HomeMy WebLinkAboutRequest for Proposal ProceduresRFP 32-08
CITY OF CLEARWATER
Lease Purchasing
REOUEST FOR PROPOSAL (RFP) PROCEDURES
1. Sealed RFPs:
Responses to this request for proposals (please submit six (6) copies) should be submitted
in a sealed envelope, clearly identified as "Proposal for Lease Purchasing," and mailed
to: •
George McKibben
Purchasing Manager
City of Clearwater
PO Box 4748
CIearwater, Florida 33758-4748
or delivered to:
George McKibben
Purchasing Manager
3rd Floor
100 South Myrtle Avenue
Clearwater, Florida 33756-5520
The RFP's are due no later that 4:OOPM, August 1, 2008_Any.RFP's .received after that
date and time will not be opened. The RFP's will be opened at that time in Room 342,
City of Clearwater Municipal Services Building, 100 South Myrtle Avenue, Clearwater,
FL 33756-5520.
2. RFP Response Forms:
All responses must be presented on the standardized "Lease Purchasing RFP Response
.Fonn," which has been provided. Do aiff submit .any supporting material. The City
reserves the right to reject any or all RFPs, or to informally negotiate certain points of the
final contract with a qualified proposer.
Master Lease Agreement
Mears Motor Leasing and City of Clearwater
10/1/2008 through 9/30/2013
This Master Lease Agreement ("Agreement") is made this 18th day September,
2008 between the Bancorp bank d/b/a Mears Motor Leasing, a corporation having its
principal place of business at 3905 El Rey Road, Orlando, FL, ("Lessor"), and the City of
Clearwater, FL a municipal corporation established under the laws of the Stare of Florida,
("Lessee").
1. Equipment Group
The estimated cost of the vehicles and equipment to be funded by lessee under this
Agreement is as follows:
Fiscal Year
08-09
09-10
10-11
11-12
12-13
Amount
S>4,000,000
S5,300,000
$5,400,000
S4,800,000
S6,000,000
._.c::.or of fiftocn t-131444;: dollars-(15,C00,000.00) a: any giver, time.
The Lessee agrees not to eceeda.priricipaloutstanding amount with
Lessor of fifteen million dollars ($15,000,000.00) at any given time
2. Lease, Possession and Use
Lessor hereby leases the equipment and vehicles to Lessee upon terms and
conclitions set forth herein.
Lessee shall have quite use and enjoyment of and peaceably have and.hold
equipment and.vehicles during the related lease term,
3. Term
This agreement shall. be in effect from October 1, 2008 until September 30, 2013.
This agreement may he renewed with the mutual consent of both parties for
additional periods of time.
4. Rental Payment
Lessee agrees to pay the quarterly rental payments due as specified in the
amortization schedule of each draw. The due dates for payments will be January ] 51,
April July Is' and October 1S` of each year.
The interest rate for each draw will be determined on the day the Lessee requests
a draw from_the Lessor. The Lessor will use the appropriate 3-year or 5-year CMT
indexed rate from the table submitted in the Lessor's bid response.
5. Option to Prepay
Lessee shall have the option to prepay its obligations under this Agreement
without any prepayment penalty,
6. Risk of Loss
To the extent permitted by applicable laws of the State of Florida as between Lessor
anal Lessee, Lessee assumes all risks and liabilities from any cause whatsoever, whether •
or nor covered by insurance, for loss or damage to any Equipment or Vehicles and for
injury to or death of any person or damage to any property. Lessee hereby assumes since
Lessor's sole responsibility in connection with this transaction is to provide an amount
equal to the principal portion of the lease Payments to pay costs of the acquisition.and
lease of the Equipment.and Vehicles, the parties intend that Lessor incurno liability, cost
or expense with respect to Lessee's possession, use operation of the Equipment or
Vehicles. Accordingly, Lessee agrees to the extent permitted by law to indemnify Lessor
against, and hold Lessor harmless from, any and all claims, actions, proceedings,
expenses, damage or liabilities, including attorney's fees and coup costs, arising in
connection with Lessee's negligence in the selection, purchase, delivery, installation,
possession, use, operation, rejection or return.and recovery of claims under the City's self
insurance program. Further, as a governmental entity, the City of Clearwater is subject to
SS768.28, Fla. Stat. Nothing in this paragraph or this Agreement shall be interpreted to
alter or modify the provisions of that stature nor the doctrine of sovereign immunity as
applies to the City of Clearwater.
7. Destruction of Equipment
Lessee shall provide a complete written report to Lessor within thirty (30) days of
any loss, theft, damage or destruction of any Equipment or Vehicles and of any
significant accident involving any Equipment or Vehicles. Lessor may inspect the •
.Equipment or Vehicles at any time and from time to time during regular business hours,
with reasonable notice. If all or part of the Equipment orVehicles is stolen, lost,
desimyed or damaged beyond repair Lessee shall, within thirty (30) days after such
event, at Lessee's selection and expense, either repair the damaged Equipment or
Vehicles or pay the remaining principal balance due on the damaged Equipment or
rtatr, 8038-G
(Rev. NavemPei 200)
Dees.- Yrl N NC t:aa]ny
InwrnAl it a, .Somme. ..
Information Return for Tax -Exempt Governmental Obligations
► Under internal Revenue Code section 149(e)
' See separate Instructions.
Caution: It me issue price is under S700,007,, use Form a03e-GC.
Ca1a No 1545,072U
Reporting Authority
1 Issuer's name
City of Clearwater
3 Number and Sheet for P.O. box if mail is not delivered to street address)
• PO Box 4748
5 City, town, or post office, state, and ZIP CU&
Clearwater, Ft_ 33756.4748
If Amended Retu n, chock here 6-
2 Issuer's employer identification number
1 59 6000289
1 noon-di:mite 4 Reprul r 1:ntber
i 3
6 Date 01 cisun
January 14,2009
7 Name of issue
Master Lease Agreement No. 09-A
B CUSIP number
N/A
9 Name and title ui officer or teg)t reprosentafrw whom the IRS may suit for more rnfonitatien 110 f0c 8 r cdx: 7. F7;,ts: lesgl "sp-et ^°:
Clement Vericker, Debi Specialized Accounting Manager I t 727 ) 562-4520
Type of Issue (check applicable box(es) and,enter the issue price) See instructions and atrach schedule
nl
• 1 1 t0u`ing
17 •._: fluid le'
18 .✓_1 Othni. De;crihc ► Various Equipment for City Use, _.._.....__......._...___.....:_..__._.._._._.__,
19 li o!;!icjations are TAN% or RANo. check bux ► ❑ 11 obligations an: BAN;;. check box d Ll
20 11 obligations are in the form al a lease or installment sate. check box . . . . . . P• 0 (!'
�xr. 1113 Description of Obligations. Complete for the entire iSsue for which this term is h
I
Vial! a, :ral,n4y ...1._
802,D63.33 I 5 ya
Fell Uses of Proceeds of Bond Issue (including underwriters' discount)
22 Prtx:enns used for accrued interest •'
23 Isstdd prim. ni entire issue (enter amount tramline 21, column (I)))
24 Proceeds used tor' imnd issuance costs (including Underwriters' discount! 124 1
25 P,cccc'^5 user.! for credit enhancement 2'
26 Proceeds aliocatcd tc ldasonahly regtlbort. reserve or replacement fund .
I
2G
27 P:ucuu;;i, used tc currently re!und prior is%ues 27 ✓/
28 Prue eU used to advance refund prior issues 1 20 , y Y/%
29 Total (add lines 24 through 28) 29 )
12
15
/6
t7;
18 80/ 0663,33
)inq Tiled
tar raxiaey
l jr,) U :Ir:d Ief ilICA(x.!n (d) w:G^ill rl: x
r rsn .Lnc (b) ix^o ; .. -
21 I (11/01/2014 5• 802,063:33 i S---r----
ars( , •2.6n,
22
i 23 : 362,053.33
30 Nonrelundin proceeds of the issue (subtract fine 29 !rem fine 23 and enter amount here). . . 30 1 802,063.31
Description of Refunded Bonds (Complete this part only .for refunding bonds.).
31 Enter the remaining weighted average maturity of ibe bonds le be currently telunded ► N/A Years
32 Enter the rerflainatg weighted average maturity of the bonds to be advance rr..hinded . . . ► —._tis
N.A--.__--.....
33 Vinci- the last (tare on which rho refunded bonds will be called ..... - ..
34 Enter u1e cutlets) me refunded bonds were (Stilted t'
MO Miscellaneous
11 ❑ Education
12 ❑ 1•Ir,':ilh rind hospital
13 J Iranspnnalinn
14 i Public C2fc'iy
15 ^1 Environment (including sewage bonds)
16
35 linter the amour: 01 the state volume cap allocated to the issue under Section 141(0)(5) , , . i 35
36a Enter the un:cun1 of yes. p1 uceetki en•ested ce to txc invested in a guaranteed invesrreni contract (see (risin1C00o5) 36a b Enter the final maturity( dale o) the guaranteed investment contract ►
37 Poo5T financings' a Penccicc'1 ! this issue ri•lat arc :0 be :eed <e make loses 10 oi=er governmental tir14', i 378 ___-...----
b II this ISSUe i5 a loan made from Inc proceeds of another tax•clxerr(1tt issue. check box e [J and entr.t' 1100 mime ,! !..
iSSUOI ► - and the date of the issue ► _.• —_.._ _. _._ . . _. _
36 II the issuer has designated the issue under section 265(b)(3)(B))ii)(lil) (small issuer exception). check bux . . . ►
39 Illhe issuer has.elected to pay a penalty in lieu of arbitrage rebate, check box
40 it the issuer has identified a hedge. check box o f)
i h:aiel [A1na11ieg qt nwsiet. 1 cif, .tarn Mai I tow: elomuv:d irn5 reties and ae oin51nyNr) 507u-Wu,c'i and ; aremmus . rC to hie cod of taw e..,,,,tricei.
1 :nu! I1SCI, uv,' arc Ul1i. Y:Xit:..: 0.ntl r:rrn*PIClc
Sign .
Here i %1s. b / �yl�tar. t / 1 „/„ 9 k Margaret 1_. Simmons, Finance Direc(o
' ssiisnt 0Y'I `r'y hlant:rlmud nr,3CS0sitail t' Daie typ., ni rx tat ntir..g 3,110 Cllr
For Paperwork Reduction Act Notice, see page 2 of the Instructions 0:n. Nr. 737735 In'::: 8038-C •
:0— 8038-G
(Rev. Nevembet 2000)
rteppt5t1
intemto Rerentil, Scleice
Information Return for Tax -Exempt Governmental Obligations
Under internal Revenue Code section 149(0
et See separate Instructions.
Caution:// the'issue price is liners S100.000. use Form 8038-GC.
OMR tin ..,45.01,7r.
jiMID Reporting Authority
1 issuers 118111e
City of Clearwater
It A ended Return, check here t.
2 Issuer's employer identification iiumber
59 6000289
3 Winne; and street for P.O. box if mail is riot delivered to street addresS)
PO Box 4748
5 City. tovAt, or post office. vale. and ZIP coin •
Clearwater, FL 33758-4748
7 Name ot n,51.1t!
Master Lease Agreement No. 09.A
9 Kim: :ttld talc oi officer or lege represernxbve whom :he IRS may can tor :Me information
Clement Vericker, Debt Specialized Accounting Manager
ReenVsuitel 4 Report numbe,
3
6 Date of issue
January 14, 2009
ntrert,ex
NIA
110 Iv:prone flume: of oleo a; etctal .eprept..szt...e
727 562-4520
Mrif Type of Issue (checkppficable box(es) and enter the iSSueJr) See imgti.x:tions and allach !:chvei,:,..
11 ' ,....—..] Education . 11 •
12 i7,.1 Health and hosplal 12
13 E.71 Dian:foliation
14 7..7:1 Pubic safety 14
is :.3 EnVil'Clitnent OnCluding sewage 1)Ontl'il 15 I
---,
i
16 • .; Hoircing 16
17 Li UlitilleS i 17 1
: '
18 LZ.?3 Outer. DeScrib" I- Various Equipment for City Use i 18415,020,50
19 li ohtigntions art. TANS or P.Aftls, check WU 0- 0 If obligations lite BAN. check box' If- 0
20 If eOlications are tit the form of Z't lease Of instaliment sale. check box l'" 0
MITni ' Description of Obligations. Complete lot the entire issue for which Ihis loirn is beim: fik.x.i.
I
1 ! VO rlid tkatec reret,iponn 1 (d) V.tet.tr.text f..3: 4 rt,d1:11.ri ,Ilf, i 00 tt,nti ontIn
. 1 • 4-- , prtca at matiogy
21 t 01/01r2012 I $ 415,020.60 ; 5 415,020.60 3 yea r,,. 3.2 t.
Mtn Uses of Proceeds of Bond Issue (including underwriters' discounq. ;
22 PrOCerstla Used tor acCrucC interest
23 IsSue price of entire issue (enter amount front line 21, column lb))
.24 .Proceees used for bond issuance costs lincludia9 underwriters. disC°u^ill 22:
25 Prer octOS used lor credit enhancement I. 25
26 Piot:ends alior:nted to reasenatay required reserve or tepincement Me*
27 Proceeds used to currently refund prior issues 1 27 1
28 Proceeds used to advance refund prior issues 1 28
29 Total (add lines 24 through 28)
415.020,60
30 Nowelunding proceeds of the issue Isebtract line 29 from line 23 and enter -amount here). . . ; 30 I 415.020.0
CEM Description of Refunded Bonds (Complete this part only for refunding bonds.)
31 E.mar tne rematrrin ..vogitux.1 average matutity of the bonds to be currently retundeci , , NIA
32 Eriter lire remaining weighted average maturity el the bonds to be acivance refundacf N/A treats
33 tinier the last claw on which the retundoci bonds tvill be called
34 Liner the clateO.,) Me refunded bonds were issued
'Miscellaneous
35 F.nter the amount of the state volume cap allocated to the issue under section 14100) 35 I
360 Fitter Mc amount of gross proceeds 'invested or to be invested in a guaranteed investment contract (see instructions) 3Ga I
b Enter the final maturity Unto of the guaranteed investment contract P. •
37 PeCnRC IteM10:t1g0: a Proceeds of ths Issue that are to be. used le make loans In othta 9o8ernme8401 untts 378 1
b If this .issce is a Irian irbrrie tuba) :he. proceeds of another tax•ozempt Issue, cneck bOk 8' 0 and enter Me came .71.11)
issuer I. and the date of the issue 8'
38 II Ile issuer has designated the issue under SOCtiOil 26503)(3)(13.10)(114 (small issuer exception). chock box . Ntt 17.1
39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate; check box »' LI
40 11 the issuer has identiliad a hedoe. check box '
rxirrikim: ocrmy. 1 iceon:; nave a‘aoninat lOs 1011110 ancl accatnntinrnr, ict.otiti,t, 521411".1111,..5,5 to tie: on% (5 my
; they kr,: 00- .4:v0 km! cntnplete
Sign
Here
•
•
F774-
/Iy/o9 k Margaret L. Simmons, Finance Direclo
szn.,kee n; n„,vineuva repres.vinve )at,! r Typr 111 1s03 nsvnt. WI,
For Paperwork Reduction Act Notice, see page 2 of the Instructions. 11 ra, 1*131
0
8038-G oee:
Vehicles plus interest from the last payment. Lessee shall rietify Lessor of which course
of action it'will take within 15 (fifteen) days after the loss occurrence. If the Lessee fails
to notify Lessor, Lessor may declare the prepayment price of the damaged equipment or
vehicle to be immediately due and payable.
'8. Takes .
The City makes no declaration as to the tax status of the lease purchases and
whether or not the lease purchases are bank qualified. However, if requested, the City
will cooperate with the process and provide all information that is readily available.
9. Title
During the lease term, ownership and legal title of all Equipment and Vehicles
and all replacements shall he in the name of the Lessee- Lessor does not own Equipment
or Vehicles and by this agreement is merely financing the acquisition of the Equipment'
and Vehicles for Lessee. Lessor has not been in the chain of title of the Equipment and
Vehicles, does not operate, control or have possession elate Equipment and Vehicles and
has no control over the Lessee or Lessee's operations.
Lessee agrees to keep Equipment and Vehicles -free and clear of all claims, liens
and encumbrances except those resulting from the agreements or acts of Lessor and not
resulting from the Lessee's failure to perform its obligations under this Agreement.
Lessee agrees not to claim any income tax deduction for depreciation with respect to the
Equipment and Vehicles or to file returns or reports with any taxing authority in which it
claims or implies ownership of any item.
iC). Security Interest
Lessor and Lessee agree that this Agreement does not result in the creation of any
lien, charge, security interest or other encumbrance upon the Equipment and Vehicles or
any other asset of Lessee.
1.I.Selection of Euuipment and Vehicles
Each vendor and all Equipment and Vehicles have been selected by Lessee.
Lessor shall have no responsibility in connection with the selection, ordering or delivery
of the Equipment or Vehicles.
12. Acceptance of Eouipment
Upon.delivery of the equipment and. Vehicles, Lessee's personnel shall inspect the
Equipment and Vehicles. The Lessee shall bundle the invoices from the
equipment/vehicle provider and shall submit them quarterly to the Lessor. Upon
receiving the equipment/vehicle invoices the Lessor shall reimburse the Lessee for the
payment of the invoices within two business days.
13. Locations and Use of Equipment and • Vehicles
The equipment and vehicles will be used primarily within the boundaries of
Pinellas and Pasco Counties, Florida. However, at the discretion of lessee, the
Equipment/Vehicles may be used outside the county for the purposes such as travel or
mutual aid.
Lessee covenants and wan -ants that during the period that any equipment/vehicles
is leased to lessee, the equipment/vehicle will at all times be used and operated in
compliance with the laws, regulations, and orders of any city, county, state or other
legislative administrative, or judicial body or officer having the power to regulate or
supervise the use or operation of the Equipment/Vehicle. Lessee shall not install or use
the Equipment/Vehicles in such manner or in such circumstances that any part of the
Equipment/Vehicles is deemed to be an accession to other personal property or deemed
to be real property or a fixture thereon.
11. Maintenance
Lessee shall, at its own expense, .mainutin the equipment/Vehicles in proper
working order. The Lessee reserves the right to perform routine maintenance while the
Equipment/Vehicles are in active 'service. Maintenance shall he accomplished by
outside vendor or in house maintenance personnel.
15. lion -Appropriations
In the event no funds or insufficient funds are appropriated and budgeted in any
fiscal year for lease charges under this Agreement, then theiessee shall immediately
'notify Lessor of such an occurrence and the Agreement shall terminate on the last day of
the fiscal period for which appropriations were received without penalty or expense to the
Lessee of any kind whatsoever, except to lease charges or portions of lease charges
herein agree upon for which funds shall have been appropriated and budgeted or arc
otherwise available. 1n the event of such termination, the City of Clearwater agrees to
peaceably surrender possession of the Equipment and Vehicles -to Lessor at a location
within Pinellas County, Florida, mutually agreeable to both parties on the date of such
termination. Lessor shall have all legal and equitable right and remedies to take
possession of the Equipment and Vehicles.
Notwithstandingthe forgoing, Lessee agrees (1) that it will not cancel the
Agreement if any funds are appropriated to it, or by it for the acquisition, retention. or
operation of the equipment and vehicles or other equipment performing functions similar
to the leased vehicles for the fixed period in which such termination occurs on the next
succeeding fiscal period thereafter, and (2) that lessee shall not, during the term of the
Agreement, give priority in the application of funds to any other functionally similar
equipment or vehicles. This paragraph shall not be construed so as to permit Lessee to
terminate the Agrcement to acquire any other equipment /vehi.cles or to allocate directly
or indirectly to perform essentially the same applicable for which the leased vehicles are
intended.
16. Assignment
The Lessor will not assign, transfer, convey orothetwise dispose of the
Agreement or any part thereof, or of its tight, title or interest therein, or its power to
execute the Agreement or any amendment or modification hereto, to any person,
company or corporation, without prior written consent of the Lessee or his representative
shall be considered an assignment.
17.i.nsurance
The lessee is covered under a program of self-insurance. The Lessee will provide
to the Lessor a letter or other document from its insuring authority evidencing the
existence of the continuing self-insurance program coveting the Equipment/Vehicles
under the Agreement.
18. Governing Law
The Agreement shall be govemedby and construed in accordance with the
substantive laws of the State of Florida; The Agreement shall be deemed to have been
made in Pinellas County, Florida regardless of the order in which it is executed.
19. Litiga.tion
.Lessor and Lessee. agree that any action or suit in connection with the Agreement
shall be brought only in a court of record its Pinellas County, Florida, the parties
consenting to the jurisdiction of each thereof, and service of process may be made on the
other party by mailing a copy of notice under the Lease.
20. Severabilitv
The terms and conditions of this Agreement shall he deemed to be severable.
Consequently; if any clause, terns, or condition hereof shall be held to he illegal or void.
such determination shall nor affect the validity or legality of the remaining terms and
conditions, and notwithstanding any such determination, this Agreement shall continue in
full force and effect unless the particular clause, germ or condition held to he illegal or
void renders then balance of the Agreement to be impossible of performance.
21. Construction
Language in all parts of this Agreement shall he construed as a whole according
to its fair meaning. The parties agree that this; Agreement is the product of joint
authorship, and in the event of.any ambiguity, the Agreement shall not be construed
against any party.
22.,Captions
The captions and hearings used in this Agreement are for the convenience and
means of reference only and shall not be used to construe, interpret orlimit the terms of
the Agreement. • ,
23. notices
All written notices given under this Agreement or by law, must or may given by
either parry, must be in writing, and must be given by personally delivering or mailing
the same by registered or certified mail/return receipt requested to the respective parties
as follows;
James .Hartman, Vice President
• Mears Motor Leasing
3905 El Rey Road
Orlando_ FL 32808
Phone`-407-298-2982
Fax: 407-578-4924
With a copy to:
Joanne Cornier, Government Special is
Mears Motor Leasing •
3905 El Rey Road
Orlando, FL 32808
Margaret Simmons, Finance Director
City of Clearwater
PO Box 4748
Clearwater, FL 3375S-4748
Phone 727-562-4538
Fax 727-562-4532 .
With.a copy to:
• Clem Vericker, Debt Manager
City of Clearwater
PO Box 4748
Clearwater, FL 33758-4748
24. Amendment of the Agreement
This agreement may be amended during its term by mutual writer agreement of
the parties.
25. Binding Effect
This Agreement shall he.binding upon and shall inure to the benefit of Lessor and
Lessee and their respective successors and assigns.
26. Default
In the event of default by lessee, Lessor's sole remedy shall be to sue for •
compensatory damages, which Lessee agrees to pay and which are hereby agreed to be
any accrued and unpaid rental payments as of date of default provided that in the event
that Lessee voluntarily returns the Equipment/Vehicles to'Lessor, to a location specified
by Lessor in Pinellas County, Florida, at Lessee's sole risk; cost and expense and in
proper working order. Lessor shall not have any further remedies against Lessee.
27. Documents Comprising Aueement
This Agreement shall include this master lease Agreement as well as the
following documents which are incorporated herein by reference:
(a) City of Clearwater RFP 32-08, attached hereto as Exhibit A
(b) Lessor's RR' Response, attached hereto as Exhibit B
If there is a conflict between the terms of this Agreement and the above.
referenced documents, then the conflict shall be resolved as follows: The terms of this
Agreement shall prevail over the other documents and the terms of the remaining
documents shall be given preference in their above listed order.
28..Documents Needed for a Draw
The Lessee will submit the following documents for a funding request:
(a)
Wtitten request for the amount of the funding signed by the
Finance Director or in their absence the assistant Finance
Director. This request will include statement that all items
have been received and paid for.
(b) For vehicles: copy of dealer invoice
For all. others: copy of vendor invoice
The Lessor will provide an amortization schedule for each draw request.
REMAINDER OF PAGE BLANK
IN WITNESS WHEREOF the parties have executed this Master Lease
Agreement.
LESSOR:
The Bankcorp Bank d/b/a
Mears Motor Leasing
..4tv
-.7 •
BY
)
Witnels
LESSEE:
By: /
Frank V. Hibbard
Mayor
Approved as to form: Attest
Pam Akin Cynthia E. oudeau
City Attorney City Clerk
SUBJECT / RECCOMMENDATION: •
Award a•contract.to-The Bancorp Bank/dba Mears Motor Leasing to provide a
$30,000,000 line of credit to cover all planned lease purchase equipment acquired in the
next five fiscal years starting October 1, 2008. Authorize all uncompleted equipment
acquisitions previously approved for financing under the current agreement with .
SunTrust to be financed under this new agreement, authorize the appropriate officials to
execute the same, and adopt reimbursement resolution 08-23.
SUMMARY:
The current agreement with Sun Trust Equipment Financing and Leasing Corp expires
September 30, 2008. The City solicited proposals (RFP 32-08) for lease purchase •
(installment sale) financing for the next five fiscal years (2009-2013). We received four
competitive proposals, Banc of America Public Capital Corp, Wachovia Financial
Services Inc., Sun Trust Equipment Finance & leasing Corp., and The Bancorp •
Bank/dba/Mears Motor Leasing. The selection committee has reviewed these proposals
comparing interest rates and terms. The committee determined the proposal offering the
most advantageous combination of rates and terms for the City was submitted by Mears
Motor Leasing and recommends the Council'approve the proposal submitted by Mears
Motor leasing. The interest rates applicable to each draw will be determined by the
following table based on the three and five year Constant Maturing Treasury (CMT) note
as published weekly in the Federal Reserve Statistical Release H.15.
3-Year CMT Mears 5 -Year CMT Mears
1% - 2.25% 3.02% 1%-.2.25%a 2.80%
2.26% -. 2.50%n. 3.36% . 2.26%n - 2.50%• 3.11%
2.51%-2.75%n 3.29% 2.51% - 2.75% '3.15%n
2.76% - 3.00% 3.59% 2.76% - 3.00% 3.44%
3.01 % - 324% 3.52% 3.01 %n - 3.24% 3.36%
3.25% - 3.50% 3.80% 3.25% - 3.50% 3.63%
3.51% -3.74% 4.07% 3.51%-3.74% 3.88%
3.75% - 4.00%n 4.35% 0 3.75% - 4.00%n 4.15%
4.01% - 4.24% 4.61% 4.01% - 4.24% 4.40%
4.25% - 4.50% 4.89% 4.25% - 4.50% 4.67%
4.51% - open 5.30% 4.51% - open • 5.30%
For example, if at the time of financing the 3-year CMT were 3.49%, the rate we would
be charged by Mears Motor Leasing would be 3.8%. Note the rate listed for 2.76% -
3.00% and 3.0'1% - 3/24% are correct.
With the exception of items that have a three-year useful life such as computer
hardware/software and police pursuit vehicles, lease purchases will be on a five-year
amortization. The City's cost of capital on the most recent draw on the current agreement
with Sun Trust was 3.88% for three-year items and 3.53% for five-year items.
The interest rates based on the Mears Agreement would have been 3.59% and 3.63%,
respectively.
The contract has a term of five years with the option for renewal as mutually agreed to by
both parties.
Approval of this item does not represent a commitment to borrow. Decisions to lease
purchase specific items of equipment must be budgeted for or approved separately in
accordance with the City's purchasing policy.
RFP 32-08
CITY OF CLEARWATER
Lease Purchasing
REQUEST FOR PROPOSAL (RFP) PROCEDURES
1. Sealed RFPs:
Responses to this request for proposals (please submit six (6) copies) should be submitted
in a sealed envelope, clearly identified as "Proposal for Lease Purchasing," and mailed
to:
George•McKibben
Purchasing Manager
City of Clearwater
PO Box 4748
Clearwater, Florida 33758-4748
or delivered to:
George McKibben
Purchasing Manager
3rd Floor
100 South Myrtle Avenue
..Clearwater, Florida 33756-5520
The RFP's are due no later that 4:OOPM, August 1, 2008. Any RFP's received after that
date and time will not be opened. The RFP's will be opened at that time in Room 342,
City of Clearwater Municipal Services Building, 100 South Myrtle Avenue, Clearwater,
FL 33756-5520.
2. RFP Response Forms:
All responses must be presented on the standardized "Lease Purchasing RFP Response
Form," which has been provided. Do n6t submit any supporting material. The City
reserves the right to reject any or all RFPs, or to informally negotiate certain points of the
final contract with a qualified proposer.
3 Inquires and Addenda:
Each firm shall examine all RFP documents and shall judge all matters relating to the
. adequacy and accuracy of such documents: Any inquiries, suggestions or requests
. concerning .interpretation, clarification, or additional information pertaining to the RFP '
shall be made in writing a minimum of five (5) working days prior to due date through
the City of Clearwater's Purchasing Manager, George McKibben, at P.O. Box 4748,
Clearwater, FL 33758-4748; e-mail at George.McKibben@mvclearwater.com. or FAX
727-562-4635.
The City shall not be responsible for, oral interpretations given by any City employee,
representative, or others. The issuance of a written addendum is the only official method
whereby interpretation, clarification, or additional information may be given. If any
addenda are issued to this RFP, the City will attempt to notify all prospective firms who
have secured same. However, it shall be the responsibility of each firm, prior to.
submitting the proposal, to contact the City of Clearwater's Purchasing Manager (727-
562-4634) to determine if addenda were issued and to make such addenda a part of the
proposal.
4. Pre-RFP Conference:
There will be no pre -bid conference. Any questions or requests for information must be
directed to the Purchasing Manager, George McKibben at the above address,
5. RFP Schedule:
July 2, 2008
August 1, 2008
Distribution of Request for Proposals.
Formal opening at 4:00 p.m. All sealed RFPs must be in the hands
of the City's Purchasing Manager by 4:00 p.m.
TBD Recommendation for award to City Council. -
October 1, 2008 Anticipated implementation date for contract.
Selection Criteria:
The following criteria will be used to evaluate RFP responses and to make a
recommendation for award to the City Council:
• 0 — 40 points Proposed interest rate.
+ 0 — 40 points " Lease purchase process; including items eligible to be lease
2
purchased, paperwork required by the City for each draw,
turnaround time from request of draw till money received,
and any additional relevant information.
0 - 20 points Experience and reputation of the respondent.
Total possible score of 100 points.
7. Right To Protest:
Any actual or prospective proposer who is aggrieved in connection with the solicitation or
award of a contract may seek resolution of his/her complaints by contacting the
Purchasing Manager.
8. Openness of Procurement Process:
Written competitive proposals, other submissions, correspondence, and all records made
thereof, as well as negotiations conducted pursuant to this RFP, shall be handled in
compliance with Chapters 119 and 286 Florida Statutes. The City gives no assurance as
to the confidentiality of any portion of any proposal once submitted.
9. No Collusion:
By offering a submission to the RFP, the proposer certifies the proposer has not divulged
to, discussed, or compared his/her competitive proposal with other proposers and has not
colluded with any other proposers or parties to this competitive proposal whatsoever.
10. Informality Waiver/Rejection of Bids:
The City reserves the right to reject any or all• responses and to waive any irregularity,
variance, or informality whether technical or substantial in nature, in keeping with the
best interests of the City.
11. RFP Expenses Statement:
All vendor costs associated with this RFP will be the responsibility of the vendor.
12. No Corrections:
Once a competitive proposal is submitted, the City shall not accept any request by any
proposer to correct errors or omissions in any calculation or competitive puce submitted.
13. Insurance:
The City is covered under a program of self-insurance. The city will provide to the lessor
a letter or document from its insuring authority evidencing the existence of the continuing
self-insurance program covering the items under the Lease.
3
14 Ouiet Enjoyment:
Lessor shall covenant that so long as lessee is not in default under the Lease, Lessor
shall not interfere with Lessee's right to quiet possession on the item covered by the
lease.
15 Governing Law:
The lease shall be governed by and construed in accordance with the substantive laws
of the State of Florida. The Lease shall be deemed to have been made in the City of
Clearwater, Pinellas County, Florida regardless of the order in which it is executed.
16 Litigation:
Lessor and Lessee agree that any action or suite in connection with the Lease shall be
brought only in a court of record in Pinellas County, Florida, the parties consenting to
the jurisdiction of each thereof, and by registered mail, to its address -to be used for
the giving of notice under the Lease.
4
SCOPE OF LEASE PURCHASING SERVICES
•
The City of Clearwater is currently looking for a responsible financing source to provide
a line of credit for the City's lease purchase (installment sale) financing for our next five
fiscal years. The following is a summary of the dollar amounts of lease purchasing done
for the last five fiscal years.
Fiscal Year Amount Number of Draws '
07-08* $4,000,000.00 4
06-07 $4,100,480.93 4
05-06 $5,893,863.15 4
04-05 $4,511,170.78 4
. 03-04 $4,222,569.74 4
* Estimate of current fiscal year.
Items Being, Leased Purchased:
The majority of items being leased purchased are vehicles, however, some. of the items
may be computer systems (including software) and miscellaneous equipment.
The following are the city's best estimates of lease purchasing financing needs for the
next five fiscal years:
Fiscal Year Vehicles Computers Equipment Total .
08-09 $3,112,040 $550,000 .$325,000 $3,987,040.
09-10 $4,175,180 $550,000 $535,000 $5,260,180
10-11 $4,235,020 $550,000 $600,000 $5,385,020
11-12 $3,607,170 $550,000 $545,000 $4,702,170
12-13 $4,971,970 $550,000 S405,000 $5,926,940
Interest Rate:
Fixed rate: A predetermined percentage of the most current weekly average rate for
the three and five year constant Treasury maturities,, as published every
Monday in Federal Reserve Statistical Release H.15
Terms of the Agreement:
Each equipment purchase will be as a draw from a three (3) or five (5) year lease
purchase (installment sale) contract. The. length of the term is determined by the
estimated useful life of the equipment being lease purchased.
Written Contract:
The City will enter into a signed contractual agreement with the financial institution
selected for a period of five years with the option for renewal for additional years. The
language of the contract will incorporate the provisions of this RFP and the response
presented by the successful bidder. The final form of the contract will be negotiated with
the successful financial institution.
The contract will have a master document that will be signed by the appropriate City
officials. Each draw will fall under the master document and will be signed by only the
Finance Director or Assistant Finance Director.
Taxable Status of the Lease Purchases:
The City makes no declaration as to the tax status of the lease purchases and whether or
not the lease purchases are bank qualified. Each bidder is responsible for that
determination and will bear all costs associated with same. However, if requested, the
City will cooperate with the process and provide all information that is readily available.
References:
Bidders will provide at least three references. Preference is for government and Florida
references.
6
Cih' of Clearwater
Lease Purchasing Bid Response Form
, Bid. Opening: July 31, 2008; 4:OOPM
Submitted by:. The Bancorp Bank/dba/Mears Motor Leasinp_
3905 El Rey Road
Orlando. FL 32808
Contact: Joanne Cornier. Government Leasing Specialist
The following conditions apply to the submittal:
1. The rate quoted will include all fees, $0 buyout and no prepayment penalty.
2. Please base you percentage off of the three and five year constant maturities (CMT).as
published every Monday in Federal Reserve Statistical Release H.15.
3. The city plans on doing quarterly draws and will do quarterly payments.
1.
In the yellow area please put the interest rate that your organization would use if the CMT were in that
range at the time of the draw request.
An example submission is included for clarification. In the example, if the 5 Year CMT was yielding 2.9%
at the time of the draw the interest rate would be 3.74%. If the 5-year CMT was yielding 4.1% at the time
of the draw the interest rate would be3.96%.
Example •
3 Year CMT
Under 2%
Rate 1
N/A
5 Year CMT
Under.2%
Rate
N/A .
5 Year CMT .
Under 2%
. Rate
2.74%
NIA
2%-3%
'N/A
2%-3% •
3.71%
.2%-3%
3%-4%
N/A
3%-4%
•N/A
3°fo-4%
3.94%
4%-5%
.N/A •
4%-5%
'N/A.-
4%-5%
3.96%
5%-6%
N/A ':
5%-6%
'N/A
5%-6%
4.01%
Over 6%
,N/A :`::
Over 6%
'N/A ' .
Over 6%
4.10%
See Rate -Chart Per Addendum
7
3 Year CMT Rate
1%-2.25%
2.26% - 2.50%
2.51%-2:75%
2,76% - 3%
3.01%-3.24%
'3.25% - 3.50%
3.51% - 3.74%
3.75%.- 4.00%
4.01%-•4.24%
4.25% - 4.5%
4.51% - 5.0%
5.01% - 5.24%
5.25% - 5.50%
5.51% - 6.0%
Over 6%
3.02
.3.36
:3 29
3:59
3.52
3.80
4.07
4.35
4:61
4.89
5.30
5:30
:5:30
5:30
5:30
5 Year CMT Rate-
1% - 2.25% 2:80 •
2.26% - 2.50% :3.11
2.51%-2.75% 3:15
2.76%-3% 3.44
3.01%-3.24% 3:36
3.25% - 3.50% 3.63
3.51% - 3.74% .3.88
3.75% - 4.00% 4:15
4.01% - 4.24% 4;40
4.25% - 4.5% 467
4.51%-5.0% 5.30
5.01%-5:24%
5.25% - 5.50%
5.51% - 6.0%
Over 6%
5:30 •
5:30
5.30
5:30
Subrn
isTage
2. Turn aroundtime from request. for funding to actual funding.
Minimum turnaround time 1 Business days
Average turnaround time 1.5 Business days
Maximum turnaround time 2 . Business days
Mears will also wire the money at the city's request.
3. Explain your lease purchase procedure: include items eligible to be lease purchased, what
documents and paperwork the City needs to provide for each item being lease purchased, the
turnaround time for a lease purchase draw, and any additional relevant information.
Additional sheets of paper may be attached.
Mears will finance all items leased purchased as outlined in your bid proposal. Mears will require
a written request for payment which can be either faxed or emailed. The following are additional
document requirements for payment: (a) Payment for Vehicles : Dealer invoice. (b) Computers
and related items: Vendor Invoice. (c) Equipment: Vendor Invoice. We would also request
that the city provide proof of delivery for. your protection. The purchase withdrawal is typically 1
business day and payment can be made to your purchasing. office or directly to the dealer at your
direction.
9
age
4. References
CITY
CONTACT .
PHONE NUMBER
Pinellas County Purchasing
Karen Main
727-464-6308
Pinellas County Sheriff
Bob Helmick, Fleet Mngr.
727-582-6200
County of Sarasota
Dave Henrichs/Odie Burton
941-861-1661
Bal Harbour Village P.D.
Chief Tom Hunker
305-525-5506
FBI
Nick
. Number upon request
Seminole County Sheriff
John Blackwood
407-665-6683
Manatee County Sheriff
Capt. Pat Bartholomew
941-747-3011
Hillsborough County School
Board
Dennis Holt
813-272-4932
5. Dollar limit of the line of credit per year *
08 — 09 S3.987.040
09 —10 S5.260.180
10-11 S5.385.020
11 —12 S4.702.170
12 —13 $5.926.940
* The dollar amounts above are based on your bid. Mears will not limit the city to a specific
amount each year as long as the cumulative amount does not exceed $12,000,000.00 during the
course of the Contract. Should the city require additional funds Mears will consider the
increased amount at the time of the request.
Please do not submit any other pages other than these three.
Submitted on 7/30/20.08
Robert Baily,
Assistant Vice President, Loan Officer
10