HomeMy WebLinkAboutR-2004-033-Bank of America Lease Agreement Revised (FL League of Cities) RESOLUTION NO. 2004- 033
A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA,
AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE
AGREEMENT WITH BANK OF AMERICA (OR ALTERNATIVELY,
COMMUNITY BANK) UNDER THE FLORIDA LEAGUE OF CITIES
MASTER LEASE PURCHASE PROGRAM FOR THE FUNDING OF
CAPITAL ITEMS NOT TO EXCEED $893,928 AS INDICATED IN
EXHIBIT "A"; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the City Manager has determined that it is necessary to purchase as
approved in the FY 2003-2004 budget the capital items listed in Exhibit "A"; and
WHEREAS, Bank of America under the Florida League of Cities Master Lease
Purchase Program provided a rate of 2.91% for a three year program on February 9,
2004; and
WHEREAS, Community Bank has provided a quote of 3.75%;
40 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. That the City is authorized to enter into a lease agreement with Bank
of America under the Florida League of Cities Master ,Lease Purchase Program for
projects and for the term as listed in Exhibit "A", a copy of which is attached, for a rate
not to exceed 3.75%.
Section 2. That the City Manager and City Attorney are authorized to make minor
revisions to such Lease Agreement as are deemed necessary and proper for the best
interests of the City.
Section 3. That if the City cannot negotiate a mutually agreed upon lease
agreement with the Bank of America, then the proper City officials are authorized to
enter into an agreement with Community Bank at an interest rate not to exceed 3.75%.
1 RESOLUTION NO. 2004-033
• Section 4. That all resolutions or parts of resolutions in conflict with this
resolution shall be repealed to the extent of such conflict.
Section 5. That this resolution shall be in force and take effect immediately
upon its passage and adoption.
PASSED and ADOPTED on February 24, 2004.
OB ANT
ON
MAYOR — CO MISSIONER
A TEST: ROLL CALL:
COMMISSIONER CHUNN - YES
COMMISSIONER FLURY - YES
MI IAM NASSER COMMISSIONER MIKES - YES
ACTING CITY CLERK VICE-MAYOR MCELYEA - YES
® MAYOR ANTON - YES
APPROVED AS WTOFRM AND CORRECTNESS:
BY:
THONVAS J. ANSBRO
CITY ATTORNEY
2 RESOLUTION NO. 2004-033
EXHIBIT "A"
® CAPITAL ITEMS
3 Year Term
21 Dell Optiplex Computers $23,676
4 Dell Inspiron 5100 $7,647
1 Dell Inspiron 5150 $2,565
1 Dell Precision 360 $1,163
1 Air-conditioning unit at I.T. Parker $20,000
H.T.E. Fixed Assets Module $1,132
H.T.E. Bar Coding Software $1,400
Barcoding Hardware $4,414
Click2Gov - Core, CX, BP, CE $6,931
10 PDA's @$700 each $7,000
Total 3 year Term $75,928
5 Year Term
Fire Truck $410,000
Radio System for Fire Department $408,000
Total 5 year Term $818,000
Total Lease Amount $893,928
_ Agenda Request Form
E /q City of Dania Beach
Agenda Item:
Date of Commission meeting: 2/24/2003
Description of Agenda Item: Resolution to enter in to a Lease Agreement
Commission action being requested:
Adopt Resolution or Ordinance g Expenditure ❑ Award BID / RFP ❑
Presentation ❑ General approval of item ❑ Continued from meeting
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Summary explanation and background
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Certain capital outlay projects in FY 2004 were funded through the issuance of a loan. Currently
the Florida League of Cities has a Master Lease Program through the Bank of America that provides
• the most competitive rate.
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Attached exhibits,and,.adtlitional backup materials (Please list)'
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Staff Memo
Resolution to enter in to a Lease Agreement
Exhibit"A"capital projects
For purchasing requests ONLY
Department: Amount:
Fund: General: g Water: ❑ Sewer: ❑ Stormwater: ❑ Grants: ❑ Capital: ❑
Account Name: Account Number:
Submitted by: pvarney Date: 2/19/2004
Department Director: Date:
Admin. Services Director: Date:
• Finance Director: Patricia Varney Date: 2/19/2004
City Manager: Ivan Pato Date: 2/19/2004
CITY OF DANIA BEACH
DEPARTMENT OF FINANCE
MEMORANDUM
TO: Ivan Pato Memo: DF-04-16
FROM: Patricia Varney
DATE: February 19, 2004
SUBJECT: Lease Agreement
Purpose
To approve the City Manager to enter in to a lease agreement with Bank of America under
the Florida League of Cities Master Lease Agreement for F 2004 capital outlay projects.
Background
• The City Commission approved in FY 2004 project for the funding of the attached
projects in Exhibit "A" with the exception of the radio system through the issuance of a
loan. The index on Master Lease Program under the Florida League of Cities is indexed at
33% above treasury bond for a 3 year term, and a 7% above the treasury bond for a 5
year term. As of the February 9, the 3 year term was 2.91 % and the 5 year term was
3.30%. Community Bank has provided the city a rate of 3.75% and SunTrust Leasing
indicated that they cannot compete with the Florida League of Cities Program.
Since the rates fluctuates daily, and once the quote is provided by Bank of America, the
rate is locked in for thirty days and Bank of America will not provide another quote to the
City until the 30 days expire. Therefore, I am requesting the Commission to adopt a rate
of not to exceed 3.75%, allowing the Director of Finance to monitor the market to enter
into an agreement with Bank of American with the rate that is of the best interest to the
City. Should at any time an agreement is not able to enter into or the rate exceed 3.75%,
then the City Manager is authorized to enter into an agreement with Community Bank at
3.75%.