HomeMy WebLinkAboutR-2002-146 RESOLUTION NO. 2002-146
A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA,
RESCINDING RESOLUTION 2002-118 APPROVED ON
AUGUST 13, 2002; FURTHER, AUTHORIZING THE
APPROVAL OF A PURCHASE OF COMPUTER EQUIPMENT
FROM DELL MARKETING, L.P., WITHOUT COMPETITIVE
BIDDING AND WITHOUT ADVERTISEMENT FOR BIDS AND
AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT
FOR THE FUNDING OF A LEASE OF COMPUTER
EQUIPMENT BETWEEN THE CITY AND SUNTRUST
LEASING CORPORATION; PROVIDING FOR CONFLICTS;
FURTHER, PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Charter of the City of Dania Beach, Part III, Article 3, Section 4,
Subsection (J), provides that during unusual conditions or emergencies, the City
Commission may, by resolution, authorize the purchase by the City Manager of
designated supplies, services, equipment and materials in amounts in excess of fifteen
thousand dollars ($15,000.00) without competitive bids and without advertisement for
bids; and
WHEREAS, the City Manager has determined that it is necessary to purchase
computer equipment from Dell Marketing, L.P., for a total price of $24,724.85 from the
FY 2002 budget; and
WHEREAS, Resolution 2002-118, adopted by the City Commission on August 13,
2002, authorized execution of a lease agreement between the City and Dell Marketing,
L.P., for the lease-purchase of computer equipment with a monthly payment of $855.02
for thirty six months, at an interest rate of 14.8%; and
1 RESOLUTION NO. 2002-146
WHEREAS, SunTrust Leasing Corporation has submitted to the City a quote of an
interest rate not to exceed 5.2% for a loan, which would allow for the lease of computer
equipment needed by the Ctiy at a far lower rate than that offered by the Dell company;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. Resolution 2002-118, adopted on August 13, 2002 is rescinded.
Section 2. That the City is authorized to enter into a lease agreement with
SunTrust Leasing Corporation for a 36 month lease with a fixed interest rate not to
exceed 5.2% upon a principal loan of $25,000.00, to enable the City to acquire the
desired computer equipment.
Section 3. That the City Manager and City Attorney are authorized to make
revisions to such lease agreement as are deemed necessary and proper for the best
interests of the City.
Section 4. That the City Manager is authorized to pay the lease costs to
SunTrust Leasing Corporation from the Information Services Division funds of the
Finance Department.
Section 6. That all resolutions or parts of resolutions in conflict with this
resolution shall be repealed to the extent of such conflict.
2 RESOLUTION NO. 2002-146
Section 7. That this resolution shall be in force and take effect immediately upon
its passage and adoption.
PASSED and ADOPTED this 10th day of September, 2002.
BERT H. CHUNN, JR.
M YOR — COMMISSIONER
ATTEST: ROLL CALL:
COMMISSIONER BERTINO - YES
COMMISSIONER MCELYEA - YES
CHARLENE HNSON COMMISSIONER MIKES - YES
CITY CLERK VICE-MAYOR FLURY - YES
MAYOR CHUNN - YES
APPROVED AS TO FORM AND CORRECTNESS:
BY:
THOMAS X A BRO
CITY ATTORNEY
3 RESOLUTION NO. 2002-146
SunTrust Leasing Corporation Marnette Morton
Mail Code CMD2424 Portfolio Administrative Assistant
29 West Susquehanna Avenue,Suite 400
Towson,MD 21204
Tel 410/307-6697
Fax 410/307-6710
,.-juNTRuST
November 6, 2002
City of Dania Beach
100 W. Beach Blvd.
Dania, FL 33004
Attn:Patty Varney
To Whom It May Concern:
Thank you for choosing SunTrust Leasing Corporation to assist you with your equipment
financing needs. Enclosed you will find a copy of your fully executed Lease Documents for
Account#40 01036 002.
If you have any questions regarding your account, please contact Michael Furnari at(410) 307-6658.
To facilitate communications, please have your account number available when you call.
Again, thank you for choosing SunTrust Leasing Corporation.
Sincerely yours,
Marnette Morton
Portfolio Administrative Assistant
Enclosures
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SUNTRUST LEASING CORP'ORATTON/LEASE AGREEMENT
This LEASE AGREEIKENT (the "Lease").dated as of October 17,2002 is entered into by SUNTRUST LEASING CORPORATION,a Virginia
corporation,as lessor("Lessor"),and CITY OF DANIA,a political subdivision of the State of FL as lessee( Lessee�.
qscription of Equipment DELL COMP ITP_RS
.ntity: Unit Price: $ Total:$23,332.85
Total Equipment Price: S 23.332.85 Numbcr of Rental Payments:)�
Less Down Payment: Term:I¢
Total Principal Amount: $23,332.85 Amount of Each Rental Payment: S$2,081,741.74
Interest Rate:4,9% First Rental Payment Due Date: 11/01/2002
Total Rental Payments: $24,980.88 Payment Frequency quarterly
1. Lease-.Lessor hereby leases the equipment described above(the-Equipnxnt")to Lessee,and Lessee hereby]cases the Equipment from d cssor,upon the
tcrms and conditions set forth herein.The Equipment has been delivered and instaltcd in accordance with Lessee's specifications,is in good working order and is fully
operational and has been fully accepted by Lessee on or before the date hereof.Lesace shalt provide Lessor with a copy of a resolution or eyidcnce of other official
action taken by Lessee to authorize the acquisition of the Equipment on the terms provided herein.
2. Termination by Lessee.In the We event of the failure of Lessee(or Lessee's governing body)to appropriate money for any fiscal year sufHr_ient for the
continued performance by Lessee hereunder(a"Non-Appropriation"),this Lease shall tcmtinate in whole as to all Equipment efI'octivc upon the last day of the fiscal
year for which funds were appropriated,and Lessee shall return all Equipment to a location designated by Lessor at Lessee's sole expense.
3. Rental Payments.Lessee agrees to pay to Lessor at its address below the amounts due as specified above(the"Rental Payrnen;s")on the first business day
of any month during which payment is due.A portion of each Rental Payment is paid as interest. Interest shall be calculated at the rate per annum specified above
based on 30 day months and a 360 day year.The obligations of Lessee hereunder shall constitute a current expense of Lessee and shall not constitute an indebtedness
of Lessee.Lessee's obligation to make Rental Payments shall be absolute and unconditional,not subject to setoff or final resolution of any dispute. To the cxacnt
permitted by law,Lessor shall have the right to require late payment charge for amounts due which arc not paid within 10 days of the date when due equal to the lc3scr
of 5%of each late payment or the legal maximum.
4. Representntions,Warcantics and Covenants of Lecaee.Lessee represents and warrants as of the date hereof:(a)Lessee is a state or political subdivision
of the its state within the meaning of Section 103(e)of the Internal Rcvmue Code of 1996 and is authorized to enter into this Lease, (b)this Lease has been duly
authorized by all necessary action of Lessee's governing body and such action is in compliance with all public bidding and other laws applicable to Lessee.(c)this
Lease constitutes the valid and binding obligation of Lessee, enforceable against Lessee in accordance with its terms, (d)Lcs6ce(or Lessee's governing body) has
appropriated and taken other lawful actions necessary to provide moneys sufficient to pay all Rental Payments during the current fiscal year, and (c)Lessee has an
immediate need for,and expects to make immediate use of,the Equipment.Lessee agrees that until all Rental Payments or other amounts due under this Lease have
been paid:(i) Lessee shall, at its own expense, maintain the Equipment in proper working order and shall make all necessary repairs and replacements to keep the
tpment in such condition,(ii)Lessee shall obtain and maintain all permits and licenses necessary for the installation and operation of the Equipment,(ii)Lessee
not affix or install any accessory equipment or device on any of the Equipment,(iii)Lessee shall provide Lessor access to the Equipment at all reasonable times,
rv) Lessee shall not, directly or indirectly, create, incur, or suffer to exist any mortgage, pledge, lien, charge, encumbrance or other claim with respect to the
F.quipmcrtt and shall promptly,at its own expense,take such actions as may be necessary to discharge or remove any such claim.(v)upon Lessor's request,LcS5ec
shall provide Lessor with current financial statements,budgets,and proof of appropriation for the ensuing fiscal year,(vi)Lessee shall pay all taxes and other charges which are assessed or levied against the Equipment,and(vii)Lessee shall promptly and duly execute and deliver to Lessor such further documents,instnumcnts and
assurances and take such further action as Lessor may reasonably request in order to catty out the intent and purpose of this Lease-
S. Taz Related Ranreaentationv Warrnntles and ovehnnts.(a)Lessee agrees that it will not take any action which would cause the interest component of
Rental Payments to be or become ineligible for exclusion from gross income tax of Lessor for fedend income tax purposes.and witl take timely any action n,:cessary to
maintain such exclusion. (b) If Lessor either(i)rcceivc3 notice, in any form,from the Internal Revenue Service or(ii)reasonably determines that Lessor may not
exclude any interest paid hereunder from its Federal gross income(each an"Event of Taxability,Lessee shall pay to Lessor upon demand(x)an amount which,with
respect to Rental Payments previously paid and taking into account all penalties and tints, will restore to Lessor its nALr-tax yield as calculated by Lessor on the
t—saction evidenced by this Lease through the date of such event and(y)as additional Rental Payments to Lessor on each succeeding payment date such amount as
will maintain such afba-tax yield to Lessor.
6. insurance.Lessee shall,at its own expense,procure and maintain continuously in effect:(a)public liability insurance for death or injuries to persons,or
damage to property es
arising out of or in any way cormcctcd to the Equipment sufficient to protect Lessor from liability in all events,with a coverage of not less than
S1,000,000 per occurrence,and(b)insurance against such hazards as Lessor may require,including,but not limited to,allaisk casualty and property insurance,in an
amount equal to the full replacement cost of the Equipment.Insurance policies shall be maintained with insurance companies acceptable to Lessor and shall contain a
provision that 30 days prior to any change in the coverage the insurer must provide written notice to the insured parties.No insurance shall be subject to any co-
insurance clause. Each insurance policy shall name Lessor as an additional insured party and loss payee. With Lessor's prior consent, 1r,5cc may self-insure the
Equipment by means of an adequate insurance fund set aside and maintained for that purpose which must be fully described in a certificate delivered to Lessor in form
acceptable to Lessor.
7. )Frisk of Loss.As between Lessor and Lessee,Lessee assumes all risks and liabilities from any cause whatsoever,whether or not covered by insurance,for
loss or damage to any Equipment and for injury to or death of any person or damage to any property.lVhcthcr or not covered by insurance,to the extent pernuttcd by
law. Lessee hereby assumes responsibility for and agrees to indemnify lessor from all liabilities, losses, damages, clairTts, actions, costs and expenses, including
reasonable attorneys'fees,imposed on,incurred by or asserted against Lessor that relate to or arise out of this Lease or the Equipment.This provision shall survive the
termination of this Lease.
8. I?est action o EQusomcnt.Upon damage or destruction of any Equipment,lessee shall within 30 days after such event replace the same at Lessee's sole
expense with equipment leaving substantially similar specifications, such replacement equipment to be subject to Lessor's approval, whereupon such replacement
cat shalt be substituted under this Lease and the other related documents by appropriate endorsement or amendment.
Title and Security Interest.During the Icasc:cmr,ownership and legal title of all Equipment and all replacements,substitutions,repairs and modifications
shall be in Lessee and Lessee shall take all action necessary to vest such ownership and title in Lessee.
900;1:00 TF3 9t 0T Q3.11 0Z,,90. T
10. 'Warrantlea.Lessor makes no warranty or representallotr, either dxpress or implied, as to the volue, design, condition, quality, durability, suitability,
merchantability or fleness for any portieular purpose orfttness for the We contemplated by Lessee of the 6guipmenr, or any other representation durability,
warranty with
respect to the Equipment. In no Cvent shall Lessor be Liable for any incidental or consequential damages In connection with or arising oul of This Lease or the
Equipment or Lessee's use of the Zqutpmenr.
A5512nment.Lessor,without Lessee's consent,may assign and reassign all of Lessor's right,title and/or interest in and to this Lease.When presented with a
ice of assignment,Lessee will acknowledge in writing receipt of such notice for the benefit or Lessor and any assignee.Lessee shall keep a complete and accurate
cord of all such assignments.Neither this Lease nor any Equipment may be assigned,subleased,sold,transferred,pledged or mortgaged by Lessee.
12. Events o£Aefiinit.The occurrence of any of the following events shall constitute an Event of Default under this Lease:(a)Lessee's failure to pay,within
10 days following the due date thereof,any Rental Payment or other amount due hereunder, (b) Lessee's failure to maintain insurance as required hereunder, (c)
Lessee's failure to perform or abide by any condition, agreement or covenant(other than those described in clauses(a)and (b)above)for a period of 30 days after
written notice by Lessor to Lessee, (d) L.esset, determination that any representation or warranty made by Lessee in this lease was untrue when rnadc, (c) the
occurrence of an Event of Taxability,and(f)the filing of a petition in bankruptcy by or against Lessor,or failure by Lessee promptly to lift any execution,gamishm h
or attachment,or assignment by Lessee for the benefit of creditors,or the entry by Lessee into an agreement Of composition with creditors,or the approval by a court of
tic
competent jurisdiction of any adjustment of indebtedness of Lessee,or the dissolution or liquidation of Lessee.
13. Rem.Upon the occurrence of any Event of Default,Lessor shall have the right,at its
option Or all of the following remedies: (a) Lessor,with or without terminating this Leasc, may declare all Rental pa without any di tel demand p notice to one se more
Lessor,with or.without terminating this Lease, may Payments immediately due and payable t t Lessee, (b)
designated by lessor at Lessee's se,or in the event assess any Or all of the Equipment by giving Lessee written notice to deliver such Equipment w a location
open Lessee fails to do so within 10 days after receipt of such notice,Lessor may enter upon Lessee's premises and
take possession of such Equipment(Lessee hereby expressly waiving any damages occasioned by such repossession), and (c)Lessor may take any ocher remedy
available,at law or in equity.Lessee shall pay the reasonable attorneys'fees and expenses incurred by Lessor in enforcing any remedy hereunder.Eacn of th-
remedies is cumulative and may be enforced separately or concurrently. foregoing
14. Miscellaneous.(a)All written notices shall be given by mail to the party entitled thereto at its address specified beneath cacti party's signature Any such
notice shall be deemed to have been received 72 hours after deposit in the;United States mail in registered or certified form,with postage fully prepaid,or,if given by
other means, when delivered at the address specified herein; (b) This Lease shall be binding upon and shall inure to the benefit of Lcasor and Lessee and their
respective successors and assigns.As used herzin the term"Lessor"means any person or entity to whom Lessor has assigned its right to receive RcW Payments.(c)In
the event any provision Of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.(d)This Lease constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior
and contemporaneous understandings and agreements.This Lease may be amended or modified only by written documents duly authorized,executed and delivered by
Lessor and Lessee. (e)This Leasc shall be governed by and construed in accordance with the laws of the state in which Lessee is located. (0 A failure or delay of
Ltsssor to enforce any of the provisions of this Lease shall in no way be construed to be a waiver of such provision.(g)To the extent Permitted by law,Lessor and
Lessee hereby waive any right to trial by jury in any action or proceeding with respect to,in connection with or arising out of this L.easc.
IN\VrMM WHEREOF,Lessor has caused this Lease to be executed in its corporate name by its duly authorized officer,and Lcsscc has caused this Lease to be
executed in its name by its duly authorized officer as of the date first written above.
OF DANIA, BEACH
SUiVTRUST L ASLN(, ORAITOI\.
By:
Name: I�37�a�J�21
Name:
Title: IlayOr, City Manager
Title:
Address: L•I]ANCE DEFT ` 29 W.Susquehanna Avrnuc,Suite 400 '
DAMAJI 33004
Towson,MD 2I204
Telephone: l9s'µ� fez 3 6oZo
o Telephone: (410)307-6644
paesimilc_ (fdy) ! `a��
Facsimile: (410)307-6702
As counsel for Lessee,I acknowledge that I have reviewed this Lease Agreement,any enabling resolution or minutes of a meeting of L.esscc's govcrrng body relating
to the Lease Agreement,and such other certificates or other documents as I have deemed appropriate,and therefore,1 am of the opinion:(i)Lessee is a state or political
subdivision of the its state within the meaning of Section 103(c)of the Internal Revenue Code of 1986 and is authorized to enter into this Lease, and(ii)this tease
Agreement has been duly authorized,executed,and delivered by an authorized representative of the Lessee and is the legal.valid and binding obligation of the Lcsscc
enforceable against the Leasee in accordance with its terms,except as may be limited by bankruptcy,inselven rcmgnnization,moratorium or other similar laws
relating to or ati'ecring the rights of creditors generally.
byt Counsel f r 11 ee
lease Jo sty Clerk Name: This Ansbro
Title: City Attorney
• 2
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Equipment Description
All Dell computcr cquipment Described on the following Invoices:
voice Number Invoice amount
105652836 4,059.00
105655667 2,388.00
105651047 4,817.00
105652847 164.95
105651054 164.95
105654047 4,498.00
105655378 3,370.00
105653746 3,706.00
105654082 164.95
23,332.85
• 3
900-S00in
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SUNTRUST LEASING CORPORATION
29 W Susquehanna Ave. Suite 400
Towson,MD 21204
Phone: 410-307-6658
410-307-6669
Certificate
1, the undersigned, am the duly authorized representative and acting as City M maaer
of
CITY OF DANIA ("Lessee')under that Lease Agreement dated October 17 , 2002 (the "Agreement's) between
Lessee and SunTrust Leasing Corporation("Lessor's, do hereby certify that:
jnqm1bency of Officers and S� : I have custody of the records of Lessee and the following officers are duly appointed or
elected and hold the office or title set forth opposite each individual name, and the signatures opposite
ames are true And correct,
and where required, have been filed with the appropriate officials of the State in which Lessee is located,anAd each such indiv-idual has
the authority to enter into the Agreement on,behalf of Lessee:
Charlene Johnson City Clerk
Certificate of Annzondations and Source of Funds. Lessee has an immediate need for and expects to make immediate use of the
Equipment(as defined in the Agreement),the need for which is not temporary or expected to diminish in the foreseeable future. Such
Equipment will be used only for the purpose of performing one or more of Lessee's government or proprietary function consis?ent wi th
the permissible scope of its authority.
Monies for all Rental Payments to make under the Agrement for the fiscal year ending September 30
unexhausted and unencumbered appropriations from GENERAL, F[)lVfj axe available from
2nd/or funds have been designated for the
payment of such Rental Payments that may come due dozing such fiscal year.
Wthe best of my knowledge and belief all dates, facts, signatures and estimates are true and correct and such
ctations are:reasonable.
Lessee: CITY
By:
Name: Ivan Pato
Title_ City Manacrer
Date: I o I,S^1 aova.
® 5
900:A00In XVJ Lf :OT G3.%t
SUNTRUST LEASING CORPORATION
29 W Susquehanna Ave.Suite 400
Towson,MD 21204
Phone: 410-307-6658
Fax: 410-307-6669
• Insurance Coverage Disclosure/Requirements
1.In accordance with the Lease Agreement,Lessee certifies that it has instructed the insurance agent below:
CITY OF DANIA("Lessee')has entered into a Lease Agreement dated as of October 2002(the"Agreement")with SUNTRUST
LEASING CORPORATION. In accordance with the Agreement,Lessee hereby instructs the insurance agent named above to issue:
a. All Risk Physical Damage Insurance on the leased Equipment evidenced by a Certificate of Insurance and Long Form Loss
Payable Clause naming SunTrust Leasing Corporation and/or its assigns as Loss Payee.
The Coverage Required is$23332.85.
b. Public Liability Insurance evidenced by a Certificate of Insurance naming SunTrust Leasing Corporation and/or its
assigns as Additional Insured.
The following minimum coverage is required:
Liability: $ 500,000.00 per person
Liability-Bodily Injury: $1,000,000.00 aggregate m
Liability-Property Damage: $ aggregate $300,000.00
PROPERTY: DELL COMPUTERS
LOCATION:
Of of insurance coverage will be provided to SunTrust Leasing Corporation,and/or its assignee prior to the time that the
Equipment is delivered to Lessee.
OR
2. Pursuant to the Agreement, Lessee represents and warrants, in addition to the other matters under the Agreement, that it has
provided lawful self insurance for: (check to indicate coverage)
a. All-risk,physical damage in the amount specified in 1 above.
b. Public liability for not less than the amount specified in 1 above.
Lessee has attached a copy of qe statue authorizing this form of insurance.
Sign:
Name: Mary McDonald
Title: Director of Hunan Resources and Risk manacretnent
Date: 10/15/02
•
6
RESOLUTION NO. 2002-118
A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA
AUTHORIZING THE APPROVAL OF A LEASE AGREEMENT
FOR COMPUTER EQUIPMENT FROM DELL MARKETING,
L.P., WITHOUT COMPETITIVE BIDDING AND WITHOUT
ADVERTISEMENT FOR BIDS; PROVIDING FOR
CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the Charter of the City of Dania Beach, Part III, Article 3, Section 4,
Subsection (J), provides. that during unusual conditions or emergencies, the city
commission may, by resolution, authorize the purchase by the city manager of
designated supplies, services, equipment and materials in amounts in excess of fifteen
thousand dollars ($15,000.00) without competitive bids and without advertisement for
bids; and
WHEREAS, the City Manager has determined that it is necessary to enter into a
lease agreement with Dell Marketing, L.P., for computer equipment over a 36 month
period with monthly payments of $855.02 with a total price not to exceed $30,850.00;
and
WHEREAS, the City Manager has determined that the computer equipment can
be leased at the least cost from Dell Marketing, L.P; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. That that certain Lease Agreement between Dell Marketing, L.P.
and the City of Dania Beach for the lease of computer equipment, in substantial form as
attached, is approved and the appropriate city officials are authorized to execute it.
1 RESOLUTION NO. 2002-118
Section 2. That the City Manager and City Attorney are authorized to make
revisions to said Lease Agreement as are deemed necessary and proper for the best
interests of the City.
Section 3. That the City Manager is authorized to pay the lease costs to Dell
Marketing, L.P. from the Information Services Division of the Finance Department.
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 th' August, 2002.
ROIJkRT H. CHUNN, JR.
MAY R — COMMISSIONER
ATTEST: ROLL CALL:
COMMISSIONER BERTINO - YES
COMMISSIONER MCELYEA - YES
C ARLENE J H SON COMMISSIONER MIKES - YES
CITY CLERK VICE-MAYOR FLURY - YES
MAYOR CHUNN - YES
APPROVED
AS TO FORM AND CORRECTNESS:
BY: q l [\,
THO AS NSBRO
CITY ATTORNEY
2 RESOLUTION NO. 2002-118
AGENDA REQUEST FORM
CITY OF DANIA BEACH
AGENDA ITEM NO.
1. DATE OF COMMISSION MEETING: 9/10/02
2. DESCRIPTION OF AGENDA ITEM: TO APPROVE PURCHASE OF COMPUTERS
FROM DELL CORPORATION AND A LEASE AGREEMENT TO FINANCE THE PURCHASE
WITH SUNTRUST LEASING CORRPORATION
3. COMMISSION ACTION BEING REQUESTED:
Adopt Resolution or Ordinance ❑ Expenditure ® Award Bid/RFP ❑
Presentation ❑ General approval of item ❑ Continued from meeting ❑
Other(please explain) ❑
4. SUMMARY EXPLANATION & BACKGROUND:
TO RESCIND RESOLUTION 2002-118 AND TO APPROVE PURCHASE OF COMPUTERS
FROM DELL CORPORATION WITH THE FINANCING FROM SUNTRUST LEASING
CORPORATION
® 5. ATTACHED EXHIBITS AND ADDITIONAL BACKUP MATERIALS (PLEASE LIST):
MEMO TO CITY MANAGER
6. FOR PURCHASING REQUESTS ONLY: Dept: Information Services Division
7. Amount: $24,724.85
Fund: GENERAL: ® WATER: ❑ SEWER: ❑ STORMWATER:
Account name: Equipment Account#: 001-13-0410-56-646
Finance Director Approval: Date: L�1 0 d--
8. REVIEWED AND APPROVED FOR ADDITION ON AGENDA:
Subm' ted by: Date
Administrative Services/Risk Management Date
Department Director Date
City Manager Date
CITE' OF DANIA BEACH
41 DEPARTMENT OF FINANCE
MEMORANDUM
TO: Ivan Pato Memo: DFA-02-37
City Manager
FROM: Patricia Varney
Director of Finance
DATE: September 4, 2002
SUBJECT: Financing of computer equipment
Issue
To approve a leasing agreement with SunTrust Leasing Corporation to finance for the
purchase of computers in the amount of$24,724.85 with an interest rate of not to exceed
5.2%.
Explanation
The Commission approved a 36 months leasing agreement with Dell Marketing, L.P, on
August 13 for a lease purchase of computer equipment in the amount of$24,724.85. The
lease agreement indicated a monthly payment of $855.02 for thirty six months which
equates to an interest rate of 14%. 1 called Wachovia Bank and SunTrust Bank to obtain
an alternative for the financing of the equipment. Wachovia Bank has informed me that
they cannot provide me an option because the amount is so minute. SunTrust Leasing
Corporation however was able to provide a quote of not to exceed 5.2% for a three year
term.
Recommendation
I am recommending to rescind Resolution 2002-118.approved on August 13, and to
provide authorization to City Manager to purchase the computer equipment from Dell
Marketing, L.P without competitive bidding and to execute a lease agreement with
SunTrust Leasing Corporation for a term of three years at a rate of not to exceed 5.2%.
1