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Home My Public Portal About100_030_Agenda Item for Aug 14 2014 $170000 loan for DPW Equipment MAYOR CITY MANAGER Jason Buel€erman Diane Schleicher CITY COUNCIL ` CLERK OF COUNCIL Wanda Doyle,Mayor Pro Tern Janet LeViner Barry Brown 1� 7 Jan Fox s CITY'AT ORNEY Bill Garbett EdwardM-Hughes Tom Groover K,\KE I 04 Paul Wolff " "—" ' CITY OF TYREE ISLAND City Council Agenda Item Request Council Meeting Date for Request: August 14,2014 Item: Request City Councils' approval to obtain a loan through SunTrust Bank for $170,000 for 3 years with an interest rate of 1.64%in order to acquire a Grader and Backhoe equipment for the Public Works Department. Description: Financing Options for Backhoe and Grader Equipment Explanation: The Public Works Department issued request for proposal to acquire backhoe and grader equipment; the department selected the bids costing $169,000 for the equipment. During the budget process, the city acquired proposals for financing the equipment from GMA and SunTrust Bank; SunTrust Bank had the lowest interest rates. Below is a comparison of SunTrust Bank's and GMA's loan proposals: Option 1 SunTrust Bank Interest Rate Total Monthly No. of Interest Amount Annual Date of years Prepayment 01101% Paid Paid Amount Paid Maturity L Total Paid 3 1.44% $ 3,800.40 $ 4,827.79 $ 57,933.48 Aug-17 $ 173,800.40 5 1.81% $ 7,936.60 $ 2,965.61 $ 35,587.32 Aug-19 $ 177,936.60 7 1.995% $ 12,287.48 $ 2,170.09 $ 26,041.08 Aug-21 $ 182,287.48 10 2.485% $ 22,171.48 $ 1,601.43 $ 19,217.16 Aug-24 $ 192,171.38 NOTE: This .roposal includes a 101%prepa meet rate on the outstandin balance of the loan. Option 2 SunTrust Bank Interest Rate - Total Monthly No. of Interest Amount Annual Date of years Prepayment @ 100% Paid Paid Amount Paid Maturity Total Paid 3 1.64% $ 4,332.41 $ 4,842.57 $ 58,110.84 Aug-17 $ 174,332.41 5 2.01% $ 8,827.78 $ 2,980.46 $ 35,765.52 Aug-19 $ 178,827.78 7 2.195% $ 13,549.70 $ 2,185.12 $ 26,221.44 Aug-21 $ 183,549.70 10 2.685% $ 24,031.56 $ 1,616.93 $ 19,403.16 Aug-24 $ 194,031.56 G MA _ Interest Rate Total Monthly No_ of Interest Amount Annual Date of years Prepayment @ 100% Paid Paid Amount Paid Maturity Total Paid 3 2.85% $ 7,572.72 $ 4,932.58 $ 59,190.96 Aug-17 $ 177,572.72 5 3.28% $ 14,552.56 $ 3,075.88 $ 36,910.56 Aug-19 $ 184,552.56 7 N/A N/A N/A N/A N/A N/A 10 N/A N/A N/A N/A N/A N/A P.O.Box 2749--403 Butler Avenue,Tybee Island,Georgia 31338-2749 (866)786-4573-FAX(866)786-5737 www.eityoftybee.org Financing the equipment through SunTrust Bank will save the City more money than financing through GMA as disclosed in the aforementioned schedule. Therefore, the staff request the City Councils' approve to finance the $170,000 acquisition of the backhoe and grader equipment through SunTrust Bank using option 2, financing a loan for 3 years at 1.64%with the option to prepay the loan without any penalties by passing the attached resolution. 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: Angela Hudson, Finance Director Phone/Email: (912)472-50211ahudson citvof tvbee.org Comments: Date given to Clerk of Council 21Page EXHIBITC [Escrow] Lease Number:F ] Equipment Schedule: 0I RESOLUTION OF GOVERNING BODY At a duly called meeting of the governing body of Lessee held in accordance with all applicable legal requirements, including open meeting laws,on the 14 day of August,2014,the following resolution was introduced and adopted: RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A MASTER LEASE AGREEMENT,. EQUIPMENT SCHEDULE NO. 01, AN ESCROW AGREEMENT, AND RELATED INSTRUMENTS, AND DETERMINING OTHER MATTERS IN CONNECTION THEREWITH. WHEREAS, the governing body of CITY OF TYBEE ISLAND ("Lessee") desires to obtain certain equipment (the "Equipment") described in Equipment Schedule No. 01 (the "Equipment Schedule") to the Master Lease Agreement (collectively, the "Lease"), between SUNTRUST EQUIPMENT FINANCE & LEASING CORP. ("Lessor'") and Lessee, the form of which has been available for review by the governing body of Lessee prior to this meeting;and WHEREAS,the Equipment is essential for Lessee to perform its governmental functions;and WHEREAS, the funds made available under the Lease will be deposited with SUNTRUST BANK ("Escrow Agent") pursuant to an Escrow Agreement between Lessor, Lessee and Escrow Agent (the"Escrow Agreement") and will be applied to the acquisition of the Equipment in accordance with said Escrow Agreement;and WHEREAS, Lessee has satisfied the legal requirements, including those relating to any applicable public bidding requirements,to arrange for the acquisition of the Equipment and the execution and delivery of the Lease and the Escrow Agreement;and WHEREAS, Lessee proposes to enter into the Lease with SUNTRUST EQUIPMENT FINANCE & LEASING CORP,and the Escrow Agreement with Lessor and Escrow Agent substantially in the forms presented to this meeting. NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF LESSEE AS FOLLOWS: Section 1. It is hereby found and determined that the terms of the Lease and the Escrow Agreement (collectively, the "Financing Documents") in substantially the forms presented to this meeting and incorporated in this resolution are in the best interests of Lessee for the acquisition of the Equipment. Section 2. The Financing Documents and the acquisition and fmancing of the Equipment under the terms and conditions as described in the Financing Documents are hereby approved. The Mayor of Lessee and any other officer of Lessee who shall have power to execute contracts on behalf of Lessee be, and each of them hereby is, authorized to execute, acknowledge and deliver the Financing Documents with any changes, insertions and omissions therein 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 Documents. The Clerk of Council of Lessee and any other officer of Lessee who shall have power to do so be, and each of them hereby is, authorized to affix the official seal of Lessee to the Financing Documents and attest the same. Section 3. The proper officers of Lessee be,and each of them hereby is,authorized and directed to execute and deliver any and all papers, instruments,opinions,certificates,affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper for carrying out this resolution and the Financing Documents. Section 5. This resolution shall take effect immediately. The undersigned further certifies that the above resolution has not been repealed or amended and remains in full force and effect and further certifies that the Lease executed on behalf of the Lessee is the same as presented at such meeting of the governing body of Lessee,excepting only such changes,insertions and omissions as shall have been approved by the officers who executed the same. Date: CITY OF TYBEE ISLAND, Lessee By: Name:Jason Buelterman Title:Mayor Attested By: Name: Jan LeViner Title:Clerk of Council AMORITIZATION SCHEDULE OF PUBLIC WORKS LOAND FROM SUNTRUST BANK Tybee Island, GA Assumed Funding Date: 8/15/2014 Financing Amount: $ 170,000.00 Interest Rate: 1.640% Payments per Period 12 Number of Payments 36 Payment Amount 4,842.57 Prepayment Date Payment Interest Principal Balance Price 9115/2014 4,842.57 $ 232.34 $ 4,610.23 $ 165,389.77 $ 165,389.77 10/15/2014 4,842.57 226.04 4,616.53 160,773.24 160,773.24 11/15/2014 4,842.57 219.73 4,622.84 156,150.40 156,150.40 12115/2014 4,842.57 213.41 4,629.16 1 51,521.24 151,521.24 111512015 4,842.57 207.08 4,635.49 146,885.75 146,885.75 2115/2015 4,842.57 200.75 4,641.82 142,243.93 142,243.93 3/15/2015 4,842.57 194.41 4,648.16 137,595.77 137,595.77 411512015 4,842.57 188.05 4,654.52 132,941.25 132,941.25 5/15/2015 4,842.57 181.69 4,660.88 128,280.37 128,280.37 6/15/2015 4,842.57 175.32 4,667.25 123,613.12 123,613.12 7/15/2015 4,842.57 168.94 4,673.63 118,939.49 118,939.49 8/1512015 4,842.57 162.55 4,680.02 114,259.48 114,259.48 9/1512015 4,842.57 156.16 4,686.41 109,573.07 109,573.07 10/1512015 4,842.57 149.75 4,692.82 104,880.25 104,880.25 11115/2015 4,842.57 143.34 4,699.23 100,181.02 100,181.02 12/15/2015 4,842.57 1 36.92 4,705.65 95,475.37 95,475.37 1/1512016 4,842.57 130.49 4,712.08 90,763.28 90,763.28 2/15/2016 4,842.57 124.05 4,718.52 86,044.76 86,044,76 3/15/2016 4,842.57 117.60 4,724.97 81,319.79 81,319.79 4/15/2016 4,842.57 111.14 4,731.43 76,588.36 76,588.36 5/15/2016 4,842.57 104.67 4,737.90 71,850.46 71,850.46 6/15/2016 4,842.57 98.20 4,744.37 67,106.09 67,106.09 7115/2016 4,842.57 91.71 4,750.86 62,355.23 62,355.23 8/15/2016 4,842.57 85.22 4,757.35 57,597.88 57,597,88 9115/2016 4,842.57 78.72 4,763.85 52,834.03 52,834.03 10115/2016 4,842.57 72.21 4,770.36 48,063.67 48,063.67 11115/2016 4,842.57 65.69 4,776.88 43,286.79 43,286.79 12/15/2016 4,842.57 59.16 4,783.41 38,503.38 38,503.38 1115/2017 4,842.57 52.62 4,789.95 33,713.43 33,713.43 2115/2017 4,842.57 46.08 4,796.49 28,916.94 28,916.94 3/15/2017 4,842.57 39.52 4,803.05 24,113.89 24,113.89 4115/2017 4,842.57 32.96 4,809.61 19,304.28 19,304.28 5115/2017 4,842.57 26.38 4,816.19 14,488.09 14,488.09 6/15/2017 4,842.57 19.80 4,822.77 9,665.32 9,665.32 7115/2017 4,842.57 13.21 4,829.36 4,835.96 4,835.96 8/15/2017 4,842.57 6.61 4,835.96 (0.00) (0.00) 174,332.52 4,332.52 170,000.00 SUNTRUST Financing Application for State and Local Government Customers SunTrust Equipment Finance&Leasing Corporation Customer Information Customer Full Legal Name: City of Tybee Island Federal Tax ID#: 58-6000661 Legal Address: 403 Butler Avenue I City: Tybee Island State: GA Zip: 31328 Billing Address if other than address above: P. O. Box 2749 Tybee Island,Georgia 31328 Contact Information Authorized Signor Primary Contact Billing Contact (who will sign documents?) Name: Angela Hudson Melissa Freeman Jason Buelterman Title: Finance Director Purchasing Mayor Phone: 912-472-5021 912-472-5023 912-472-5080 Fax: -912-786-9465 912-786-9465 912-786-9465 Email: ahudson@cityoftybee.org cityoftybee.org mtreeman @cityoftybeeorg wandaddoyle @gmail.com Attester Name(who will attest the document if necessary?): Jan LeViner Attester Title: Clerk of Council Transaction Information Equipment/Project Description: Emergency 911 Telephone Equipment/System Equipment Location: Police Department 78 Van Home Drive,Tybee Island, GA 31328 What is the purpose of the proposed equipment acquisition/project? To allow the public safety to administrer emergency services to residents and visitors on Tybee Island. Why is the equipment/project essential'? to provide emergency response service by the police and fire departments. Amount of Tax Exempt Debt to be issued in Current Calendar Year(in millions): $134,522 Equipment/Project Type: Replacement/Upgrade (a) What is the age of the existing equipment that will be replaced or upgraded? (b) Is the existing equipment paid off/free and clear of liens? ❑Yes L No 1E Additional—why is this additional equipment necessary? to perform road worker that is currently being outsourced to outside vendors; having the work performed by employees will save the city a significant amount of money annually. Escrow Funded? Yes ❑ No Anticipated Closing Date: 8-21-2014 Refinance? ❑Yes ® No Meeting Approval Date: 8-14-2014 Financial Information Source of proposed repayment: ►I General Fund ❑Other—Describe: Fund Balance: $4,204,814 as of June 3,2014 Fiscal Year End: June 30,2014 I Most Recent Audited Financial Statement:June 30,2013 Has the client ever defaulted or non-appropriated on a lease or bond obligation? ❑Yes ® No Insurance Information -General Liability Insurance Coverage limits in the amount of$1 Million is required Self Insured? ❑Yes 13 No I General Liability Coverage Limits: $2,000,000 per occurrence Insurance Company Name:Georgia Interlocal Risk Management Agency Insurance Contact Name and Phone: Lindsey Albright 404-224-5044 Is the client a member of a managed risk pool? ®Yes ❑ No If yes, Pool Name:Georgia Municipal Association Does the client have additional commercial coverage?❑Yes ❑ No Commercial Coverage Limits: 25,097,653 So that we may begin our credit underwriting process,please email this application,along with your equipment quote/invoices(bill of materials)and the signed financing proposal. Please forward copies of the most recent 3 years of your Audited Annual Financial Statements, plus a copy of this year's budget to: SunTrust Equipment Finance&Leasing Corp. 300 E.Joppa Road,Suite 700 Towson, MD 21286 Financing Application for State and Local Government Customers DocReq uest_Muni_082012.doc Please note that we do require copies of your audited annual financial statement in order to process your request. Financing Application for State and Local Government Customers DocRequest_Muni_0$201 2.doc