The URL can be used to link to this page

Home My WebLink About2001-24600 RESO RESOLUTION NO. 2001-24600 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE EXECUTION AND DELIVERY OF A MASTER EQUIPMENT LEASE/PURCHASE AGREEMENT WITH BANC OF AMERICA LEASING & CAPITAL, LLCj AUTHORIZING THE LEASE AND PURCHASE OF CERTAIN EQUIPMENT THEREUNDER AND THE EXECUTION OF SCHEDULES WITH RESPECT TO SUCH EQUlPMENTj AUTHORIZING THE EXECUTION OF SUCH OTHER DOCUMENTS AS MAY BE NECESSARY TO COMPLETE THE TRANSACTIONS CONTEMPLATED HEREBYj REPEALING A PRIOR FINANCING PLAN FOR EQUlPMENTj AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED by the Mayor and City Commission of the City of Miami Beach, Florida (the "City") as follows: Section 1. Findin~s. It is hereby ascertained, determined and declared that: (a) The City deems it necessary, desirable and in the best financial interest of the City and its inhabitants that it enter into a Master Equipment Lease/Purchase Agreement (the "Master Lease/Purchase Agreement") with Banc of America Leasing & Capital, LLC (the "Lessor"), to provide for the lease and purchase from time to time of equipment essential to the governmental, municipal or public purposes or functions of the City or to the services the City provides its inhabitants. (b) The City initially has a need for the equipment more particularly described in Exhibit A hereto (the "Equipment"), and it is in the best financial interest of the City that the Equipment be leased and purchased pursuant to the Master Lease/Purchase Agreement. (c) The City is authorized and empowered by the Constitution and laws of the State of Florida, including particularly Chapter 166, Florida Statutes, and other applicable provisions of law (the "Act") to enter into the Master Lease/Purchase Agreement and transactions such as those contemplated by the Master Lease/Purchase Agreement, and to fully perform its obligations thereunder in order to lease and purchase equipment. (d) The structure of the lease/purchase financing, current market conditions and other circumstances require that the Master Lease/Purchase Agreement and the lease and purchase of equipment thereunder be negotiated at private sale rather than offered by competitive bid. Section 2. Authorization of Execution and Delivery of Master Lease/Purchase A~reement. The Master Lease/Purchase Agreement, substantially in the form attached hereto as Miami; Document #: 7826vl Exhibit B, with such omissions, insertions and variations as may be approved on behalf of the City by the Mayor, or in his absence, the Vice Mayor, after consultation with the Chief Financial Officer and the City Attorney, such approval to be evidenced conclusively by the Mayor's (or Vice Mayor's) execution thereof, is hereby approved and authorized. The City hereby authorizes and directs the Mayor, or in his absence, the Vice Mayor to execute the Master Lease/Purchase Agreement and deliver the same to the Lessor. Section 3. Authorization of Lease and Purchase of the EQjlipment. The lease and purchase of the Equipment pursuant to the Master Lease/Purchase Agreement at an aggregate Acquisition Amount (as such term is defined in the Master Lease/Purchase Agreement) of not to exceed $21,000,000, pursuant to one or more Schedules of Property, substantially in the form attached as Exhibit A to the Master Lease/Purchase Agreement, with such omissions, insertions and variations as may be necessary to describe the Equipment and the terms of such lease and purchase of the Equipment and approved on behalf of the City by the Chief Financial Officer, after consultation with the City Attorney (together with the Rental Payment Schedules associated therewith, the "Schedules"), such approval to be evidenced conclusively by the Chief Financial Officer's execution thereof, is hereby approved and authorized. The City hereby authorizes and directs the Chief Financial Officer to execute each of the Schedules and deliver the same to the Lessor. Section 4. General Authority. The Mayor, the Chief Financial Officer, the City Attorney, the City Clerk and the other officers, attorneys, agents and employees of the City are hereby authorized to do all acts and things required of them by this Resolution or desirable or consistent with the requirements hereof for the full, punctual and complete performance of all of the terms, covenants and agreements contained in the Master Lease/Purchase Agreement and the Schedules, and they are hereby authorized to execute and deliver all certificates and documents which shall reasonably be required by the Lessor to effectuate the transactions described herein, including without limitation the documents described in Exhibits B, C and E of the Master Lease/Purchase Agreement. Section 5. Severability of Invalid Provisions. If anyone or more of the covenants, agreements or provisions of this Resolution shall be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements and provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements and provisions of this Resolution, and shall in no way affect the validity of any of the other covenants, agreements or provisions hereof. Section 6. Rc:peal of Prior Financin~ Plan. The financing plan for the acquisition of equipment approved pursuant to Resolution No. 2000-24040 adopted by the Mayor and City Commission of the City on July 26, 2000 is hereby repealed and replaced by the lease/purchase financing plan being approved pursuant this Resolution. Section 7. Effective Date. This Resolution shall become effective immediately upon its adoption. 2 Miami; Document#: 7826,,\ PASSED AND ADOPTED this 20thdayof '."j Mayor [SEAL] ATTEST: ~~V^- City Clerk Resolution No. 2001-24600 JJ J JAe,.. PORMat.ANGtJ&GI ."'fiXEQUTIQIlI 4f.l~~~Q) ~nl'~ ^ .,..- 3 Miami; Document II: 7826vl EXHIBIT A EQUIPMENT Millmi: DoclllIlent #: 7S26vl Project: Equipment Purchase Information Technology Acquisition of a digital communications network Telephone system upgrade and voice response system Replacement and purchase of computer and telecommunications equipment Fleet Management Replacement and purchase of cars, light trucks and heavy equipment vehicles Property Management Replacement and purchase of cars and light trucks Water and Sewer Enterprise Fund Replacement of dump trucks, crane truck and pick-up trucks Replacement of generator Stormwater Enterprise fund Replacement of dump truck and utility body truck Convention Center Enterprise Fund Replacement and purchase of cars and light trucks Parking Enterprise Fund Replacement and purchase of cars and light trucks Sanitation Enterprise Fund Replace garbage trucks, sweepers and other equipment 0 0> 0) <Xl .... '" '" 0 0 0 0 .... .... .... CO CO '" 0 '" '" '" <Xl. <Xl_ ~ '" ~ 0 0 0> 0> CO ..... 0 '" <Xl '" ..... ai 6 cO co cO ..... <Xl a '" 0 '" ~ 0 0> 0> - 0 "'. '" co. ..... ~ ~ "'- 0> "0 0> 0 fo- <Xl <Xl ~ ~ 6 fo- 0 '" '" 0 0 0 0 a 0 co a a co a 0 6 6 0 6 , 0 0 . 0 '" "'- "'. '" "'. a 0 ~ ~ ~ 0 0 0 0 0 0 '" 0 0 '" 0 a 6 0 0 0 , 0 a . 0 .... "'. "'- C!; "'. 0 ~ ~ ~ 0 0 0 0 0 0 a 0 0 0 :5 0 0 0 0 0 0 0 0 a 0 C>. 0 0 0 a .... 0 0 6 0 0 6 0 0 .... 0 0 0 0 '" 0 '" '" I!) al. a 0 , , '" 0_ 0 I!) '" '" 0> 0 '" N .... a .... a 0 0 0 a 8 0 .... .... .... 0 0 0 0 0 0 co <Xl co 0 0 o. 0 0 0 0 .... .... .... '" 0 0 0 6 0 0 0 6 0 '" 0 0 I!) a '" 0 I!) '" I!) N ..... 0 ..... N , "'- "'. I!) '" ~ ..... N ..... 0 '" '" ~ co" 0 <6 0 0> 0> co .... ~ I!) co co co 0 .... .... .... co '" ~ .... .... '" co co ~ '" ~ 0 I!) .... .... '" ..: 0 N cO M ..: ai 0>' cO N cO 0 '" <Xl 0 I!) a '" ~ ..... '" 0 N , , ~ co 0 ~ co N '" '" ~ '" 0 M ~ co" 0 <6 0 l!! l!! J:1 CIl CIl Ql U Ql >- 2 >- ~ E - ~ 0 0. 0 'C Ql 'C Q.. ~ :::J Q.. >- '" '" ,,:, '" '" '" "" "" U "" "" "" u u '0. u U u '" -c Ql :::J :::J :::J S ~ '" ~ ~ 2 ~ ~ C - - 'C - - 0 - - c - E u 5l J: J: CIl >. J: al Ql g g 'C g g co C 0. "" .8 '0 Ql U - '" ~ 'C 'C :::J '0 'C ~ C C Ql C C ~ >. C C ::l g CIl CIl - :!: CIl CIl u.. U Ql '0 l!! '" C :c 'C l!! l!! Ql ~ ~ '0 ::l C '" > CIl CIl c E!! :l CIl ~ CIl '2 'C u . U :::J U 'C u.. U J: ::l C - - u.. C Ql- - ~ Ql E CIl 0 0 Qlui CIl '" 0 0 :::J '" Ql CD Ql ","" '0"" "C Q) Ql Q.. CIl E '" '" ._ U C u 1:-'" '" ~ ~ >-8 '0 CIl CIl ~ 2 .2 2 CIl CD CIl J: J: 1:-_ Ql CIl '0 J: ::l '" ~ - _J: C u.~ :l Ol- ~ u '!: U CD 0. Ql 0. C ~ ~ >- CIl ~ ~ '!: ::l U Ql Q.. .2.;2 ::l Ql ::l E .~ E UJ :::J u.. ::l Ql 0: ...J 0'0 :::J 0. E 0. UJ 0. Qlo. .!!l 2 <( ijj - :::J 0.:::J ~ ~ >- C .- E c 'C ~'C ~'C Ql'C ~ - :2 CD Ql'C ",-0 I:-Ql 0: J:'C", CD C OlC CD_ Ql- -C -- C :2 1ii E <( UCIl_ E CIl CIl CIl ;: 0 '!: 0 g CIl c.CIl Ql Ol CIl Ql - (/) ~ _ CIl 0. :2 Ql- c- CD - UJ - u- ~- CoO ::l :2 'S t-o~ OlC CIl C rn c 0 c CD <:: - C UJ ~ rn :2 C C Ql CIl Ql :2 ~ '" E!! ~ Ql C Ql - Ql CIl 0' ::l C E 'C E '" E 0 E ~ E C Ol CJ '!: UJ ~ ,Q c: C CD 0; '€ 0 CD ti rn ro~~ CIl CD >-CD CIl Ql C ;: Ql Ql Cl~ :c Ql Z E :2 u to: U ~ U Ql U Ql U U is l- E -- Q. CIl Ql CIl Q) ~ 0) E.!l1 >!!! .5 rn .!ll CIl C. '" rn ~ ::l Ql Ql C. 0.- co Q."C ~ 0. C 0. "" - "2 C. z 'S -e 00. ~ 0. 0 o 0'_ ..!E CD ~ Ql C B", o Ql CIl '" CIl Ql ::l C" -u'" ~ Ql Q.. U c<(1- u.. 0: 0..0: 0: CIl rno: uo: 0..0: UlO: u.. UJ Miami.; Document it. 7826vl EXHIBIT B MASTER LEASElPURCHASE AGREEMENT 1700 CONVENTION CENTER DRIVE, MIAMI BEACH FL33139-1824 http:\\ci.miami-beach.fl.us CITY OF MIAMI BEACH COMMISSION MEMORANDUM TO: Mayor Neisen O. Kasdln and Members of the City Commission DATE: September 20, 2001 FROM: Jorge M. Gonzalez City Manager ~~ SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE EXECUTION AND DELIVERY OF A MASTER EQUIPMENT LEASE/PURCHASE AGREEMENT WITH BANC OF AMERICA LEASING & CAPITAL, LLC; AUTHORIZING THE LEASE AND PURCHASE OF CERTAIN EQUIPMENT THEREUNDER AND THE EXECUTION OF SCHEDULES WITH RESPECT TO SUCH EQUIPMENT; AUTHORIZING THE EXECUTION OF SUCH OTHER DOCUMENTS AS MAY BE NECESSARY TO COMPLETE THE TRANSACTIONS CONTEMPLATED HEREBY; REPEALING A PRIOR FINANCING PLAN FOR EQUIPMENT; AND PROVIDING AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. ANALYSIS The purpose of this financing is to pay for vehicle and heavy equipment purchases, communications equipment and systems and other types of equipment required by the City. This Commission action repeals Resolution 2000-24040, which authorized a loan in an aggregate amount not to exceed $15,000,000 from the Florida Municipal Loan Council (Capital Projects and Equipment Acquisition Program); and provides for negotiation for a loan with Banc of America Leasing & Capital LLC. This loan is structured in the form of a financing lease and purchase of equipment essential to the governmental, municipal or public purposes or functions of the City or to the services the City provides to its residents. Backaround On July 26, 2000, the City Commission approved Resolution No. 2000-24040 for the negotiation of a loan from the Florida Municipal Loan Council (the "FMLC"), which was sponsored and administered by the Florida League of Cities. This program, which was to be underwritten by JP Morgan, was not implemented. Subsequently, the City reviewed the provisions of a number of other financing programs and has determined that the proposed Banc of America lease- financing program best meets the goals in terms of providing a revolving credit facility. Agenda Item f( 7 F Date 7- <IO-Of The program is a variable rate revolving credit line that allows government entities to fund their equipment purchases and other capital projects in a flexible and cost effective manner. This type of borrowing provides for substantially lower costs than traditional equipment and capital project financing. The amount of the financing will not exceed the lower of $21,000,000 over the utilization period of the transaction or the fair market value of the equipment. The Master lease will be set up for five, seven and ten year lease terms to match the useful lives of the equipment to be financed. Because of the one-year renewable feature of this agreement, the unused portion of the credit line will not be considered a liability to the City. The loan rate will be variable based on 64% of the gO-day UBOR rate plus a spread ranging from 108 to 121 basis points depending on the specified term of the loan. The estimated current loan rates range from 3.30% for a S-year term to 3.43% for a 1 O-year term and the City will make quarterly payments in arrears. The security for the loan will be a covenant to budget and appropriate pledge. The loan will be repaid with non-ad valorem revenues and the payments will be amortized over the life of the equipment. The City will not pay any issuance costs for this transaction except for the cost of review by its Bond Counsel and Financial Advisor. It is recommended that the Mayor and City Commission approve this resolution permitting the City to participate in this financing program to pay for certain capital equipment. JMG: POW F:\FINA\$DIRllequipment loan memo.doc {~