Greenbush City Council- Special Meeting Monday, May 7, 2018, at 5:30 pm Greenbush Library Conference Room Agenda

Transcription

1 Greenbush City Council- Special Meeting Monday, May 7, 2018, at 5:30 pm Greenbush Library Conference Room Agenda Purpose- The purpose of this meeting is to discuss and/or approve the 2018 Equipment Purchase and Lease, Shop Lease and Fire Pay Equipment Purchase and Lease Breakdown of Public Works Replacement of Equipment SCB- City of Greenbush BSB- City of GreebushEquipmentF Muni Proposal BSB- City of GreebushPickupF Muni Proposal Greenbush Pelican buyers order Shop Lease Fire Pay Fire Pay Request Upcoming Meetings Regular Council Meetings: at 5:30 pm on May 21 st, June 18 th, and July 16 th

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3 2018 Equipment Purchase Type of Equipment Vendor Price Street sweeper 2006 Elgin Pelican P4924-D Sanitation Products $49, Pickup 2018 F-150 Pickup Midway Ford $26, Mowers for ditches Bauma Light SWF 560 Boom Mower (10 ft) Bobcat of GF $11, Bush Hog Tridesk Finish Mower (15 ft) $13, Mosquito Equipment London 9-10 Fogger (pickup mount) Northern MN Mosquito Control $8, Accessories Tire Tracks Bobcat of GF $2, $111, Comparison of Lease Proposals Lease Total $106, Border State Bank Equipment in Lease Length of Term Interest Annual Payment Pickup 5 years 3.74% $5, All remaining equipment 5 years 3.74% $17, Total Annual Payment $23, Equipment in Lease Length of Term Interest Annual Payment Pickup 7 years 3.99% $4, All remaining equipment 7 years 3.99% $13, Total Annual Payment $17, SCB Public Finance Equipment in Lease Length of Term Interest Annual Payment All Equipment 5 years 3.30% $23, All Equipment 7 years 3.50% $17, Difference at the end of the terms Savings with SCB at 5 years $1, Savings with SCB at 7 years $2,238.81

4 April 24, 2018 City of Greenbush 244 Main Street N Greenbush, MN We are pleased to submit the following tax exempt governmental lease-purchase proposal for your consideration. Lessee: Lessor: Type of Lease: Equipment/Project: City of Greenbush SCB Public Finance Tax-exempt, annual appropriation lease-purchase 2018 Equipment Purchases Anticipated Closing Date: To be determined by Lessee Finance Amount: $106, Lease Term Options: A) 5 Years B) 7 Years Preliminary Interest Rate: A) 3.300% B) 3.500% Lease-Purchase Payments: A) 5 annual payments of $23,450.32, beginning one year after closing. B) 7 annual payments of $17,414.51, beginning one year after closing. Prepayment: Purchase Option: Documentation Costs: Closing Costs: Other Fees: Pre-payable in full, not in part, on any payment date, after 12 months, for an amount equal to the After Payment Termination Value as illustrated on the attached Exhibit(s). $1 at the end of lease term. None None None SCB Public Finance 1

5 Legal Costs: Debt Service Reserve: Trustee: Bond Rating: Bond Insurance: Net Lease: Lessee is responsible for the cost to have a legal opinion completed by its city attorney or other attorney. Not Required Not Required Not Required Not Required This is a net lease transaction whereby insurance, maintenance, and any applicable taxes are the responsibility of the Lessee. All manufacturer s guarantees and warranties will be passed on to the Lessee. Insurance: Lessor requires personal property damage insurance equal to the costs of the equipment and also minimum liability of a combined single limit of $500,000. Appropriations Lease: Tax Status/Legal: Credit Information: The lease payments are subject to annual appropriation of funds by Lessee. This lease is subject to the Lessee being qualified as a governmental entity or political subdivision within the meaning of Section 103(a) of the Internal Revenue Code of 1986 as amended. Lessee agrees to cooperate with Lessor in providing evidence as deemed necessary or desirable by Lessor to substantiate Lessee s and this transaction s taxexempt status, including Lessee s providing an attorney s opinion. It is assumed that the transactions will be bank qualified under the $10 million small issuer exemption as defined in the Tax Reform Act of Lessee has been pre-approved. Lease Rate: The interest rate quoted is valid until May 31, 2018 Thank you for the opportunity to present this proposal. Please do not hesitate to contact me with questions or concerns. Yours sincerely, Pete Dunn Vice President SCB Public Finance th Ave North Moorhead, MN Phone: pdunn@scbpublicfinance.com SCB Public Finance 2

6 Attached: Exhibit A, Exhibit B Exhibit A: $106, Costs Funded $106, Closing Fees $0.00 Interest Rate 3.300% Total Payments 5 Payments per Year 1 Level Payment $23, Pmt Due Date* Payment Due Interest Principal After Payment Principal Balance After Payment Termination Value Loan 04/24/ , /24/ , , , , , /24/ , , , , , /24/ , , , , , /24/ , , , , , /24/ , , *Assume sample closing date of 04/24/2018 SCB Public Finance 3

7 Exhibit B: $106, Costs Funded $106, Closing Fees $0.00 Interest Rate 3.500% Total Payments 7 Payments per Year 1 Level Payment $17, Pmt Due Date* Payment Due Interest Principal After Payment Principal Balance After Payment Termination Value Loan 04/24/ , /24/ , , , , , /24/ , , , , , /24/ , , , , , /24/ , , , , , /24/ , , , , , /24/ , , , , , /24/ , , *Assume sample closing date of 04/24/2018 SCB Public Finance 4

8 April 25, 2018 LEASE PROPOSAL This Equipment Lease Proposal is Designed For: City of Greenbush Minnesota Proposed Lease Lessee / Borrower: Cost: $ 79, Financing Amount: $ 79, Transaction: Use of Proceeds: 1 City of Greenbush 244 Main Street N, PO Box 98 Greenbush Minnesota Fixed-rate, fully amortizing, tax-exempt lease-purchase agreement. The Master Lease Agreement (Personal Property Lease) will be valid for seven years. To finance the acquisition of a 1998 Pelican Street Sweeper, a Bauma Light SWF 560 Boom Mower a Bush Hog Tridesk Finish Mower, a London9-10 Fogger, the legal title of which shall vest with the Lessee during the term of Lease. Term: Option A. 60 Months Option B. 84 Months Bank Qualified: The proposal assumes the Lessee will not issue more than $10 million in tax-exempt obligations this calendar year and that the Lessee will designate this lease as a qualified tax-exempt obligation. Commencement Date: Payment/Frequency: To be determined. Equal Annual Payments, with the first due 12 months after of the commencement of the lease contract. Interest Rate: Options Repayment Interest Rate Payment A. 5 Annual Payments 3.74% $17, B. 7 Annual Payments 3.99% $13, Prepayment: Collateral: Appropriation: The financing may be prepaid without penalty, prior to maturity. Lessee will grant Lessor a first priority security interest in the financed equipment. UCC Financing Statements will be completed as applicable. This lease shall be subject to annual appropriation, with documentation within the Agreement requiring appropriation for Border State Bank 133 Main St. N. PO Box 280, Greenbush Minnesota Direct Line , Cell , Fax

9 OTHER TERMS Documentation: Reporting Requirements: Conditions Precedent: Maintenance and Insurance: Location of Collateral: Vendor(s) payment of all lease schedules or none at all. Appropriation for partial payment or for select assets within a schedule will not be permitted. The terms of this financing will be evidenced by agreements, instruments and documents ( Lease Documents ) usual and customary for a Tax-Exempt Lease Purchase. Lessor shall prepare documentation. Lessee shall be responsible for its own expenses related to review of the lease documents and delivery of opinion of counsel. Lessee shall deliver audited annual financial statements within 180 days of end of each fiscal year. Usual and customary conditions to issuance of the financing including acceptable legal documentation which will include an opinion of counsel that the financing is valid, binding and enforceable. All maintenance and insurance are the responsibility of Lessee. Lessee shall bear all risk of loss or damage to the Equipment and will be responsible for keeping the Equipment insured. Lessor must be named as loss payee and additional insured as applicable. Greenbush, Minnesota To be determined. PROPOSAL ONLY: This is a proposal only and does not represent a commitment to lease. It is intended for discussion only to outline the terms and type of lease that would best fit the Lessee. Other relevant points would include end of lease options and rental adjustments until time of lease commencement. Lessee will complete a Lease Application and submit necessary business and financial information to satisfy the Lessor s requirements for the proposed transaction. PLEASE PROCEED WITH OBTAINING CREDIT APPROVAL IN ACCORDANCE WITH THE TERMS STATED ABOVE. By: Title: 2 Border State Bank 133 Main St. N. PO Box 280, Greenbush Minnesota Direct Line , Cell , Fax

10 April 25, 2018 LEASE PROPOSAL This Equipment Lease Proposal is Designed For: City of Greenbush Minnesota Proposed Lease Lessee / Borrower: Cost: $ 26, Financing Amount: $ 26, Transaction: Use of Proceeds: City of Greenbush 244 Main Street N, PO Box 98 Greenbush Minnesota Fixed-rate, fully amortizing, tax-exempt lease-purchase agreement. The Master Lease Agreement (Personal Property Lease) will be valid for seven years. To finance the acquisition of a 2018 Ford F-150 Pickup, the legal title of which shall vest with the Lessee during the term of Lease. Term: Option A. 60 Months Option B. 84 Months Bank Qualified: The proposal assumes the Lessee will not issue more than $10 million in tax-exempt obligations this calendar year and that the Lessee will designate this lease as a qualified tax-exempt obligation. Commencement Date: Payment/Frequency: To be determined. Equal Annual Payments, with the first due 12 months after of the commencement of the lease contract. Interest Rate: Options Repayment Interest Rate Payment A. 5 Annual Payments 3.74% $ B. 7 Annual Payments 3.99% $ Prepayment: Collateral: Appropriation: The financing may be prepaid without penalty, prior to maturity. Lessee will grant Lessor a first priority security interest in the financed equipment. UCC Financing Statements will be completed as applicable. This lease shall be subject to annual appropriation, with documentation within the Agreement requiring appropriation for payment of all lease schedules or none at all. Appropriation for 1 Border State Bank 133 Main St. N. PO Box 280, Greenbush Minnesota Direct Line , Cell , Fax

11 OTHER TERMS Documentation: Reporting Requirements: Conditions Precedent: Maintenance and Insurance: Location of Collateral: Vendor(s) partial payment or for select assets within a schedule will not be permitted. The terms of this financing will be evidenced by agreements, instruments and documents ( Lease Documents ) usual and customary for a Tax-Exempt Lease Purchase. Lessor shall prepare documentation. Lessee shall be responsible for its own expenses related to review of the lease documents and delivery of opinion of counsel. Lessee shall deliver audited annual financial statements within 180 days of end of each fiscal year. Usual and customary conditions to issuance of the financing including acceptable legal documentation which will include an opinion of counsel that the financing is valid, binding and enforceable. All maintenance and insurance are the responsibility of Lessee. Lessee shall bear all risk of loss or damage to the Equipment and will be responsible for keeping the Equipment insured. Lessor must be named as loss payee and additional insured as applicable. Greenbush, Minnesota To be determined. PROPOSAL ONLY: This is a proposal only and does not represent a commitment to lease. It is intended for discussion only to outline the terms and type of lease that would best fit the Lessee. Other relevant points would include end of lease options and rental adjustments until time of lease commencement. Lessee will complete a Lease Application and submit necessary business and financial information to satisfy the Lessor s requirements for the proposed transaction. PLEASE PROCEED WITH OBTAINING CREDIT APPROVAL IN ACCORDANCE WITH THE TERMS STATED ABOVE. By: Title: 2 Border State Bank 133 Main St. N. PO Box 280, Greenbush Minnesota Direct Line , Cell , Fax

12 BUYER S ORDER SANITATION PRODUCTS, INC. Box st Street Northwest Fargo, North Dakota Phone: (701) Fax: (701) NAME City of Greenbush DATE STREET OR P.O. BOX 244 Main St N CITY, STATE & ZIP Greenbush, MN SHIPPING INSTRUCTIONS FOB Greenbush, MN QTY. MAKE MODEL SERIAL NO. PRICE 1 Elgin Pelican P4924-D 49, *Contingent on inspection FINANCIAL ARRANGMENTS SUBTOTAL... $49, Buyer warrants title to traded machine(s) and warrants that no one holds any lien or title relation instrument or on trade machine(s) except: FREIGHT TOTAL. F.E.T. LESS DOWN PAYMENT LESS TRADE ALLOWANCE. NET DIFFERENCE. SALES TAX BALANCE... WARRANTY EXTENDED BY SELLER TRADE INFORMATION* None Year Make Model Serial No. Price None ACKNOWLEDGEMENT (PURCHASER SIGNS) (Date) *Trade-in is to be equipped and functional as surveyed. NO AGREEMENTS OTHER THAN THOSE EITHER PRINTED OR WRITTEN ON THIS ORDER ARE BINDING ON EITHER PARTY OF THIS CONTRACT Accepted by Sanitation Products of Fargo, ND BUYER ACKNOWLEDGES HE HAS READ AND RECEIVED COPY OF THIS ENTIRE ORDER. By (Authorized Signature) Buyer Signed Title DATE Title This order is subject to the terms and conditions set forth, including the applicable manufacturer s warranty there appearing. Salesman

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