12To: The Honorable Mayor & Members of the City Commission
Via: Hector Mirabile, PhD, City Manager��
From: Alfredo Riverol, CPA, Cr.FA, and Chief Financial Officer
Date: February 1, 2011 Agenda Item No.:
An Ordinance of the Mayor and City Commission of the City of South Miami, Florida,
authorizing the City Manager to finance up to six (6) new police vehicles for an
Subject: amount not to exceed $165,000 and accepting the interest rate of 2.44% through
SunTrust Bank, charging Debt Service- Principal Account No. 001. 1910.521.71 10 and
Debt Service- Interest Account No. 001.1910.521.7210; providing for severability,
ordinances in conflict and an effective date.
Authorizing the City Manager to finance six (6) new police vehicles with SunTrust
Bank. The 2010 -2011 approved budget reflects the allocation of funds for the
purchase and financing of the six new police vehicles in accordance with competitive
Background: bidding procedures, three (3) banks have provided quotes, SunTrust Bank, First
National Bank of South Miami and Executive National Bank. SunTrust Bank has
provided the lowest rate and has agreed to finance the six new police vehicles at an
interest rate of 2.44% for 5- years.
Account and Charging account No. 001.1910.521.71 10 Debt Service - Principal, with a current
Amount: balance of $72,987.02 and Account No. 001.1910.521.7210 Debt Service - Interest,
with a current balance of $9,955.35.
PAYMENT
PRINCIPE
INTEREST
AMOUNT
$2,588.68
$335.02
$2,923.70
$2,593.93
$329.77
$2,923.70
Expense:
$2,599.20
$324.50
$2,923.70
$2,604.48
$319.22
$2,923.70
$2,609.76
$313.94
$2,923.70
$2,615.06
$308.64
$2,923.70
$15,61 1.1 1
$1,931.09
$17,542.20
Backup
Documentation:
. SunTrust, Executive National Bank and First
National Bank of South Miami
quotes.
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ORDINANCE NO.
An Ordinance of the Mayor and City Commission of the City of South
Miami, Florida, authorizing the City Manager to finance up to six (6) new
police vehicles for an amount not to exceed $165,000 and accepting the
interest rate of 2.44% through SunTrust Bank, charging Debt Service -
Principal Account No. 001.1910.521.7110 and Debt Service- Interest Account
No. 001.1910.521.7210; providing for severability, ordinances in conflict
and an effective date.
WHEREAS, the 2010 -2011 approved budget reflects the allocation of funds for the
purchase and financing of the six new police vehicles; and
WHEREAS, in accordance with competitive bidding procedures, three (3) banks have
provided quotes, SunTrust Bank, First National Bank of South Miami and Executive National
Bank; and
WHEREAS, SunTrust Bank has provided the lowest rate and has agreed to finance the
six new police vehicles at an interest rate of 2.44% for 5- years.
NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA;
Section 1. That the City Manger is authorized to execute a contract with SunTrust
Bank for financing as described in this Ordinance.
Section 2. That the funding will be provided from Account No. 001.1910.521.7110
Debt Service - Principal, with a current balance of $72,987.02 and Account No.
001.1910.521.7210 Debt Service - Interest, with a current balance of $9,955.35.
Section 3. This Ordinance shall take effect immediately upon adoption.
PASSED AND ADOPTED this _ day of 2011.
ATTEST:
CITY CLERK
I" Reading —
2 "d Reading -
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AND SUFFICIENCY:
CITY ATTORNEY
Page 1 of 1
M99 Z•1k/11)13
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Palmer:
Commissioner Beasley:
Commissioner Harris:
Additions shown by underlinine and deletions shown by evefstrikin .
SunTrust Equipment Finance and Leasing Corporation
300 E.Joppa Road
Suite 700
Towson, MD 21286
Phone 410.307.6705
Lawanna.gatton@suntrust.com
SUNTRU31
February 1, 2011
Alfredo Riverol
City of South Miami, FL
6130 Sunset Drive
South Miami, FL 33143
Dear Ms, Rivera:
Lawanna S. Garton
Assistant Vice President
SunTrust Equipment Finance & Leasing Corp. is pleased to provide the following proposal to finance the acquisition
of the Police Vehicles by the City of South Miami, FL.
Lessee:
Type of Financing:
Equipment:
Financing Amount:
Lease Term:
Interest Rate:
Payment Mode /Amt:
City of South Miami, FL
Tax Exempt Lease Purchase
Police Vehicles
$165,000.00
Five (5) years
2.4365%
Monthly — arrears
The interest rate is for a funding by March 1, 2011 subject to final approval by the Board. If the financing is not
closed within the above described timeframe or there is an increase in swaps, the interest rate will be subject to
indexation based on the Five year swap rate. A $100 documentation fee will be waived at closing. If an escrow
account is established utilizing our new Escrow Agreement, a set up fee of up to $250.00 will be assessed. This fee
can be paid from interest earnings on the escrow account. The financing is subject to final credit approval by the
Credit/Investment Committee of SunTrust Bank and approval of the lease documents in SunTrust Leasing
Corporation's sole discretion. Should you have any questions, feel free to contact me.
Very truly yours,
Lawanna. S. Garton
Vice President
Proposal for Equipment Financing
Page 2 of 3
Interest Rate: 2.4365% (Monthly)
Payment
Payment
Payment
Principal
Interest
Principal
Number
Date
Amount
Component
Component
Balance
3/1/11
0
0
0
165,000.00
1
411111
2,923.70
2,588.68
335.02
162,411.32
2
5/1/11
2,923.70
2,593.93
329.77
159,817.39
3
611111
2,923.70
2,599.20
324.50
157,218.19
4
711111
2,923.70
2,604.48
319.22
154,613.72
5
8 /1 /11
2,923.70
2,609.76
313.94
152,003.95
6
9/1/11
2,923.70
2,615.06
308.64
149,388.89
7
10 /1 /11
2,923.70
2,620.37
303.33
146,768.52
8
11/1/11
2,92170
2,625.69
298.01
144,142.82
9
12/1/11
2,923.70
2,631.03
292.67
141,511.80
10
1/1/12
2,923.70
2,63637
287.33
138,875.43
11
2/1/12
2,923.70
2,641.72
281.98
136,233.71
12
3/1/12
2,923.70
2,647.08
276.62
133,586.62
13
4/1/12
2,923.70
2,652.46
271.24
130,934.17
14
5/1/12
2,923.70
2,657.84
265.86
128,276.32
15
6/1/12
2,923.70
2,663.24
260.46
125,613.08
16
7/1/12
2,923.70
2,668.65
255.05
122,944.43
17
8/1/12
2,923.70
2,674.07
249.63
120,270.36
18
9/1/12
2,923.70
2,679.50
244.20
117,590.87
19
10/1/12
2,923.70
2,684.94
238.76
114,905.93
20
11/1/12
2,923.70
2,690.39
233.31
1 12,215.54
21
12/1/12
2,923.70
2,695.85
227.85
109,519.69
22
1/1/13
2,923.70
2,701.33
222.37
106,818.36
23
2/1/13
2,923.70
2,706.81
216.89
104,111.55
24
3/1/13
2,923.70
2,712.31
211.39
101,399.24
25
4/1/13
2,923.70
2,717.81
205.89
98,681.43
26
5/1/13
2,923.70
2,723.33
200.37
95,958.10
27
6/1/13
2,923.70
2,728.86
194.84
93,229.24
28
7/1/13
2,923.70
2,734.40
189.30
90,494.83
29
8/1/13
2,923.70
2,739.95
183.75
87,754.88
30
9/1/13
2,923.70
2,745.52
178.18
85,009.36
31
10/1/13
2,923.70
2,751.09
172.61
82,258.27
32
11/1/13
2,923.70
2,756.68
167.02
79,501.59
33
12/1/13
2,92170
2,762.28
161.42
76,739.31
34
1/1/14
2,923.70
2,767.88
155.82
73,971.43
35
2/1/14
2,923.70
2,773.50
150.20
71,197.92
36
3/1/14
2,923.70
2,779.14
144.56
68,418.79
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
Proposal for Equipment Financing
Page 3 of 3
4/1/14
2,923.70
2,784.78
138.92
65,634.01
5/1/14
2,923.70
2,790.43
133.27
62,843.57
6/1/14
2,923.70
2,796.10
127.60
60,047.48
7/1/14
2,923.70
2,801.78
121.92
57,245.70
8/1/14
2,923.70
2,807.47
116.23
54,438.23
9/1/14
2,923.70
2,813.17
110.53
51,625.07
10/1/14
2,923.70
2,818.88
104.82
48,806.19
11/1/14
2,923.70
2,824.60
99.10
45,981.59
12/1/14
2,923.70
2,830.34
93.36
43,151.25
1/1/15
2,923.70
2,836.08
87.62
40,315.17
2/1/15
2,923.70
2,841.84
81.86
37,473.33
3/1/15
2,923.70
2,847.61
76.09
34,625.71
4/1/15
2,923.70
2,853.39
70.31
31,772.32
5/1/15
2,923.70
2,859.19
64.51
28,913.13
6/1/15
2,923.70
2,864.99
58.71
26,048.14
7/1/15
2,923.70
2,870.81
52.89
23,177.33
8/1/15
2,923.70
2,876.64
47.06
20,300.69
9/1/15
2,923.70
2,882.48
41.22
17,418.21
10/1/15
2,923.70
2,888.33
35.37
14,529.87
11/1/15
2,923.70
2,894.20
29.50
11,635.68
12/1/15
2,923.70
2,900.07
23.63
8,735.60
1 /1 /16
2,923.70
2,905.96
17.74
5,829.64
2/1/16
2,923.70
2,911.86
11.84
2,917.78
3/1/16
2,923.70
2,917.78
5.92
0.00
Totals
175,422.00
165,000.00
10,422.00
M EXECUTIVE National Bank
;January 28, 2011
Mr. Alfredo Riverol
Chief Financial Officer
City of South Miami
6130 Sunset Drive
Miami, FL 33143
Re: Executive National Bank loan to the City of South Miami
Dear Mr. Riverol,
We appreciate the opportunity for Executive National Bank ( "Bank", "ENB ") to provide
you with this term sheet for the above - referenced transaction. The purpose of this letter
is to briefly outline the proposed terms and conditions of the financing. If you find them
acceptable, we can continue with the underwriting process. Please understand this letter
is not a commitment on behalf of the Bank to lend, it is merely a detailed expression of
interest. Final approval can only be granted by the Bank's senior loan committee. The
proposed terms are as follows:
Borrower: City of South Miami
Loan Amount: $165,000
Purpose: To finance the purchase of new police vehicles.
Term of Loan: 60 Months
Repayment Terms: 60 Monthly payments of principal and interest, fully
amortized
Rate of Interest: 3.5 %, fixed
Guarantors: None
Conditions:
1. Subject to underwriting requirements such as audited financial statements that
evidence`saiisfaetory-abi i r-debt ; epayment by n ratio -orat least 1.25x;
2. Subject to a depository relationship, in the minimum amount of at least $250,000;
www.executivebank.com '
MAIN OFFICE AVENTURA BRANCH SOUTH MIAMI BRANCH TAMIAMI BRANCH Member
9600 North Kendall Dr. 2090D N.E. 3e Ave., Suite 103 6193 Sunset Dr. 13354 S.W. 128' St Ih
Mo� Miami, FL 33176 Aventura, FL 33180 Miami, FL 33143 Miami, FL 33186 FDIC
Lid EXECUTIVE National Bank
3. Copies of competitive bids of work to .be completed.
4. Copy of minutes evidencing the subject purchase was approved.
The terms and .conditions contained in this letter are being presented for discussion
purposes only. Other terms and conditions may apply if a commitment letter is issued..
In closing, I would like to thank you again for considering Executive National Bank. We
are hopeful that you will find the proposed terms and conditions acceptable. If you have
any questions, please do not hesitate to contact me at 305-219-9277. I look forward to
hearing from you soon.
Very trdly yours,
No is varez
Vice President, Branch Manager
I
I
www.executivebank.com
MAIN OFFICE AVENTURA BRANCH SOUTH MIAMI BRANCH TAMIAMI BRANCH Member
9600 North Kendall Dr. 20900 N.E. 3e Ave., Suhe 103 6193 Sunset Dr, 13354 S.W. 12e St.
>"++' Miami, FL 33176 Aventura, FL 33180 Miami, FL 33143 Miami, FL 33186 FDIC
First
National
Bank
Of
Miami
Integrity for Generations
January 31, 2011
Alfredo Riverol, CPA Cr.FA
Chief Financial Officer
City of South Miami
6130 Sunset Drive
South Miami, Florida 33143
Re: Purchasing police cruisers
Dear Mr. Riverol:
First National bank of South Miami can provide an interest rate of 3.25% for the financing
of your new police cruisers. The loan will have a term of 5 years.
If you have any questions, please contact me.
Sincerely,
J. Perlmutter
Senior Vice President
5750 SUNSET DRIVE, SOUTH MI M, FL 33143 305.667 -5511 j V .FN6SM.cOM FAX 305 - 662 -5404