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21South Miami To: The Honorable Mayor & Members of the City Commission From: Robert F. Richardson II, Chief of Police Via: Roger M. Carlton, Acting City Manage Date: May 4, 2010 Agenda Item No.: Subject: An ordinance of the Mayor and City Commission of the City of South Miami, Florida authorizing the Acting City Manager to finance the purchase of €our (4) nine (9) 2010 Ford Crown Victoria Police Interceptors for a total amount of S101,360.00 $228,060.00 and accepting the interest rate of 3.08% for a five (5) year financing term through Suntrust Bank with twenty (20) quarterly payments in the amounts of $5;4874-0 $12,378.72 and charging to the Police Department's Vehicle Lease/Purchase Account Number 001 -1910 -521 -4450; Providing for severability, ordinances in conflict, and an effective date. Request: Authorizing the Acting City Manager to purchase and sign a five (5) year financing agreement with Suntrust Bank for lour-(4) nine (9) police vehicles. Reason/Need: Financing is required and has been budgeted for the replacement of vehicles in the police fleet. Favorable pricing and financing rates have made it possible to purchase and finance nine (9) vehicles instead of the previously planned four (4). The increase from four (4) to nine (9) purchased vehicles was clearly explained to and understood by the City Commission during the first reading of this ordinance. The City Attorney and Acting City Manager were directed to prepare the appropriate adjustments to the greater quantity for second reading. The Police Department has had obtained quotes from five (5) vendors for the purchase of five (5) Ford Crown Victoria Police Interceptor (CVPI) vehicles. One (1) vehicle will be purchased in full through the American Recovery and Reinvestment Act of 2009. Four (4) vehicles are were to be financed over a five (5) year period. The total amount for the four (4) vehicles to be financed is was $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 Due to the current pricing for the vehicles, equipment and financing, the opportunity arose to purchase and finance nine (9) vehicles (in addition to the grant- funded vehicle). With the financing from Suntrust Bank, there will only be one (1) quarterly payment due in this current FY 2009/10 budget. To make that single finance payment for nine (9) vehicles instead of four (4), the total payment would be $12,378.72, leaving a balance of $25,217.56 to transfer to Operating Equipment Account # 001- 1910 -521 -6430 to fund the emergency equipment and graphics installation on the additional five (5) vehicles. By taking advantage of this opportunity: • Current year (FY 2009/10) expenditures would be within budget. • After the total of ten (10) new vehicles (one fully funded from a grant) are in service, no patrol officers would be assigned vehicles with over 100,000 miles. There would, however, still be a few spare pool vehicles over 100,000 miles and approximately seven (7) vehicles in the 90,000 range. • The ten (10) new vehicles should positively impact the cost of fleet maintenance and repairs as they will be under warranty for 5 years /75,000 miles. • The administration will be preparing a resolution in the near future to remove vehicles from the fleet through parting out, scrapping or auction. Cost: $12,378.72 from FY 2009/10 budget — Then, nineteen (19) more quarterly payments totaling $49,514.88 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 Second Reading Ordinance with amendments approved on ls` reading • Amended Financing Quote • Excerpts from City Commission approval of amended resolution and ordinance relating to purchase and financing of vehicles Page 2 of 2 I ORDINANCE NO. 2 3 An ordinance of the Mayor and City Commission of the City of South Miami, 4 Florida authorizing the Acting City Manager to finance the purchase of four (4) 5 nine (9) 2010 Ford Crown Victoria Police Interceptors for a total amount of 6 $101,360.00 $228,060.00 and accepting the interest rate of 3.08% for a five (5) year 7 financing term through Suntrust Bank with twenty (20) quarterly payments in the 8 amounts of $5,487.70 $12,378.72 and charging to the Police Department's Vehicle 9 Lease/Purchase Account Number 001- 1910 -521 -4450; Providing for severability, 10 ordinances in conflict, and an effective date. 11 12 WHEREAS, the 2009 -2010 Approved Budget reflects the allocation of funds for 13 the purchase and financing of the proposed vehicles; and 14 WHEREAS, In accordance with competitive bidding procedures, three (3) banks 15 have provided quotes, Ford Credit, Suntrust Bank and First National Bank of South 16 Miami; and 17 WHEREAS, Suntrust Bank has provided the lowest rate and has agreed to 18 finance the vehicles at an interest rate of 3.08% for five (5) years; and 19 NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY 20 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: 21 Section 1. That the City Manager is authorized to execute a contract with 22 Suntrust Bank for financing as described in this ordinance. 23 24 Section 2. That the funding will be provided from the Police Department's 25 Vehicle Lease /Purchase Account # 001- 1910 -521 -4450, Account Balance $37,596.28 26 Section 3. This ordinance shall take effect upon adoption. 27 28 29 30 31 32 PASSED AND ADOPTED this day of 2010. 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 ATTEST: C471610IN 11A I" Reading — 2 °d Reading — READ AND APPROVED AS TO FORM AND LEGAL SUFFICIENCY CITY ATTORNEY APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard Vice Mayor Newman Commissioner Palmer Commissioner Beasley Commissioner Harris: Page I of 2 Rivera, Lisette From: Rivera, Lisette Sent: Wednesday, April 28, 2010 5:24 PM To: Mills, Michael S. Subject: FW: New purchase for 9 police cars Lisette, The below amort is for the revised amout which will be for 9 police vehicles. Should you need anything else, feel free to contact me. Thank you, Lu Payment Payment Payment Principal Interest Principal Number Date Amount Component Component Balance. 5/15/10 228,060.00 1 8/15/10 12,378.72 10,565.65 1,813.07 217,494.35 2 11/15/10 12,378.72 10,649.65 1,729.07 206,844.70 3 2/15/11 12,378.72 10,734.31 1,644.41 196,110.39 4 5/15/11 12,378.72 10,819.65 1,559.07 185,290.74 5 8/15/11 12,378.72 10,905.66 1,473.06 174,385.08 6 11/15/11 12,378.72 10,992.36 1,386.36 163,392.72 7 2/15/12 12,378.72 11,079.75 1,298.97 152,312.96 8 5/15/12 12,378.72 11,167.84 1,210.88 141,145.13 9 8/15/12 12,378.72 11,256.62 1,122.10 129,888.51 10 11/15/12 12,378.72 11,346.11 1,032.61 118,542.39 11 2/15/13 12,378.72 11,436.31 942.41 107,106.08 12 5/15/13 12,378.72 11,527.23 851.49 95,578.85 13 8/15/13 12,378.72 11,618.87 759.85 83,959.98 14 11/15/13 12,378.72 11,711.24 667.48 72,248.74 15 2/15/14 12,378.72 11,804.34 574.38 60,444.40 16 5/15/14 12,378.72 11,898.19 480.53 48,546.21 17 8/15/14 12,378.72 11,992.78 385.94 36,553.43 18 11/15/14 12,378.72 12,088.12 290.6 24,465.31 19 2/15/15 12,378.72 12,184.22 194.5 12,281.09 20 5/15/15 12,378.72 12,281.09 97.63 0 Totals 247,574.40 228,060.00 19,514.40 Lawanna S. Gatton 410- 307-6705 office 410- 952 -1208 cell 410- 3o7 -662o fax From: Irivera0l @att.blackberry.net [ mailto :Irivera0l @att.blackberry.net] Sent: Friday, April 23, 2010 4:47 PM To. Gatton.Lawanna Subject: Re: New purchase for 4 police cars I just following up the request I send you I need the inf as soon as posible since the ordinance has to go 4/28/2010 Page 2 of 2 back to the commission and the dead line is on monday. Thank you Lissette Sent via B1ackBerry by AT &T From: "Gatton.Lawanna" <Lawarma.Gatton @suntrust.com> Date: Wed, 21 Apr 2010 13:20:37 -0400 To: <lrivera @cityofsouthmiami.net> Subject: Re: New purchase for 4 police cars Thank you for the update. I will work on my end toward the anticipated closing in early May. Are you still considering the refinance of vehicles? Thank You, Lu From: Rivera, Lisette <Irivera @cityofsouthmiami.net> To: Gatton.Lawanna Sent: Toe Apr 20 12:55:58 2010 Subject: RE: New purchase for 4 police cars Please be informed that the first reading ordinance for the purchase of the cars was approved. There is one more time that we need to go in front of the commission for on May 4. Please let me know what do you need to start the process of the finance right after the ordinance is approved. Please forward me the schedule of payment including the finance of 9 cars no 4. Thank you, Lissette 4/28/2010 1 City of South Miami 2 Regular City Commission Minutes 3 April 19, 2010 4 EXCERPT 5 6 7 CALL TO ORDER: 8 9 The City Commission of the City of South Miami, Florida met 10 in regular session on Monday, April 19, 2010, beginning at 7:24 11 p.m., in the City Commission Chambers, 6130 Sunset Drive. 12 13 A. Roll Call: 14 The following members of the City Commission were present: 15 Mayor Philip K. Stoddard, Vice Mayor Valerie Newman, and, 16 Commissioners Velma Palmer, Brian D. Beasley and Walter A. 17 Harris. 18 19 Also in attendance were: City Attorney Laurence Feingold and 20 Deputy City Attorney Mark A. Goldstein, City Clerk Maria M. 21 Menendez and Acting City Manager Roger M. Carlton. 22 23 24 RESOLUTION (S) 25 26 27 87 -10 -13121 28 21. A Resolution of the Mayor and City Commission of the 29 City of South Miami, Florida, authorizing the Acting 30 City Manager to purchase Five Ten {--R+ (10) 2010 Ford 31 Crown Victoria Police Interceptor (CVPI) vehicles from 32 Gus Machado Ford for an amount of $126,700.00 and 33 authorizing the Acting City Manager to seek the lowest 34 bidder for financing of four 44)- nine (9) of the 35 vehicles for an amount of $101,360.00 from Police 36 Vehicle Lease /Purchase Account # 001 -1910- 521 -4450 and 37 the fifth ninth vehicle to be funded from the American 38 Recovery and Reinvestment Act Grant in the amount of 39 $25,340.00 and authorizing the expenditure of not more 40 than $24,754.80 for emergency equipment and 41 installation from Dana Safety Supply and $1,957.80 for 42 graphics installation by Graphics Design International 43 for five {3} ten (10) vehicles from Police Operating CITY COMMISSION MINUTES 1 April 19, 2010 PTEN 1 Equipment Account # 001 - 1910 -521 -6430, Providing for an 2 effective date. 3/5 3 (Acting City Manager) 4 5 Moved by Commissioner Beasley, seconded by Mayor Stoddard to 6 approve this item. 7 8 Mr. Carlton presented this item explaining that because the 9 finance rate came so low, and because there is enough money 10 available, he contacted the leasing company to see if they would 11 be willing to finance five (5) more vehicles; if approved by the 12 Commission, we will have to budget $27,000.00 for next year's 13 lease payment. He said that if the purchase of ten (10) vehicles 14 is approved, we will not have an active vehicle with more than 15 100,000 miles. 16 17 Moved by Mayor Stoddard to amend the resolution to change 18 the number of vehicles from five (5) to ten (10). Seconded by 19 Vice Mayor Newman, the motion to approve this item as amended and 20 as a whole passed by a 5 -0 vote: 21 22 Commissioner Palmer: Yea 23 Vice Mayor Newman: Yea 24 Commissioner Beasley: Yea 25 Commissioner Harris: Yea 26 Mayor Stoddard: Yea 27 28 29 ORDINANCE () FIRST READING 30 31 22. An ordinance of the Mayor and City Commission of the 32 City of South Miami, Florida authorizing the Acting 33 City Manager to finance the purchase of four (4) nine 34 (9) 2010 Ford Crown Victoria Police Interceptors for a 35 total amount of $$101,360 =00 $228,060.00 and accepting 36 the interest rate of 3.08% for a five (5) year 37 financing term through Suntrust Bank with twenty (20) 38 quarterly payments in the amounts of $5,487.70 39 $12,378.72 and charging to the Police Department's 40 Vehicle Lease /Purchase Account Number 001- 1910 -521- 41 4450; Providing for severability, ordinances in 42 conflict, and an effective date. 4/5 43 (Acting City Manager) 44 45 Moved by Commissioner Beasley, seconded by Mayor Stoddard to 46 approve this item. 47 CITY COMMISSION MINUTES 2 April 19, 2010 1 2 3 4 5 6 7 8 9 10 11 12 13 m1a t! Moved by Mayor Stoddard to amend the ordinance to read that we will finance the purchase of nine (9) vehicles instead of four (4) vehicles. Seconded by Commissioner Beasley, the motion to approve this item as amended and as a whole passed by a 5 -0 vote: CITY COMMISSION MINUTES April 19, 2010 Commissioner Palmer: Yea Vice Mayor Newman: Yea Commissioner Beasley: Yea Commissioner Harris: Yea Mayor Stoddard: Yea 3 MIAMI DAILY BUSINESS REVIEW Published Daily except Saturday, Sunday and Legal Holidays Miami, Miami-Dade County, Florida STATE OF FLORIDA COUNTY OF MIAMI -DADE: Before the undersigned authority personally appeared V. PEREZ, who on oath says that he or she is the LEGAL CLERK. Legal Notices of the Miami Daily Business Review f /k/a Miami Review, a daily (except Saturday, Sunday and Legal Holidays) newspaper, published at Miami in Miami -Dade County, Florida; that the attached copy of advertisement, being a Legal Advertisement of Notice in the matter of CITY OF SOUTH MIAMI PUBLIC HEARING - MAY 4, 2010 in the XXXX Court, was published in said newspaper in the issues of 04/23%2010 Affiant further says that the said Miami Daily Business Review is a newspaper published at Miami in said Miami -Dade County, Florida and that the said newspaper has heretofore been continuously published in said Miami -Dade County, Florida, each day (except Saturday, Sunday and Legal Holidays) and has been entered as second class mail matter at the post office in Miami in said Miami -Dade County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he or she has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. ) Sworn to and subscribed before me this 23 dayof PRIL Af%.DD2010 (SEAL) V. PEREZ personally known to me "' Comrr sslor # DD 93753[ �, � Expires Pdovember 2, ?013 ••f�, s °F' Eon:P,i Tm Trot rvn ri.� ^�� ^�+FS'/619 Yc Pi Aft ity_of, South Commission 7:30 p.m. in :onsider the. the City, ¢asing egulate t fCabllty:,.,.. the City - �pJleofgj ;,:. - 151,00 •. operty ". ritl',aPd,,; 'coons; y paint ion - of emoval nnoval, 5viding.; - et .:aiid.. :. Fof fiurtiier mfornatton,, please contact the City ; Clerk's Office at: 305. 663 - MariaK Menendei, CMC CityCierk ' +�• h Pumuan6l'to Florldat;Statutes`2$6.0105, the City .hereby, advjses,;the public that it a person decides to appeal any deeisipri made by this Board, Agency. or: <Commissfon �wjttt: respect G. any ,matter. 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