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HomeMy WebLinkAboutIII (E) Approval and Authorization for Mayor and City Clerk to execute Agreement for Lease/Purchase with Ford Motor Credit of 3 Ford Taurus Sedans and 1 Crown Victoria for Police Dept Agenda 5-6-97 Item HI E .CENTIIR Ol' GOOD L H TVG-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER S. SCUI I VANDRRGRIIT 00069 COMMISSION}Rs .� o CITY OF OCOEE DANNY IIOWELL I.'� j - 150 N. LAKES]low;DRIVE Ssc T A Dl RS S scan I 1 GLASS x. p OCOEE, FLORIDA 34761-2258 n p (407)656-2.322 NWCY1 PARKER ��I J� Cn1MANAGER ���f GGGO Vx HA AS SIIAPIRD MEMORANDUM TO: The Honorable Mayor and Board of City of Commissioners FROM: Mark W. Brace, CPPB, Buyer DATE: 12 June, 1997 RE: AUTHORIZATION FOR LEASE/PURCHASE OF POLICE VEHICLES At the Mid-Year Budget Adjustment, the Commission authorized the funding for a Icase/purchase of needed vehicles for the Police Department. We have entered into several leasing agreements with Ford Motor Credit Company in the past for most of the Police Department's vehicles, all of which refer to a Master Agreement executed on March 10, 1993. Because the City entered into leasing and bond agreements which exceeded the allowable $10,000,000 in aggregate for the current calendar year, a Waiver was added to this particular leasing agreement since the Master Lease Agreement was based on Qualified Tax-Exempt leasing. The purchase price of the vehicles is based on the Florida Sheriffs Association Contract 496-04- 0918 and was awarded to Don Reid Ford. The requested vehicles are Three (3) Ford CI. Taurus four-door Sedans for $14,739 each for a total of$44.217 and one (I) Ford Crown Victoria police package for$19,284.00. The lease is based on a total purchase price of$63,510 and is payable in quarterly advance payments of$6791.24 each for a total of two and a half years (ten payments total). ACTION REQUESTED The Honorable Mayor and Board of City Commissioners I) authorize purchase of three (3) Ford GL Taurus Sedans and one (I) Ford Crown Victoria police package for a total of$63,510 from Don Reid Ford utilizing Florida Sheriffs Association Contract #96-04-0918, and 2) authorize the Mayor and City Clerk to execute all documents related to the Lease/Purchase of the referenced vehicles from Ford Motor Credit Corporation. OK ONT I.J Page 1 SCHEDULE A-X - EQUIPMENT LEASE-PURCHASE AGREEMENT Lease No.36895 This Equipment Schedule dated as of 7/15/97, is being executed by Ford Motor Credit Company ("Lessor), and City of Ocoee('Lessee"), as a supplement to, and is hereby attached to and made a part of that certain Equipment Lease-Purchase Agreement dated as of 12/17/96 ("Lease"), between Lessor and Lessee. Lessor hereby leases to Lessee under and pursuant to the Lease, and Lessee hereby accepts and leases from Lessor under and pursuant to the Lease, subject to and upon the terms and conditions set forth in the Lease and upon the terms set forth below, and following items of Equipment: QUANTITY DESCRIPTION (MANUFACTURER, MODEL AND SERIAL NO.) SUPPLIER 3 1997 Ford GL Taurus 4 Dr. Sedans Don Reid Ford, Inc. 1 1997 Ford Crown Victoria Police Sedan EQUIPMENT LOCATION: City of Ocoee Police Department 150 N.Lakeshore Drive, Ocoee, FL 34761-2258 • Initial Term: 30 Months Commencement Date: 7/15/97 Periodic Rent: 9 Consecutive Quarterly Payments of $6,791.24 each (including interest), followed by one final payment of $6,791.19 due under this Lease-Purchase Agreement. The Periodic Rent Payment also include any applicable sales/use tax due and payable on the Lease Payment Dates, set forth in Schedule A, Page 2. EXECUTED as of the date first herein set forth. LESSEE: City of Ocoee - LESSOR: Ford Motor Credit Company By: By: S. Scott Vandergrift W. Paul Rau Title: Mayor Title: Supervisor, Municipal Financing OPINION OF COUNSEL The opinions expressed in the Opinion of Counsel dated 12/17/96 provided to Lessor shall apply to the Lease as amended and Lessor may rely upon such opinion as I it were addressed and had been deivered to Lessor on the date hereof. Attorney for Lessee Paul Rosenthal WAIVER Whereas on March 10, 1993, Ford Motor Credit Company ("Ford Credit") and the City of Ocoee, Florida ("City"), entered into an Equipment Lease Purchase Agreement ("Agreement"), including an Amendment to the Agreement ("Amendment") of the same date by which the City agreed, inter alia, that the City and its subordinate entities would not designate more than $10.000,000 of obligations as qualified tax exempt, and Whereas the City and its subordinate entities have designated or will designate between January 9, 1997 and January 9, 1998 more than $10,000,000 of so qualified tax exempt obligations, Now, therefore, for good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, Ford Credit hereby expressly waives for the period of January 9, 1997 to January 9, 1998, and only for that period, all its rights under the Amendment. As provided for in Section 26 of the Agreement, this waiver by Ford Credit does not operate as a waiver of any other provision of the Agreement nor of any subsequent or other breach of the Agreement by the City. Ford Motor Credit Company Date By: W. Paul Rau Ttle: Supervisor, Municipal Financing ACKNOWLEDGEMENT The undersigned hereby acknowledges the above waiver of Ford Motor Credit Company of the above described obligation of the City of Ocoee. City of Ocoee Date By: Title: Schedule A-X Page 2 Payment Schedule Lease Number: 36895 Lease Lease Payment Payment Lease Interest Principal Concluding Number Date Payment Portion Portion Payment 1 7 / 15 / 1997 6,791.24 0.00 6,791.24 56,709.76 2 10 / 15 / 1997 6,791.24 864. 82 5, 926.42 50,783.34 3 1 / 15 / 1998 6,791.24 774.45 6, 016.79 44,766.55 4 4 / 15 / 1998 6,791.24 682.69 6, 108.55 38, 658.00 5 7 / 15 / 1998 6,791.24 589.53 6,201.71 32,456.29 6 10 / 15 / 1998 6, 791.24 494.96 6,296.28 26, 160.01 7 1 / 15 / 1999 6, 791.24 398.94 6,392.30 19,767.71 B 4 / 15 / 1999 6,791.24 301.46 6,489.78 13,277.93 9 7 / 15 / 1999 6,791.24 202.49 6,588.75 6, 689. 18 10 10 / 15 / 1999 6,791.19 102.01 6, 689.18 1.00 TOTAL 67, 912.35 4,411.35 63,501.00 Form 8038-GC Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales (Pei.May 1996) I. Under Internal Revensa Code section st ion 149(e). For caldar yew ending 19 OMB No, 1545-0]:(1 Department d me imam (Use Form 8038-0 if the issue price of the issue a S100.000 or more.) Inlwrol)inane Service Parr I Reporting Authority Check box it Amended Return. [ 1 asthma name 2 Issuer's employer Identification number City of Ocoee 5960197614 3 Number and street (or P.O. box if mail is not delivered to street address) Room/Suite 150 N.Lakeshae Drive 4 City,town, or post office, state, and 2IP code Ocoee, FL 34761,225a Part 9 Description cA Obligations 5 Issue price of ameg tax-exempt governmental obligations reported on this form. 5 963,501.03 6 Check the box that meet nearly approximates the weighted average maturity of the obllgation(s): a [xj Lees than 5 year. b ( j From 5 to 10 year. c ] ] More than 10 years 7 Check the box that moat nearly approximates the weighted average interest rate on the obligations(*): a [ ] Less than 5% b [x] From 5%to 10% c [ ] More than 10% 8 Total issue price of the obligation(s) reported on line 5 that is/are: a Obligation(*) issued in the form of a lease or installment aide 8a 963,501.00 b Obligation(s) designated by the issuer under section 265(11)(3)(13)0(ii9 8b c Obligation(s) issued to refund prior issues 8c O d Loans made from the proceeds of another tax-exempt obligation 8d 4 9 Check box if issuer has elected to pay a penalty in lieu of arbitrage rebate ] Under penalties of perjury,I declare that I have examined this return and accompanying schedules and statements,and to the best P[ FA.SE of my knowledge and belief,they are true, correct and complete. SIGN HERE Date: Issuer's authorized representative: S. Scar Vaflderof9I, Mayer Paperwork Reduction Act Notice General Instructions Each such separate return should specify the We ask for the information on this form to Section references ere to the Internal calendar year in which the issue was issued. carry out the Internal Revenue laws of the Revenue Code unless otherwise noted. United States. You are required to give us An issuer of a tax-exempt bond used to the information. We need it to ensure that Purpose of Form finance construction expenditures must file a you are complying with these laws. Form arrow C is used by issuers of tax- separate Form 8038eCC for each issue to give The time needed to complete and file this exempt governmental obligations to provide notice to the IRS that an election was made to form varies depending on individual the IRS with the information required by pay a penalty in lieu of arbitrage rebate (see line circumstances. The estimated average time section 149(e) and to monitor the 9 instrucfions). a: requirements of sections 141 through 150. Lamming that the Fig a cow oldr d Sian-For all tax-exempt Ir or the form . . . 1 hr.,46 min who molt no governmental obligations with issue prices of Preparing the loan - 2 lw..50 min- Issuers of tax-exempt governmental less than 5100,000 that are not reported on a Copying,awabling.and obligations with issue prices of less than separate Form 8038-GC, an issuer must file a widirg the lam to the Ir?3 - - 18 min- $100,000 must file Form 8MA-GC. consolidated information return including all If you have comments concerning the issuers of a tax-exempt governmental such issues issued within the calendar year. accuracy of these time estimates or obligation with an issue price of$100.000 or suggestions for making this form simpler,we more must file Form 8038-G, Information Thus,an issuer may file a separate Form 8038- would be happy to hew from you. You can Return for Tax-Exempt Governmental GC for each of a number of small issues and write to the Internal Revenue Service, Obligations. report the remainder of small issues issued Attention: Tax Forms Committee, PC:FP, Fig a*spade r.bem-Issuers have the during the calendar year on one consolidated Washington,DC 20224. DO NOT send the option to file a separate Form waft for Form Wtt-CC. However, a separate Form 8038- form to this address. Instead,see Where To any tax-exempt governmental obligation with GC must be filed to give the IRS notice of the File on page 2 an issue price of lees$1 W,000. election to pay a penalty in lieu of arbitrage rebate. NXA Form Sat sr (Rev.545) Form 0038-OC(Rev.5-96) Pape 2 When To File Excaption,—(a) Draw-down loans, Do not amend estimated amounts previously To file a separate return file Form 8038-GC on commercial paper.etc.—Obligations issued reported once the actual amounts are or before the 15th day of the second calendar during the same calendar year(1) pursuant to determined. (see the Part II Instructions below.) month after the close of the calendar quarter In a loan agreement under which amounts are to which the issue la Issued. be advanced periodically ('draw-down loan'), Ursa I.—The Issuers name Is the name of the To fib•consolidated return,file Form or(2)with a term not exceeding 270 days, entity issuing the obligations, not the name of 8038-GC on or before February 15th of the may be treated as part of the same issue if the the entity receiving the benefit of the financing. calendar year following the year In which the obligations are equally and ratably secured In the case of a lease or installment sale,the Issue is issued. under a single Indenture or loan agreement issuer is the lessee or purchaser. Late fierce—An issuer may be granted an and are issued pursuant to a common Line 2.—An Issuer that does not have an extension of time to file Form 8038-OC under financing arrangement; e.g., pursuant to the employer Identification number(EIN) should Section 3 of Rev. Proc.88-10, 198E-1 C.B.835, same official statement that I•perlodlcaly apply for one on Form SS-4,Application for if it is determined that the failure to ilk on time updated to reflect changing factual Employer Identification Number. This form is not due to willful neglect Send a late Form circumstances. In addition,for obligations may be obtained from most IRS and Social 8038-GC to: Internal Revenue SERvice, issued pursuant to a draw-down loan that Security Administration offices. File Form SS-4 Philadelphia Service Center,Statistics of meets the requirements of the preceding according to the Instructions on that form. If Income Unit, P:DA: Unit FSOI, Philadelphia, sentence,obligations issued during different the EIN has not been received by the due date PA 19255,Stop 0335. Type or print at the top calendar years may be treated as part of the for Form 8038-GC,write'Applied for In the of the form,'This Statement I Submitted In same issue if all the amounts to be advanced space for the EIN. Accordance with Rev.Proc.58-10? Attach to pursuant to the draw-down loan are the Form 8038-GC•letter briefly stating why reasonably expected to be advanced within 3 part it— DeSCTiptiOn Of Form 8038-GC was not submitted to the IRS years of the date of issue of the first obligation. Ob tiOf13 on time. Also indicate whether the obligation (b)Loewe and YwWYnerit salsa— in question is under examination by the IRS. Obligations other than private activity bonds Line 5.—Smallgovernmental obligations are Do not submit copies of any bond documents, may be treated as apart of the same issue it those with an issue price of Ice than lesse,or Installment sale documents. (1)the obligations are issued pursuant to• S100,000. II the obligations are reoffered to single agreement that is In the form of a lease Where To Fla or installment sale end (2) all of the propertythe public by an intermediary,the Issue price File Form P69P GC with the Internal Revenue covered by that agreement is reasonably is the rooftonng price(excluding accrued expected to be delivered within 3years of the interest).fForm Center, Philadelphia. PA 19255. Pert i Form 8n'wrC is being filed for a single date of issue of the first obligation. issue only.enter the issue price of that issue. Rot OR to Whole Dollars Arbitrage rebate.—Generally, interest one The issue price of an obligation means the may show may show the money items on this return state or local bond is not tax exempt unless principal amount due on the obligation and as whole-dollar amounts. To do so,dropanythe issuer of the bond rebates to the United States arbitrageprofits earned from investingdoes not Include interest paid or to be paid. amount less than 50 cents and increase any 9 Therefore,line 5 should include only the amount from 50 cants through 99 cents to the proceeds of the bond in higher yielding principal amount due on obligati. ions. For next higher dollar. nonpurpw Investments.c see section 148(g. 9example,only the purchase once of an asset Construction t Issuer A construction issue is acquired pursuant to a lease should be Definitions an issue of tez ezempt bonds it (1) at least heat included on line 5. A lease or installment sale • Obligations refer to a single tYtlam t 75%of the available construction proceeds of g P is treated as issued on the date interest starts governmental obligation if Form 8038-GC 4 the Issue are to be used for construction to accrue. used for separate reporting and refer to expenditures with respect to property that is to Illy&—The weighted average maturity is multiple tax-exempt governmental obligations it be owned by a governmental unit or a determined by multiplying the issue price of the form 4 used for consolidated reporting. 501(c)(3) organization, and (2) all of the bonds each obligation reported on this form by its • A lax-exempt obligation'4 not limited to that are pan of the issue are qualified 501(c)(3) maturity in yen, adding the results for all the the formal issuance of bonds. It also includes bonds; bonds that ere not private activity obligations reported on this form,and then installment purchase agreements and financial bonds;or private activity bonds Issued to dividing the total by the total Issue prices of all leases. finance property to be owned by a the obligations. For a lease or installment • A'tax-exempt governmental obligation' is a governmental unit or a 501(0)(3) organization. sale,the maturity is the total number of years tax-exempt obligation that is not a private In lieu of rebating any arbitrage that may be the lease or installment sale will be activity bond owed to the United Sates,the issuer of a outalndin • A' mat•activ bond'4 generallyan construction issue may make an irrevocable g' P M election to paya n The n is zeal Line 7.The weighted average interest rate is obligation issued ss pen of an issuedsof whichun of ce apre9 the average interest rate on all the obligations (I) more than 10%d the tied.are to be to 1 'h of the amount of construction proceeds Prot reported on this form,weighted in proportion used for any private business w,and (2) that do not meet certain spending to the issue price and length of maturity of more than 10%of the payment of principal or requirements. See section 148(f)(4)(C). each obligation. interest of the issue is either secured by an Line&—Enter the total issue price of the interest in property to be used for a private Specific Instructions obligations reported on line 5 that are business use(or payments in respect of such In general.—A form 8039-GC must be described on lines 8a through a d.. More than property),or is to be derived from payments in completed on the basis of available one fine may apply to a particular obliged/on. respect of property (or borrowed money) used information and reasonable expectations as of For example, report on line 8b and line 8c, for a private business use. An obligation is the date the issue is issued. Forms that are obligations issued to refund prior Issues that also considered a private activity bond if the filed on a consolidated basis, however, may be were designated by the issuer under section amount of the proceeds to be used to make or completed on the basis of information readily 2s5(b)(3)(B)(ggig. finance loans(other than bane described in available to the issuer at the close of the Line 9.—Check this box if the issue is a section 141(c)(2) to certain persons exceeds calendar year to which the form relates, construction Issue and an irrevocable election the smaller of 5% of the proceeds, or$5 supplemented by estimates made in good to pay a penalty in lieu of arbitrage rebate has million. Report private activity bonds on Form faith. been made on or before the data the bonds 8038. Information Return for Tax-Exempt were issued. The penalty is payable with a Private Activity Bond issues. Part I — Reporting Authority Fomi eo -T,Arbitrage Rebate and Penalty in • 'Issue.'Ingeneral, obligations are treated Amended rem.—I this is an amended Form lieu of Arbitrage Rebate,for each 6-month 9 8038-GC, check the amended return box. period after the date the bonds axe issued. Do SS pan of the same issue only n they are Complete Part 1 and only those lines of Form not make any payment of penalty in lieu of issued (1) by the same("U.K. (2) on the same 8038-GC that are being amended. rebate with this form. See Rev. Proc.92-22, date, and (3) pursuant to a single transaction 1992-1 C.B. 736,for rules regarding the or to a series of related transactions. 'election document?