HomeMy WebLinkAboutDocumentation_Regular_Tab 15_12/12/2019
Agenda Item #15.
Regular Council
STAFF MEMO
Meeting: Regular Council - Dec 12 2019
Staff Contact: Hugh Dunkley Department: Finance
TITLE
RESOLUTION NO. 57-19, A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AUTHORIZING THE EXECUTION AND DELIVERY OF A MASTER EQUITY
LEASE AGREEMENT WITH ENTERPRISE FM TRUST WITH RESPECT TO THE FINANCING AND
LEASING OF CERTAIN CAPITAL EQUIPMENT; AUTHORIZING THE EXECUTION AND DELIVERY
OF DOCUMENTSREQUIRED IN CONNECTION THEREWITH; PROVIDING AN EFFECTIVE
DATE; AND FOR OTHER PURPOSES.
SUMMARY:
The FY2019-2020 Budget includes acquisition of two (2) police vehicles. Staff was able to review its
options regarding the purchase of these vehicles and determined that the Village would be better
served by entering into a lease-purchase arrangement for the acquisition of these vehicles. Acquiring
the vehicles via a lease-purchase arrangement will allow the Village to (1) spread the cost of the
vehicles over several fiscal years rather than merely purchasing the vehicles on a pay-as-you-go
basis, which limits the amount of vehicles that may be purchased in a given year and (2) acquire an
additional pursuit vehicle, which will better equip the department to meet its service demands.
Staff has compared its options for purchasing the vehicles and have found the lease-purchase offer
from Enterprise FM Trust to be most advantageous to the Village. The capitalized cost of the three
(3) vehicles amounts to $112,194, less trade-in value of $15,689 for two patrol units. The resulting
net capitalized cost for the new vehicles, $96,505, will be financed over a period of 60 months at an
interest rate of 4.52%.
POTENTIAL MOTION / DIRECTION REQUESTED:
Staff recommends approval of the Master Lease Agreement with Enterprise FM Trust
ATTACHMENTS:
Master Equity Lease Agreement_final
police vehicle lease_purchase illustration_ADA
RESOLUTION_LEASE.ADA
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11
6,701.64
Year 5
Annual
79,945.20 86,646.84
Payment
$ $ $
9
6,701.64
Year 4
Annual
63,956.16 70,657.80
Payment
$ $ $
7
6,701.64
Year 3
Annual
47,967.12 54,668.76
Payment
$ $ $
5
6,701.64
Year 2
Annual
31,978.08 38,679.72
Payment
$ $ $
3
6,701.64
15,989.0422,690.68
Year 1
Annual
Payment*
$ $ $
Village of Tequesta, FL Acquisition of Police Vehicles Via Lease AgreementIllustration of Potential Five-Year Lease Program Description Dodge Durango pursuit vehicleDodge Durango admin
unitGrand Total - All Vehicles Number of vehicles leased(Excluding the effects of inflation)
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Agenda Item #15.
RESOLUTION NO. 57-19
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AUTHORIZING THE EXECUTION AND
DELIVERY OF A MASTER EQUITY LEASE AGREEMENT WITH
ENTERPRISE FM TRUST WITH RESPECT TO THE FINANCING AND
LEASING OF CERTAIN CAPITAL EQUIPMENT; AUTHORIZING THE
EXECUTION AND DELIVERY OF DOCUMENTS REQUIRED IN
CONNECTION THEREWITH; PROVIDING AN EFFECTIVE DATE; AND
FOR OTHER PURPOSES.
WHEREAS, the Village Council of the Village of Tequesta (the “Lessee”) is
authorized by the laws of the State of Florida to finance and lease personal property for
the benefit of its residents; and
WHEREAS, the Village Council desires to finance and lease certain equipment
(police vehicles) with a cost not to exceed $113,000.00 constituting personal property
necessary for Lessee to perform essential governmental functions; and
WHEREAS, the Village Council proposes to enter into that certain Lease
Agreement with Enterprise FM Trust (and its successors and assigns, “the Lessor”), the
form of which is substantially attached hereto; and
WHEREAS, the Village Council deems it for the benefit of the Lessee and for the
efficient and effective administration thereof to enter into the financing documents and
any other documentation necessary, convenient and appropriate for the purpose of
financing the vehicles on the terms and conditions described therein;
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1:Resolution No. 57-19 is hereby officially adopted;
Section 2:The Village Council of the Village of Tequesta, Florida hereby
authorizes execution of the Lease Agreement with Enterprise FM Trust in substantially
the form attached hereto as Exhibit A and incorporated herein and authorizes the Mayor
and Village Clerk to execute and deliver the Lease Agreement and all instruments,
documents and certificates which may be required by or provided for in the Lease
Agreement;
Section 3:Pursuant to Section 265(b) of the Internal Revenue Code of 1986,
as amended (the “Code”), the Lessee hereby specifically designates the Lease as a
“qualified tax-exempt obligation” for purposes of Section 265(b)(3) of the Code;
Section 4:Lessee has not issued, and reasonably anticipates that it will not
issue tax-exempt obligations in the amount exceeding $10,000,000.00 during the
current calendar year.
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Section 5:This Resolution shall become effective immediately upon passage.
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