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Resolution
File Number: 15-01127
Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
APPROVING SELECTION OF SANTANDER BANK, N.A. TO PROVIDE CAPITAL
FOR LEASE PURCHASE OF POLICE AND FLEET VEHICLES AND TO PAY
FINANCING COSTS; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE A LEASE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM,
AND ANY AGREEMENTS AND DOCUMENTS REQUIRED BY THE LEASE
AGREEMENT PROVIDED THE TERMS ARE CONSISTENT, AND IN A FORM
ACCEPTABLE TO THE CITYATTORNEY, AND TO TAKE ALL ACTIONS
NECESSARY TO EFFECTUATE THE LEASE PURCHASE, SUBJECT TO THE
AVAILABILITY OF FUNDS AND BUDGET APPROVAL AT THE TIME OF NEED.
WHEREAS, on April 14, 2005, the Miami City Commission approved Resolution No. R-05-0215 for
the Accessing of the Florida Sheriffs Association ("FSA") contract for the purchasing of vehicles,
trucks, vans and other equipment for the City of Miami ("City"); and
WHEREAS, the City has an immediate need to purchase approximately three hundred (300) fleet
and police vehicles in the new fiscal year beginning October 1, 2015. Thereafter, the City estimates
that within the next several years, the City will need to purchase approximately seven hundred (700)
additional fleet and police vehicles; and
WHEREAS, on August 3, 2015, the City's Financial Advisor, Public Financial Management, Inc.
(PFM), issued a Request for Proposals to the banking and financial industry consistent with the City's
needs to obtain a means of financing the purchase of approximately 1,000 fleet and police vehicles
from FSA, with the lowest cost of funds based on the current market at the most favorable terms; and
WHEREAS, PFM's solicitation process resulted in seven (7) responses from various banking and
financial institutions; and
WHEREAS, after review and analysis by the City and PFM of the proposals received, it is
recommended that the proposal received from Santander Bank, N.A. ("Santander") be approved by
the City Commission, as this financial institution provided the most favorable terms and overall
conditions. The differentiating factors presented in Santander's proposal included a combination of the
bank's prepayment language, flexibility in draw schedule, and attractive rates. Santander's
prepayment language allows prepayment on any payment date after the first anniversary with no
premium, while most of the other proposing banks required a premium to be paid if the loan were to be
terminated early. Santander's draw schedule allows for the City to draw down funds at any point in the
calendar year, with no minimum or maximum draws imposed, and no non -usage fees that would
penalize the City for having undrawn balances. Finally, Santander's proposed interest rates were the
second -lowest amongst the proposing banks, with only Chase Equipment providing lower rates.
However, Chase Equipment only provided for a two (2) year draw period, wherein the interest rate
formula would then reset for an additional two (2) years, exposing the City to additional risk if the
municipal market environment was unfavorable at that point in the future.
City of Miami Page 1 of 2 File Id: I5-01127 (Version, 1) Printed On: 9/1412015
File Number: 15-01127
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2. The City Manager, is authorized {1} to negotiate and execute a Lease Agreement, in
substantially the attached form, and any agreements and documents required by the Lease
Agreement provided the terms are consistent, and in a form acceptable to the City Attorney, and to
take all actions necessary to effectuate the lease purchase; subject to the availability of funds and
budget approval at the time of need.
Section 3. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor. {2}
APPROVED AS TO FORM AND CORRECTNESS:
VICTORIA MENDEZ
CITY ATTORNEY
Footnotes:
{1} The herein authorization is further subject to compliance with all requirements that may be
imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter
and Code provisions.
{2} This Resolution shall become effective as specified herein unless vetoed by the Mayor within ten
(10) days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall
become effective immediately upon override of the veto by the City Commission.
City of Miand Page 2 of 2 File Id. 15-01127 (Version: 1) Printed On; 911412015