HomeMy WebLinkAboutDocumentation_Regular_Tab 10E_03/04/1999t 1
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Village of Tequesta Memo
To: Thomas G. Bradford, Village Manager
From: Connie Holloman, Finance Director !',~~
Subject: Computer Hardware and Software Lease Purchase Agreement
Date: February 25, 1999
Contingent upon the approval by Village Council of our purchase of computer software from
Micro Arizala Systems and hardware from Integrated Security & Communications, the method of
payment must be considered.
One option is to finance this purchase through alease-purchase agreement. We have received
quotes from five financial institutions for a lease purchase of these items. After reviewing the
quotes, we recommend fmancing the computer hardware and software for a term of five years
with our local Fidelity Federal branch. To have sufficient budgeted debt service funds, this
option would require payment of training costs from our current year budget. I am planning a
budget amendment for April 1999, which could include allocation of funds to include these costs.
If this option is the one you choose, we are requesting that you receive authorization from the
Village Council to sign alease-purchase agreement not exceed $108,000. The FY98/99 water
fund budget includes an allocation of $24,000 for the first year lease purchase payment.
Option two, if you prefer, would be to transfer funds from undesignated fund balance and
unrestricted retained earnings and purchase these items as a cash transaction. If this option is
your choice, please let me know and I will prepare the necessary budget amendment.
Supporting documentation attached.
T
t
RESOLUTION NO. 22-98/99
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, PALM BEACH COUNTY, FLORIDA, APPROVING A LEASE
PURCHASE PROPOSAL FROM FIDELITY FEDERAL OF TEQUESTA, FOR
THE FINANCING OF COMPUTER HARDWARE AND SOFTWARE IN
AN AMOUNT NOT TO EXCEED $108,000 AND AUTHORIZING THE
VILLAGE MANAGER TO EXECUTE THE APPLICABLE AGREEMENT ON
BEHALF OF THE VILLAGE.
THEREFORE BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE
TEQUESTA, PALM BEACH COUNTY, FLORIDA AS FOLLOWS:
The Proposal from Fidelity Federal, attached hereto
as Exhibit "A" and Incorporated by Reference as Part
of this Resolution is Hereby Approved and the
Village Manager of the Village of Tequesta is
Authorized to Execute the Applicable Agreement on
Behalf of the Village.
THE FOREGOING RESOLUTION WAS OFFERED by Councilmember
who moved its adoption. The motion was seconded
by Councilmember and upon being put to
a vote, the vote was as follows:
FOR ADOPTION AGAINST ADOPTION
The Mayor thereupon declared the Resolution duly passed and adopted
this 4th day of March, A.D., 1999.
MAYOR OF TEQUESTA
Elizabeth A. Schauer
TTEST:
oann Manganiello
illage Clerk
80\Resolution\Fidelity Federal
LEASE PURCHASE FINANCING
Computer Hardware & Software
SkyLake/Kislack
Denise Beauchamp
800-233-7164
CMC
Brad/Whitey Meyers
800-287-5155
4.415% for 7 years for hardware and software
4.375% for 5 years for hardware and software
No prepayment penalty
6.56%, blended 5 & 7 year payments
No prepayment penalty
NationsBank Non-secured 36 mo term loan for software at 10.45%
Patrice Hardware at 36 months w/no residual or 60 months
745-4211 with residual with a rate of 9.5% - 11.5%
LaSalle Bank 4.75% for 5 years for hardware and software
Henry Bradley No prepayment penalty
888-981-4848
Fidelity Federal 4.25% for 5 years for hardware and software
Rick Sartory No prepayment penalty
659-9981
Community Savings No response
Loan Amortization -.-~ ~!
Inputs
Loan Principal Amount
Annual Interest Rate
Loan Period in Years
Base Year of Loan
Base Month of Loan
~-
$
108,000.00
4.25°h
5
1999 !?
4
Key Figures
Annual Loan Payments $24,014.28
Monthly Payments $2,001.19
Interest in First Calendar Year $3,234.40
Interest Over Term of Loan $12,071.40
Sum of All Payments $120,071.40
Payments in First 12 Months
Cumulative Cumulative Ending
Year Month Balance Payments Principal Interest Principal Interest Balance
Apr $108,000.00 $2,001.19 $1,618.69 $382.50 $1,618.69 $382.50 $106,381.31
May $106,381.31 $2,001.19 $1,624.42 $376.77 $3,243.11 $759.27 $104,756.89
Jun $104,756.89 $2,001.19 $1,630.18 $371.01 $4,873.29 $1,130.28 $103,126.71
Jul $103,126.71 $2,001.19 $1,635.95 $365.24 $6,509.24 $1,495.52 $101,490.76
Aug $101,490.76 $2,001.19 $1,641.74 $359.45 $8,150.98 $1,854.97 $99,849.02
Sep $99,849.02 $2,001.19 $1,647.56 $353.63 $9,798.54 $2,208.60 $98,201.46
Oct $98,201.46 $2,001.19 $1,653.39 $347.80 $11,451.93 $2,556.40 $96,548.07
Nov $96,548.07 $2,001.19 $1,659.25 $341.94 $13,111.18 $2,898.34 $94,888.82
Dec $94,888.82 $2,001.19 $1,665.13 $336.06 $14,776.31 $3,234.40 $93,223.69
2000 Jan $93,223.69 $2,001.19 $1,671.02 $330.17 $16,447.33 $3,564.57 $91,552.67
Feb $91,552.67 $2,001.19 $1,676.94 $324.25 $18,124.27 $3,888.82 $89,875.73
Mar $89,875.73 $2,001.19 $1,682.88 $318.31 $19,807.15 $4,207.13 $88,192.85
Yearly Schedule of Balances and Payments
Cumulative Cumulative Ending
Year Balance Payments Principal Interest Principal Interest Balance
2000 $93,223.69 $24,014.28 $20,447.64 $3,566.64 $35,223.95 $6,801.04 $72,776.05
2001 $72,776.05 $24,014.28 $21,333.68 $2,680.60 $56,557.63 $9,481.64 $51,442.37
2002 $51,442.37 $24,014.28 $22,258.23 $1,756.05 $78,815.85 $11,237.70 $29,184.15
2003 $29,184.15 $24,014.28 $23,222.85 $791.43 $102,038.71 $12,029.12 $5,961.29
2004 $5,961.29 $6,003.57 $5,961.29 $42.28 $108,000.00 $12,071.40 $0.00
Loan Amortization 9
Inputs
Loan Principal Amount
Annual Interest Rate
Loan Period in Years
Base Year of Loan
Base Month of Loan
Payments in First 12 Months
Key Figures
Annual Loan Payments $24,087.72
Monthly Payments $2,007.31
Interest in First Calendar Year $3,330.16
Interest Over Term of Loan $12,438.60
Sum of All Payments $120,438.60
Cumulative Cumulative Ending
Year Month Balance Payments Principal Interest Principal Interest Balance
Apr $108,000.00 $2,007.31 $1,613.56 $393.75 $1,613.56 $393.75 $106,386.44
May $106,386.44 $2,007.31 $1,619.44 $387.87 $3,233.00 $781.62 $104,767.00
Jun $104,767.00 $2,007.31 $1,625.35 $381.96 $4,858.35 $1,163.58 $103,141.65
Jul $103,141.65 $2,007.31 $1,631.27 $376.04 $6,489.62 $1,539.62 $101,510.38
Aug $101,510.38 $2,007.31 $1,637.22 $370.09 $8,126.84 $1,909.71 $99,873.16
Sep $99,873.16 $2,007.31 $1,643.19 $364.12 $9,770.03 $2,273.83 $98,229.97
Oct $98,229.97 $2,007.31 $1,649.18 $358.13 $11,419.21 $2,631.96 $96,580.79
Nov $96,580.79 $2,007.31 $1,655.19 $352.12 $13,074.40 $2,984.08 $94,925.60
Dec $94,925.60 $2,007.31 $1,661.23 $346.08 $14,735.63 $3,330.16 $93,264.37
2000 Jan $93,264.37 $2,007.31 $1,667.28 $340.03 $16,402.91 $3,670.19 $91,597.09
Feb $91,597.09 $2,007.31 $1,673.36 $333.95 $18,076.27 $4,004.14 $89,923.73
Mar $89,923.73 $2,007.31 $1,679.46 $327.85 $19,755.73 $4,331.99 $88,244.27
Yearly Schedule of Balances and Payments
Cumulative Cumulative Ending
Year Balance Payments Principal Interest Principal Interest Balance
2000 $93,264.37 $24,087.72 $20,413.70 $3,674.02 $35,149.33 $7,004.18 $72,850.67
2001 $72,850.67 $24,087.72 $21,324.74 $2,762.98 $56,474.07 $9,767.16 $51,525.93
2002 $51,525.93 $24,087.72 $22,276.63 $1,811.09 $78,750.70 $11,578.25 $29,249.30
2003 $29,249.30 $24,087.72 $23,271.02 $816.70 $102,021.71 $12,394.96 $5,978.29
2004 $5,978.29 $6,021.93 $5,978.29 $43.64 $108,000.00 $12,438.60 $0.00
Loan Amortization
Inputs
Loan Principal Amount
Annual Interest Rate
Loan Period in Years
Base Year of Loan
Base Month of Loan
$130,000.00' S ~.
4.42%
7
1999
4
Key Figures
Annual Loan Payments $21,622.68
Monthly Payments $1,801.89
Interest in First Calendar Year $4,127.78
Interest Over Term of Loan $21,358.76
Sum of All Payments $151,358.76
Payments in First 12 Months
Cumulative Cumulative Ending
Year Month Balance Payments Principal Interest Principal Interest Balance
Apr $130,000.00 $1,801.89 $1,323.60 $478.29 $1,323.60 $478.29 $128,676.40
May $128,676.40 $1,801.89 $1,328.47 $473.42 $2,652.07 $951.71 $127,347.93
Jun $127,347.93 $1,801.89 $1,333.36 $468.53 $3,985.43 $1,420.24 $126,014.57
Jul $126,014.57 $1,801.89 $1,338.26 $463.63 $5,323.69 $1,883.87 $124,676.31
Aug $124,676.31 $1,801.89 $1,343.19 $458.70 $6,666.88 $2,342.57 $123,333.12
Sep $123,333.12 $1,801.89 $1,348.13 $453.76 $8,015.01 $2,796.33 $121,984.99
Oct $121,984.99 $1,801.89 $1,353.09 $448.80 $9,368.10 $3,245.13 $120,631.90
Nov $120,631.90 $1,801.89 $1,358.07 $443.82 $10,726.17 $3,688.95 $119,273.83
Dec $119,273.83 $1,801.89 $1,363.06 $438.83 $12,089.23 $4,127.78 $117,910.77
2000 Jan $117,910.77 $1,801.89 $1,368.08 $433.81 $13,457.31 $4,561.59 $116,542.69
Feb $116,542.69 $1,801.89 $1,373.11 $428.78 $14,830.42 $4,990.37 $115,169.58
Mar $115,169.58 $1,801.89 $1,378.16 $423.73 $16,208.58 $5,414.10 $113,791.42
Yearly Schedule of Balances and Payments
Cumulative Cumulative Ending
Year Balance Payments Principal Interest Principal Interest Balance
2000 $117,910.77 $21,622.68 $16,752.90 $4,869.78 $28,842.13 $8,997.56 $101,157.87
2001 $101,157.87 $21,622.68 $17,508.02 $4,114.66 $46,350.15 $13,112.22 $83,649.85
2002 $83,649.85 $21,622.68 $18,296.84 $3,325.84 $64,646.99 $16,438.06 $65,353.01
2003 $65,353.01 $21,622.68 $19,121.19 $2,501.49 $83,768.18 $18,939.55 $46,231.82
2004 $46,231.82 $21,622.68 $19,982.69 $1,639.99 $103,750.87 $20,579.54 $26,249.13
2005 $26,249.13 $21,622.68 $20,882.99 $739.69 $124,633.86 $21,319.23 $5,366.14
2006 $5,366.14 $5,405.67 $5,366.14 $39.53 $130,000.00 $21,358.76 $0.00
FEB. 26.1999 4=09PM FIDELITY FEDERAL COMMERCIAL LOAN
TnE,izY
'EDERAL
BANK OF FLORIDA
FACSIlVI~.>?
26, 1999
~. Montague
age of Tequesta
once Department
Tequesta 1?rive
aesta, Florida 33x69
$10$,000 financing Request
Ms. Montague:
N0.578 P.2
letter will confiml our telephone couversa~tion concerning your financing request for the computer
~vare and software. A summary of our proposal is as faUows:
;. $108,000,00
60 months, fiiliy amortized
Rate: 4,25% fixed, subject to the transaction being a "Qualified Tax Exempt
Obligation" under Section 265 (b} (3) ofthe 1TtS Code of 1993.
~ Payment: $2001.20
sent Penalty: None
is loan will be subject to Legal fees and out of-pocket expenses, A fo~nmal commitment letter
:ailing all terms, conditions and out-of-pocket expenses will be issued early next weep I will contact
i and arrange a convenient time to deliver this letter.
ase contact me directly at (561) 659-9981 with any questions or comments. Thank you very much
the opporhu~ity to meet the fir~aacing needs for the Village of Tequesta.
KTice president
ial Lending
F17IC
MAI1V QFFICE: 218 Datura Street, West rt'alm Beach, Florida 33401-5679 I'uu~d