HomeMy WebLinkAboutR-2003-022 Capital Projects SunTrust RESOLUTION NO. 2003-022
A RESOLUTION OF THE CITY OF DANIA BEACH FLORIDA,
AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LOAN AGREEMENT WITH SUNTRUST BANK FOR THE
FUNDING OF CERTAIN CAPITAL PROJECTS IN THE
AMOUNT OF $441,904 (EXHIBIT A), PROVIDING FOR
CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City Commission has approved the funding of $749,156 in FY 03
capital projects through financing;
WHEREAS, the City Commission has approved Resolution 2002-202 the
reallocation of FY 02 financing to fund part of FY 03 capital projects, reducing the
required amount to $441,904 ($139,500 for a five year term, and $302,404 for a ten year
term);
WHEREAS, SunTrust Bank has provided a quote of 3.29% for both the five year
term and the ten year term;
WHEREAS, Wachovia Bank has provided a quote of 3.77% for the five year term
and 4.27% for the ten year term;
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 loan agreement with
SunTrust Bank for an interest rate not to exceed 3.29%.
Section 2. That the City Manager and City Attorney are authorized to make
revisions to the loan agreement and other documents as are deemed necessary and
proper for the best interests of the City.
Section 3. That the City Manager is authorized to pay the bank counsel fees
from the debt service budgeted in the appropriate fund.
1 RESOLUTION NO. 2003-022
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• resolution shall be repealed to the extent of such conflict.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 this 12tb.day of Februa 2003
1
RO ERT H. CHCJNN, JR.
MA O' R — COMMISSIONER
ATTEST: ROLL CALL:
COMMISSIONER BERTINO - YES
cl"4j COMMISSIONER MCELYEA - YES
CHARLENE JOH ON COMMISSIONER MIKES - YES
CITY CLERK VICE-MAYOR FLURY - YES
MAYOR CHUNN - YES
APPROVED AS O FORM AND CORRECTNESS:
BY:
'TH MAS J. ANSBRO
CITY ATTORNEY
2 RESOLUTION NO. 2003-022
Agenda Request Form
5 City of Dania Beach
Agenda Item: a
Date of Commission meeting: 2/12/2003
Description of Agenda Item: Approval of financing through SunTrust Bank
Commission action being requested:
Adopt Resolution or Ordinance ® Expenditure ❑ Award BID/ RFP ❑
Presentation ❑ General approval of item ❑ Continued from meeting
OthVer{Please explain):
Summary explanation and background:
Commission approved at the FY 03 budget that certain capital projects is to be funded through
financing. The City received two quotes, SunTrust Bank and Wachovia Bank. SunTrust provided
• an interest rate of -;29% for both the five year and ten year term, while Wachovia provided an interest
rate of 3.77% for the five year term and 4.27% for the ten year term.
Attached exhibits and additional backup materials (Please list):
Staff Memo
Resolution
Exhibit "A"
For purchasing requests ONLY
Department: Amount:
Fund: General: ❑ Water: ❑ Sewer: ❑ Stormwater: ❑ Grants: ❑ Capital: ❑
Account Name: Account Number:
Submitted by: Date:
Department Director: Patricia Varney Date: 2/3/2003
Admin. Services Director. Date:
Finance Director: Patricia Varney Date: 2/3/2003
City Manager: IPato Date: 2/3/2003
CITY OF DANIA BEACH
DEPARTMENT OF FINANCE
MEMORANDUM
TO: Ivan Pato, City Manager Memo: DF-03-013
FROM: Patricia Varney, Director of Finance
DATE: February 3, 2003
SUBJECT: Capital Financing
Purpose
Request approval for the financing sources of certain capital projects.
Background
The City Commission approved at the FY 2003 budget to finance certain capital projects in
the amount $749,156. Due to reallocation of FY 2002 financing brought to the
• Commission for approval in November, the required amount for FY 2003 has been
reduced to $441,904. A list of the projects is attached as Exhibit A. A request for quote of
a 5 year term, fixed interest rate in the amount of $139,500 and a 10 year term in the
amount of $302,404 was sent to different banking institutions. The City received two
quotes: SunTrust Bank and Wachovia Bank.
SunTrust Bank Wachovia Bank
Interest Rate
5 Yr 3.29 3.77
10 Yr 3.29 4.27
Security Pledge Franchise Fee Covenant to Budget &Appropriation
Prepayment Penalty Yes Yes
Bond Counsel Cost $5,000 $6,000
Recommendation
Staff is recommending that the City Manager is authorized to execute a loan agreement
with SunTrust Bank for an interest rate not to exceed 3.29%, and in an amount not to
• exceed $441,904.
EXHIBIT "A"
. Five Year Term:
Capital Item Amount
Document Imaging Program $34,000
(2) Pick-up Trucks $55,000
1 Small Truck $18,500
1 Suburban $32,000
Sub-Total for Five Year Term $139,500
Ten Year Term:
Capital Item Amount
Bathroom and City Hall Renovations $11,156
Renovations to Chamber $75,000
Traffic Light $90,000
Remodel 2nd floor $35,000
Recreation Center $91,248
Sub-Total for Ten Year Term $302,404
TOTAL $441,904
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