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HomeMy WebLinkAboutDocumentation_Regular_Tab 06C_01/09/2003 � � �� � MEMO UM � � DA1'E: Janu 2, 2003 �'9 TO: Michael Couzzo Villa e l�ana er �/ � , g g Cc: Chief James Weinand, F'i�t�e bept Mary Wolcott, Village Clerk FROM: JoAnn Forsythe, Finance Director RE: Financing of Fire Pumper and related loose equipment Attached please find a copy of the proposal from Leasing 2 to fiuianee the Sutphen Fire Truck and related loose equipment in the amount of $400,000 and a copy of the resolution for inclusion on the agenda for the January 9, 2003 Council meeting. Please note that although we received a proposal from Bank of Affierica Leasing and Capital for the Florida League of Cities, and their rates published December 31, 2002 were equivalent to the rates prop�esed by Leasing 2(3.63%), in a discussion with their representa.tive, it was noted that they may only be interested in financing the truck and equipment as manufactured and delivered by Sutphen and not f.he additionral loose equipment (appro�cimately $94,000.00) that the Fire Department is purchasing to aff'a� to the truck, Leasing 2 has agreed to fmance the entire amount of $400,000.00, place t�►e amount in escrow and release it as the equipment is purchased by the Fire Department We ezpect the trucl� to be available for deWery between the middle aQd end of February according to the SutpLen Corporation. We egpect to ha�e a listing af the loose equipment fram the Fire Department to give to Cvuneil before the meeting. A copy of the financing agreement has been faxed to the Village Attorney for his review. i . . , � RESOLLTTION NO. 20 A RESOLUTION OF THE VII.LAGE COUNCII, OF THE VII.LAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AUTHORIZING 1'HE EXECUTION AND DELIVERY OF A MASTER LEASE AGREEMEI�T, � EQUIPMENT SCHEDULE AND RELATED INSTRITMENTS, AND DETERIVIINING OTHER MATTERS IN CONNECTION THEREWITH, TO ALLOW THE VII..LAGE OF TEQUESTA TO PURCHA5E A SUTPHEN CUSTOM RESCUE PUMPER MONARCH SERIES AND RELATED LOOSE EQUIPMENT IN THE AMOUNT OF $400,000, HAVING APPROPRIATED AND BUDGETED FUNDS TO PAY INTEREST AND PRINCIPAL IN FISCAL YEAR 9/30/03, AND AUTHORIZING THE VII.LAGE MANAGER TO EXECUTE THE APPLICABLE DOCUMENTS ON BEHALF OF THE VII.LAGE. NOW, THEREFORE, BE IT RESOLVED BY THE VII,LAGE COUNCIL OF TI� VII.,LAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1. Wherea,s, the governing body of the Village of Tec�uesta.. ("Lessee") desires to obtain certa,in equipment (the "Equipmeat") described in Equipment Schedule to the Master Lea.se Agreement (collectively, the "Lease") with Leasing 2, Inc., the form of which has been available for review by the governing body of Lessee prior to this meeting; and Section 2. Whereas, the Equipment is essential for the Lessee to perform its governmental functions; and Section 3. Whereas, the funds made available under the Lease will be deposited into 'i an Escrow Account pursuant to the Lea,se and will be applied to the acquisition of the I Equipment in accordance with the Lea.se; and ', Section 4. Wherea,s, Lessee has taken the necessary steps, including those relating to any applicable legal bidding requirements, to arrange for the acquisition of the Equipment; and , Section 5. Lessee proposes to enter into the Lea.se with Lea.sing 2, Inc., substantially � in the form presented to this meeting. � Section 6. It is hereby found and determined that the terms of the Lease and related '� instruments (collectively, the "Fi�ancing Documents") in the forms presented to this meeting and incorporated in this Resolution are in the best interests of Lessee for the acquisition of the Equipment. ; I' Section 7. The Financing Documents and the acquisition and financing of the Equipment under the terms and conditions as described in the Financing Documents are hereby approved. The Village Ma.nager of Lessee and any other offcer of Lessee who shall have power to execute contracts on behalf of Lessee be, and ea,ch of them hereby is, authorized to execute, acknowledge and deliver the Financing Documents with any cha,nges, insertions and omissions there in as may be approved by the officers who execute the Financing Documents, such approval to be conclusively evidenced by such execution and delivery of the Financing Documeirts. The of the Lessee and any other officer of Lessee who sha11 have power to do so be, and each of them hereby is, authorized to aff� the official seal of Lessee to the Financing Documents and attest the same. Section 8. The proper officers of Lessee be, and each of them hereby is authorized and directed to executed and deliver any and all papers, instruments, opinions, certificates, affidavits and other documents and to do or ca.use to be done any and a11 other acts and things necessary or proper for ca.rrying out this resolution and the Financing Documents. 5ection 9. Pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended (the "Code"), Lessee hereby specifically designates the Lease as a"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Code. THE FOREGOING RESOLUTTON WAS OFFERED BY Councilmember , who moved. its adoption. The motion was seconded by Councilmember , and upon being put to vote, the vote was a.s follows: FOR ADOPTION AGAINST ADOPTION The Mayor thereupon declared the Resolution duly passed and a.dopted this day of , 2003. MAYOR OF TEQUESTA Geraldine A Genco ATTEST: Mary Miles, Village Clerk :�, _ , , � PROPOSAL FOR " TAX-EXEMPT LEASE FINANCING � January 2, 2003 �; Preserlted by i i � � i I leasing 2 �, 1304 DeSoto Avenue. Suite 304 Tampa. Florida 33606 � Phone: 800�87-51�5 Fax: 813 Z�i8-9333 � "I�ing2.com'° Presented To (�►s Lesseel Vendor Village of Tequesta, Florida Sutphen Corporation Attention: JoAnne Forsythe TFtA,,NSACTION SPECIFICS Equipment Description: (1) Sutphen Fire "Fruck Commencement Date: 01/15/03 Equipmerrt Cost: $400,000 Lessee Down Payment: $0 Amourrt Financed: $400,Q00 Lease T�rm: 10 Years First Payment Date: OM15/03 Paymerrt Frequency: 1 / year 111et EffeCtive RBte: 3.61 % Lease Rate: 3.63% Paymerrt Amourrt: $47,099.31 Paymerrt Factor. 0.11775 A/I �ates ar� subject to Lessee issuing /ess than $10, 000, 000 in tax-exem� fmancings the calendar year vf the Lease. Vendor/Manufacturer Pavment Terms from L.essvr as follows• Paymeirt Type: Final Amount: $400,000 Not Earlier Than: 02/15/03 •ExnlanaUon of Factors in Pavment S chedule• The °Fadors° shawn in the prtcing of this proposal can be used M calculate apprmdmate p�ayrt�ents on amounts other than the firnance amour�t proposed. To use, sirnply rtwftiply the appropriate Tador by � ad'�usted finance amount. The produd vn71 be an appro�amate adjust� payment. Comntet�tx T� W��9 �PreseMs just a few of the many options �at are ava�lable. in fact, Y� �Y �� �Y � P�enk Rayme�t freQ�e��Y� first �yment c�e, and 1� term. Of wurse, such changes would change the pricing. p�anp 1 - r i I I I vl�" I 1_ Pn This is a I�se propasal for tl�e paymer�t stream(s) irtdicated above. Eacti of the "transaction sp�ifics° and vendor terms are l imPo►tant to the " lease prlcirtg. If an}+ of these are �t corred, ple advise us sa that we can determine whdher a n�ro proposal is recNired• Other imporlant elernetits of th� proposal �e: a) Rate Exairation: To protect the interest rate quotecl. the fo0owing schedule must be followed: ! (2) Compl�e fh�ancial pact�qe reivmed tn Le�asing 2 by Jan�tary 7, 2003 (3) Completed I�se con6�ads retumed to Leasirn,� 2 by Janqary 13, 2003 b) Closh►9 Costs: There wUl be no up-front co�s of amr ldnd charged by Lessor inGudi� closir►9 c�s. Pofits, admirtistrafive �, etc. Your attomey may charge You to revi�nr the lease documer�ts arM complete the opinion letter required w� our lease docume�ation. c) �Purchase Option: This is a I�se-purcF�se type of firrancing. After ap the le�ase payments are made, Lessee wRl own the equipmetrt vv�hout c!j Fixed Rates: Unless otherwise noted, the interest rates in this proposal are f6c� fir the � term. 2 Ve:Mor Pavabie / Escrow AccouM (where aunlfcablel: In tlte eve�rt that tt�e truck{s) and/or �uipment are not r�dy to f� deCivered, Proceeds of this lease vnll be held 'm a ver�dar payable ac.count �1 defivery/aa:ePtance and PaYme�t(S) are made to the vendor(s). a) The funds wlll eam interest while in this account. b) AU interest from this accounf vin'U be paid to Lessor. c) Lessor has used aq of the project� �ngs from this ac�urrt to lower the les� s borrowing c�s (see �ge one -°Nd Effective Rate'�. cn There wiU be rro disbursements from escrow earl'�er than the vendor terms highCghted atmve (Vendor Terms Payable by L�ssor). 3. Bank Qua6fied / Srr�A Issuer. Lessee sfiall c�Mjr that ft has nat desigrnated� aru! do� rtot r�sor�a6ly aritici�pate desi of obl'igations during the calendar year that the prapos�d !�a i� executed. a Y a�c gnating, rtrore than $10,000,000.00 4. Credit Approval arM Doc�ne�atlon: This is a proposal ort1Y� and does not represent a comm�ment to 1�. This fitrancing is subJect to credit re�riew artd approval and �cecution of mutual�Y accePtable documentatiat, including the opinion of le�ee's counsel opining that the agreement is legal, valid and der s�6an ed as a t�c exempt obfigation imder #he fia�c reform act of 1986 as amertded. This transac�ot� wlll be designated as ta�c pacempt det� 2�(b) (3) of the interrr�l revenue c�de of 19�, as amended. 5. Lessor. The L�.sor for this lease vnll be Leasing 2, Inc. or �s assignees. whfch wiwiN also admfiister the lease trarr�cUon. � Leasing 2, Inc, i BY: YLi.di via iacsimile or e ail DA • ' T'E. J�nuary 2, 200.3 � Btad Meyers MEMBER , Specia! Message The management and staff of Leasing2 � wish to extend a speciai message of appreciation to you for allowing us the opportunity to offer you our professional services. Thank you a�cwnoN oF in �advance for your consideration. GOVERII}MENTAL LEASING 8 FINIINCE V/S/T OUR WEBS/TE: / F� S/NG2.COM u��, � - r - d �! ` REQUEST TO PROCEED: UVhen you are ready to pra�ed and would filce to move towards flnalf¢mg this lease, pl� aclawwledge that you have reviewed th� enti[e proposal and undersiamd its cantents and that you have awarded this busir�ess to Leasing 2, Inc. by campl�ing this �ction of the proposal and fa�dr�g � to 4.easing 2 We vw71 immediately fax jrou `next step° ins6'ucfiwts. In order to cover L�sor's c�ts incurred as a resuR of rec�iving this °Reqt�t To Proce�' from Les�e, Lessee agrees to p Lessor $50p;00 in the event Lessee refuses to Ymal'¢e this bansaction once the Request to Proc�ed has been execut�! by Lessee and rdum�! to L�sor. We appreciate your conf'idence and cor�idera�on. Proposal date: J � 20ai Option Chosen: (where applicable) Upcoming Goveming Body meetfng c�te for lease approval: i VillaQe of Tequesta, Florida i Name of Lessee Authorized Sigt�ature p� Printed Name Of Authorized Signature T�� Contact Name (If D(fferent Than Cor�tact Phone Authorized Signatt�re) Contad E-Ma1 Address Contact Fax ' Do you prefer e-mat7 or faXl �, .. P/ease comp/ete the above informa6on and f� all pages of the proposal to 813-25&9333, I . � I AN IMPORTANT MESSAGE , It is important to understand that the interest rates as quoted in this proposal are 'tacked in' for 30 days. If you desire to assure yourselves of obtaining that interest rate, it is ir�hportant for you to complete everything you have to do to finalize your lease before the 30 days has elapsed. Please be assured that Leasing 2 is committed to helping you do tha� _ A�no Z �'