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MINUTES OF THE FINANCE COMMITTEE FEBRUARY 13, 2023 AUDITORIUM Present: Councilmembers Shachner(Chair), Kepple, Bullock Also Present: Councilmember Baker, Finance Director Rancatore, Public Works Director Gordon, Fleet Manager Holman, Law Director Vargo, Clerk Bach & Council staff Call to Order: 6:05 p.m. Approval of the minutes of the January 23, 2023 meeting of the Finance Committee. Motion made and seconded to approve the minutes of the January 23, 2023 meeting of the Finance Committee. All members voted in favor. Motion passed. Minutes approved. ORDINANCE 03-2023 - AN ORDINANCE to take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect and be in force at the earliest period allowed by law, authorizing the Director of Finance to enter into Equipment Leases in forms approved by the Director of Law on behalf of the City of Lakewood("City"). (1st read & referred to Finance 2/6/23) Director Rancatore explained that the ordinance proposes to authorize leases for specific equipment in an amount not to exceed $3,695,000. The equipment listed was discussed as part of the 2023 budget. Director Rancatore introduced a substitute version of Ordinance 03-2023 which removes the reference to a specific vendor. He explained that this change provides the administration the flexibility to select the lowest and best bid at the appropriate time and that this flexibility is needed, given the current state of high interest rates and procurement challenges. In response to a question, Director Rancatore discussed the bidding process by which the administration will seek to find the best price for financing these leases. Historically, Key Bank has provided the best financing by a wide margin. Interest rates are expected to be higher this year than in the past. Director Rancatore explained that the lead time on the listed equipment ranges from 2 month to much longer. He explained that he is aiming to coordinate the financing with the procurement so that the city is not paying interest on money borrowed for equipment it does not have in its possession. Through discussion it was clarified that individual pieces of equipment may end up costing more than listed, but the administration does not have authority to exceed $3,695,000 in total. It was further clarified that the city will borrow less, if the full amount is not needed and also that this amount was budget for. 1