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HomeMy WebLinkAboutAgenda Item Summary FormDate: 05/14/2019 AGENDA ITEM SUMMARY FORM File ID: #5382 Commission Meeting Date: 05/23/2019 Type: Resolution Subject: Vehicle Master Lease Program Purpose of Item: Requesting Department: Office of Management and Budget Sponsored By: District Impacted: All A resolution authorizing the City Manager to enter into a Vehicle Master Lease program for lease -to -own vehicles for all departments that need vehicles, as competitively procured through the City's Financial Advisor, Public Financial Management. Background of Item: As part of the FY 2018-19 Adopted Budget, the City Commission was informed that a Vehicle Lease -to -Own Program would be brought before them since no new vehicles were funded outright in the Adopted Budget. This is similar to previous Vehicle Lease - to -Own Programs that the City has undertaken in recent years. Budget Impact Analysis Item is Related to Revenue Item is an Expenditure Item is NOT funded by Bonds Total Fiscal Impact: Reviewed By Office of Management and Budget Christopher M Rose City Manager's Office Sandra Bridgeman Legislative Division Valentin J Alvarez City Manager's Office Nikolas Pascual Office of the City Attorney Pablo Velez Office of the City Attorney Barnaby L. Min Office of the City Attorney Victoria Mendez City Commission Maricarmen Lopez Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Office of the City Clerk City Clerk's Office Department Head Review Completed 05/14/2019 10:38 AM Assistant City Manager Review Completed 05/14/2019 2:17 PM Legislative Division Review Completed 05/14/2019 2:19 PM City Manager Review Completed 05/14/2019 3:42 PM ACA Review Completed 05/14/2019 4:13 PM Deputy City Attorney Review Completed 05/14/2019 4:32 PM Approved Form and Correctness Completed 05/14/2019 6:37 PM Meeting Completed 05/23/2019 9:00 AM Signed by the Mayor Completed 05/31/2019 10:11 AM Signed and Attested by the City Clerk Completed 05/31/2019 10:32 AM Rendered Completed 05/31/2019 10:33 AM File Number: 5382 City of Miami Legislation Resolution Enactment Number: R-19-0207 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date:5/23/2019 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING, PURSUANT TO THE REQUEST FOR PROPOSALS THAT WAS ISSUED APRIL 22, 2019 BY CITY OF MIAMI ("CITY") FINANCIAL ADVISOR PUBLIC FINANCIAL MANAGEMENT, INC. ("PFM"), THE SELECTION OF THE PROPOSAL SUBMITTED BY SANTANDER BANK FOR THE PROVISION OF CAPITAL FINANCING IN A NOT TO EXCEED TOTAL AGGREGATE PRINCIPAL AMOUNT OF THIRTY SIX MILLION DOLLARS ($36,000,000.00) FOR THE LEASE/PURCHASE ACQUISITION OF APPROXIMATELY FIVE HUNDRED FORTY (540) POLICE VEHICLES, GENERAL LIGHT FLEET VEHICLES, GENERAL HEAVY FLEET VEHICLES, AND FIRE APPARATUS VEHICLES AND FOR PAYMENT OF THE FINANCING COSTS OF THE SAME; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A FINANCING LEASE/PURCHASE AGREEMENT ("AGREEMENT") FOR SAID VEHICLES, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AND ANY AND ALL AMENDMENTS AND DOCUMENTS REQUIRED BY SAID AGREEMENT, PROVIDED THAT THE TERMS ARE CONSISTENT AND IN A FORM ACCEPTABLE TO THE CITY ATTORNEY; FURTHER AUTHORIZING THE CITY MANAGER TO TAKE ANY AND ALL ACTION NECESSARY TO EFFECTUATE SAID LEASE/PURCHASE ACQUISITIONS, SUBJECT TO THE AVAILABILITY OF FUNDS AND BUDGETARY APPROVAL AT THE TIME OF NEED. WHEREAS, on April 14, 2005, the Miami City Commission approved Resolution No. 05- 0215 for the accessing of the Florida Sheriffs Association ("FSA") contract ("Contract") for the purchasing of vehicles, trucks, vans, and other equipment for the City of Miami ("City"); and WHEREAS, the Contract is still available for the City to make piggyback purchases; and WHEREAS, the City has an immediate need to finance and to acquire approximately Five Hundred Forty (540) police vehicles, general light fleet vehicles, general heavy fleet vehicles, and fire apparatus vehicles (collectively, "Vehicles") in the current fiscal year estimated at a not -to -exceed total aggregate principal amount of Thirty Six Million Dollars ($36,000,000.00) to be repaid according to the respective useful lives of the vehicles at five (5), seven (7), or ten (10) years; and WHEREAS, on April 22, 2019, the City's Financial Advisor, Public Financial Management, Inc. ("PFM"), issued a Request for Proposals ("RFP") solicitation process on behalf of the City to the banking and financial industry consistent with the City's needs to obtain a means of financing the lease acquisition the Vehicles in the current fiscal year from the FSA Contract, with the lowest cost for funds based on the current market at the most favorable terms possible for the resulting Financing Lease/Purchase Agreement ("Agreement"); and WHEREAS, PFM's RFP solicitation process resulted in seven (7) proposal responses from various banking and financial institutions; and WHEREAS, on May 13, 2019, after review and analysis by the City and PFM of the proposals received, the City's Finance Committee unanimously approved a favorable recommendation of the proposal received from Santander Bank ("Santander") for the vehicle lease/purchase financing program and recommendation; and WHEREAS, it is recommended that the proposal received from Santander be approved by the City Commission, as this financial institution provided the most favorable terms and overall conditions, with the differentiating factors presented in Santander's proposal including a combination of the bank's lowest interest rates for the draw structure, lack of onerous and non- standard provisions, and most generous pre -payment terms; 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 selection of the proposal response to the PFM RFP submitted by Santander for the provision of capital financing in a not to exceed total aggregate principal amount of Thirty Six Million Dollars ($36,000,000.00) for the lease/purchase acquisition of the Vehicles and for payment of the financing costs of the same is approved. Section 3. The City Manager is authorized' to negotiate and execute the Agreement, in a form acceptable to the City Attorney, and any and all amendments and documents required by said Agreement, provided that the terms are consistent and in a form acceptable to the City Attorney. Section 4. The City Manager is further authorized' to take any and all actions necessary to effectuate said lease/purchase acquisitions, subject to the availability of funds and budgetary approval at the time of need. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.z APPROVED AS TO FORM AND CORRECTNESS 1 nz, City Attor ey&ina de5/14/2019 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 City Code provisions. If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar 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.