HomeMy WebLinkAboutResolution_32-99/00_01/13/2000
RESOLUTION NO. 32-99/00
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE
OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, APPROVING
THE PURCHASE OF ONE (1), ONE-TON, CREW-CAB, 4X4,
PICKUP TRUCK, PER THE STATE OF FLORIDA BID CONTRACT
NUMBER 070-644-020, TO MAROONE CHEVROLET, INC. OF
PEMBROKE PINES, FLORIDA, IN THE AMOUNT OF $27,674,
PURCHASED WITH LEASE PURCHASE PROCEEDS, FROM A
THREE (3) YEAR LEASE PURCHASE PROGRAM, PROVIDED BY
LEASOURCE FINANCIAL SERVICES, OF FOLSOM, CA.,
HAVING AN ANNUAL LEASE PURCHASE PAYMENT OF
$10,111.63, WITH THE FIRST YEAR'S PAYMENT BEING
APPROPRIATED FROM THE FY 1999/2000 FIRE RESCUE,
CAPITAL OUTLAY BUDGET, HAVING A $12,380 FUND
APPROPRIATION, AND AUTHORIZING THE VILLAGE MANAGER
TO EXECUTE THE APPLICABLE CONTRACTS ON BEHALF OF
THE VILLAGE.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1. The purchase of one (1), one-ton, crew-cab, 4X4,
pickup truck, under the terms and conditions associated with
the State of Florida Bid Contract #070-644-020 awarded to
Maroone Chevrolet, Inc., of Pembroke Pines, Florida, in the
amount of $27,674, attached hereto as Exhibit " A " and
incorporated by reference as part of this Resolution is hereby
approved and the Village Manager is authorized to execute the
applicable Contract on behalf of the Village.
Section 2. To enter into a three (3) year lease agreement with
Leasource Financial Services of Folsom, California, for the
purchase of one (1), one-ton, crew-cab, 4X4, pickup truck,
under the terms and conditions associated with the State of
Florida Bid Contract #070-644-020, in the amount of $27,674,
having three (3) annual payments of $10,111.63, attached
hereto as Exhibit " B " and incorporated by reference as part
of this Resolution is hereby approved and the Village Manager
is authorized to execute the applicable Contract on behalf of
the Village.
THE FOREGOING RESOLUTION WAS OFFERED by Councilmember
Schauer who moved its adoption. The motion was seconded
by Councilmember Walker and upon being put to a
vote, the vote was as follows:
FOR ADOPTION
Basil E. Dalack
Carl C. Hansen
AGAINST ADOPTION
Elizabeth A. Schauer
Sharon D. Walker
_~
,' .y`x!
typ
~~~
The Mayor thereupon declared the Resolution duly passed and
adopted this 13t'' day of January, A.D., 2000.
- -,
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ATTEST:
YOR TEQUESTA
.: ~ ~~,:~
a C. Hansen
J ann Mangani to
Village Clerk
Nmh\Word\MyDocuments\Resolutions\32-99-00
070-644-020 ONE TON PICKUP TRUCK, CREW-CAB, 4X4 L=X N~1(~l T~ /; Page 1 of 7
070-644-020 ONE TON PICKUP TRUCK, CREW-CAB, 4X4
(6A-CC)
(REV 20 SEP 99)
NOTE: This detailed specification is not complete unless it is used in conjunction with Specification
Number SRAT-1, Special Requirements All Automobiles and Light Trucks.
INTENDED USE
USED FOR REGULARLY HAULING HEAVY BULK MATERIAL, MEDIUM TO HEAVY
DUTY TOWING AND TRANSPORTATION OF UP TO SIX INDIVIDUALS OFF ROAD IN
DENSE OR REMOTE AREAS.
STD. CARGO AREA:
STD. WORKING CARGO CAPACITY:
STD. TOWING CAPACITY:
OPT. WORKING CARGO CAPACITY, OPT
8006:
OPT. 8009, CHASSIS CAB (SRW):
-OPT. 8010, CHASSIS CAB (DRW):
PERFORMANCE OPTIONS CARGO
LBS.
OPT. 1002, DIESEL ENGINE
OPT. 2002, TRAILER TOW
PKG.
OPT. 2003, TRAILER TOW
PKG.
97 inches x 64 inches x 49
inches
24001bs. * *
4000 lbs.
29501bs. * *
9000 lbs. GV WR * *
10,000 lbs. GV WR
TOWING
LBS.
(SRW/DRW)
2100/2650 OR 4000
2400/2950 OR 6500
2400/2950 OR 10,000
OPT. 2004, TRAILER TOW 2100/2650 OR 7500 (GM),
PKG. (DSL)
10,000
(Ford)
* Distance between wheel housings
* * Approx. net capacity, deducting weight of driver and five passengers
* * * GV WR =Total maximum weight of a fully equipped, fully loaded truck
10. ENGINE: Gasoline engine, V8, minimum 5.4L (330 CID) and 220 (nominal) Net
HP; standard alternator and battery; standard cooling system.
20. TRANSMISSION: Minimum 4 speed automatic with overdrive; minimum two-
speed transfer case.
http://fcn.state.fl.us/st_contracts/070001991 /price57.htm 12/1 /99
070-644-020 ONE TON PICKUP TRUCK, CREW-CAB, 4X4
30. AXLES: Limited slip or locking. differential on rear axle; automatic locking front
hubs or front axle disconnect system.
40. PERFORMANCE ITEMS: Standard instrumentation; power steering.
50. COMFORT ITEMS: Air conditioning; all glass tinted; AM-FM radio; vinyl seat
upholstery.
60. SAFETY ITEMS: 4-wheel anti-lock braking system, if available; dual outside
mirrors; interior dome lights; air bag, driver, if available. Standard air bag(s) may
not be deleted. Fleet deletes for air bag(s) must not be used.
70. TIRES & WHEELS: Five (5) LT235/85R16E or larger radial BSW on/off road or
all terrain tread tires; spare tire, wheel and rack to be frame mounted; jack and lug
wrench.
80. CHASSIS, FRAME, CAB: Minimum 92001bs. GVWR; minimum 33001bs.
(nominal) payload; minimum 168.0 inch wheelbase; fleetside body, minimum
97.0 inch inside box length; painted or chrome front bumper; heavy-duty step-
type rear bumper, factory installed, bumper shall have a minimum capacity of
40001bs. horizontal pull weight and 4001bs. vertical tongue weight; skid plates;
six-passenger, four door; crew cab; all manufacturer's standard colors.
STATE: GVWR: (KP) 9200 LBS., PAYLOAD: (KP) 3300 LBS., (MC)
~M~00 3300
90. CONDITIONS: All enclosed Conditions and Requirements shall apply.
070-644-020 MAKE: (KP) GMC CREW CAB
3500 4X4
(6A-CC)
DEALER DISCOUNT* MODEL PRICE
Western KAISER PONTIAC BUICK GMC 60.00 TK30943 23,670.00
District TRUCK, INC. (A)
Northern KAISER PONTIAC BUICK GMC 40.00 TK30943 23,600.00
District TRUCK, INC. (B)
Central KAISER PONTIAC BUICK GMC 40.00 TK30943 23,620.00
District TRUCK, INC. (C)
Southern MAROONE CHEVROLET 0 CK30943 23,429.00
District (D)
Page 2 of 7
NOTE: ONLY THE ABOVE NAMED DEALER(S) IS/ARE AUTHORIZED TO SELL THIS
COMMODITY UNDER THIS CONTRACT!
http://fcn.state.fl.us/st contracts/070001991/price57.htm 12/1/99
070-644-020 ONE TON PICKUP TRUCK, CREW-CAB, 4X4 Page 3 of 7
~?
SEE FACTORY CUT OFF DATE INFORMATION IN ORDERING INSTRUCTIONS.
*Discount for unit for vehicle picked up by ordering agency at contractor's place of business.
Approximate delivery time required after receipt of order: (KP) 90/120 DAYS, (MC) 90-120 DAYS
OPTION: 070-644-021 -Option, One Ton Pickup Truck, Crew-Cab, 4x4, Spec. 6A-CC
OPTIONS: (KP) KAISER PONTIAC BUICK GMC TRUCK, INC., (MC) MAROONE
CHEVROLET
1002 Diesel engine, V8, minimum 6.SL (395 (KP) CODE: L65 PRICE:
CID) and 2460.00
195 (nominal) Net HP. (MC) CODE: L65 PRICE:
2600.00
(NOTE TO USER: DO NOT ORDER
THIS
OPTION WITH OPTIONS 2002, 2003
or 2004.)
1004 O.E.M. alternative fuel conversion
ready engine.
To include all internal modifications
required for
aftermarket conversions for operation
of natural
gas. State engine manufacturer and
model no.
bid.
(KP) MANUFACTURER: GM
(KP) MODEL NO.: L31
(MC) MANUFACTURER:
(MC) MODEL NO.:
2001 Manual overdrive transmission, 5-
speed,
minimum.
(KP) CODE: KLS PRICE: 125.00
(MC) CODE: PRICE: N/A
(KP) CODE: MW3 PRICE:
650.00
(Credit)
(MC) CODE: PRICE:
(MW3) 700.00
(Credit)
http://fcn.state.fl.us/st contracts/070001991/price57.htm
12/ 1 /99
070-644-020 ONE TON PICKUP TRUCK, CREW-CAB, 4X4
2002 HD trailer towing equipment for towing
up to
6500 lbs.
GM: Includes these components: 5-lead (KP) CODE: IV
wiring HITCH
harness, HD flasher, HD Class IV (MC) CODE: Z82
receiver hitch,
10,000 lbs. capacity, installed.
2003 HD trailer towing equipment for towing
up to
10,000 lbs.
~j
PRICE: 220.00
PRICE: 164.00
GM: Includes these components: 7.4L (KP) CODE: L29, PRICE: 790.00
V8
engine (L29), 4.10 rear axle ratio, 5-
lead wiring
harness, HD flasher, HD Class IV
receiver hitch,
10,000 lbs. capacity, installed.
2004 HD trailer towing equipment for towing
up to
75001bs. (GM), 10,0001bs. (Ford).
GM: Includes these components: 6.SL
turbo
diesel engine (L65), 4.10 rear axle ratio,
5-lead
wiring harness, HD flasher, HD Class
IV receiver
hitch, 10,0001bs: capacity, installed.
5003 Electronic speed control with resume
feature.
5004 Rain shields over door windows. Auto
Ventshade
Co. or approved equivalent.
5005 Delete air conditioning
T~7 TTT'Pf'~TT
(MC) CODE: PRICE: 764.00
r ~ni~o~
(KP) CODE: L65, PRICE:
2790.00
T~ ~ uTrrnu
(MC) CODE: PRICE:
L65/Z82 3020.00
(KP) CODE: ~ PRICE: 315.00
(MC) CODE: ~ PRICE: 385.00
(KP) CODE: PRICE: 86.00
VENTS
(MC) CODE: RS PRICE: 85.00
(KP) CODE: YG6 PRICE:
65( 0.00)
(Credit)
http://fcn.state.fl.us/st contracts/070001991/price57.htm
Page 4 of 7
12/1 /99
070-644-020 ONE TON PICKUP TRUCK, CREW-CAB, 4X4
6001 Daytime running lights.
6002 Passenger .side air bag.
8003 Special state colors, two-tone. Olympic
White
(DuPont Centari K9031 A) above
dripstrip on cab
and DOT Yellow (DuPont Centari
L9069A, GM
9W3) on remainder of cab. Factory
painted if
available. SEE SPECIFICATION
SRAT-1,
NOTE 1.
8006 Minimum 10,000 lbs. GVWR, dual
rear wheel;
minimum 38501bs. (nominal) payload.
Minimum
97.0 inch inside box length.
(KP) GVWR: 10,000 LBS. PAYLOAD:
~ocn r Dc
(MC) GVWR: 10,000 LBS. PAYLOAD:
3850 LBS.
8007 Special state color. DOT Yellow
(DuPont Centari
L9069A, GM 9W3). Factory painted if
available.
SEE SPECIFICATION SRAT-1,
NOTE 1.
(MC) CODE: C60
(KP) CODE: STD
(MC) CODE: STD
(KP) CODE:
(MC) CODE: STD
(KP) CODE:
n~i~~ ii ~
PRICE:
50( 0.00)
(Credit)
PRICE: N/C
PRICE: N/C
PRICE: N/A
PRICE: N/C
PRICE: 380.00
MIN. 5 UNITS
(MC) -CODE: PRICE: 190.00
9W3 W
MIN. 10
UNITS
WHITE DEALER PAINT
(KP) CODE: ROS PRICE:
i non nn
(MC) CODE: ROS PRICE:
1095.00
(KP) CODE: 9W3 PRICE: N/C
MIN. 5 UNITS
(MC) CODE: 9W3 PRICE: N/C
r ,rn.T i n
~~.~ ~ u
8008 Special state color. Jade Green Metallic (KP) CODE: 9027 PRICE: 155.00
(DuPont
http://fcn.state.fl.us/st contracts/070001991/price57.htm
Page 5 of 7
12/ 1 /99
070-644-020 ONE TON PICKUP TRUCK, CREW-CAB, 4X4
Centari K9027A). Factory painted if MIN. 5 UNITS
available.
SEE SPECIFICATION SRAT-1, (MC) CODE: PRICE: N/A
NOTE 1.
8009 Chassis-cab, single rear wheel model.
55 inch
CA, minimum. Minimum 92001bs.
GV WR. A
pickup model with the box removed is
acceptable
provided the vehicle is eligible for
pickup box
removal and conforms to all FMVSS,
the NTEA,
and the manufacturer's guidelines.
(KP) GVWR: 9200 LBS. (KP) CODE: ZW9 PRICE:
851.00
(Credit)
(MC) GVWR: 9200 LBS. (MC) CODE: PRICE:
R04/ZW9 58( 0.00)
(Credit)
8010 Chassis-cab, dual rear wheel model. 55
inch CA,
minimum. Minimum 10,000 lbs.
GVWR. A
pickup model with the box removed is
acceptable
provided the vehicle is eligible for
pickup box
removal and conforms to all FMVSS,
the NTEA,
and the manufacturer's guidelines.
(KP) GVWR: _1.0,000 LBS. (KP) CODE: ROS- PRICE:
ZW9 10( g.00)
(Credit)
(MC) GVWR: 10,000 LBS. (MC) CODE: ROS- PRICE: 300.00
ZW9
(REV 1 MAR 99)
8011 Special state color. GM #11 Pewter (KP) CODE: 11U PRICE: N/C
Metallic or
Page 6 of 7
http://fcn.state.fl.us/st contracts/070001991/price57.htm 12/1/99
070-644-020 ONE TON PICKUP TRUCK, CREW-CAB, 4X4
approved equivalent. Factory painted if (MC) CODE: PRICE: N/C
available. GM# 11
SEE SPECIFICATION SRAT-1,
NOTE 1.
9901 Manufacturer's Extended Vehicle (KP) CODE: PRICE: N/A
Warranty.
Warranty shall be for a period of 5 (MC) CODE: PRICE: N/A
years or
75,000 miles whichever occurs first.
Note to
bidder: This option applies to Ford
only. SEE
SPECIFICATION EVW 5/75 (FBC)
(NOTE TO USER: FORD
WARRANTY FOR
OPTION 8010.)
9903 Manufacturer's Extended Vehicle (KP) CODE: PRICE:
Warranty. GMPP 6 1705.00
Warranty shall be for a period of 6 (MC) CODE: PRICE:
years or GMPP 1705.00
100,000 miles whichever occurs first. 6/100
SEE
SPECIFICATION EVW 6/100.
9906 Manufacturer's Extended Vehicle (KP) CODE: PRICE: 755.00
Warranty. GMPP 5
Warranty shall be for a period of 5 (MC) CODE: PRICE: 755.00
years or GMPP
75,000 miles whichever occurs first. 5/75
SEE
SPECIFICATION EVW 5/75.
Page 7 of 7
http://fcn.state.fl.us/st contracts/070001991/price57.htm 12/1/99
iviaruone ~,nevroiet, inc
(REV 20 SEP 99)
Maroone Chevrolet~Inc.
ORDERING INSTRUCTIONS
NOTE: ALL ORDERS SHOULD BE DIRECTED TO:
SPURS VENDOR NUMBER: 59-2091114-002
(REV 1 MAR 99)
VENDOR: MAROONS CHEVROLET INC. (A)
(REV 1 MAR 99)
STREET ADDRESS OR P. O. BOX: 8600 PINES BLVD.
CITY, STATE, ZIP: PEMBROKE PINES, FL 33024
TELEPHONE: 954-433-3358
TOLL FREE NO.: 1-800-227-2678
(REV 1 MAR 99)
ORDERING FAX NO.: 954-433-8503
REMIT ADDRESS: 8600 PINES BLVD.
CITY, STATE, ZIP: PEMBROKE PINES, FL 33024
PRODUCT INFORMATION: DIRECT INQUIRY TO:
NAME AND TITLE: I~t}~~ y~Il~l.L50N
ADDRESS: 8600 PINES BLVD.
CITY, STATE, ZIP: PEMBROKE PINES, FL 33024
TELEPHONE : 954-43 3 -3 3 5 8
TOLL FREE NO.: 1-800-227-2678
(REV 1 MAR 99)
Ihttp://fcn.state.fl.us/st contracts/070001991/orderl3.htm
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12/1/99w~~~~~~
»~narnunC ~,nCVroie~, inc
iEi1RL. HOME PAGE ADDRESS:
"~'C`7r`~C~~11r~~ i~~A~.~ :A~~i~~~~~~:-~~~~ ~f
. _~.
http://fcn.state.fl.us/st con~r~,~ls/07Q~01991/orderl3.htm
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12/1/99
Dec-02-99 O9:23A Leasource Financial
FAX
Date Decemher 2, 1999
Number of pages including cover sheet
To: Sandra
~ xrti~Si r rS
916 988 3931 P.O1
Leasource Financial Services
1000 River Rack Drlve, Suite 218
Folsom, CA 95630.2093
Small: lease sna.com
www./easource.com
From:
Larry Kennedy
Phone _ Phone 800 991-0099
Fax Phone Sb1 575 6239 __ Fax Phone B00 988-3931
Re'
Dec-02-99 09:23A Leasource Financial 916 988 3931
LEASOURCE FfNANClAL SER [fICES
1000 River Rock Drive, Suite 21$, Folsom, CA 95630
PRUI'QSAL
December 2, 19r)r)
James M_ Weinand, Chief
Village of 7'equesta
P.O. Box 3273
Tequesta, FL 334E~9
Dear C;liief Weinand
Lcasource Financial Services is pl~sed to offer our Proposal 1'or lease of tt-c following Equipment
EQUIPME)•iT:
COST;
MODE:
TERM:
PAYMENT AMT;
OPTiAN:
nne Ton Chevrolet '1•ntck
$27,674.(10
Tltrc-c; (3) Annual Payments in Advance
3 Years
$10,111,63
$U.UU with the tittal 1'aymcn[.
TERMS:
t. All insurance is the: responsibility of Lcssc:c, Lessee shall provide proof of insurance.
2, All taxes, ineludin~ property C<gxcs. are for the account of the Itsscc.
3. Lessee agrees shat this Lease Agru;rnent may be assigned and will bo so notified prior to fitnding.
4. This Proposal is subject to mutually acceptable d~~cumentation,
5, There will be no additional casts associated with this Proposal.
6. Approval is subject to review of Lesscc's financial statements,
Dtte to fluctuations in interest rates, titis quote iti valid for 3U days, in the event. that. this trvtsacliUn is not
completed in a reasonable time period aflcr the award, the final rate tray be adjusted up or down depending
on a rutually acccplablc index agreed tv upon acceptance of this Proposal.•
Res thtlly,
(~^ ` _
dt-f ~~-LC \l-~,
C'. Law•reuce ticnnedy
P_02
Dec-02-99 09:23A Leasource Financial 916 988 3931
LEASOURCE FINAIVCIAL SERVICES
1000 River Rock Uri~~cc, Suite 218, Folsom, C'A 95630
Voice: (800) 99l-f1099 Fuoc: (800) 988-39.11
www.leasou rcc.comlmunicipal
e-mail: lcasela~Kna.rom
P_03
l.aeaSOUrCe SpeClaIIZCS in (,~-mn°tet'CiR~ Fe[leral, MtlhiClpa/ And Native American trall5:ICtionR. We have the
experience and expertise to transact business in every state-except Arluuisas.
We can place municipal paper from $10,000.00 to any amount. Our "Eapress Uocument", for
transactions under $50,000.00, ma not require a legal opinion from the puhlic aKeney.
Federal government transactions usually begin at $30,000. Terms may be extended up to rive years,
although technology equipment is normally leased for three years or less. Federal leases contstin special
language which increases investor risk on hi-tech equipment.
RECEN"1' '1'ItANSACTIUNS
Volunteer Fire District. Replaced !heir $350,000.00 murikage with a taa-exempt (ease. Proceeds used to free up
capital for the purchase of a new Engine. Term: l5 years.
Community College District. 54,000,IU10.00 Municipal Master Agreement for computer equipment with the abilety to
upgrade withuul renaity during the lease term.
Transit District. $3.5,000.00 worth of above ground uel. dis eosin • .rtr>ra a lankg and equipment.
C lifornia Non-Profit Hospital, Refinanced $I,OIN1,000.00 in commercially priced leases at municip;sl tax-eaempt
rates, which increased the hospital's cash 11ow by $7,000.00 per month for the remaining balancr of the lease.
Major multi-Campus uu_blic university. We devi{;ned a system-wide Master Lease program to streamline paperwork
And shorten the funding cycle.
Federal Government Aeency. E'inanced 5459,OOD.DO worth of folding equipment for a major vendor.
Slate of C:corgia. Completed a 5374,000.00 tax-eaempt le;tse without a Legal Opinion.
Major New Jersey Public lJniversity. Completed a $220,000.00 taxable monist ul leuxe for ofticc furniture.
Municipal Woter District. C'omplcted a $21U,lNItI.0t1 tax-exempt lease. Lessee filed hankruptcy in 1991.
Southern ('alifornia City. Ten-year tax-eaempt $250,000.00 finfu~cing for outdoor -i~narpe.
Northern California City. Seven-year tax-exempt $31 U,U00.00 Gnanciug for synthdir turf used to resurface a city
owned soccer field and baseball infield.
In u.clditinn to oJferin~• vcr~ son:petitive rates, -,~e will take the tin:e !o Help you solve lensln~ problems!
C:TII Larry kcnnedy or Tom Cadle!
t
Dec-02-99 09:23A Leasource Financial 916 988 3931
L~ASOURCE ~tNANCIAL SEF~VICES
R ROCK DR., SUITE 218 - FOLSOM, CA 95830
(800) 991-0099 - Fax(918) 968-3931
P_04
OVERVIEW OF TAX-EXEMPT LEASING
Municipalities across the nation, large and small, often face the difficulty in meeting their capital equlpmertt and facility
needs. Tax-exempt lease purchase financing Is a technique that allows a municipality to purchase equipment and make
periodic lease payments over the useful life of the asset. The payments under a lease arrangement are subject. to the
annual budgetary process and are included as a line item In the operating budget. This results in a yearly obligation thus
eliminating the need far a referendum to approve long term debt.
Since its inception in the early 1970's, the lease purchase segment of the public finance market has grown rapidly. Total
volume of munidpal teases soared from $700 million in 1980 to $3.5 billion in 1984 to over $18 billion in 1998, according
to the Associatlan for Govemment Leasing and finance.
LEASE PURCHASE - AN ALTERNA'~E TO
TRADITIONAL FiNANCTNG METJEiODS
What is Lease Purchase?
A lease purchase is essentially an installment sale contract. A municipality is able to acquire and utilize equipment or
facilities and pay for them over a specified time period. If structured properly, the interest portion of the lease payments
is exempt from federal income tax resulting in a low tax-exempt interest rate to the borrower.
Why is Lease Purchase oenerallY not considered debt,
A lease purchase agreement Is a yearly obligation renewable ai the option of the municipality- The obligation Is subject io
the annual appropriation of funds. by the district. If funds are not appropriated for a given year, the lease agreement may
be terminated. Due to this one year obligation, a voter referendum and approval is generally not required to enter into a
lease purchase agreement.
Who is elirible to utilize tax-exempt leasing?
Basically, any municipality or political subdivision that can issue tax-exempt securities can utilize tax-exempt leasing.
Whv should Govemment Officials consider lease aurchase7
Lease purchase should be used to complement rather than replace traditional bond financing. Many times lease
purchase can be a more timely, efficient and cost effective means of financing essential equipment and facilities.
In addition to the low costs of issuance,. uncomplicated financing documents save both administrative and legal
expenses. Also, cash that could be used to make an outright purchase can be invested to maintain maximum security
and Create interest income.
Dec-02-99 O9:24A Leasource Financial 916 988 3931
What can_ financed via a lease purchase agreement?
Almost all types of equipment and facilities can be financed under a lease purchase. This includes, but is not limited
to the following:
Computer Equipment
Telecommunications Equipment
Vehicles
SehoolBuses
CopierslPrinting Equipment
MedicaULaboratory Equipment
Public Works Equipment
School suildirrgs
Furniture
Modular Buildings
Real t=state Improvements
AudioN~sual Equipment
Fire/Rescue Equipment
Whv Leasource Financial Services?
P.O5
Leasource Financial Services has the expertise and flexibility to structure a lease purchase to meet the needs of a
particular municipality. As this process in noway obstructs the normal procurement process, the municipality remains
free to decide exactly what will best answer their equipment, real estate, or other needs, define it exadly as they think
best and find the best prices. ourTax-F~cempt/Lease-Purchase finanang program is designed to irrterface rather than
intertere with that process. .
THE BENEFITS OF TAX-EXEMPT LEASING
FEATURE BENEFIT '
No Cash Down Payment 100% of the equipment cost can be f+nanced_
Flexible Repayment Terms Payment dates and amounts can be structured to meet cash
flow requirements. Repayment terms normally range from
three to ten years.
N~ Debt Created Since the lease payments are subject to annual appropriations,
the obligation is not subject to statutory debt limitations in most
states. Since debt is not created, voter approval is not generally
required.
Matches Cost with Revenue Payments correspond to the useful life of the asset being
financed.
Timing The documentation required to close a lease purchase
agreement is substantially less than a traditional bond financing.
Hence, a lease financing can tie accomplished In a short time
frame.
Low Up-Front Costs No commitment or acceptance fee is required by Leasource
Financial Services. A private placement of the lease eliminates
underwriting expenses, trustee fees, and expensive legal fees.
Dec-02-99 09:24A Leasource Financial 916 988 3931
LEASOURCE FINANCIAL. SERVICES
I_1?AS(IURCE FINANCIAI..S'ERVIG'F..S has designed Master Equipment municipal
lease finance program that gives an agency the ~eility to finance multiple projects and
unrelated eyutpment needs itt one single Agreem
THE T(tADl=fflUNAL WAY • ~ - ~ •; ~ ~ ~E n enEis~mc st often called a [[,ease with O.Qtion to
A conventional municipal lease dgr e
Purchase. This standard agreement. is commonly `k~a fur on~t me pur~h sescin~these
to a periodic need of an agency, and is pcrfectl_y
cases, numerous Lessors and multiple billings will be the norm,
EXAM PLH
Lease #1. Five year term on office furniture.
Lease #2. -Seven year term on modular buildings.
Lease #3. Three year term on computer equipment.
Les~se #4. Ten year teen on school buses.
RESI.JL"T:
Four bids; Four approvals; Four least agreements; Four Legal Upinians; Probably our
lessors; Four Board Resolutions; Four separate billings, etc.
MAS_TEK AGREEMENT
A Master Agreement makes it possible to fi~ on an emodicsbas s accordingto~ wed and
document. Equipment Schedules are adde p
desired term. There may be ane or ten schedule u. edyfor n mjectafinanc.ingl orape ssibly to
one single Lessar_ Master Agreemettt~ n ay b P
replace obsolete Equipment.
EXAMPI .E'
lease #l -Schedule #t - t~ive year term on office fitrniture
- Schedule #2 -Seven year term on modular buildings
- Schedule #3 - '1'hrce year term on computer Equipment
- Schedule #4 -Ten year term for 5chc}ol buses
1tESUl ,T
Four bids; Faur approvals; Four Itesnlutic~tts; Une lease agreement; Une lessor; ne
legal opinion; Ore consolidated billing.
A properly utilized Master Agreement will save time that is spent dealing with multiple
lessors, separate billing statements, and money spent for multiple legal reviews of the
lessor's documentation.
P.06
Dec-02-99 09:24A Leasource Financial 916 988 3931
LEASOURCE FINANCIAL SERVICES
MASTER AGR~;EMENT FOR 7'HE TOWN,
The Town of wishes to consider financing a series of Clustered
Wastewater l'reatment plants (as many as five) (~ $250,000.00 per location, installaticros
will commence une at. a time until completion of all projects -all canpleted over a
several year period.
Each equiptttent schedules to a single Master Agreement will commence as required
Schedule #1 #i~r $250,000.00 will amortize over 5-7 years
Schedule #2 for $250,000.00 will amortize over 5-7 years.
Schedule #3 for $250,000.00 will amortize over 5-7 years.
Schedule #~L, .... Schedule #5. , ... etc.
Escrow Funded.
Due to pi~ssible proeress pa ment requirements, escrow fundinb iti available. Cscruwed
funds earn daily accnaeci interest to the Town of based on the remaining balance
in the account. Escrow set-up fees are nutnina] and often at no cost.
Additions-1 unrelated Equipment schcciules may be added to the Master Agreement as
nceded....new fire apparatus (including hose, air packs, jaws of life etc), a new telephone
system, cc,~mputers, backhoe or any other essential equipment -all acquired without
necessitating a brand new lease every time an item of equipment or project is mandated.
There is nu minimum or maximum schedule rcquirerrient.
Stasgered MAturitleS
Since each project or piece of equiptent acquired normally has a dilTerent useful life,
most schedules to the Master Agreement. would mature at a different time during the life
of the uriginai Mast.cr A~reement...3, ,5, 7 or 10 years.
Pavutent Mode
It is sufip,ested that debt service payments be made in advance rather than in arrears. The
first advance payntent, whether monthly, quarterly, semi-annually or annually is 100%
principal and may be considered a down payment. Lessee pays fewer interest dollars over
the life of the schedule.
RESULI~.
Unc Master Agreement; One Opinion of Gounscl; One lessor; Oue Board Resolution
for each schedule-
P_07
Dec-02-99 09:24A Leasource Financial
916 988 3931
MASTER LF.A~E PROGRAM SLIMMARY BFN~;FITS
PLANNLNCG
A Master Agreement facilitates the planninb anti encourages the allocation of available dollars,
Every equipment schedule to the original Master Agreement has apre-set termination date. You
simply calendar a future action based on the termination dates of each sclteclule,
FACILITIES PF.ANNING
Tltc Master Agreement allows y~iu to add schedules with different maturities in the satnc original
document. lt's quite possible to have 3 year, 4 year and 5 year amortization schedules running
concurrently to match the useful life of the assct.s being financed. You simply stagger installation
and replacement periods.
BUDGETING
A Mastcrlease provide leverage when needs don't match current funding requirements, or future
designated money is rtot currently available.
A1~MINFS'(_FtATIVE SAVINGS
A Master Agreement requires only one approval to initiate the process, ~1'his means: (1ne Board
Meeting (per schedule), Une Bid (per schedule), pnc loan dcx:ument, Une legal review for
multiple schedules - a tnie reduction in duplicated efti~rt.
C.
WARRANTY PR4'I'EGTinN
Equipment which is replaced every three years
thereby eliminating unanticipated repair casts.
will he covered by a manul`acturers warranty,
VLNI~OR F~AYMENT TLRMS
Installations that often take rrronths to complete may stretch the financial resources of the
installing vcndc-r_ Some cnay require pre~~ress paymcnts_durirtg the installation process, A bank
administered L•scrow Account can solve this pt•ublem. Escrow's allow abency funds to be
federally protected and disbursed only as work is performed and completed.
Although "tree" iti the best option, it's not always available. in cash strapped times, a properly
executed Master Agreement is a planning and Budgetary tool that stretches available dollars by
three or four t<~ one while keeping an eye tip the fiiture.
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