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27South Miami To: The Honorable Mayor & Members of the ity Co ission From: Roger M. Carlton, Acting City Manager Date: April 19, 2010 Agenda item No.: 44 1/ Request: Authorizing the Acting City Manager to purchase and sign a five (5) year financing agreement with Suntrust Bank for four (4) police vehicles. Reason/Need: Financing is required and has been budgeted for four (4) replacement police vehicles. The Police Department has obtained quotes from five (5) vendors for the purchase of five (5) Ford Crown Victoria Police Interceptor (CVPl) vehicles. One (1) vehicle will be purchased in full through the American Recovery and Reinvestment Act of 2009. Four (4) vehicles are to be financed over a five (5) year period. The total amount for the four (4) vehicles to be financed is $101,360.00. Three (3) quotes were received from lending institutions: • Suntrust Bank — 3.08% - paid in twenty (20) quarterly payments of $5,487.70 • First National Bank of South Miami — 4.85% -payment schedule not provided • Ford Motor Credit— 6.4% -paid in five (5) annual payments of $22,957.61 Cost: $5,487.70 from FY 2009/10 Budget — Then, nineteen (19) more quarterly payments totaling $21,950.80 per year for the remaining 4.75 years. Funding Source: Police Department Vehicle Lease/Purchase Account #001 - 1910 -521 -4450 with a current account balance of $37,596.28. Backup Documentation: Proposed Ordinance Financing Quotes 16 the purchase and financing of the proposed vehicles; and 17 WHEREAS, In accordance with competitive bidding procedures, three (3) banks 18 have provided quotes, Ford Credit, Suntrust Bank and First National Bank of South 19 Miami; and 20 WHEREAS, Suntrust Bank has provided the lowest rate and has agreed to 21 finance the vehicles at an interest rate of 3.08% for five (5) years; and 22 NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY 24 Section 1. That the City Manager is authorized to execute a contract with 25 Suntrust Bank for financing as described in this ordinance. 26 27 Section 2. That the funding will be provided from the Police Department's 28 Vehicle Lease /Purchase Account # 001 -1910- 521 -4450, Account Balance $37,596.28 29 Section 3. This ordinance shall take effect upon adoption. 30 31 32 33 34 Page 1 of 2 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 PASSED AND ADOPTED this ATTEST: CITY CLERK 15t Reading — 2 "d Reading — day of READ AND APPROVED AS TO FORM AND LEGAL SUFFICIENCY CITY ATTORNEY 2010. RIT002067M COMMISSION VOTE: Mayor Stoddard Vice Mayor Newman Commissioner Palmer Commissioner Beasley Commissioner Harris: Page 2 of 2 Page 1 of 2 Rivera, Lisette From: Rivera, Lisette Sent: Thursday, April 15, 2010 5:15 PM To: Mills, Michael S. Subject: FW: New purchase for 4 police cars From: Gatton.Lawanna [ mailto :Lawanna.Gatton @suntrust.com] Sent. Thursday, April 15, 2010 11:11 AM To: Rivera, Lisette Subject: FW: New purchase for 4 police cars Lisette, Per our conversation, I have revised the rate to allow for a fixed rate transaction. This rate is 3.08 %. 1 have based this off of a closing of 5/14/10 but I hope we can close sooner than this. I have pasted the payment schedule below for your review. Should you have any additional questions, feel free to contact me directly, Payment Payment Payment Principal Interest Number Date Amount Component Component 5/14/10 4 8/14/10 5,487.70 4,707.22 780.48 5 11/14/10 5,487.70 4,743.47 744.23 6 2/14/11 5,487.70 4,779.99 707.71 7 5/14/11 5,487.70 4,816.80 670.90 8 8/14/11 5,487.70 4,853.89 633.81 9 11/14/11 5,487.70 4,891.26 596.44 10 2/14/12 5,487.70 4,928.93 558.77 11 5/14/12 5,487.70 4,966.88 520.82 12 8/14/12 5,487.70 5,005.13 482.57 13 11/14/12 5,487.70 5,043.66 444.04 14 2/14/13 5,487.70 5,082.50 405.20 15 5/14/13 5,487.70 5,121.64 366.06 16 8/14/13 5,487.70 5,161.07 326.63 17 11/14/13 5,487.70 5,200.81 286.89 18 2/14/14 5,487.70 5,240.86 246.84 19 5/14/14 5,487.70 5,281.22 206.48 20 8/14/14 5,487.70 5,321.88 165.82 21 11/14/14 5,487.70 5,362.86 124.84 22 2/14/15 5,487.70 5,404.15 83.55 23 5/14/15 5,487.70 5,445.77 41.93 Totals 109,754.00 101,360.00 8,394.00 Thank You, 4/15/2010 Page 2 of 2 Lu Gatton Lawanna S. Gatton Public Finance SunTrust Equipment Finance & Leasing Corp. 300 E. Joppa Road; Suite 700 Towson, MD 21286 410- 307 -6705 office 410 -952 -1208 cell 410 - 307 -6620 fax Live Solid. Bank Solid 4/15/2010 Page 1 of 1 Mills, Michael S. From: Rivera, Lisette Sent: Thursday, April 15, 2010 12:59 PM To: Richardson, Bobby Cc: Mills, Michael S. Subject: FW: 2nd quote for cars financing Thank you From: Jody Perlmutter [mailto:JPerlmutter @fnbsm.com] Sent: Thursday, April 15, 2010 12:06 PM To: Rivera, Lisette Subject: Lisette, I can offer you a 4.85% rate for 5 years. Jordan (Jody) Perlmutter Senior Vice President First National Bank of South Miami Commercial Lending 5750 Sunset Drive South Miami, Fl. 33143 Phone: 305.662.5402 Superior Service and safety since 1952! First National Bank of South Miami This email message and any attachments are intended only for the addressee(s) and contains information that may be confidential and /or copyrighted. If you are not the intended recipient please notify the sender by reply email and immediately delete this email and its attachments. Use, disclosure or reproduction of this email or its attachments by anyone other than the intended recipient(s) is strictly prohibited. No representation is made that this email or any attachments are free of virus. Virus scanning is recommended and is the responsibility of the recipient. 4/15/2010 F®rdCredit The American Road P.O. Box 1739 Dearborn, Michigan 48121 -1739 April 15, 2010 Lissette Rivera City of South Miami Re: Ford Municipal Finance Program - Quotation for City of South Miami, FL - Bid #65494 Please review the following information. Rates and payment factors are applicable for total amounts funded from $75,000 -$149,999. The quote is good until 07 /31/2010. Vehicle delivery must take place and all required documentation and payments must be received by Ford Credit by the good thru date. After 07/3112010, rates and payments are subject to change. A Documentation Fee of $425 is required per transaction- not per unit, that can be paid at delivery or funded over the term (included below). This finance proposal applies to: Quantity 4 Total Amount Number of Funded Payments $101,785.00 Description 2010 Ford Crown Victoria PI Payment Timing Annual in Advance Price $101,360.00 Payment Payment A.P.R. Factor Amount 6.40% 0.225550 $22,957.61 o To calculate Payment Amount. multiply Total Amount Funded by the Payment Factor. The Ford Municipal lease- purchase finance plan requires no security deposit, has no prepayment penalty, no mileage penalty, or hidden fees. The program is non- recourse to the dealer, the same as a cash sale from the dealer to the municipal customer. At inception, the new equipment title /registration indicates the municipality as Registered Owner, and designates Ford Motor Credit Company, P.O. Box 1739, Dearborn, MI 48121 -1739, as First Lienholder. At term end, the municipality buys the equipment for $1. The municipality, as Owner of record, is eligible for Ford Governmental Price Concessions or other discounts, to reduce product cost. Please note: Ford Credit's financing is subject to: I) Review and approval of the Municipality's most recent audited financial statement 2) Mutually acceptable documentation. Sample forms and documentation are available upon request. If you need additional information, please contact me at 1- 800 - 2414199, and press 1. Thank you for your interest in Ford municipal financing. Sincerely, '_ u 57, ew**610 Ann F. Creviston Marketing Coordinator