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Home My WebLink AboutItem III (B) Approval of Purchase of 1250 GPM Fire Pumper, Establish Capital Line Item for the Pumper Bid No B93-006 I AGENDA 6-15-93 "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item III B °v0i:COe \c,1 _ CITY OF OCOEE RUSTYJOHNCOMMISSIONERS SON r. ' a. 150 N.LAKESHORE DRIVE PAUL W.FOSTER O OCOEE,FLORIDA 34761 VERN COMBS ct• (407)656-2322 SAM WOODSON yrF�P �f G OOQ CITY MANAGER ELLIS SHAPIRO MEMORANDUM DATE: June 9, 1993 TO: The Honorable Mayor and Board of City Commissioners FROM: Montye E. Beamer, Director 91/17N---- Administrative Services SUBJECT: Purchase of 1250 GPM Fire Pumper - Additional Leasing Information as Requested June 1, 1993 The leasing rates with some of the terms and conditions described are attached. Each indicates which manufacturer submitted the proposal. Quality Manufacturing Inc. did not include a leasing plan with its bid. In order to establish comparability it is necessary to review criteria. A four year term was chosen because of the proposed schedule of other expenditures in District 3 Fire Impact Fees - Fire Station in FY96, Land Payment in FY 96 through FY 98, other Equipment in FY 96 through FY 98. Such cash management aids in planning these other purchases and providing a method by which debt service is controlled. Second, by paying up front the City is able to optimize its borrowing with smaller interest payments. Since these leasing companies were associated with respective bids, the review of the payment structure was limited. However, the following is offered as the initial review were the City to request proposals from each leasing company for the apparatus chosen by the City. (1) Municipal Leasing requires annual payments to begin December, 1993, or upon delivery and acceptance of apparatus whichever comes first. This timing is not a true annual payment in arrears since the first annual payment would be due in six months. (2) Consolidated Financial did not attach a sample of their lease documents; without such, the assumption would need to be made that the documents have been adapted to Florida. coy' The Honorable Mayor and Board of City Commissioners June 9, 1993 Page Two (3) Liberty National for the Pierce bid seemingly has a lower interest rate because the company favors one leasing arrangement over another. While the proposal offered directly to the City of Ocoee has a higher rate, the total pay- out is less due to the structure of the lease. The proposal sent directly to the City was structured with quarterly payments in advance which provides for a quicker payback of the lease each year and results in lower accrued interest over the term. In contrast, the Pierce Dealer proposal was based on annual payments in arrears which accrues more interest due to the delay in receiving each year's lease payment. CALCULATION OF GROSS PAYBACK FOR THE TWO STRUCTURES Quarterly payments in advance at 5.36% for four years: 16 payments of 17,641.56 = $70,566.27 annually Annual payments in arrears at 5.15% for four years: 4 payments of 72,422.97 = $72,422.97 annually (4) Federal Signal Leasing requires a down payment with payments structured in arrears. Interest is calculated without regard to the down payment. Staff still recommends (1) establishing the capital line item for the Pumper with payment to be derived from Fire Impact Fees District 3, (2) awarding Bid number B93-006 1250 GPM Fire Pumper to Kovatch Mobile Equipment and Delray Fire Extinguisher Service, Inc. (total price $255,915.50 including options) and (3) financing through Liberty National leasing Company (4 years @ 5.36% interest and $17,642 quarterly payment)utilizing existing wording for terms and conditions with authorization for the Mayor and City Clerk to execute all necessary documents. MEB/jbw 10520 BARKLEY. SUITE 5 • OVERLAND PARK, KANSAS 66212-1843 • 913/381=1900 • FAX 913/381.0105 APR - 23 - 93 FRI 9 : 16 MUNICIPAL LEASING P . 02 C MUNICIPAL LEASING CREDIT 0 0 P P OR A TION KoQ4m /ZZc.3/4 e9w�� April 23 , 1993 2)6[. �fi`1 f�/�� 6 77'4 U#u1ek �E7Zvic6 City of Ocoee 125 N. Bluford Avenue Ocoee, FL 32761 Dear Sir: We appreciate the opportunity to quote on lease/purchase financing for Ocoee, Florida's new fire truck, in conjunction with Charlie Hoefs of Delray____-- ROVE" Fire. The following quotation is based on a purchase price of $221 ,000 "amend -pfedeE 4.40, annual payments , the first due upon delivery and acceptance of the vehicle , expected around December 1 , 1993. 010'770,05 — 1162)/77 al TERM MODE PAYMENT INTEREST 3 9/5: ` 0 AMOUNT RATE To 3 � 3 yrs. annual $78,163 6.06% rik/AR1Geb 5 yrs. annual 49,614 5.97 10 yrs. annual 28,758 6.22 THERE ARE NO ADDITIONAL FEES OR COSTS, and buyout at the end of the lease is $1 .00. Final approval is based on mutually acceptable documentation and credit review. We guarantee these rates for 30 days. Please call if I can be of further service. Sincerely, Carol D. Searcy cc:Charlie Hoefs , Delray. Fire CDS:ebo ', - .6 a y r- R 9 1 6 M U N I C I P A L L EAS I N C P . 0 3 • OCOEE, FLORIDA -- CHARLIE HOEFS , DELRAY FIRE Page 1 $221 ,000.00 on Dec. 1 , 1993 at 6.061689 with 3 Annual Payments 360-day Year, Compounding Monthly 0 Payment Date Total Payment Interest Amt Principal Amt Remaining Bal . 1 Dec. 1 , 1993 78,163.00 0.00 78,163.00 142,837.00 2 Dec. 1 , 1994 78,163 .00 8,902.97 69,260.03 73 ,576.97 3 Dec. 1 , 1995 78,163.00 4 ,586.02 73,576.98 -0.01 Totals 234,489.00 13,488.99 221 ,000.01 a�v�a:tea r . OCOEE, FLORIDA -- CHARLIE HOEFS , DELRAY FIRE Page 1 $221 ,000.00 on Dec. 1 , 1993 at 5.96936% with 5 Annual Payments 360-day Year, Compounding Monthly # Payment Date Total Payment Interest Amt Principal Amt Remaining Bal . 1 Dec. 1 , 1993 49,614 .00 0.00 49 ,614 .00 171 ,386.00 2 Dec. 1 , 1994 49,614 .00 10,515. 25 39,098,75 132 ,287.25 3 Dec. 1 , 1995 49,614.00 8,116.38 41 ,497 .62 90,789.63 4 Dec. 1 , 1996 49 ,614.00 5,570.32 44 ,043.68 46,745.95 5 Dec. 1 , 1997 49,614 .00 2 ,868.06 46 ,745.94 0.01 Totals 248,070.00 27 ,070.01 220,999.99 �ww •1t7:4 1 APR - 23 - 93 FRI 9 : 17 MUNICIPAL LEASING P . l =� OCOEE, FLORIDA -- CHARLIE 11OEF9 , DELRAY FIRE Page 1 $221 ,000.00 on Dec. 1 , 1993 at 6.21967% with 10 Annual Payments 360-day Yepr, Compounding Monthly # Payment Date Total Payment Interest Amt Principal Amt Remaining Bal. 1 Dec. 1 , 1993 28,758.00 0.00 28,758.00 192 ,242.00 2 Dec. 1 , 1994 28,758.00 12,303,63 16,454.37 175,187 .63 3 Dec. 1 , 1995 28,758.00 11 ,250.54 17 ,507.46 158,280. 17 4 Dec. 1 , 1996 28,758.00 10,130.05 18,627 .95 139,652.22 5 Dec. 1 , 1997 28,758.00 8,937 .84 19,820, 16 119,832.06 6 Dec. 1 , 1998 28,758.00 7 ,669.34 21 ,088.66 98,743.40 7 Dec. 1 , 1999 28,758.00 6 ,319.65 22,438.35 76,305.05 8 Dec. 1 , 2000 28,758.00 4 ,883.58 23 ,874.42 52 ,430.63 9 Doc. 1 , 2001 28,758.00 3 ,355.60 25,402.40 27 ,028.23 10 Dec. 1 , 2002 28,758.00 1 ,729.83 27 ,028. 17 0.06 Totals 287 ,580.00 66,580.06 220,999.94 ______________ ____------ �� 44,/?4,471/T /�/��rl^o�u�� LEASE QUOTATION: THE FOLLOWING LEASE PURCHASE PROPOSAL IS PROVIDED FOR YOUR CONSIDERATION PURCHASE PRICE: $ 264, 459. 00 5 ANNUAL PAYMENTS IN ARREARS : $ 61 , 506. 02 PER YEAR RATE OF INTEREST: 5. 25% 7 ANNUAL PAYMENTS IN ARREARS: $ 46, 953. 64 PER YEAR RATE OF INTEREST: 5. 75% 10 ANNUAL PAYMENTS IN ARREARS: $ 36, 358. 36 PER YEAR RATE OF INTEREST: 6. 25% 1 p o p n z e N C/3 SI ia. �v0 A• "4.• CrCD 0 eD Ort. 17 so � N il 1E4 et O9A AciN y• k 0 !jJ N Q �. w 6 V, et n Oh ' cc N k ' n co N �• pod 896£ SWegwo33141 4110-64Z(109)rid•69L0'64Z(109) 7,9 17 8496£!&i!s!SS11H'9w03'141 ON !!w led ZOL"Oa'o'd 1 21!nS'Pain 2114$bZZ alba �In9 5331.330 o!�u.L�x�VNI -out 'saaanosag iswasai3 P'ppllostio3 L_. n o ii o 11 '� ('�-' i 7d � ! 10=1 $1, c.„... , CD c :xi1111 o 0 Lti p �. ct. __Ili (.. .,,,,,, coo f 4� ~ ' I1M ~y r . , Department Name&Address: Contact Person: Telephone#: Equipment Desired: a Estimated Cost: $ Down Pmt, if any: ❑ 10% ❑ 20% Team Desired: ❑ 3 Years 0 5 Years Other Please Check One: 0 Volunteer Dept. ❑City Dept. ❑ County Dept. 4 Call (800)966-2014 or cut along dotted line and send to CFRI,P.O.Box 7062,McComb,MS 39648. $ 0 a lai •• -ci a ❑ E fa �, y `is�., i•J �, ,� '� as '� 'o imp 0 0 al te to o Q o C o ff 0 Lia 0 -c P w L° cd 2' Lt. Q a6.) w O ►� a. q �, E--' �+ �Q ^wC7w b Cn neo C g — a) -:,, a' w c' as C 6 0 � cu = o5 - v1E5 0 x6a - Q � 0 w� Tocdz 04 1:;:lo x Q - 12%IN U 6 Q I . o w .. a. 1:10 8 a a, u A. 5 Q ea a; V ^C y kQ ' co `nOed rG at fl" c'S a � c w 0 o+ U a Cr �. 5 41 co c0 y y d Z w ..c le w bb t' +5 . r t- 0.) g V. — %gm, CIO R a 6. aH ' 416 0o w . 6 Qs U z v CI" � � 5 . altt Q v � 0 N da W0 a) , Cr c. >III a w ,. C ? a+ • r M ,,z, • o Q i. Ce g 4 .2 2 g cd c b a o a o En w •Q a d CA o 1 Vii •et a -> o ° a 5 n c o W `' g - C o • • 0s . • .:2 It 0 • • • • • • ID :81328875194 APR 20 '93 9 :03 No .002 P .02 Pj672GE Liberty National Leasing Company A soya Lary nri..rj ono LEASE PROPOSAL APRIL 20, 1993 LESSOR: LIBERTY NATIONAL LEASING COMPANY 550 NORTH REO STREET, SUITE 300 TAMPA, FLORIDA 33609 LESSEE: CITY OF OCOEE 150 NORTH LAKESHORE DRIVE OCOEE, FLORIDA 34761 VENDOR: TEN-8 FIRE EQUIPMENT EQUIPMENT: FIRE TRUCK ESTIMATED COST: $ 250,000.00 STRUCTURE: FLEXIBLE; MONTHLY TO ANNUAL PAYMENTS IN ARREARS OR ADVANCE LEASE TERM INTEREST RATE 3 YEARS 5.00% A A4,411` P, '>r»a"JT 4 YEARS 5. 15% 5 YEARS 5.50% FOrz Ve74-!LS — 7.2 114 a. 9 7 7 YEARS 5 .75% 10 YEARS 6 .20% PROPOSAL EXPIRATION DATE: MAY 30, 1993 ADDITIONAL NOTE: THE CITY OF OCOEE IS AN EXISTING CUSTOMER OF LIBERTY NATIONAL LEASING COMPANY. WE HAVE LEASE DOCUMENTS THAT HAVE BEEN APPROVED BY THE CITY'S LEGAL COUNSEL. CREDIT APPROVAL: THIS IS A PROPOSAL ONLY, AND DOES NOT REPRESENT A COMMITMENT TO LEASE. FINAL ACCEPTANCE WILL BE SUBJECT TO CREDIT APPROVAL BY THE SENIOR FINANCE COMMITTEE OF LIBERTY NATIONAL LEASING COMPANY. LIBERTY NATIONAL LEASING COMPANY e-FBY: DATE: '4— 13 550 N.Roo Stroot,Suit.300,Tampa,Florida 33809.1013 81W287-5118 e-rhi7z c Svc y QU �. Federal Signal Leasing 1415 W. 22nd Street, Suite 1100 Oak Brook, IL 60521 Tax-Exempt Financing Rates Effective September 1, 1992 APPLICABLE FOR FIRE APPARATUS All Municipalities Volunteer Fire Departments* (or VFD's with 15% down) (with less than 15% down) Payment Factor Payment Factor Term Rate Monthly Annual Term Rate Monthly Annual 3 5.69% .03028 .37197 3 5. 69% .03028 .37197 4 5.84% .02341 .28753 4 5.89% . 02343 .28786 5 5.94% .01930 .23701 5 5.99% . 01933 .23733 6 6.09% . 01662 .20394 6 6.29% . 01671 .20522 7 6. 19% . 01470 .18035 7 6.39% .01480 . 18163 8 6.39% .01333 . 16353 8 6.59% .01343 . 16482 9 6.59% .01230 .15082 9 6.84% . 01243 . 15244 10 6.79% .01150 .14100 10 7. 19% . 01171 . 14363 Terms & Conditions: 1. Interest paid by Lessee under lease agreement must be exempt from federal income taxes. 2. Subject to credit approval and documentation drafted/approved by FSL. 3 . Rates and payment factors, while expected firm, are for indication purposes only and are subject to change without notice unless confirmed. In bid situations where a firm payment amount is required, please contact FSL for verification. 4. Factors provided are for payment in arrears - the first payment is due one year (in the case of annual payments) or one month (for monthly payments) from the date of delivery. Advance payments (where the first payment is due at delivery) will be quoted upon request. 5. Prepayment is permitted without penalty on any annual anniversary of delivery with appropriate notice as provided in the lease agreement. * Volunteer Fire Departments qualify for tax-exempt financing for the purchase of fire apparatus only, and they must comply with I.R. S. requirements. 800-934-6569 Fax 708-954-2041 Joanne Delegan Jim Weir Bob Racic 708-954-2014 708-954-2028 708-954-2027