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12-20-05 Item 6TO: Honorable Mayor, Vice Mayor DATE: December 20, 2005 & City Commission FROM: Maria V. Davis City Manager ` AGENDA ITEM No. (0 RE: Authorizing the City Manager to execute finance agreement with Banc of America Leasing & Capital, LLC. ORDINANCE: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO PURCHASE A 2006 REAR STEER LOADER (KNUCKLE -BOOM CRANE/LOADER), A 2006 26 -CUBIC YARD TRASH TRUCK AND A 2005 UTILITY TRUCK, AT A TOTAL COST OF $226,916.68 WITH THE FIRST YEAR'S INSTALLMENT PAYMENT OF FIVE PAYMENTS NOT TO EXCEED $45,383.34 TO BE CHARGED TO THE PUBLIC WORKS DEPARTMENT LEASE PURCHASE — TRUCKS ACCOUNT NUMBERS 001- 1720- 534 -4455 AND 111- 1730 - 541 - 4455; PROVIDING FOR SEVERABILITY, ORDINANCES IN CONFLICT, AND AN EFFECTIVE DATE BACKGROUND & ANALYSIS: During the November 15, 2005 City Commission meeting, the City Commission approved Ordinance number 40 -05 -1862 for the financing of Public Works Department's vehicles /equipment, at 4.07% interest rate. We submitted the ordinance for First Reading on October 18, 2005, with the intent to secure approval after the Second Reading on November 1, 2005 but the item was not addressed on November 1, 2005 because the meeting was adjourned at 11:00 PM. Thus moving the Second Reading of the ordinance to November 15, 2005, when the ordinance was approved. However, since it took over 30 days to secure approval, Banc of America's interest rate changed from the originally quoted interest rate of 4.07% to 4.17 %. With the new interest rate, following are changes in the payment schedule: a New Total Principal & Interest (@ 4.17 %) a Old Total Principal & Interest (@ 4.07 %) a Difference of: a New Annual Payment (5 Payments) a Old Annual Payment (5 Payments) 0 Difference of $226,916.68 $225,376.09 $ 1,540.59 $ 45,383.34 $ 45,075.22 $ 308.12 Page 2 of 2 Comm. Meeting Agenda December 20, 2005 The funding will be provided through the Public Works Department Lease Purchase accounts; charging $39,483.34 to account code 001 - 1720 -534 -4455 with a current balance of $206,975.00 and charging $5,900.00 to account code 111- 1730 -541 -4455 with a current balance of $8,807.00. RECOMMENDATION: It is recommended that the City Commission approve the ordinance. ATTACHMENTS: 0 Proposed ordinance © Copies Ordinance No. 40 -05 -1892 Q Letter from Banc of America Leasing & Capital, LLC I ORDINANCE NO. 2 1 38 e!g9_on4- That this ordinance shall take effect immediately upon approval. 39 40 PASSED AND ADOPTED this day of 2005, 41 42 ATTEST: APPROVED: M] 44 45 46 47 48 49 50 51 52 53 54 55 56 CITY CLERK CITY ATTORNEY MAYOR l'` Reading — 2nd Reading — 3rd Reading - Commission Vote: Mayor Russell: Vice Mayor Palmer: Commissioner Wiscombe: Commissioner Birts-Cooper Commissioner Sherar: C00cuments and SeWngs�Ancke\My DocumentsWord Docnments\OrdmanceinereasedlntRatePWEquip.doc Additions shown by underlining — and deletions shown by evamp;king ORDINANCK NO. 40 -05 -1862 AN ORDINANCE OF THE MAYOR AND CITY COMAUSSION OF THE CITY OF SOUTH MIAMI, FLORIDA, A(7THORIZING THE CITY MANAGER TO PURCHASE A 2006 REAR STEER LOADER (KNUCKLE -90OM CRANE/LOADER), A 20M 26- CITRIC YARD' TRASH TRUCK AND A 2005 trnLI'I'Y TRUCK, AT A TOTAL COST OF $225,376.09 WITH THE FIRST YEAR`S INSTALLMEr T PAYMENT OF FIVE PAYMENTS NOT TO EXCEED U5,075.22 TO RE CHARGED TO . THE :PUBLIC WOIkKa DEPARTMENT LEASE PURCHASE - TRUCKS ACCOUNT NUMDEW S 001- 172()-- 534 -4455 AND 111- 1730.541- 44il.5; PROVIDING FOR S.EVERABILITY, ORDINANCES IN C01+7"1 +LI(T, AND AN EFFECTIVE DATE WTW,,#FAS, the Mayor and City Commission wish to purchase a 2006 Rcar Steer Loader (Crane), a 2006 76-Cubic Yard Trash Truck and a 2005 Utility Truck (Expedition) for the Public Works Departincnt; and WHET EAS, Banc; of America Leasing & Capital, LLC has agreed to:finar►ee the vehicles at 4.07% interest rate under the Florida League of Cities Master Lea.sc/Purchasc Program; and WHEREAS, the purchase of the aforemcationod vehicles will be accomplished by "piggybacking" on current municipal bids in accordance with purchasing procedures as outlined in the City C:harter- NOW, 7'HER.EFORE, HE IT ORDAINRD BY TM, MAYOR AND CITY COMMISSION OF THE CITY Oli SC)tloI MIAMI, F- LORIDA: Se wg 1. rhat the mayor and City Commission out om the City Mir to execute purchase and finance "mpnts for the purchase of one 2006 Roar Steer Loader (Crane), one 2006 26 -Cubic Yard Trash Truck and one 1005 Utility Truck (Expedition) for the Public Works Department, t'o> 2. Than funding will be provided through the Public Works Department Lease .Purchase — Truck accounts; charging $39,268.22 to account code 001 - 1720 -5 34 -4455 with a CumatC balance of $206,975.00 and charging $1,807.00 to acccxutt code If 1- 1730 - 541 -4455 with a current balance of $8,807,00. &4iqj 3, That al! ordinance or parts of ordinances in conflict with the provisions of this ordinance arc mp wed, Sections 4 This ordinance shaft (Ww affect immediately upon approval. PASSED AND ADOPTED this ,�.J' day of ?1--�.G�rGtt�t _: .2005. ATTEST: APPROVED: CLERK 1• I" heading —10 / 18 2°d Reading 11/15/6,5 READ AND A WROVED AS TO FORM: COMMISSION V[iiE: 4-0 - ---~ -- Mayor Russell_ Yea -- 'V'ice Mayor Palmer. Yea Comm�issioner'Wiseomb - out of room TTORNEY Commissioner Birts- Cooper: Yea Commissioner Sherar: Yee, G;0ocymmis and Scjtint,,slArickc \My Docvmenh Wwd I)ocument-tiordinanrx rfuckpurchwwFinancipg.doe E/E 3JVd `nd6E :6 W - L4-AON `8i£9E9990E `INVIn Hines 30 A1I0 :h8 1N36 Bankvf Amer".- Banc of America Leasing & Capital, LLC GA3- 003 -04 -01 2059 Northlake Parkway, 4`h Floor Tucker, GA 30084 Tel 770.270.8443 Fax 770.270.8565 December 1, 2005 City of South Miami, FL 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/Purchase Program established on behalf of the Florida League of Cities, Inc. Lessee: City of South Miami, FL Amount Financed: $ 209,462.26 (soft costs cannot exceed 20 %) Lease Term: Sixty (60) months Equipment One (1) New 2006 Rear Steer Loader (Knuckle Boom Crane); One (1) New 2006 26 Cubic Description: Yard Trash Truck; One (1) New 2005 Model XLT 4x2 Utility Truck Interest Rate: 4.17 %, or 95% of the 5 -year Treasury. This rate will be held for 30 days from the above date. Thereafter, the Interest Rate will be recalculated at the percent of the 5 -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 December 1, 2005, the 5 -year Treasury was 4.39 %. Periodic P &I: Annually /Advance: $ 45,383.34 (five payments with first due in December 2005) Total P &I: Annually /Advance: $ 226,916.68 Servicing Fee: A servicing fee of 10 basis points ($386) 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 -8525. Very truly yours, BANC OF AMERICA LEASING & CAPITAL, LLC By: Beth C. Morgan Title: Assistant Vice President