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Home My Public Portal AboutORD15665 BILL NO. 2017-6 SPONSORED BY COUNCILMAN Prather ORDINANCE NO. IL, (/Q G AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AWARDING RFP-2908 TO BMO HARRIS EQUIPMENT FINANCE CORPORATION AND AUTHORIZING THE MAYOR AND CITY STAFF TO EXECUTE ALL NECESSARY DOCUMENTS TO UTILIZE THE PROPOSAL OF BMO HARRIS EQUIPMENT FINANCE CORPORATION TO FINANCE THE REPLACEMENT OF FIRE APPARATUS AND AMENDING THE 2016-2017 BUDGET BY AUTHORIZING A SUPPLEMENTAL APPROPRIATION WIHTIN THE GENERAL FUND. WHEREAS, BMO Harris Equipment Finance Corporation has been selected to provide the lowest and best financial services related to acquisition of replacement fire apparatus. NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. BMO Harris Equipment Finance Corporation is hereby approved as the most qualified firm to provide financial services and its proposal is hereby accepted. Section 2. The Mayor, City Clerk, City Administrator, City Counselor, and Fire Chief are hereby authorized to execute all documents and take all action necessary to secure and take advantage of the response of BMO Harris Equipment Finance Corporation, "Alternate 1," to RFP-2908 for the financing of replacement fire apparatus. Section 3. There is hereby supplementally appropriated within the General Fund $5,037,541.04 as indicated on Exhibit a, attached hereto. Section 4. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Passed: M ( � 7 Approved: 2-7 2-0 17 jam„..i. 7 • Presiding Officer Mayor Carrie Tergin ATTEST: - = APPROVED AS TO FORM: y Clerk% — y City C. --lor = _CERTIFICATION BY MAYOR Pursuant to Article VII,.Sectioli 7.11(5.) Of the Charter of the City of Jefferson, Missouri, I hereby certify that the sums appropriated in the ordi -nce are available in the various funds to meet the requirements of this bill - __J.LAI 1 I1... Mayor 4 Bill 2017-6 Exhibit A BUDGET AMENDMENT FISCAL YEAR 2016-2017 BUDGET General Fund: Revenue 10-100-495998 Loan Proceeds $ 5,037,541.04 Expenditure Fire Department 10-400-575004 Fire Apparatus $ 5,037,541.04 fiNANCE DEPARTMENT PURCHASING DIVISION SUBJECT: Proposal P2908 -Fire Apparatus Lease Purchase Financing Fire Depa1iment, Received March 24, 2017 PROPOSALS RECEIVED BMO Harris Equipme nt Finance Co., Milwaukee, WI Regions Equipment Finance Corporation, Clayton, MO Mid America Bank, Wardsville, MO Clayton Holding, LLC, St. Louis, MO Community Leasing Partners, Manhattan, KS US Bancorp Government Leas ing & Finance, Inc., De nver CO Signature Public Funding, Greenwich, CT Central Bank w/Jefferson Bank, Jefferso n City, MO Hawthorn Bank, Jefferso n City, MO Legends Bank, Jefferson City, MO PNC Equipment Finance, Columbus, OH FISCAL NOTE: Funds will be deposited in account 10-100-495998 Loan Proceeds. Payments will be made from account 10-400-575004 Capital Purchases Fire Apparatus. PAST PERFORMANCE: Based on the evaluation factors listed in the RFP, staff believes the fi1m will meet the requirements of the RFP. RECOMMENDATION: Staff recommends award of the agreement for lease purchase financing to BMO Harris Equipment Finance Company ofMilwaukee, Wisconsin in the amount of $5,037,54 1.04 .. ATTACHMENTS -SUPPORTING DOCUMENTATION Signarure ~ li;~ Pu hasin A nt 1 Memorandum To: Terry Stephenson, Purchasing Agent Matthew Schofield, Fire Chief~)> 4/11 /2017 From: Date: Rc: Recommendation Fire Apparatus Financing RFP The Fire Apparatus Financing RFP evaluation committee consisted ofthe following members: • Margie Mueller, Director of Finance and ITS • David Bange, C it y Engineer • Joshua Young, Fire Driver • Ryan Moehlman, City Attorney • Matthew Schofield, Fire Chief The consensus of the committee is to proceed with the vendor BMO Harris Equipment Finance Company. In ad dition to providing the most competitive combination of interest rates and administrative charges, BMO demonstrated extensive experience and expertise in the field of equipment financing . A thorough reference check was conducted by the Director of finance which yielded positive comments by c urrent and pa st customers ofBMO. The committee evaluated e leve n responses and evaluated them in the fu ll owing categories: 1. Experience, reliability and expertise 2. Lease tem1s including interest rate 3. Prior experience with the city 4 . References of other municipal clients 5. Other factors no t previous ly described Considering all of the above factors the second highest score was achieved by Central Bank and Trust Company. However, selecting Central Bank would reduce the amount of principal available to purchase trucks and equipment by approximately $84,218.38. Based on the adjustable nature of interest rates the vendors were only able to guarantee their lowest fixed rate for45 days. If the council chooses to take action an award would need to be made on or before May 8th 2017. Fiscal Infonnation Cash flow time line included with the RFP, based on sales tax projections and estimated sale of surplus apparatus: Payment Payment Date Payment Amount Prepayment 9/112017 $200,000 1 4/1/2018 $400,000 Sale of Reserve 7/1/2018 $800,000 2 4/112019 $400,000 3 4/1/2020 $400,000 4 4/1/2021 $400,000 5 4/1/2022 $400,000 6 4/1/2023 $450,000 7 4/1/2024 $450,000 8 4/1/2025 $450,000 9 4/1/2026 $450,000 10 4/112027 $450,000 11 4/1/2028 $450,000 Funds will be deposited in account number I 0-1 00-495998 Loan Proceeds. Payments will be made from account 1 0-400-575004 Capital Purchases Fire Apparatus. See attached Budget Amendment Fonn. City of Jefferson Jefferson City, Missouri EVALUATION REPORT RFP: 2908 c c I Subject: Fire Apparatus Lease-Purchase u u e e c c Q. Q. ..!>o!: Financing ·:; ·s u u a o a' ~ a' ~ e e CJ.l CJ.l Q. Q. ~ ~ Received: March 24, 2017 !I) !I) ·:; e-0 ·:; e-0 ·~ u~ ·-0 h ·-0 ~ $8 ~ $8 ~ WP.~~~~4:AJ>[!!;!~1.:@912~m~'J;l.A.fos ~ (.) ~ ~ (.) 8 u = ::t u ..!>o!: ::t u ..!>o!: !I) u c !I) u c ~ ~ (,) :::s (,) :::s c (,) 0 c (,) 0 Dept: Fire o a ~ o a ~ .9 a >. .9 a >. ~£ ~ ~ c ::: co c «< co c «< :E a co u: ~ ~ u: u ~ u: u ~ ~ Criteria Alt. #1 As Specified Primary Alt. #1 Fixed Interest Rate 2.487% 2.506% 2.54% variable 2.67% Annual Interest Rate 2.487% 2.506% 2.54% n/a% Total Interest paid 662,458.96 654,331,55 699,119.96 673,862.97 Total Repayable 5, 700,000.00 5, 754,331.15 5,799,119.96 5,781,289.88* Total Financed 5,03 7,541.04 5,100,000.00 5,100,000.00 5,100,000.00 Administrative Cost 0 0 0/$14,000.00 13,500.00 Other Info Will pay $6,500 for City's bond counsel Includes admin costs expenses. Waive any prepayment of $13,500 that will penalties/fees. not be waived. Experience, Reliability and Expertise 20 18.40 14.80 13.60 10.60 14.60 ~ Lease Terms Including Interest Rate 30 29.60 21.20 12.60 0.00 I 22.20 I Prior Experience With City of Jefferson 15 1.00 0.00 1.00 0.00 1.00: Reference of Other Municipal Clients 15 14.60 11.60 6.00 5.00 7.60 Other Factors Not Previously Described 15 7.40 4.40 1.00 0.00 8.00 Total Points 100 71.00 52.00 34.20 15.60 53.40 Fonnula for Detennining Cost Points: Low Proposal Proposal = __ x points assigned to cost = cost points I hereby attest that the points awarded to each bidder listed above were scored in accordance with the established evaluation criteria and represent my best judgment of the bid. As indicated by the highest total score, my selection of the bid which offers the lowest and best bid to the City of Jefferson is: Signature Date Division----------- City of Jefferson Jefferson City, Missouri EVALUATION REPORT RFP: 2908 u ~ ~ Subject: Fire Apparatus Lease-Purchase ....J ~~ Ql)~ ....J Ql) Ql) c c:: c:: > IIi ·-c:: ·-c Financing Ql) .iQ .iQ ~ ~ ~ ~ c:: ~ en ~ en ~o ~o Received: March 24, 20 17 ·-0 ....J ~ ....J ~ ....J h ....J h ~ :2 c h c h e--u e--0 WP,~f.(~~f~P~1~~~;:_~P~i7:·Wiili..)~A$cif). :I: IIi ·s ~ ·a a o~.E o~.S u s h u s h c ·-::s ~ tiS ::s ~ i a e 8 a e 8 0 ::s Dept: Fire - 0 s ~ ..c: s ~ ..c: co~a co~a >. ....J s c:: a s c:: a ..! ....: 0 ~ :2 0 ~ :2 en ~.50 en ~.50 U en ua.. Ua.. ::>Ot.t..U ::>Ot.t..U Criteria Alternate 1 Fixed Interest Rate 2.69% 2.770% 2.770% 2.847% 2.52% Annual Interest Rate 2.69% 2.770% 2.770% 2.847% 2.52% Total Interest paid 737,663.48 731,184.84 737,669.17 803,088.28 704,753.77 Total Repayable 5,837,663.48 5,500,000.00 5, 700,000.00 5,903,088.28 5,804, 753.77 Total Financed 5,100,000.00 4, 768,815.16 4,962,330.83 5, I 00,000.00 5,100,000.00 Administrative Cost 250.00 0 0 0 0 Other Info Waive $250 admin cost. No admin or closing fees. Don't require tax No fee on documentation. opinion, but need legal opinion on their No prepayment penalty if form. No prepayment penalties. I i City uses own funds. Experience, Reliability and Expertise 20 16.60 17.00 17.00 15.00 15.00 Lease Terms Including Interest Rate 30 22.60 20.80 21.00 16.60 18.00 Prior Experience With City of Jefferson 15 1.00 2.40 2.40 1.00 1.00 Reference of Other Municipal Clients 15 7.60 8.40 8.40 7.40 7.40 Other Factors Not Previously Described 15 1.00 2.00 2.00 2.00 2.00 Total Points 100 48.80 50.60 50.80 42.00 43.40 Formula for Determining Cost Points: LoW Proposal Proposal = __ x points assigned to cost = cost points I hereby attest that the points awarded to each bidder listed above were scored in accordance with the established evaluation criteria and represent my best judgment of the bid. As indicated by the highest total score, my selection of the bid which offers the lowest and best bid to the City of Jefferson is: Signature Date Division __________ _ City of Jefferson Jefferson City, Missouri EVALUATION REPORT RFP: 2908 Subject: Fire Apparatus Lease-Purchase 0 0 0 0 Financing ~ f-§ ~ § ~ ~ ~ ~~.c.e~ye4.= M~~.~~1,_?Q,~,?. , ,. , ;e ~ ~ '§ 8 ~ '§ 8 ~ 8 ~ 8 kJ:pg~tectA-Pt!l:{);~:~pj~?W).~::aA.[fQs. ~ ~ -~ ~ ti s ~ ti s ~ s ~ s D t F . · ctl ·-c e ~ ~ e ~ ~ ..s:: ~ c ~ ep : tre c -g H c: cu ~ c: cu ~ ~ ~ ~ ~ Oil=' ._ cu!::: ,... cu!::: ,... ct1 ,._. u ,... Ci5~ o u~ ~ u~ ~ ::c ~ -J ~ Criteria Fixed Interest Rate 2.95% 2.98% 2.88% 3.43% 3.70% Annual Interest Rate 2.95% 2.98% 2.88% 3.43% 3.70% Total Interest paid 786,651.11 657,975.34 752,677.34 1,125,374.32 1,075,572.97 Total Repayable 5,700,000.00 5,157,975.34 5,700,000.00 6,225,374.32 5,575,572.97 Total Financed 4,913,348.89 4,500,000.00 4,947,322.66 5,100,000.00 4,500,000.00 Administrative Cost 0 0 0 NTE $10,000.00 0 Other Info Waive all admin fees, including cost of bond counsel. Waive prepayment penalties/fees. Experience, Reliability and Expertise 20 14.60 19.00 19.00 13.60 12.00 Lease Terms Including Interest Rate 30 13.60 16.80 18.00 5.40 5.75 Prior Experience With City of Jefferson 15 1.00 14.00 14.00 1.00 1.25 Reference of Other Municipal Clients 15 6.00 11.40 11.40 5.00 6.25 Other Factors Not Previously Described 15 1.00 5.40 5.40 7.00 5.00 Total Points 100 36.20 66.60 67.80 32.00 *30.25 1 recused Fonnula for Detennining Cost Points: Low ProposaJ Proposal = __ x points assigned to cost = cost points I hereby attest that the points awarded to each bidder listed above were scored in accordance with the established evaluation criteria and represent my best judgment of the bid. As indicated by the highest total score, my selection of the bid which offers the lowest and best bid to the City of Jefferson is: Signature Date Division __________ _ City of Jtifferson Jeffersoll City, Missouri EVALUATION REPORT RFP: 2908 Subject: Fire Apparatus Lease-Purchase 0 Financing ~ c :I: c :I: c ::c c ::c Received: March 24, 2017 ~ ~ 0 0 0 0 0 0 0 0 E a a a CJ 0. ~ 0. ~ 0. ~ 0. ~ vP.3~t~AP.~t6;:~Q~:Y'W1~·)3ifo~ c:o ·:; (/) ·:; (/) ·:; (/) ·:; (/) (/) c ::l ::l ::l ::l 0 O"o ..0 O"o ..0 O"o ..0 O"o ..0 "0 (/) t.IJU a tJJ u a tJJ u E t.IJU a Dept: Fire c .... u a u a u a u a 0 ~ ::l ::l ::l ::l bO ~ Z.5 0 :z .5 0 :z .5 0 z .5 0 0 0 ....::1 -. C..t.t.. u C..t.t.. u C..t.t.. u C..t.t.. u Criteria Option I Option 2 Option 3 Tum In Option 4 Turn In Fixed Interest Rate 3.70% 3.130% 3.130% 3.338% 3.338% Annual Interest Rate 3.70% Total Interest paid 732,886.96 903,170.41 990,009.59 1,039,185.49 Total Repayable 6,318,982.67 5,232,886.96 6,003,170.41 5,490,009.59 6,139,185.49 Total Financed 5,100,000.00 4,500,000.00 5,100,000.00 4,500,000.00 5,100,000.00 Administrative Cost 0 $1 $1 Other Info Experience, Reliability and Expertise 20 12.00 8.60 8.60 8.60 8.60 Lease Terms Including Interest Rate 30 5.75 8.40 8.60 2.80 2.80 Prior Experience With City of Jefferson 15 1.25 5.00 5.00 5.00 5.00 Reference of Other Municipal Clients 15 6.25 4.00 4.00 4.00 4.00 Other Factors Not Previously Described 15 5.00 1.00 1.00 1.00 1.00 Total Points 100 *30.25 27.00 27.20 21.40 21.40 1 recused .. Fonnula for Detennmmg Cost Pomts: Low Proposal Proposal = __ x points assigned to cost = cost points I hereby attest that the points awarded to each bidder listed above were scored in accordance with the established evaluation criteria and represent my best judgment of the bid. As indicated by the highest total score, my selection of the bid which offers the lowest and best bid to the City of Jefferson is: Signature __________________ .Date ________ Division __________ _