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HomeMy WebLinkAboutItem VI (A) Resolution No. 94-27. 3rd Amendment to Ford Motor Credit Agreement for Police Vehicle Purchase 1 AGENDA 10-18-94 "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item VI A ci '" .'�° CITY OF OCOEE RCOMMISSIONERS ST SSIO oN .r a 150 N.LAKESHORE DRIVE PAUL W.FOSTER Z./ D Cr*4#4, FLORIDA 34761-2258 VERN COMBS ;. ?v (4� �� ' JIM GLEASON E'P 0f G00 A% 15_} QTY MANAGER ELLIS SHAPIRO MEMORANDUM DATE: October 12, 1994 TO: The Honorable Mayor and Board of City Commissioners FROM: Montye E. Beamer, Director q -, /2)------- Administrative — Administrative Services SUBJECT: Purchase of One (1) Pursuit Vehicle Resolution 94-27 The approval of the FY95 Budget included the purchase of a new Law Enforcement CID vehicle. Through confiscation and reassignments the need no longer exists in CID. However, a vehicle for the new Police Chief is necessary; this redesignation of capital is recommended by the City Manager. In contacting Don Reid Ford where the last sixteen (16) pursuit vehicles were purchased, there is a 1994 Crown Victoria Police Interceptor presently available. The cost is $14,998.00 which is the same price recently paid by Kissimmee in a quantity purchase. Since Ocoee's new fleet is comprised solely of Crown Victorias, any model change at this point would not be cost effective. Staff recommends this purchase. Ford Motor Credit has sent the supplemental agreement to add this vehicle to the master agreement; the interest rate is 7.15%. As with any leasing agreement, there is a requirement for a Resolution as formal Commission approval for entry into the Leasing Agreement. Resolution 94-27 was drafted by the City Attorney and has the necessary language to satisfy this requirement. A letter confirming public use and need is also mandated; this is also attached. Action Requested The Mayor and Board of City Commissioners (1) approve the purchase of a 1994 Crown Victoria Police Interceptor for the new Police Chief at the cost of$14,998 (Don Reid Ford) with financing for six (6) payments (semi-annually for three years) at $2,724.19 per payment with an initial documentation fee of$150.00 (Ford Motor Credit Company), (2) adopt Resolution 94-27, and (3) authorize the Mayor and City Clerk to execute necessary documents from Ford Motor Credit Company. RESOLUTION NO. 94- ,27 A RESOLUTION OF THE CITY OF OCOEE, FLORIDA APPROVING A SUPPLEMENTAL AMENDMENT TO AN EQUIPMENT LEASE/PURCHASE AGREEMENT WITH FORD MOTOR CREDIT COMPANY AND DESIGNATING IT AS A QUALIFIED TAX-EXEMPT OBLIGATION WHEREAS, the City has heretofore entered into a certain Florida Equipment Lease-Purchase Agreement (Lease No. 36895) dated as of March 10, 1993 as amended by Schedule A-I thereto dated as of July 7, 1993 and as further amended by Schedule A-II dated as of January 15, 1994 ("the Equipment Lease") with Ford Motor Credit Company ("Lessor") ; and WHEREAS, the City desires to lease additional equipment from Lessor pursuant to and subject to the terms and conditions of the Equipment Lease. NOW THEREFORE, the City Commission of the City of Ocoee, Florida hereby adopts the following resolutions: RESOLVED, that this City enter into a certain supplemental amendment to the Equipment Lease with Lessor in substantially the form attached hereto and by this reference made a part hereof ("the Supplemental Amendment") and that this City lease equipment from Lessor pursuant to the terms of such Equipment Lease and Supplemental Amendment; and that the Mayor and the City Clerk of this City be and hereby are authorized and directed in the name and on behalf of this City to execute the Supplemental Amendment with Lessor in substantially the form presented at this meeting, with such changes therein and additions thereto as shall be approved by such officers who execute the same, and such execution shall be conclusive evidence that each such document so executed has been authorized and approved by this vote. FURTHER RESOLVED, that the City Commission of the City of Ocoee, Florida finds that a true and very real need exists for the acquisition of the Equipment described in the Supplemental Amendment and that such acquisition is in the best interests of the City of Ocoee. FURTHER RESOLVED, that the City Commission of the City of Ocoee, Florida finds that the City of Ocoee has taken the necessary steps, including compliance with any applicable legal bidding requirements, under applicable law to arrange for the acquisition of such equipment. FURTHER RESOLVED, that the obligations of the City under the Supplemental Amendment be hereby designated, pursuant to Section 265 (b) (3) (D) of the Internal Revenue Code of 1986, as amended (hereinafter called the "Code") , as comprising a portion of the $10, 000, 000. 00 in aggregate issues which may be designated as "Qualified Tax-Exempt Obligations" eligible for the exception to the general rule of the Code which provides for a total disallowance of a deduction for interest expense allocable to the carrying of tax-exempt obligations. FURTHER RESOLVED, that the Mayor and the City Clerk of this City be and hereby are authorized to execute and deliver such other instruments and take such other actions as they shall deem necessary and desirable for the purpose of carrying out these resolutions and consummating the transactions contemplated by the Supplemental Amendment. FURTHER RESOLVED, that the foregoing resolutions shall remain in full force and effect until written notice of their amendment or rescission shall have been received by Lessor and that receipt of such notice shall not affect any action taken by Lessor prior thereto. FURTHER RESOLVED, that the Clerk of this City be and hereby is authorized and directed to certify to the Lessor the foregoing resolutions and that the provisions thereof are in conformity with the charter of this City. ADOPTED this day of , 1994. ATTEST: APPROVED: CITY OF OCOEE, FLORIDA Jean Grafton, City Clerk S. Scott Vandergrift, Mayor (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA. APPROVED AS TO FORM AND LEGALITY this day of , 1994 FOLEY & LARDNER APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON THE DATE INDICATED By: ABOVE UNDER AGENDA ITEM City Attorney NO. c:\WPsl\oomoCOEIFORORESO.D2c I l0/lWN41294I PFR Page 1 SCHEDULE A-III - EQUIPMENT LEASE-PURCHASE AGREEMENT Lease No. 36895 This Equipment Schedule dated as of 10/19/94, 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 03/10/93 ("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, the following items of Equipment: QUANTITY DESCRIPTION (MANUFACTURER, MODEL AND SERIAL NO. ) SUPPLIER • 1 1994 Ford Crown Victoria P71 Police Interceptor Don Reid Ford, Inc. Serial No. : 2FALP71WXRX159407 EQUIPMENT LOCATION: City of Ocoee Police Department 150 North Lakeshore Drive Ocoee, FL 34761 Initial Term: 36 Months Commencement Date: 10/19/94 Periodic Rent: 5 Consecutive Semi-Annual Payments of $2,724.19 each (including interest) , followed by one final payment of $2,724.23 plus any and all other payments due under this Lease-Purchase Agreement. The Periodic Rent Payments also include any applicable sales/use tax due and payable on the Lease Payment Dates, set forth in Schedule A-III, 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 T. S. Shepherd Mayor Supervisor, Municipal Financing Schede A-III Page 2 Payment Schede Lease Number 36895 Lease Lease Payment Payment Lease Interest Principal Concluding Number Date Payment Portion Portion Payment 1 10 / 19 / 1994 2,724.19 0.00 2,724.19 12,273.81 2 4 / 19 / 1995 2,724.19 438.79 2,285.40 9,988.41 3 10 / 19 / 1995 2,724.19 357.09 2,367.10 7,621.31 4 4 / 19 / 1996 2,724.19 272.46 2,451.73 5,169.58 5 10 / 19 / 1996 2,724.19 184.81 2,539.38 2,630.20 6 4 / 19 / 1997 2,724.23 94.03 2,630.20 1.00 TOTAL 16,345.18 1,347.18 14,998.00 LESSOR: FORD MOTOR CREDIT COMPANY P. 0. Box 1739 Dearborn, MI 48121 DELIVERY AND ACCEPTANCE CERTIFICATE The undersigned Lessee hereby acknowledges receipt of the Equipment described below ("Equipment") as fully installed and in good working condition; and Lessee hereby accepts the Equipment after full inspection thereof as satisfactory for all purposes of the Equipment Lease-Purchase Agreement ("Lease") executed by Lessee and Lessor. LEASE LEASE SCHEDULE A-III DELIVERY PURCHASE PURCHASE DATE NUMBER DATE NUMBER DATE ORDER NO. 03/10/93 36895 10/19/94 1 -- -- EQUIPMENT INFORMATION QUANTITY DESCRIPTION (MANUFACTURER, MODEL AND SERIAL NO. ) SUPPLIER 1 1994 Ford Crown Victoria P71 Police Interceptor Don Reid Ford, Inc. Serial No. : 2FALP71WXRX159407 LESSEE: City of Ocoee BY: 150 North Lakeshore Drive Ocoee, FL 34761 (TITLE) DATE ACCEPTED: Form 8038-GC Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales 0M8 No. 15,15-07 20 icer.may 19931 ► Under Internal Revenue Code section 149(°) to For calendar year ending 19 0.oron..al tn.rlsssrn IM«n,r a.vrw.Senwe (Use Form 8038-0 It the Issue price of the Issue Is 5100.000 or more.) j Reporting Authority Check box it Amended Return ► 0 1 tssu name 2 Issuer's enpfoyer id.nwric on number Ci G 74' 0 c'ae ,5-,, ‘. 0/726(7/ 3 Number aria creat(or P.O.• box ifZa no delver street address) Room/awl. 45-0 Al e.s 4 City. • --. stk.e.and ZIP cooe `// l o r CioP1° A-Z. 3 C17 /- ,-,a Part II Description of Obligations 5 issue price of small tax-exempt governmental obligations reported on this form 5 / L7 / ,fjY 6 Check the box that most nearly approximates the weighted average maturity of the obligation(s): a C1ss than 5 years %// b 0 From 5 to 10 years c 0 More than 10 years 7 Check the box that most nearly approximates the weighted average interest rate on the obligation(s): a ❑ Less than 5% b from 5% to 10% c 0 More than 10% 8 Total issue price of the obligation(s) reported on line 5 that is/are: a Obligation(s) issued in the form of a lease or installment sale 8a /1-7/ 97,- b Obligation(s) designated by the issuer under section 265(b)(3)(B)()(IIl) 8b c Obligation(s) issued to refund prior issues 8c d Loans made from the proceeds of another tax-exempt obligation 8d - 0 9 Check box if Issuer has elected to pay a penalty in lieu of rebate 0 Under Dimities of penury.I declare that I have examined this return and accompanying schedules and statements.aro to the best of my knowledge . Please and belief,they are true.correct,and complete. Sign �• SC�of74 Qiders�ri�j4 Here Gr-- Signature of officer Oats Type or onnt name and the General Instructions You can write to both the internal Revenue Filing a separate return.—Issuers have the Service,Attention: Reports Clearance Officer, option to file a separate Form 8038-GC for (Section references are to the Internal • T:FP,Washington, DC 20224•and the 0111ce any tax-exempt governmental obligation with Revenue Code unless otherwise noted.) of Management and Budget, Paperwork an issue price of less than$100,000. Reduction Protect(1545-0720).Washington, However,an issuer of a tax-exempt bond Paperwork Reduction Act Notice DC 20503. DO NOT send the fart to either used to finance construction expenditures We ask for the information on this form to of these offices. Instead,see Where To File must file a separate Form 8038-GC for each carry out the Internal Revenue laws of the on page 2. issue to give notice to the IRS that an United States.You are required to give us theelection was made to pay a penalty in lieu of rm infoation.We need it to ensure that you are Purpose of Form arbitrage rebate(see line 9 instructions). complying with these laws. Form 8038-GC is used by issuers of Filing a consolidated return.—For all The time needed to complete and file this tax-exempt governmental obligations to tax-exempt governmental obligations with fcrn vanes depending on individual provide the IRS with the information required issue pnces of less than$100,000 that are circumstances.The estimated average time by section 149(e)and to monitor the not reported on a separate Form 8038-GC, is: requirements of sections 141 through 150. er must Ile a consolidated information Learning about the return including all such issues issued within Who Must File the calendar year. law or the forth 1 hr.,40 min. Issuers of tax-exempt governmental Thus,an issuer may file a separate Form Preparing the form . . . 2 hr., 44 min. obligations with issue prices of less than 8038-GC for each of a number of small Copying, assembling,and $100,000 must file Form 8038-GC. issues and report the remainder of small sending the form to the IRS . . 16 min. Issuers of a tax-exempt governmental issues issued during the calendar year on If you have comments concerning the obligation with an issue price of$100,000 or one,consolidated Form 8038-GC;but a accuracy of these time estimates or more must file Form 8038-G, Information Separate Form 8038-GC must be filed to give suggestions for making this form more Return for Tax-Exempt Governmental the IRS notice of the election to pay a penalty simple,we would be happy to hear from you. Obligations. • in lieu of arbitrage rebate. Cat.No.641088 Form 8038-GC (Rev.5-93) 6/28/93 Published by Tax Management Inc..a Subsidiary of-The Bureau of National Affairs,Inc. .. 8038-GC.1 21 Fcrm 8038-GC(Pay.5-3.71 Page 2 When To File Exceptions—(a)Oraw-down loans, not amend estimated amounts previously To file a separate return,file Form 8038-GC commercial paper,etc.-Obligations issued reported once the actual amounts as on or before the 15th day of the second dung the sae calendar year(1) pursuant to determined.(See the Part II instructions calendar month after the close of the a loan agreement under which amounts are below.) calendar quarter in which the issue is issued to be advanced periodieaily('draw-down Line 1.—The issuer's name is the name of To file a consolidated return,file Form loan',or(2) with a term not exceeding 270 the entity issuing the obligations,not the 8038-GC on or before February 15th of the days,may be treated as Part of the same name of the entity receiving the benefit of the issue it the obligations are equally and ratably financing.In the case of a lease or installment calendar year following the year in which the secured under a single indenture or loan issue is issued. 9 sok.the issuer is the lessee or purchaser. agreement and are issued pursuant to a Late toting.—An issuer may be granted an common financing arrangement;e.g,pursuant Line 2--Issuer's employer identification extension of time to file Form 8038-GC under to the same official statement that is number(EIN).—An issuer that does not have Section 3 of Rev.Proc. 88-10, 1988-1 C.B. an ON should apply for one on Form SS-4, 635,if it is determined that the failure to Ale periodically updated to reflect changing Application for Employer Identification factual circumstances.In addition,for on time is not due to willful neglect. Send a obligations issued pursuant to a draw-down Number.This form may be obtained from late Form 8038-GC to:Internal Revenue loan that meets the requirements of the most IRS and Social Security Administration Service. Philadelphia Service Canter, preceding sentence,obligations issued during offices.File Form SS-4 according to the Statistics of Income Un rt,P:OA; Unit F-SOI. different calendar years may be treated instructions on that form.If the ON has not Philadelphia. PA 19255.Stop t335.Type or part of the same issue if all the amounts to been received by the due date for Form print at the top of the form,'This Statement be advanced pursuant to the draw-down loan 8038-GC,write'Applied for in the space for Is Submitted in Accordance with Rev. Proc. are reasonably expected to be advanced the EN. 88-10.'Attach to the Form 8038-GC a letter wain 3 years of the date or issue or the first Part II—Description of briefly stating why Form 8038-GC was not obligation. submitted t° the IRS on time.Also indicate Obligations (b) Leases and installment salsa-- whether the obligation in question is under examination by the IRS.Oo not submit copies Obligations other than private activity bonds Line 5.—Small governmental obligations are of any bond documents,leases,or installmentmay be treated as part of the same issue if those with an issue price.ot less than sale documents. (1)the obligations are issued pursuant to a $100,000.If the obligations aro reoffered to single agreement that is in the form of a lease the public by an intermediary.the issue price Where To File or installment sale.and (12)all of the property is the reoffering price(excluding accrued File Form 8038-GC with the Internal Revenue covered by that agreement is reasonably interest). Service Canter, Philadelphia,PA 19255. expected to be delivered within 3 years of the If Form 8038-GC is being fled for a single date of issue of the first obligation. issue only,enter the issue price of that issue. Rounding Off to Whole Dollars Arbitrage rebate.—Generalty,interest on a The issue price of an obligation means the You may show the money items on this state or local bond is not tax exempt unless principal amount due on the obligation and return as whole-dollar amounts. To do so, the issuer of the bond rebates to the United does not include interest paid or to be paid. drop any amount less than 50 cents and States arbitrage profits earned from investing Therefore,Gra 5 should include only the increase any amount from 50 cents through proceeds of the bond in higher yielding principal amount due on obligations.For 99 cents to the next higher dollar- nonpurpose investments.See section 148(1). example,only the purchase once of an asset Construction Issue.—A construction issue is acquired pursuant to a lease should be Definitions an issue of tax-exempt bonds if included on line 5.A lease or installment sale • Obligations refer to a single tax-exempt (a) at least 75% of the available construction is treated as issued on the date interest starts governmental obligation if Form 8038-GC is proceeds of the issue are to be used for to accrue. used for separate reporting and refer to construction expenditures with respect to Line 6.—The weighted average maturity is the multiple tax-exempt governmental obligations Property that is to be owned by a average maturity on the obligations.Each if the form is used for consolidated reporting. governmental unit or a 501(c)(3)organization, bond should be weighted to its par value.For • A tax-exempt obligation is not limited to and(b)all of the bonds that ars part of the a lease or installment sale,enter the total the formal issuance of bonds. It also includes issue we qualified 501(c)(3)bonds;bonds number of years the lease or installment sale installment purchase agreements and that are not private activity bonds;or private will be outstanding. financial leases. activity bonds issued to finance property to Line 7.—The weighted average interest rate is • A tax-exemptgovernmental obligation is be owned by a governmental unit or a P g 501(c)S)organization.In lieu of rebatingan the average interest rate on the obligations. a tax-exempt obligation that is not a private y Each bond should be weighted in proportion activity bond. arbitrage that may be owed to the United to its par value and its length of maturity. • A private activity bond isgenerallyan States,the issuerof a construction issue may Line .—Etter the total issue price or the caligation issued as part of an issue f which make an irrevocable election to pay a penalty, obligations reported on line 5 that are The penalty is equal to 1'A% of the amount ofthrough 8d,More than (a) more than 10%of the proceeds are to be construction proceeds that do hot meet described on lines Sa used for any private business use,and(b) certain spending requirements.See section one in*may apply to a particular obligation. more than 10% of the payment of principal or 148(f)(4)(C). For example.report on line 8b and line Sc, interest of the issue is either secured by an obligations issued to refund prior issues that interest in property to be used for a private Specific Instructions M1ere designated by the issuer under section . business use(or payments in respect of such 2650)(3)(8)O(II0. property), or is to be derived from payments In generaL—A Form 8038-GC must be Line 9.—Check this box if the issue is a in respect of property(or borrowed money) completed on the basis of available construction issue and an irrevocable election used for a private business use.An obligation information and reasonable expectations as to pay a penalty in lieu of arbitrage rebate is also considered a private activity bond if of the date the issue is issued.Forms that ars has been made on or before the date the the amount of the proceeds to be used to filed on a consolidated basis.however,may bonds were issued.The penalty is payable make or finance loans(other than loans be completed on the basis of information with a Form 8038-T,Arbitrage Rebate and described in section 141'(c)(2)) to certain readily available to the issuer at the dose of Penalty in Lieu of Arbitrage Rebate,for each persons exceeds the smaller of 5% of the the calendar year to which the form relates, 6-month period after the data the bonds are proceeds,or S5 million.Report private activity supplemented by estimates made in good issued.Oo not make any payment of penalty bonds on Form 8038, Information Return for faith• in lieu of rebate with this formSee Rev. Tax-Exempt Private Activity Bond Issues. Proc.92-22. 1992-1 C.B.736.for rules • Issue—In general,obligations are treated Part I—Reporting Authority regarding the*election document.' as part of the same issue only if they are Amended return.—If this is an amended Signature issued (1) by the same issuer, W on the Form 8038-GC,check the amended return Form 8038-GC must be signed by an same date, and (3) pursuant to a single box.Complete Part I and only those lines of authoraad representative of the issuer.Also transaction or to a series of related Form 8038-GC that are being amended.pis print the name and title of the person signing transactions. the Form 8038-GC. 8038-GC.2 Published by Tax Management Inc..a Subsidiary of The Bureau of National Affairs,Inc. 6/28/93 INVOICE October 7, 1994 LESSEE: City of Ocoee 150 North Lakeshore Drive Ocoee, FL 34761-2258 REMIT PAYMENT TO: FORD MOTOR CREDIT COMPANY MUNICIPAL FINANCING P. O. BOX 1739 • DEARBORN, MI 48121 PLEASE RETURN A COPY OF THIS INVOICE WITH YOUR PAYMENT ACCOUNT FIRST DESCRIPTION PAYMENT NUMBER PAYMENT AMOUNT DUE DATE 3689503 10/19/94 One 1994 Ford Crown Victoria P71 $2,724.19 Police Interceptor (2FALP71 WXRX159407) Documentation Fee 150.00 PLEASE REMIT: $2,874.19 If you have any questions regarding this invoice please call Micki Sulkey (3130 248- 4570. "CENTER OF GOOD LIVING- PRIDE OF WEST ORANGE" MAYOR•COMMISSIONFR Ocoee S.SCOTT VANDERGRIFr O� 5i por,s44 CITY OF OCOEE :!! _ `J`4?N September 30, 1994 Ford Motor Credit Company Post Office Box 1739 Dearborn, Michigan 48121-1739 Gentlemen: Re: Lease-Purchase Proposal Number 36895C Option 3 I am furnishing the following information to help facilitate the credit approval process for the proposed Lease-Purchase transaction. The equipment will be used in the Police Department, which has been in operation for at least 50 years. The vehicle will be for the use of the transportation of the Police Chief during his working hours of duty. This equipment does not replace any previous equipment. The following vehicles are being used for the same purpose as the financed vehicle in the department: Number Year/Model 7 1993 Crown Victorias 8 1994 Crown Victorias The source of funds for the payments due under the Lease-Purchase Agreement for the current fiscal year is the General Fund. This Fund generates its revenues from taxes, licenses and permits, intergovernmnental revenues, charges for services, fines and forfeitures, impact fees/special assessments, interest revenues, and miscellaneous revenues. ATTEST: APPROVED: CITY OF OCOEE, FLORIDA Jean Grafton, City Clerk S . Scott Vandergrift, Mayor (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA. APPROVED AS TO FORM AND LEGALITY this day of , 1994 FOLEY & LARDNER APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON THE DATE INDICATED By: ABOVE UNDER AGENDA ITEM City Attorney NO.