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Home My Public Portal About22-046 - Agreement with Republic First National Bank for lease of a Vacuum TruckSponsored by: Interim City Manager RESOLUTION NO. 22-046 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, AUTHORIZING THE INTERIM CITY MANAGER TO ENTER INTO AN AGREEMENT WITH REPUBLIC FIRST NATIONAL BANK, FOR A FIVE-YEAR CAPITAL LEASE TO FINANCE A NEW VACUUM TRUCK, IN THE AMOUNT OF FOUR HUNDRED SEVENTY NINE THOUSAND, TWO DOLLARS AND THIRTEEN CENTS ($479,002.13), SUBJECT TO THE CITY COMMISSION APPROVING THE FY 2022-2023 FINAL ANNUAL BUDGET, INCLUDING THE $110,000 BUDGETED FOR THE LEASE OF THIS VEHICLE; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Interim City Manager of the City of Opa-Locka has sought City Commission approval to procure a new vacuum truck for the Stormwater Division for Four Hundred Seventy -Nine Thousand, Two Dollars and Thirteen Cents ($479,002.13). In conjunction with the procurement, the Interim City Manager recommends that the truck should be financed with a five-year capital lease, after which the City of Opa-Locka ("City") would have unencumbered ownership of the vehicle; and WHEREAS, Republic First National Bank of Rochester, Indiana, recommended by the truck vendor, has offered several options, including five-year and six -year capital leases and a five-year operating lease with the option to buy the vehicle at the end of the sixth year. The offer is contingent on a credit evaluation and the interest rate in effect at the time the lease agreement is signed. WHEREAS, the bank is familiar with the City's financial history and is willing to do a credit evaluation based on the most recently completed audit and unaudited information for more recent years. The current interest rate is 4.41 %; and WHEREAS, the Interim City Manager has evaluated the various options and recommends the five-year capital lease with annual payments of One Hundred Eight Thousand, Sixty Dollars and Nineteen Cents ($108,060.19). This will save up to Seventeen Thousand, Six Hundred Fifty -Nine Dollars ($17,659.00) of interest payments over the life of the lease when compared to other options evaluated; and WHEREAS, the City Commission finds that it is in the best interest of the City to enter into an agreement with Republic First National Bank for a five-year capital lease to Resolution No. 22-046 Veronica Williams, finance a new vacuum truck costing Four Hundred Seventy -Nine Thousand, Two Dollars and Thirteen Cents ($479,002.13) at the prevailing interest rate, subject to the City Commission approving the FY 2022-2023 Final Annual Budget, including the One Hundred Ten Thousand Dollars ($110,000.00) budgeted for the lease of this vehicle. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA LOCKA, FLORIDA: Section 1. RECITALS ADOPTED. The recitals to the preamble herein are incorporated by reference. Section 2. AUTHORIZATION The City Commission of the City of Opa-Locka, Florida hereby authorizes the Interim City Manager to enter into an agreement with Republic First National Bank for a five- year capital lease to finance a new vacuum truck costing Four Hundred Seventy -Nine Thousand, Two Dollars and Thirteen Cents ($479,002.13) at the prevailing interest rate, subject to the City Commission approving the FY 23 Final Annual Budget, including the One Hundred Ten Thousand Dollars ($110,000.00) budgeted for the lease of this vehicle. SECTION 3. SCRIVENER'S ERRORS. Sections of this Resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager, following review by the City Attorney, without the need for public hearing, by filing a corrected copy of same with the City Clerk. Section 4. EFFECTIVE DATE. This Resolution shall take effect upon the adoption and is subject to the approval of the Governor or Governor's Designee. PASSED AND ADOPTED this 5th day of October, 2022. 2 Resolution No. 22-046 ATTEST: oa S a Flores, City Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY: dmi,, Burnadette Norris - City Attorney Csy rge eks, P.A. Moved by: Vice Mayor Taylor Seconded by: Commissioner Bass VOTE: 5-0 Commissioner Bass YES Commissioner Davis YES Commissioner Dominguez YES Vice -Mayor Taylor YES Mayor Williams YES 3 City of Opa-locka Agenda Cover Memo Department Director: Airia Austin Department Director Signature: !'��, "— -- City Manager: Darvin Williams CM Signature: Commission Meeting Date: 09/28/2022 Item Type: (EnterXin box) Resolution ' Ordinance Other X Fiscal Impact: (EnterXin box) Yes No Ordinance Reading: (EnterXin box) 1st Reading 2nd Reading X Public Hearing: (EnterXin box) Yes No Yes No X X Funding Source: Account!# : (Enter Fund & Dept.) Ex: See Financial Impact Section Advertising Requirement: (EnterXinbox) Yes No X Contract/P.O. Required: (EnterXin box) Yes No RFP/RFQ/Bid#: X Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Communication Area: I Strategic Plan Obj./Strategy: (fist the specific objective/strategy this item will address) X M NI Image (• El Sponsor Name City Manager Department: City Manager Short Title: Lease Financing For New Stormwater Vacuum Truck Staff Summary: A companion agenda item has been submitted for this agenda seeking Commission approval to procure a new vacuum truck for the Stormwater Division for $479,002.13. In conjunction with this procurement, staff recommends that it should be financed with a five-year capital lease, after which the City would have unencumbered ownership of the vehicle. Republic First National Bank of Rochester, Indiana, recommended by the truck vendor, has offered several options, including five-year and six -year capital leases and a five-year operating lease with the option to buy the vehicle at the end of the sixth year. The offer is contingent on a credit evaluation and the interest rate in effect at the time the lease agreement is signed. The bank is familiar with the City's financial history and is willing to do a credit evaluation based on the most recently completed audit and unaudited information for more recent years. The current interest rate is 4.41% Staff has evaluated the various options and recommends the five-year capital lease with annual payments of $108,060.19. This will save up to $17,659 of interest payments over the life of the lease when compared to other options evaluated. Financial Impact: The FY 23 Annual Budget includes $110,000 in the Stormwater Division, Account 43-538648, for this purpose Proposed Action: Staff recommends that the City Commission authorize the Interim City Manager to enter into an agreement with Republic First National Bank for a five-year capital lease to finance a new vacuum truck costing $479,002.13 at the prevailing interest rate, subject to the City Commission approving the FY 23 Final Annual Budget, including the $110,000 budgeted for the lease of this vehicle. Attachment: 1. Quotes RFIRST NATIONAL` EPUBLI 2525 West State Road 114 Rochester, IN 46975 (800) 700-7878 Fax: (800) 865-8517 www.republicfirstnational.com September 12, 2022 To: Mr. Airia Austin From: Mackie Ozment Customer: City of Opa Locke Thanks for the opportunity to give you a quote on your latest project! Equipment: One (1) New Vactor 2115i Unit Cost: $ 479,002.13 Down Payment: $ 0.00 Net Financed: $ 479,002.13 Frequency of Payments: Annual Term in Years: 5 Maintenance Total Payment Payments: $ 92,280.74 $ 13,800.00 $ 106,080.74 Residual Payment: $95,800.43 APR: 4.75% Delivery Date: To be determined First Lease Payment Due: July, 2023 The lease is to be executed within 14 days of the equipment purchase contract. The quote is subject to acceptance of our documentation and credit approval_ Payments and rates reflect pre -application of escrow earnings and manufacturer discounts (if any); and are based upon vendor payments being made no earlier than above dates. Rates are subject to change with Treasury Bills of like -maturity prior to funding. The lease must qualify for Federal Income Tax Exempt status for the Lessor. Sincerely, Republic First National Corporation Mackie Ozment mackie@rfnonline.com "When results matter" REPUBLI FIRST NATIONAL 2525 West State Road 114 Rochester, IN 46975 (800) 700-7878 Fax: (800) 865-8517 www.republicfirstnational.com September 12, 2022 To: From: Customer: Mr. Airia Austin Mackie Ozment City of Opa Locka Thanks for the opportunity to give you a quote on your latest project! Equipment: Unit Cost: Down Payment: Net Financed: Frequency of Payments: Term in Years: Payments: Factor: APR: One (1) New Vector 2115i $ 479,002.13 $ 0.00 $ 479,002.13 Annual 5 $ 108,060.19 0.22559 4.41% Delivery Date: To be determined First Lease Payment Due: July, 2023 6 $ 91,995.32 0.19206 4.43% The lease is to be executed within 14 days of the equipment purchase contract. The quote is subject to acceptance of our documentation and credit approval. Payments and rates reflect pre -application of escrow earnings and manufacturer discounts (if any); and are based upon vendor payments being made no earlier than above dates. Rates are subject to change with Treasury Bills of like -maturity prior to funding. The lease must qualify for Federal Income Tax Exempt status for the Lessor. Sincerely, Republic First National Corporation Mackie Ozment mackie@rfnonline.com "When results matter"