04-04-05 Item 18To: Honorable Mayor, Vice Mayor Date: April 4, 2005
and City Commission
s
From: Maria V. Davis Subject: Agenda Item #
City Manager Comm. Mtg. April 5, 2005
Changing Lender for
Purchase of Police Vehicles
ORDINANCE:
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO ENTER
INTO A FINANCE AGREEMENT WITH FIRST NATIONAL BANK OF SOUTH
MIAMI FOR THE PURCHASE OF EIGHT FORD CROWN VICTORIA POLICE
PURSUIT VEHICLES PREVIOUSLY APPROVED BY RESOLUTION #177 -04-
22956 DATED NOVEMBER 1ST 2004, PROVIDING FOR AN EFFECTIVE DATE.
BACKGROUND AND ANALYSIS
On November 1, 2004, the City Commission approved resolution number 177 -04 -22956 for the
purchase of eight police vehicles. The approved resolution stated that financing would be
provided through the Florida League of Cities contract with Bank of America in annual advance
payments of $50,016.00 for the term of the loan. After this resolution passed, but before signing
a contract, two additional quotes were received from two different financial institutions:
• Ford Motor Credit under municipal Lease - Purchase program provided a quote reflecting
five annual advance payments in the amount of $43,254.98 per year.
• First National Bank of South Miami, a local bank, provided a quote reflecting a down
payment in the amount of $43,000.00 and four advance annual payments in the amount of
$42,630.78 per year.
First National Bank of South Miami's quote reflects a first -year saving of $7,016.00 and annual
savings for the remaining four years of $7,385.22 each, or a total of $36,556.38 for the term of
the loan compared to Bank of America's quote. It was. also brought to our attention that
according to our Charter, as this was for extended financing, the loan contract had to be
authorized by ordinance. For this reason, we are requesting that the referenced ordinance be
passed, amending resolution #177 -04 -22956 to reflect the lender name change from Bank of
America to First National Bank of South Miami.
Funds for this expenditure are reflected on the approved 2004/2005 budget account number 01-
1910 -521 -4450. Current balance on this account is $ 42,394.00
RECOMMENDATION:
It is recommended that the City Commission approve this ordinance.
ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO
ENTER INTO A FINANCE AGREEMENT WITH FIRST NATIONAL BANK OF
SOUTH MIAMI FOR THE PURCHASE OF EIGHT FORD CROWN VICTORIA
POLICE PURSUIT VEHICLES PREVIOUSLY APPROVED BY RESOLUTION
#177 -04 -22956 DATED NOVEMBER 1sT 2004, PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, on November 1St the City Commission approved resolution number 177 -04-
22956 for the purchase and financing of new police vehicles through an existing contract with the
Florida League of Cities /Bank of America, and
WHEREAS, it was later deemed to be prudent to employ competitive bidding procedures;
three quotes were obtained and First National Bank of South Miami was determined to offer a cost
savings to the City in its financing proposal compared to the other bidders,
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA, THAT:
Section 1: The City Manager is hereby authorized to execute a loan agreement (per attached
bid) with First National Bank of South Miami for the term of the loan as approved by resolution
number 177 -04- 22956 on November 1 s'2004, as also reflected in the proposed expenditures in the
approved budget for 2004 -2005.
Section 2: This ordinance shall be effective immediately upon the adoption hereof.
PASSED AND ADOPTED this day of , 2005.
ATTEST: APPROVED:
CITY CLERK
1St Reading
2 "d Reading
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
MAYOR
COMMISSION VOTE:
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Birts- Cooper:
Commissioner Sherar:
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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
ENTER INTO A FINANCE AGREEMENT WITH FIRST NATIONAL BANK OF
SOUTH MIAMI FOR THE PURCHASE OF EIGHT FORD CROWN VICTORIA
POLICE PURSUIT VEHICLES PREVIOUSLY APPROVED BY RESOLUTION
#177 -04 -22956 DATED NOVEMBER 1sT 2004, PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, on November 1St the City Commission approved resolution number 177 -04-
22956 for the purchase and financing of new police vehicles through an existing contract with the
Florida League of Cities /Bank of America, and
WHEREAS, it was later deemed to be prudent to employ competitive bidding procedures;
three quotes were obtained and First National Bank of South Miami was determined to offer a cost
savings to the City in its financing proposal compared to the other bidders,
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA, THAT:
Section 1: The City Manager is hereby authorized to execute a loan agreement (per attached
bid) with First National Bank of South Miami for the term of the loan as approved by resolution
number 177 -04 -22956 on November 1St 2004, as also reflected in the proposed expenditures in the
approved budget for 2004 -2005.
Section 2: This ordinance shall be effective immediately upon the adoption hereof.
PASSED AND ADOPTED this day of , 2005.
ATTEST: APPROVED:
CITY CLERK MAYOR
1St Reading
2nd Reading
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
COMMISSION VOTE:
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Birts- Cooper:
Commissioner Sherar:
RESOLUTION NO. 177 -04 -22956
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO
PURCHASE EIGHT FORD CROWN VICTORIA POLICE. PURSUIT
VEHICLES AS APPROVED IN THE 2004 -2005 BUDGET, FOR A TOTAL
AMOUNT NOT . TO EXCEED $250,080.00, WITH THE FIRST YEAR'S
INSTALLMENT OF FIVE (5) ANNUAL PAYMENTS NOT TO EXCEED
$50,016.00 TO BE CHARGED TO ACCOUNT NUMBER 1910 - 521 -4450
(PURCHASEILEASE- POLICE VEHICLES) PROVIDING FOR EFFECTIVE
DATE
WHEREAS, the annual program of replacing police fleet vehicles has been suspended for the
last four (4) years; and
WHEREAS, this has resulted in the current police > fleet including 1996 and 1997 vehicles
which, due to their age and mileage, render them unsuitable and unsafe as pursuit vehicles and in
need of replacement; and
WHEREAS, in order to maintain a fleet of serviceable vehicles for the police department, the
purchase of eight new vehicles is requested as approved in the 2004 -2005 budget; and
WHEREAS, financing is available through the Florida League of Cities, Bank of America;
and
WHEREAS, Duval Ford is the awarded bidder under Florida Sheriff's Association Bid #01-
07 -0913 expiring on September 30, 2005, for Ford Crown Victoria police pursuit vehicles.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA, THAT:
Section 1. The City Manager be, and hereby is, authorized to execute a purchase
agreement with Duval Ford for the acquisition of eight Ford Crown Victoria Police Pursuit Vehicles
as approved in the 2004 -2005 budget; the disbursement to be charged to account number 1910-521 -
4450 ( Lease / Purchase - Police Vehicles) with a current balance of $240,650.00.
Section 2. The , Mayor and City Commission authorize the City Manager to execute
financing through the Florida League of Cities, Bank of America for the term of the loan.
Section 3. That all future payments be budgeted for the duration of the loan.
Section 4. That this resolution be effective immediately upon the adoption hereof.
PASSED AND ADOPTED this / day ofJ- 2004.
1
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tit }l +.J _ FoiiiA'T,f ..
City of South Miami
Police Department
INTER- OFFICE MEMORANDUM
TO: Ms. *Da • � ''ty Manager
FROM: ,
Orl do astro
Chi o
DATE: Nove r , 2004
SUBJECT: Police Vehicles Purchase
ne 2004/2005 budget includes $50,016.00 for this year's installment payment for
the purchase of the eight (8) Ford Crown Victoria police cars. P
On November 1, 20049 the City Commission approved the purchase from Duval
Ford, the awarded bidder under the Florida Sheriff's Association. The cost for the
eight (8) vehicles will be $197,000.
We were under the impression that we would obtain 5-year financing through the
Florida League of Cities and have based our budget request on that assumption.
Although 5-year (or longer) financing is available for other municipaal vehicles and
equipment, the Banff used by Fla. League of Cities will only provide 4 -year loans for
Police, cars. As the loan payments of $53,261.48 exceed the amount budgeted, this
arrangement is not feasible.
Upon receiving this inforMalion, we obtained a loan quote from Ford Motor Credit
(FMC) under their Municipal Lease- Purchase Pr
Year, would provide a 5-
year, annual payments due in advance, loan, at 4.8% that would result in 5
payments, beginning, this year, of $43,254.98
$216,2 74.90. S. The total payments would be
We then contacted loan representatives from First National Bank of South Miami.
They are offering an arrangement which requires a $43,000 down payment due at
the inception of the loan. The remaining balance of $134,000, plus document stamp
fees of 5539, (total: $154,539) would be financed by FNBSM for four (4) years at 4%
interest with the first annual installment a
2005. The total a yments P'yment of $42,630. 78 due in November,
p (S43 , 000 + 4 z $42 630.78) would be $213,523.12.
We inquired of FMC whether they could provide financing similar to that being
offered by FNBSilL They provided a revised quote that calls for the first payment of
five being $43,000 and the remaining four payments being 543,326.48. The total of
payments would be ($43,000 plus 4 X $43,326.48) $216,305.92.
It is recommended that we use the financing from First National Bank of South
1!'I:iamL This is a total savings of $2,575.30 versus Ford Motor Credit's lowest
proposal. By using this option, there will be a $7,016.00 savings in this current
year's budget. 'Those projected savings can be used to pay a three- year -old past due
invoice that I was just informed of from Law -Enforcement Supply, our vehicle
equipment installation vendor in the amount of $5,300. and the remainder should be
transferred in to the vehicle maintenance account to cover anticipated increased
repairs to the aging fleet untie the new cars arrive in Spa ing, 2005.
First,
National {
of n1 ,
soutit
am
integrity for Generations
November 4, 2004
City of South Miami
Orlando Martinez de Castro '
Chief of Police
6130 Sunset Drive
South N ianail, Fl, 33143
Dear Chief Martinez de Castro:
We are pleased to advise you that First National bank of South Miami has approve i your
request for a term loan subject to the following terms and conditions: :.
B.orro*er: City of South Miami. {
Purpose; Purchase eight Fond Crown Victoria Police Sedans.
Loan ,Amount: The loan amount shall be $154,539.00,
Term: k`aur years; The yearlypzincipal and interest payments shag be
$42,630.75. The payments will be due in November of 2 " 5,
2006, 2007 & 2008.
Ix.teres't ]Date: The interest rate shall be fixed at 4% for the life of the loam`�
Collateral: The collateral shall be eight 2005 Ford Croton Victoria Folie
Sedans, i
Loan Fee: None.
Prepayment Penalty: Nome.
The breakdown of the funding ng is as fallow:
Purchase Price: $197,000 '
Down Paymemt: 43 000
Amount Ruanced: $154,539
Please note $539 of the amount financed is for state documentary tapes- {
5750 SurosEr naive, SouTH Al mi, FL 33143 A< 305.667.5511 r www.Rasm.Gom
Sartkof
;.
2059 Northlake Park. -way
4h Floor North
Tucker, GA 30084
770- 270 -8525
770- 270 -8565 Fax
November 2nd, 2004
City of South Miami
To Whom It May Concern:
Banc of America Leasing & Capital, LLC ("Lessor") is pleased to submit the following bid to you
pursuant to the Master Lease/P=hase Program established on behalf of the Florida League of Cities, Inc.
Lessee: City of South Miami, FL
Amount
Financed: $197,000 (soft costs cannot exceed 20 %)
Lease Term: Forty-seven months (maximum term will be based on final equipment list)
Equipment
(Description: Eight (8) New Police Cars
Interest Bate; 332 %, or 107% of the 4 -year Treasury. This rate will be held for 30 days from the
above date. Themsfier, the Interest Rate will be recalculated at the percent of the 4 -year
Treasury quoted under the Florida League of Cities Master Lease/Purchase Program for
the month in which funding occurs, and the rate will be fixed at the time of funding. As
of November 2nd, 2004, the 4 -year Treasury was 3.32 %.
Periodic P&-I- Annual/arrears $ 53,261.48 (first due in Sept. 2005)
Total P &L. Annual/arrears $ 213,045.92
Servicing
>ree: A servicing fee of 10 basis points ($468) will be charged to Lessee for processing this
transaction as part of the Florida League of Cities Master Lease Program with Lessor.
This transaction will be subject to the terms and conditions and documentation of the Florida League of
Cities Master Lease/Purchase Program.
If you wish Lessor to proceed with this transaction; please submit the application provided, along with the
specified financial information requested. We look forward to the opportunity to provide financing to you.
If you have any questions, please give me a call at (770) 270 - 2525. '
Very truly yours,
BANC OF ANMRICA LEASING & CAPITAL, LLC
By: Beth C. Morgan
y
Title: Assistant Vice President
- -- - - - - - - - - Page: 1
Ford Motor Credit Company The American Road -
P.O. Box 1739
Dearborn, Michigan 48121 -1739
November 4, 2004
Lt. Dan Salerno
South Miami Police Dept.
Re: Ford Municipal Finance Program - Quotation for City of South Miami, FL'- Bid #38612
Please review the following information. Rates and payment factors are applicable for total amounts funded from
$150,000 - $299,999. The quote is good until 02/2812005. -
A Documentation Fee of $350 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:
Quanti Description Price
8 2005 Ford Crown Victoria Police Sedans $197,000.00
Total Amount Number ofi Payment Payment
Funded Payments Payment Timing A.P.R. Factor Amount
$197,350.00 5 Annual in Advance 4.80% '0.219179 $43,254.98
• To calculate PaymentAmoicnt, muldo1v Total Amount Funded by tile 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 buy s the a ui merit for $1. The municipality, as Owner of record is eligible for Ford Governmental ernment
al .Price
Concessions or other discounts, to reduce product cost. f
Please note: Ford Cre&Y'sf =racing is subject to: O
7) Renieyvand icpproval ofihe MuriicapaUty's tin most recent auditedfuratzcial staterneiks, if requested
2) liiutltally acceptable documwntation
Sample forms and documentation are available upon request
If you need additional information, please contact meat 1400- 241 -4199, and press 1. Thank you for your interest ui Ford municipal
r inaIlcing•.. -
Sincerely,
Arai F. Creviston l
Marketing Coordinator
r
i
t
Page: 1
Ford Motor Credit Company The American Road
P.O. Box 1739
Dearborn, Michigan 48121 -1739
November 5, 2004
Major Mike Mills
South Miami Police Dept.
Re: Ford Municipal Finance Program - Quotation for City of South Miami, FL - Bid M612
Please review the following information: Rates and payment factors, are applicable for total amounts funded from
$150,ODO - $299,999. The quote is good until 02/2812005.
A_ Documentation Fee of $350 is required per transaction- not per unit, that can be Maid at delivery or funded over
the term (included below).
This finance proposal applies to:
. Quantity Description Price
8 2005 Ford Crown Victoria Police Sedans $197, ODD. DO
Total Amount Number of Payment Payment
Funded Payments Payment Timing A.P.R. Factor Amount
$197, 35b. DO 1 Annual in Advance 4.8D% $43,000.00
$197,350.00, 4 Annual in Advance 4.80% 0.280703 $43,326.48
r To calculate Payment Amount, multiply Total Amount Fronded by the Fanmelzt 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 gote: Ford 0edit1sfzrwncir:g is subject to: ' f�yy,
1) RLwieiw of M d
i �
arzd approval tree Wzici u&y's m v most recent audited, fiizaracxal statements, if requested `I a
_,
2) tllutually acceptable documcizo&iz
Sample forms and documentation are available upon request
If you need additional information, please contact meat 1 -800 -241 -4199, and press, 1. Thank you for your interest in Ford municipal
financing.
Sincerely,
F
�7.
Aim F. Creviston
Marketing Coordinator
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Rate:
4.80 °!°
Lease Number:
Lessee:
South Miami
Lease
Lease
Payment
Payment
Lease
interest
Principal
Concluding
Number
Date
Payment
Portion
Portion
Payment
1
/
/
$43,000.00
$0.00
$43,000.00
$154,350.00
.2
/
/
43,326.48
7,408.80
35,917.68
118,432.32
3
/
/
43,326.48
5,684.75
' 37,641.73
80,790.59
4
/
/
43,326.48
3,877.95
39,448.53
41,342.06
5
I
/
43,326.48
1,984.42
41,342.06
1.00
TOTALS
216,305.92
18,955.92
197,350.00
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Amortization SChedule
11 -04-2004:
Remaining
:�terest
x�t
Date
Amount
interest
Balance
i Pool
Fixed state
11 -04 -2004
4.000
0.00
0.00
; 0.00
Disbursement
11 -04 -2004
197700.00
0.00
197700.00
0.00
palnnent
11 -04 -2005
44479.90
8017.83
161237.93
i 0.00
payment
11-04 -2006
44479.90
6539.09
123297.12
0.00
Payment
17. -04 -2007
44479.90
5000.38
83817.60
0.00
Payment
11 -04 -2008
44479.90
3408.58
42746.28
1 0.00
payment
11 -04- 2009
44479.90
1733.60
-0.02
0.00
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