95-46 v RESOLUTION NO. 95-46
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
ATLANTIC BEACH, FLORIDA, APPROVING THE LEASE PURCHASE OF
CERTAIN EQUIPMENT BY THE CITY AND ACCEPTING THE BID OF
BARNETT BANK OF JACKSONVILLE, N.A., FOR SUCH LEASE
PURCHASE; AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO
TAKE THE NECESSARY ACTION TO ACCOMPLISH THE LEASE
PURCHASE FOR SUCH EQUIPMENT; DESIGNATING THE
LEASE/PURCHASE A "QUALIFIED TAX EXEMPTION OBLIGATION"
PURSUANT TO THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION AND ON BEHALF OF THE
PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA:
SECTION 1. AUTHORITY FOR THIS RESOLUTION. This resolution is adopted
pursuant to the provisions of Chapter 166, Part II, Florida Statutes, and other applicable
provisions of law (the "Act").
SECTION 2. FINDINGS. It is hereby found, declared, and determined by the
Commission of the City of Atlantic Beach, Florida (the "City"):
(A) It is necessary, desirable and in the best interests of the City and its inhabitants
that the City undertake the lease purchase of certain equipment necessary to the operation of the
City and which serves essential public purposes of the City, such equipment to include, in
particular, an 800 MHz radio system, city vehicles and computer hardware (the "Equipment").
(B) The City has requested and received proposals from interested financial institutions
and leasing companies and the proposal of Barnett Bank of Jacksonville, N. A., Jacksonville,
Florida (the "Lessor") was determined to provide the lowest cost to the City of the proposals
which were properly submitted.
(C) It is necessary to authorize certain officers of the City to execute a Lease Purchase
Agreement between the City and the Lessor and take other action necessary for the completion
of the lease purchase of the Equipment.
(D) In order to obtain the most reasonable rates for the lease purchase of the
Equipment it is necessary to designate the lease a "qualified tax exemption obligation" of the
City under the Internal Revenue Code of 1986, as amended (the "Code").
(E) The lease shall not constitute a general obligation or indebtedness of the City as
a "bond" within the meaning of any provision of the Constitution of the State, but shall be and
is hereby declared to be a special, limited obligation of the City, payable from the non-ad
valorem funds of the City budgeted and appropriate for such purpose and it will never be
necessary or authorized to levy taxes on any real property of or in the City to pay the lease
payments.
(F) The City does not expect to issue more than ten million dollars in tax-exempt
obligations during the calendar year ending December 31, 1995.
SECTION 3. LESSOR'S PROPOSAL ACCEPTED. The Proposal of the Lessor for the
lease purchase of the Equipment, a copy of which is attached hereto as Exhibit A, is hereby
accepted by the City.
SECTION 4. LEASE PURCHASE AUTHORIZED. The lease purchase of the
Equipment is hereby authorized and approved. The Mayor, Vice Mayor, City Manager, City
Clerk, City Finance Director and City Attorney are each designated agents of the City in
connection with the execution and delivery of a Lease Purchase Agreement in form acceptable
to the City Attorney. Each are further authorized and empowered, collectively or individually,
upon the advice of the City Attorney, to take all action and steps to execute and deliver any and
all instruments, documents or contracts on behalf of the City which are necessary or desirable
in connection with the execution and delivery of the Lease Purchase Agreement to the Lessor.
SECTION 5. DESIGNATION UNDER CODE. The City hereby designates the lease
as a "qualified tax-exempt obligation" pursuant to Section 265(b)(3)(B) of the Code. The City
will take all actions necessary (i) to maintain the deductibility of interest expense incurred by
the Lessor to carry the lease pursuant to Section 265(b)(3)(B) of the Code.
SECTION 6. SEVERABILITY. If any one or more of the covenants, agreements, or
provisions of this resolution should be held contrary to any express provision of law or contrary
to the policy of express law, though not expressly prohibited, or against public policy, or shall
for any reason whatsoever be held invalid, then such covenants, agreements, or provisions shall
be null and void and shall be deemed separate from the remaining covenants, agreements or
provisions, and in no way affect the validity of all other provisions of this resolution or of the
Lease Purchase Agreement delivered hereunder.
2
SECTION 7. EFFECTIVE DATE. This resolution shall take effect immediately upon
its adoption.
PASSED on December 11, 1995.
Approved as to form, sufficiency and
correctness:
si. _ ��
a//! —_/
Ci 'Attorneyor/Presing Officer
ATTEST:
7Gw4L 1 >
City Clerk 0
3
EXHIBIT A
PL1i�Ilett Barnett Bank of Jacksonville, N.A.
50 North Laura Street (32202)
Robert A. Bartnovsky Post Office Box 990
Vice President Jacksonville. Florida 32231-0990
Corporate Banking 904/791-7344
REQUEST FOR BID - CAPITAL EXPENDITURES
(LEASE / PURCHASE)
A. Primary Relationship Manager:
Robert A. Bartnovsky - Vice President / Corporate Banking
After receiving a BS Business degree (Finance) from Florida State University in
1981 , I worked for two commercial banks in Denver, Colorado until 1983 where I
received my formal credit and underwriting training. Upon returning to Florida in
1983, I joined Barnett Bank of South Florida, N.A. on July 1, 1983. I have spent
the past twelve years with three Barnett affiliates, most recently joining Barnett
Bank of Jacksonville, N.A. in March of 1993. My tenure with Barnett Bank has
included Retail Banking Management, as well as Middle Market and Corporate
Lending.
B. 1. & $325,000 Lease / Purchase or Loan:
2. A) $300,000 City project requirements
B) $25,000 City estimated closing cost
C) $0 Bank closing cost
3. Amortization schedule enclosed
4. Prepayment in full will be allowed at any time and in part on any interest
payment date with no penalty or premium.
5. Security - covenant to budget and appropriate legally available non-ad
valorem revenues.
6. The enclosed amortization schedule allows for no capitalized interest.
Request for BID - Capital Expenditures
Page 2
C. Covenants and/or Conditions:
A) Receipt of financial information:
•The City will submit annual audited financial statements prepared in
accordance with generally accepted accounting principals by the 120th
day following the end of each fiscal year.
•The City will submit its annual budget by the 15th day prior to the
beginning of each fiscal year.
•The City shall also provide the Bank with such other financial information
as it shall reasonably request from time to time to be submitted to the
Bank within a reasonable time period.
D. Interest Rate / Closing Cost / Legal Counsel
•The Interest Rate for the proposed $325,000 subject lease/loan will be 4.89%
(qualified tax-exempt). See enclosed amortization schedule for total debt
service.
•The Bank will charge zero ($0) closing cost and/or fees for this transaction.
This assumes the City's Bond Counsel will provide all documentation and
opinions as per the bid package.
Barnett has included (added) the City's estimated closing cost of $25,000 in this
request.
•At the Banks option, the Law firm of Mahoney, Adams & Criser, P.A. would
provide legal counsel to Bank at no cost to City.
Barnett Bank appreciates the opportunity to provide these financing options to the City,
and values our strong relationship. If there are any questions, please call.
Since ely,
obert A. Bartnovsky
Vice President
Corporate Banking
RAB/jb
Face 325,000.00
LOAN/LEASE Rate 4.89%
Fixed Payment 9,726.03
Payment Date Outstanding ' Payment Interest Principal Remaining
Number Principal Amount Paid Paid Principal
Balance Balance
12/31/95 0.00 325,000.00
1 02/01/96 325,000.00 9,726.03 1,393.32 8,332.71 316,667.29
2 03/01/96 316,667.29 9,726.03 1,230.32 8,495.71 308,171.57
3 04/01/96 308,171.57 9,726.03 1,279.88 8,446.15 299,725.43
4 05/01/96 299,725.43 9,726.03 1,204.65 8,521.38 291,204.05
5 06/01/96 291,204.05 9,726.03 1,209.41 8,516.62 282,687.43
6 07/01/96 282,687.43 9,726.03 1,136.17 8,589.86 274,097.57
7 08/01/96 274,097.57 9,726.03 1,138.37 8,587.66 265,509.91
8 09/01/96 265,509.91 9,726.03 1,102.70 8,623.33 256,886.58
9 10/01/96 256,886.58 9,726.03 1,032.47 8,693.56 248,193.02
10 11/01/96 248,193.02 9,726.03 1,030.78 8,695.25 239,497.78
11 12/01/96 239,497.78 9,726.03 962.58 8,763.45 230,734.33
12 01/01/97 230,734.33 9,726.03 958.27 8,767.76 221,966.58
13 02/01/97 221,966.58 9,726.03 921.86 8,804.17 213,162.41
14 03/01/97 213,162.41 9,726.03 799.62 8,926.41 204,236.00
15 04/01/97 204,236.00 9,726.03 848.22 8,877.81 195,358.19
16 05/01/97 195,358.19 9,726.03 785.18 8,940.85 186,417.34
17 06/01/97 186,417.34 9,726.03 774.22 8,951.81 177,4.65.53
18 07/01/97 177,465.53 9,726.03 713.27 9,012.76 168,452.77
19 08/01/97 168,452.77 9,726.03 699.61 9,026.42 159,426.35
20 09/01/97 159,426.35 9,726.03 662.12 9,063.91 150,362.44
21 10/01/97 150,362.44 9,726.03 604.33 9,121.70 141,240.74
22 11/01/97 141,240.74 9,726.03 586.59 9,139.44 132,101.31
23 12/01/97 132,101.31 9,726.03 530.94 9,195.09 122,906.21
24 01/01/98 122,906.21 9,726.03 510.45 9,215.58 113,690.63
25 02/01/98 113,690.63 9,726.03 472.17 9,253.86 104,436.78
26 03/01/98 104,436.78 9,726.03 391.77 9,334.26 95,102.51
27 04/01/98 95,102.51 9,726.03 394.98 9,331.05 85,771.46
28 05/01/98 85,771.46 9,726.03 344.73 9,381.30 76,390.16
29 06/01/98 76,390.16 9,726.03 317.26 9,408.77 66,981.39
30 07/01/98 66,981.39 9,726.03 269.21 9,456.82 57,524.57
31 08/01/98 57,524.57 9,726.03 238.91 9,487.12 48,037.45
32 09/01/98 48,037.45 9,726.03 199.51 9,526.52 38,510.92
33 10/01/98 38,510.92 9,726.03 154.78 9,571.25 28,939.68
34 11/01/98 28,939.68 9,726.03 120.19 9,605.84 19,333.84
35 12/01/98 19,333.84 9,726.03 77.71 9,648.32 9,685.51
36 01/01/99 9,685.51 9,725.74 40.23 9,685.51 (0.00)