Bid Title: RFP Vehicle & Equipment Lease-Purchase Financing
Category: Financial Services
Status: Closed

Description:
City of Mineral Wells, Texas (“City”) requests proposals from qualified and eligible financial institutions to provide financing services for the acquisition of vehicles and equipment under a master lease agreement.

PROJECT
The City of Mineral Wells, Texas is accepting proposals for Lease-Purchase of vehicles and equipment. The proceeds will be used to cover the cost of the following vehicles and equipment: Four (4) Police Patrol Vehicles and One (1) Gradall Excavator.

COST AND FINANCING
The current projection of the costs and financing of the project are shown below:
Police Vehicles $ 210,000
Gradall Excavator    440,000
$ 650,000

Actual costs will be determined at the time of purchase and could vary from the projected cost. The lease principal will be for the entire actual cost of the vehicles and equipment. Some vehicles and equipment may be purchased before the lease financing is awarded, with the cost being reimbursed to the City when funding is available.

TAX EXEMPT LEASE PURCHASE
  1. This issue shall be "Institution-Qualified" for taxation purposes in calendar year 2018 (as described in Section 265(b) (3) (B) of the Internal Revenue Code of 2009, as amended).
  2. The City shall enter into a tax-exempt lease purchase agreement with the Institution in order to provide financing for this Project.
  3. Type/Security: The obligation of the City to pay lease rental payments shall be subject to annual appropriations by the Mineral Wells City Council.
  4. Interest Rate: The City desires fixed rate financing for these Project purchases. Please include the lease rate factor in addition to quoted interest rate.
  5. The proposal should include an indicative date for the fixed rate quote, and the period that the Institution will "hold" such rate. The City anticipates full delivery of the Project before August 1, 2018.
  6. The City further requests the Institution to indicate its willingness to provide to the City the benefit of a commensurate decrease in the offered rate should market interest rates drop during the stated commitment period.

TERMS AND CONDITIONS
The City of Mineral Wells is seeking a three (3) year lease on the Police Vehicles and an eight (8) year lease on the Gradall Excavator, in accordance with the schedule shown below:
Submit Proposed Terms and all Required Documents Deadline December 19, 2017
Council Award Contract January 16, 2018
Fund Escrow Account January 31, 2018
First Semi-Annual Payment August 31, 2018
  • The payments are to be equal in amount and are to be charged on a semi-annual basis starting August 31, 2018, with subsequent billings on each February 28, until a total of six (6) payments are made on the Police Vehicles and sixteen (16) payments are made on the Gradall Excavator.
  • The payment schedule is to be on the arrears basis, rather than on the advance basis.
  • The City of Mineral Wells’ obligation to make lease payments is subject to the annual availability of appropriations. Appropriations are included in the current budget, and the City of Mineral Wells will use its best efforts to obtain such appropriations in subsequent fiscal years. Contracts should include a non-appropriation and right of termination clause.
  • The lease agreement must include a standard non-appropriation of funds clause.
  • The leased vehicles and equipment will become the property of the City of Mineral Wells at the end of the lease term upon making the final payment.
  • The City of Mineral Wells will be responsible for insuring the vehicles and equipment financed through this lease. No party will be named as “Additional Insured” on the insurance policy.
  • The funding of the lease will be exactly the purchase price of the vehicles, appurtenances, and equipment. No over funding or under funding will be allowed.
  • The total principal amount may be deposited into an escrow account, and the City of Mineral Wells will receive any and all interest earned on the escrow account.
  • The lease may not be sold or transferred to a third party without the advance written permission of the City of Mineral Wells.
  • No loan origination fee, documentation fee or any other fee will be allowed.
  • The City will not pay escrow, investment or any other associated fees.
  • The interest rate will be fixed for the entire life of the lease.
  • The proposed interest rate will be firm for ninety (90) days following the opening of the proposals.
  • Pre-payment without Penalty: The City wants a right of prepayment, upon reasonable notice to the Institution, without penalty for any loan received. Please indicate, however, whether no right of prepayment (or, right of prepayment which vests after a fixed period of time), would yield a lower interest rate quote from the Institution for the desired term quotes described above.
  • All obligations, costs and responsibilities associated with ownership of the equipment shall be borne by the City whereby dispersing of such funds will be the sole responsibility of the City.
  • Proposer is to provide the preferred method of closing on the Project. Indicate anticipated closing costs (if applicable) with closing method.
  • Funds must be available no later than January 15, 2018, and the City of Mineral Wells intends to draw the entire principal amount no later than August 1, 2018.
  • The institution making the successful proposal shall indemnify and hold harmless the City of Mineral Wells and its officers, agents and employees from any and all claims, demands, actions, causes of action, liabilities, damages, costs, expenses, and attorney fees, as and when incurred by the City of Mineral Wells and all liability of any kind, descriptions, or character whatsoever or any other loss or detriment brought for or on account of any injuries or damages received or sustained by any person, persons, or property on account of any act or fault of the successful proposing institution or its agent, employee, subcontractor, or supplier in the execution of, or performance under, any contract which may result from the award. The institution making the successful proposal shall pay any judgment with cost which may be obtained against the City of Mineral Wells resulting from such injury. The City of Mineral Wells reserves the right to employ legal counsel of its choice.
  • A written addendum will be provided to all parties for any changes made to this request for proposal. The City of Mineral Wells will not be bound by any oral representation, clarification or change.
  • As part of the bidding package, the City will require bidders to complete the Texas Ethics Commission Form 1295, which must be filed online www.ethics.state.tx.us/File.
  • The venue for any disputes shall be Palo Pinto County, Texas.
PROPOSAL REQUIREMENTS
  • Interest rate shall be stated in terms of Annual Percentage Rate (APR).
  • An amortization schedule based on estimated principal that includes separate columns for the total payment, principal, interest, and payoff amount.
  • A statement showing the total financial obligations such as interest arising from this lease to the City of Mineral Wells throughout the life of the lease.
  • The lease agreement and any other documentation the lessor requires in connection with this lease that do not conflict with the terms and conditions of this request for proposal.
  • The most recent financial statements of the leasing institution, including an unqualified opinion from a certified public accountant.
  • At least three (3) references from local governments that have used the institution for leases of similar terms.
  • A copy of the attached summary sheet for the proposal dated and signed by an official who is authorized to make binding commitments for the institution.
Publication Date/Time:
11/27/2017 12:00 AM
Closing Date/Time:
12/19/2017 2:00 PM

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