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Council approves lease financing for 14 fleet vehicles, mayor discloses prior ties to lender
Summary
The council approved Resolution 26-02 to lease-finance 14 vehicles with terms staff said carried an effective interest rate of about 4.5—64.8%. The mayor disclosed prior work with an organization that may source vehicles through the proposed lender but said he will not personally benefit.
The South High City Council voted to approve Resolution 26-02, authorizing a lease-financing agreement with Bancorp to finance replacement of fleet vehicles.
Peter, a city staff member who presented the item, said legal staff and the city manager had reviewed the agreement and recommended approval. He told the council the leases offer flexibility for different vehicle types and that staff had been quoted “an effective interest rate between 4.5—64.8%” depending on market conditions. Peter said the package would allow the city to acquire about 14 vehicles under the initial lease agreement.
Mayor (speaker 1) made an on-the-record disclosure before the vote, saying he had worked with Bancorp in the past and that Bancorp “—probably [would] source these with the organization I work for,” but that he did not personally benefit from the transaction. He added council members do not have to recuse themselves and can vote after disclosing potential conflicts. The council moved, seconded and approved the resolution by roll call.
The vote was recorded on the roll call with several council members voting in the affirmative. The lease gives the city the option to purchase vehicles at the end of their lease terms and to structure individual leases to match projected useful life of different vehicle types.
