed through NCL under terms negotiated with the City Comptroller and approved by the City Council.
Section 3. Funding. The total of $150,000, comprising the $100,000 down payment and $50,000 closing costs, shall be charged to ARPA Budget Code: DPW A8160.203ARP.
Section 4. Scope of Procurement. The fleet equipment to be procured under this financing agreement includes but is not limited to, large, high-priority apparatus and rolling stock necessary for the effective and efficient operation of the Department of Public Works.
Section 5. Administration and Oversight. The Department of Public Works, in collaboration with the Department of Management Services and the City Comptroller, shall oversee the procurement process, ensure compliance with all local, state, and federal regulations, and maintain transparency in the use of ARPA funds.
Section 6. Effective Date. This ordinance shall take effect immediately upon its approval by the Board of Estimate & Contract.