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.
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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
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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