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HomeMy Public PortalAbout120_050_Combinded Agenda E911 System Financing MAYOR CITY MANAGER Jason Buelterman Diane Schleicher CITY COUNCIL CLERK OF COUNCIL Wanda Doyle,Mayor Pro Tern Janet LeViner Barry Brown Jan Fox . CITY ATTORNEY Bill Garbett Edward M.Hughes Tom Groover` ' Paul Wolff CITY OF TYBEE ISLAND City Council Agenda Item Request Agenda Item Requests must be submitted to the Clerk of Council by 5:00PM the Thursday prior to the scheduled Council meeting. If this form is received after the deadline, the item will be listed on the next scheduled agenda. Council Meeting Date for Request: April 24, 2014 Item: Request for approval to obtain financing through GMA for to acquire a $134,522 Emergency 911 System\Equipment from AT&T for a 3 year at 2.85% or 5 year term at 3.28%. Description: Financing Options for E-911 System Equipment Explanation: The Police Department needs to acquire an emergency 911 operating systems and equipment for the new police facility by August, 2014. The original plan to finance the equipment through AT&T Capital Service for five years at an interest rate of 5.4% would have cost the City $153,834, $134,522 in principle and $19,312 in interest expense. Financing the equipment through GMA will save the City money. If the City chooses to finance with GMA for 3 years at 2.85%, the city will pay $141,042, $134,522 in principle and $6,490 in interest expenses, thus saving $12,822. If the City chooses to finance with GMA for 5 years at 3.28%, the City will pay$146,672, $134,522 for principle and$12,120 interest expenses, thus saving $7,192. Attached are the two loan amortization schedules from GMA and the financing terms from AT&T Capital Services. Please note that the AT&T Capital Service contract interest could increase or decrease by the time the City signs-off the work performed by AT&T in installing the equipment because the interest rates or based on the indexed rates of US Treasury T-Bills. (Attached is an explanation of rate indexing) The acquisition for the new system will occur in the 2014-2015 fiscal year in July and August, 2014. Budget Line Item Number(if applicable): Paper Work: X_ Attached* Already Distributed To Be Handed Out at Council Meeting (by Requester) Audio/Video Presentation** Submitted by: Phone/Email: (912)472-5021/ahudson @cityof tybee.org Comments: Date given to Clerk of Council P.O.Box 2749—403 Butler Avenue,Tybee Island,Georgia 31328-2749 (866)786-4573—FAX(866)786-5737 www.cityoftybee.org P.O.Box 2749—403 Butler Avenue,Tybee Island,Georgia 31328-2749 (866) 786-4573—FAX(866) 786-5737 www.cityoftybee.org Page 1 GMA Direct Lease Program Sample Amortization City of Tybee Island (E-911 Equipment) 3 Years Compound Period • Monthly Nominal Annual Rate : 2.850 % AMORTIZATION SCHEDULE - Normal Amortization, 360 Day Year Date Payment Interest Principal Balance Loan 06/02/2014 134,552.00 1 10/01/2014 4,274.01 1,272.08 3,001.93 131,550.07 2 11/01/2014 4,274.01 312.43 3,961.58 127,588.49 3 12/01/2014 4,274.01 303.02 3,970.99 123,617.50 2014 Totals 12,822.03 1,887.53 10,934.50 4 01/01/2015 4,274.01 293.59 3,980.42 119,637.08 5 02/01/2015 4,274.01 284.14 3,989.87 115,647.21 6 03/01/2015 4,274.01 274.66 3,999.35 111,647.86 7 04/01/2015 4,274.01 265.16 4,008.85 107,639.01 8 05/01/2015 4,274.01 255.64 4,018.37 103,620.64 9 06/01/2015 4,274.01 246.10 4,027.91 99,592.73 10 07/01/2015 4,274.01 236.53 4,037.48 95,555.25 11 08/01/2015 4,274.01 226.94 4,047.07 91,508.18 12 09/01/2015 4,274.01 217.33 4,056.68 87,451.50 13 10/01/2015 4,274.01 207.70 4,066.31 83,385.19 14 11/01/2015 4,274.01 198.04 4,075.97 79,309.22 15 12/01/2015 4,274.01 188.36 4,085.65 75,223.57 2015 Totals 51,288.12 2,894.19 48,393.93 16 01/01/2016 4,274.01 178.66 4,095.35 71,128.22 17 02/01/2016 4,274.01 168.93 4,105.08 67,023.14 18 03/01/2016 4,274.01 159.18 4,114.83 62,908.31 19 04/01/2016 4,274.01 149.41 4,124.60 58,783.71 20 05/01/2016 4,274.01 139.61 4,134.40 54,649.31 21 06/01/2016 4,274.01 129.79 4,144.22 50,505.09 22 07/01/2016 4,274.01 119.95 4,154.06 46,351.03 23 08/01/2016 4,274.01 110.08 4,163.93 42,187.10 24 09/01/2016 4,274.01 100.19 4,173.82 38,013.28 25 10/01/2016 4,274.01 90.28 4,183.73 33,829.55 26 11/01/2016 4,274.01 80.35 4,193.66 29,635.89 27 12/01/2016 4,274.01 70.39 4,203.62 25,432.27 2016 Totals 51,288.12 1,496.82 49,791.30 28 01/01/2017 4,274.01 60.40 4,213.61 21,218.66 29 02/01/2017 4,274.01 50.39 4,223.62 16,995.04 30 03/01/2017 4,274.01 40.36 4,233.65 12,761.39 31 04/01/2017 4,274.01 30.31 4,243.70 8,517.69 No closing costs. Subject to credit approval. Page 2 City of Tybee Island (E-911 Equipment) 3 Years Date Payment Interest Principal Balance 32 05/01/2017 4,274.01 20.23 4,253.78 4,263.91 33 06/01/2017 4,274.01 10.10 4,263.91 0.00 2017 Totals 25,644.06 211.79 25,432.27 Grand Totals 141,042.33 6,490.33 134,552.00 No closing costs. Subject to credit approval. Page 1 GMA Direct Lease Program Sample Amortization City of Tybee Island (E-911 Equipment) 5 Years Compound Period • Monthly Nominal Annual Rate : 3.280 % AMORTIZATION SCHEDULE - Normal Amortization, 360 Day Year Date Payment Interest Principal Balance Loan 06/02/2014 134,552.00 1 10/01/2014 2,573.19 1,464.78 1,108.41 133,443.59 2 11/01/2014 2,573.19 364.75 2,208.44 131,235.15 3 12/01/2014 2,573.19 358.71 2,214.48 129,020.67 2014 Totals 7,719.57 2,188.24 5,531.33 4 01/01/2015 2,573.19 352.66 2,220.53 126,800.14 5 02/01/2015 2,573.19 346.59 2,226.60 124,573.54 6 03/01/2015 2,573.19 340.50 2,232.69 122,340.85 7 04/01/2015 2,573.19 334.40 2,238.79 120,102.06 8 05/01/2015 2,573.19 328.28 2,244.91 117,857.15 9 06/01/2015 2,573.19 322.14 2,251.05 115,606.10 10 07/01/2015 2,573.19 315.99 2,257.20 113,348.90 11 08/01/2015 2,573.19 309.82 2,263.37 111,085.53 12 09/01/2015 2,573.19 303.63 2,269.56 108,815.97 13 10/01/2015 2,573.19 297.43 2,275.76 106,540.21 14 11/01/2015 2,573.19 291.21 2,281.98 104,258.23 15 12/01/2015 2,573.19 284.97 2,288.22 101,970.01 2015 Totals 30,878.28 3,827.62 27,050.66 16 01/01/2016 2,573.19 278.72 2,294.47 99,675.54 17 02/01/2016 2,573.19 272.45 2,300.74 97,374.80 18 03/01/2016 2,573.19 266.16 2,307.03 95,067.77 19 04/01/2016 2,573.19 259.85 2,313.34 92,754.43 20 05/01/2016 2,573.19 253.53 2,319.66 90,434.77 21 06/01/2016 2,573.19 247.19 2,326.00 88,108.77 22 07/01/2016 2,573.19 240.83 2,332.36 85,776.41 23 08/01/2016 2,573.19 234.46 2,338.73 83,437.68 24 09/01/2016 2,573.19 228.06 2,345.13 81,092.55 25 10/01/2016 2,573.19 221.65 2,351.54 78,741.01 26 11/01/2016 2,573.19 215.23 2,357.96 76,383.05 27 12/01/2016 2,573.19 208.78 2,364.41 74,018.64 2016 Totals 30,878.28 2,926.91 27,951.37 28 01/01/2017 2,573.19 202.32 2,370.87 71,647.77 29 02/01/2017 2,573.19 195.84 2,377.35 69,270.42 30 03/01/2017 2,573.19 189.34 2,383.85 66,886.57 31 04/01/2017 2,573.19 182.82 2,390.37 64,496.20 No closing costs. Subject to credit approval. Page 2 City of Tybee Island (E-911 Equipment) 5 Years Date Payment Interest Principal Balance 32 05/01/2017 2,573.19 176.29 2,396.90 62,099.30 33 06/01/2017 2,573.19 169.74 2,403.45 59,695.85 34 07/01/2017 2,573.19 163.17 2,410.02 57,285.83 35 08/01/2017 2,573.19 156.58 2,416.61 54,869.22 36 09/01/2017 2,573.19 149.98 2,423.21 52,446.01 37 10/01/2017 2,573.19 143.35 2,429.84 50,016.17 38 11/01/2017 2,573.19 136.71 2,436.48 47,579.69 39 12/01/2017 2,573.19 130.05 2,443.14 45,136.55 2017 Totals 30,878.28 1,996.19 28,882.09 40 01/01/2018 2,573.19 123.37 2,449.82 42,686.73 41 02/01/2018 2,573.19 116.68 2,456.51 40,230.22 42 03/01/2018 2,573.19 109.96 2,463.23 37,766.99 43 04/01/2018 2,573.19 103.23 2,469.96 35,297.03 44 05/01/2018 2,573.19 96.48 2,476.71 32,820.32 45 06/01/2018 2,573.19 89.71 2,483.48 30,336.84 46 07/01/2018 2,573.19 82.92 2,490.27 27,846.57 47 08/01/2018 2,573.19 76.11 2,497.08 25,349.49 48 09/01/2018 2,573.19 69.29 2,503.90 22,845.59 49 10/01/2018 2,573.19 62.44 2,510.75 20,334.84 50 11/01/2018 2,573.19 55.58 2,517.61 17,817.23 51 12/01/2018 2,573.19 48.70 2,524.49 15,292.74 2018 Totals 30,878.28 1,034.47 29,843.81 52 01/01/2019 2,573.19 41.80 2,531.39 12,761.35 53 02/01/2019 2,573.19 34.88 2,538.31 10,223.04 54 03/01/2019 2,573.19 27.94 2,545.25 7,677.79 55 04/01/2019 2,573.19 20.99 2,552.20 5,125.59 56 05/01/2019 2,573.19 14.01 2,559.18 2,566.41 57 06/01/2019 2,573.19 6.78 2,566.41 0.00 2019 Totals 15,439.14 146.40 15,292.74 Grand Totals 146,671.83 12,119.83 134,552.00 No closing costs. Subject to credit approval. AT&T Capital Services, Inc. Direct: (404) 820-6640 Grady Morgan Fax: (770) 360-4856 2180 Lake Blvd Suite 8D29 Email: gm0463 @att.com Atlanta, GA 30319 March 18, 2014 City of Tybee Island 403 Butler Ave Opportunity #: 1-44465117 Tybee Island, GA 31328 AT&T Capital Services, Inc. is pleased to provide the following proposal for the lease of Equipment, Services and/or Maintenance as submitted to us. AT&T Capital Services, Inc. provides customer financing for various products. Our understanding of communication products and markets allows us to offer payment options at competitive rates and to accommodate your needs over the life of the financing arrangement. Equipment/Services Description: Intrado Viper E911 Equipment Payment Terms: Monthly Payments In Arrears Finance Proposal Costs Description One-Time Cost Proposal Type Payment Term Rate Payment T-Bill Initial Factor Rate Option Intrado E911 Equipment $134,552.00 Muni/$1 Finance 60 Months 0.01889 $2,541 .69, 1 .53 Combined Cost and Payment $134,552.00 $2,541 .69 Price assumptions are based on the Lease Commencement date: August 1 , 2014 Taxes, Shipping Pricing above excludes all applicable taxes and shipping charges, unless noted. Insurance is the & Insurance responsibility of the Lessee. Lessee shall be responsible to pay those taxes and fees described in the lease. Payments & The lease rates are indexed to like-term US Treasury Bills for the week of: March 17, 2014 Indexing Any increase or decrease in the corresponding US Treasury Bills will cause the lease rate factor to be adjusted point for point at the time of lease commencement. Convert to Lessee's failure to execute an Equipment Acceptance relative to this lease within ninety (90) days of the Cash Sale Lessee's first functional use of the system will result in this lease converting to a cash sale. Progress The above lease rates do not include any additional interest expense for progress payments which are Payments required by AT&T Capital Services, Inc. on all transactions with installations exceeding 60 days. Progress payments will be financed through AT&T Capital Services, Inc. at Prime Rate plus 2% at time of funding. Expiration This offer expires 30 days from the date of this proposal. If, for any reason, we fail to consummate a Date mutually satisfactory agreement by this date, we reserve the right to withdraw this offer and/or modify its terms. UCC's Lessee hereby grants to Lessor permission to file any and all UCC Financing Statements, which in Lessor's discretion are necessary or proper to secure Lessor's interest in the Equipment and/or Services in all applicable jurisdictions. Credit This proposal is subject to final investment committee approval and mutually acceptable documentation. Approval Upon Lessee's acceptance of this lease proposal, AT&T Capital Services, Inc. will require a copy of Lessee's latest audited Financial Statements**. Credit approval is not final until AT&T Capital Services, Inc. has reviewed these statements and approved the credit. ** Financial Statements Required: Auditor's Report, Balance Sheet, Income Statement, Cash Flow Statement and Accompanying Notes that apply to the above described Financial Statements. Notes Please provide a copy of the last (2) years of audited customer financials for final AT&T Capital Services, Inc. credit approval. Lessee and AT&T Capital Services, Inc. agree that the contents of this letter are confidential and are provided solely for the purposes described herein. The contents of this letter may not be delivered, displayed or otherwise disclosed to any third party without AT&T Capital Services, Inc.'s prior written consent. City of Tybee Island 403 Butler Ave Opportunity #: 1-44465117 Tybee Island, GA 31328 Please initial desired option(s) above and return the signed proposal letter to me via fax at 770-360-4856 or email to gm0463 @att.com. Upon formal credit approval, our Contract Administration Department will forward our agreement to you. If you should have any questions, please do not hesitate to contact me at 404-829-6640. A signed AT&T equipment/services contract is required before order can be processed. Sincerely, Lessee Acceptance: M org-cwv Name: r Title: Grady Morgan Date: Title