R-95-10-12-13H - 10/12/1995WHEREAS, the City of Round Rock has duly advertised for bids
for the financing of the 800 Mhz Trunked Radio System, and
WHEREAS, G.L C:RPI >RL.. / /C FN,M)CE , .CNG. has submitted
the lowest and best bid, and
WHEREAS, the City Council wishes to accept the bid of
G.E. PITAL /? 1 1 : 1NA446,1Nc•, Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City an agreement with 17.6. CAP/TRL n1131../G FNANCE, INC.
for the financing of the 800 Mhz Trunked Radio System,
a copy of said agreement being attached hereto and incorporated
herein for all purposes.
RESOLVED this 12th day of October, 1995.
ATTEST:
1
41100AI !' ice_ /L#
'ANNE LAND, City Secretary
x: \RESOLOTI \RSS1O12H WPD /kg
RESOLUTION NO. R- 95- 10- 12 -13H
CHARLES CULP'I]IPPER, Mayor
City of Round Rock, Texas
COMPANY NAME
G. E. CAPITAL
FINANCE
ASSOCIATES
COMMERCIAL
KOCH FINANCIAL
CORP.
MOTOROLA
BANK
ONE
STATED
INTEREST RATE
5.36%
5.36%
5.51%
4.90%
5.08%
EFFECTIVE
INTEREST RATE( *)
4.729%
4.729%
4.877%
4.900%
5.080%
ESTIMATED TOTAL
NET PAYMENTS
( * *)
$1,819,129
( * *)
$1,819,129
( * *)
$1,828,537
$1,829,974
$1,841,419
CITY OF ROUND ROCK
ANALYSIS OF QUOTES -RADIO EQUIPMENT LEASING
-- DRAFT --
RADIOLSE
10- Oct -95
04:52 PM
( *)EFFECTIVE INTEREST RATE IS THE STATED RATE LESS ESTIMATED EARNINGS FROM ESCROWED
LEASE PROCEEDS.
(* *)ESTIMATED TOTAL NET PAYMENTS REFLECT AMORTIZATION OF EQUAL PAYMENTS LESS ESTIMATED
EARNINGS FROM ESCROWED LEASE PROCEEDS.
CITY OF ROUND ROCK
REQUEST FOR QUOTES (RFQ)
LEASE / PURCHASE FINANCING
PART I
GENERAL CLAUSES AND CONDITIONS
SPECIFICATION NO: 17 -95 -0002
DATED: OCTOBER 1995
1.0 The City of Round Rock (LESSEE) requests quotes from LESSORS, (Individuals, financial Institutions,
including leasing entities, investment banks, commercial banks, and any other interested parties) duly
qualified and experienced in arranging third party financing for the lease/purchase of various types of
equipment for various City purposes.
2.0 It is the intent of the City to enter into an agreement with a Lessor using terms and conditions acceptable
to both parties and which are the accepted standard in the industry.
3.0 All cost(s) incurred directly or indirectly relating to preparation of a quote or any oral or written
clarification, which the City may require, shall be the sole responsibility of the Quoter.
4.0 All responses shall state that the quote is valid for a period of time not less than thirty (30) days.
5.0 Quoters shall state, in their quote that the Quoter is, at the time of the response and intends to
remain, in compliance with all applicable laws, rules, and regulations of Federal, State, and Local
Governing entities.
6.0 The successful Quoter shall, in a timely manner, execute any and all proceedings, forms, disclosures,
citations, or any other documents necessary and required to complete the financing arrangement described
in connection with this specification. Any and all agreements and supporting documents created as a
result of this RFQ shall be governed and construed according to the laws of the State of Texas.
7.0 As provided for in Section 271.005 of the Local Government Code, V. A. T. S., the City shall have the
right to classify the repayment of any debt resulting from this solicitation as debt as such specifies that the
transaction documents delete any non- appropriation clause and substitute the following language:
TAX LEVY A special Interest and Sinking Fund (the "Interest and Sinking Fund ") is hereby created
solely for the benefit of the Agreement, and the Interest and Sinking Fund shall be established and
maintained by the City at an official depository bank of the City. The Interest and Sinking Fund shall be
kept separate and apart from all other funds and accounts of the City, and shall be used only for paying
the interest on, and principal of, the Agreement. All ad valorem taxes levied and collected for and on
account of the Agreement shall be deposited, as collected, to the credit of the Interest and Sinking Fund.
During each year while the Agreement or interest thereon are outstanding and unpaid, the governing
body of the City shall compute and ascertain a rate and amount of ad valorem tax money required to pay
the interest on the Agreement as such interest comes due, and to provide and maintain a sinking fund
adequate to pay the principal of the Agreement as such principal comes due (but never less than 2% each
year), and said tax shall be based on the latest approved tax rolls of the Lessee, with full allowance made
for tax delinquencies and the cost of tax collection.
8.0 The agreement resulting from this RFQ shall contain a provision whereby the City, at its sole option, may
exercise the early payoff clause and all lease payments made shall be applied to the total lease amount.
The early payoff shall not exceed the original total lease less all lease payments made plus any interest then
due and payable, and, if any, early payoff interest or penalty.
9.0 The City's general obligation bond rating is:
9.1 Moody's Investor Service A
9.2 Standard & Poor's A
PART II
SPECIFICATIONS
1.0 SCOPE: The intent of this specification is to provide quoters with sufficient information to prepare a
response to this RFQ. All quotes shall include, but not limited to, the following: (quoter may submit
terms, conditions, options or other considerations that exceed or supplement the requirements)
2.0 INTEREST RATE: The interest rates shall be fixed for the term of the lease agreement. Lessor shall
furnish the Lessee with appropriate amortization schedule(s). Interest shall not begin until funding is
received by the City.
3.0 AMOUNT TO BE FINANCED AND FUNDING: Assume the fully funded amount to be $1,533,453.
This amount includes an administrative fee payable to Houston - Galveston Area Council of Governments.
Funding shall be made into a full funded escrow account to be established at the City's depository bank or
in a bank mutually agreed upon by the Lessor and Lessee. The amount funded into the escrow account is
subject to change at the sole discretion of the City. All investment earnings from the escrow account shall
be the property of the City.
4.0 PAYMENT TERMS: Assume an escrow funding date of November 1, 1995, and a first payment date
of August 1, 1996. Payments shall be semi - annual in arrears after the first payment. The City may elect to
make accelerated principal payments as shown in Alternatives 1 and 2 of Exhibit A (RFQ RESPONSE.)
5.0 FOUIPMENT: The security shall consist of an 800 Mhz Trunked Radio System provided by Motorola
Inc, through a cooperative purchasing agreement with the Houston - Galveston Area Council of
Governments. The System will serve the City Public Safety, Public Works, and Parks and Recreation
Departments. The System includes mobile and portable radio units, console stations, repeater units,
antenna systems, tower, and all related equipment and personal services required to bring the System into
full and complete operation.
6.0 UO ACCEPTANCE PERIOD: All quotes shall remain firm and valid for a period of not less than
thirty (30) days from the due date of the quote.
7.0 FEES AND EXPENSES: Any additional fees and expenses, unless clearly identified and mutually agreed
to, shall be the sole responsibility of the Lessor.
8.0 ASSIGNMENT: Lessor may assign its interest in the agreement resulting from this RFQ to an affiliate of
Lessor without the written consent of Lessee provided Lessee is advised of said assignment before such
assignment is made. If the Lessor intends to sell or resell the schedules to a non affiliate, such intent shall
be disclosed in the response to the RFQ. It is the Ciity's intent that this financing shall not be assigned to a
non - affiliate or certificated out.
2
9.0 NET LEASE: All obligations, costs and responsibilities associated with ownership of the equipment will
be borne by the Lessee, including insurance, maintenance, and applicable taxes.
10.0 LEGAL OPINIONS: Lessee's Counsel will provide an opinion as to legality, enforceability, authority,
title, and execution and effect of the Lease and other supporting documents.
11.0 DOCUMENTATION: Copies of all documents required for a financing transaction as described in this
specification shall be furnished with the RFQ Response.
12.0 SUBMISSION OF QUOTES: An original and one (1) copy of all proposal response documents shall
be submitted to:
City of Round Rock
Purchasing Agent
221 East Main Street
Round Rock, Texas 78664 -5299
Telephone (512) 255 -3612
Fax (512) 255 -6676
Quotes will be accepted until 2:00 P.M. October 9, 1995, at which time the names of the quoters will be
announced. FACSIMILE RESPONSES SHALL BE ACCEPTED IF FOLLOWED BY RECEIPT OF THE
ORIGINAL DOCUMENTS.
ALL RESPONSES SHALL BE RECEIVED IN THE OFFICE OF THE CITY PURCHASING AGENT
BEFORE THE HOUR AND DATE SPECIFIED ABOVE. LATE RESPONSES PROPERLY IDENTIFIED
WILL BE RETURNED TO THE RESPONDER UNOPENED. LATE RESPONSES WILL NOT BE
CONSIDERED.
13.0 AWARD: The City reserves the right to accept or reject all or any part of any quote, waive minor
technicalities, and make an award to best serve the interests of the City. The City also reserves the right to
reject any or all quotes for any reason.
14.0 RIGHT TO FINANCE ELSEWHERE: The City reserves the right to refinance the equipment covered by
the agreement resulting from this RFQ and prepay any remaining amounts due and all security shall be
released
15.0 INOUIRES: Inquires should be directed to
David Kautz, Director of Finance
512- 255 -3612 voice
512 - 255 -6676 fax
or
Howard Baker, Purchasing Agent
Purchasing Agent
512- 255 -3612 voice
512- 255 -6676 fax
Inquires should make reference to specific section numbers of the RFQ.
3
16.0 BANK QUALIFYING: The City has issued in excess of $10,000.000.00 in tax exemut debt this
calendar year.
17.0 PROJECT PAYMENT SCHEDULE: The estimated Project Payment Schedule (progress payments) is
shown in Exhibit D
PART HI
EXHIBITS
1.0 EXHIBITS: The following exhibits are hereby made a part hereof by reference:
1.1 Exhibit A: REQUEST FOR QUOTES RESPONSE (2 PAGES) * * **
1.2 Exhibit B: QUESTIONNAIRE * * **
1.3 Exhibit C: REFERENCES * * **
1.4 Exhibit D PROJECT PAYMENT SCHEDULE ( Progress Payments)
* * ** THESE EXHIBITS SHALL BE COMPLETED AND RETURNED AS THE RFQ
RESPONSE. FAILURE TO PROVIDE THESE REQUIRED ATTACHMENTS MAY
AUTOMATICALLY DISQUALIFY THE RESPONSE FROM CONSIDERATION FOR
AWARD IN CONNECTION WITH THIS TRANSACTION.
4
Principal Repayment
Alternative 1
Alternative la
Alternative 2
Alternative 2a
Payment 1
$250,000
Amortize a
$250,000
Amortize a
Payment 2
225,000
traditional
250,000
traditional
Payment 3
110,000
payment
schedule
150,000
payment
schedule
Payment4
110,000
assuming
133,000
assuming
Payment 5
110,000
7 year term
125,000
5 year term
Payment 6
100,000
(14 semi- annual
125,000
(10 semi - annual
Payment 7
100,000
payments)
125,000
payments)
Payment 8
100,000
125,000
Payment 9
85,000
125,000
Payment 10
85,000
125,453
Payment 11
85,000
Payment 12
75,000
Payment 13
50,000
Payment 14
48,453
Total Payments
1,533,453
1,533,453
Response:
Alternative 1
Alternative la
Alternative 2
Alternative 2a
Interest Rate
Identify any fees
not included in
the amortization
schedule provided
Please attach an
amortization
schedule for each
alternative
CITY OF ROUND ROCK
REQUEST FOR QUOTE RESPONSE
RPQ NO 17 -95 -02
FACSIMILE RESPONSES SHALL BE ACCEPTED UNTIL 2:00 P.M. OCTOBER 9, 1995
NOTE
1. List and discuss any additional fees, expenses, penalties, or payments included in this financing proposal and indicate
if such costs are were amortized in the repayment schedules.
2. The effective interest rates and resulting amortization schedules should include and reflect all amortized costs
associated with the financing of the aforementioned equipment.
3. A representative amortization schedule shall be included for each finance assumption.
4. Amortization schedules should reflect payments in "ARREARS;. However the City desires to have the option of
making accelerated principal payments. Accelerated principal payments are shown as Alternatives 1 and 2.
Traditional payments are shown as Alternatives la and 2a above..
AUTHORIZED SIGNATURE DATE
A -1
5
REQUEST FOR QUOTE RESPONSE PAGE 2
TAX IDENTIFICATION NUMBER
LEGAL BUSINESS NAME
ADDRESS
ADDRESS
CONTACT
TELEPHONE NUMBER
FAX NUMBER
BUSINESS ENTITY TYPE
(INDIVIDUAL, PARTNERSHIP, SOLE PROPRIETORSHIP, ESTATE/TRUST /, CORPORATION, GOVERNMENTAL, NON - PROFIT)
NAME OF PARENT ENTITY IF A SUBSIDIARY
1. FUNDING SHALL BE MADE FROM:
NAME OF ENTITY
ADDRESS
ADDRESS
CONTACT
TELEPHONE NUMBER
FAX NUMBER
2. LEASE PAYMENTS SHALL BE MADE TO:
NAME OF ENTITY
ADDRESS
ADDRESS
CONTACT
TELEPHONE NUMBER
FAX NUMBER
AUTHORIZED SIGNATURE DATE
QUOTER MAY ATTACH AS MANY ADDITIONAL PAGES AS NECESSARY TO MAKE THIS RESPONSE COMPLETE.
THIS ATTACHMENT (TWO (2) PAGES) SHALL BE RETURNED AS THE RFQ RESPONSE FAILURE TO
PROVIDE THE REQUIRED INFORMATION WITH THE RFO RESPONSE MAY AUTOMATICALLY
DISQUALIFY THE RESPONSE FROM CONSIDERATION FOR AWARD IN CONNECTION WITH THIS
TRANSACTION.
A - 2
6
1. Specify basis: 360 day or 365 day year
EXHIBIT B
QUESTIONNAIRE
2. Will your contract include an early payoff clause with no interest or any other penalty?
3. Will your contract include an early payoff clause with additional interest or other penalty? If it
will, state the provisions of this clause.
4. Will you require vehicle titles with the non- appropriation clause deleted from the agreement?
5. Assuming the agreement will be carried to the full term, state the Lessee's total payments for each
assumption as listed below..
AMOUNT TERM EFFECTIVE TOTAL TOTAL TOTAL TOTAL
FINANCED YEARS INTEREST PRINCIPAL INTEREST ADDITIONAL COST
RATE PAYMENTS PAYMENTS COSTS
$1,533,453. (1) 7 % $ $ $ $
$1,533,453. (la) 7 % $ $ $ $
$1,533,453. (2) 5 % $ $ $ $
$1,533,453. (2a) 5 % $ $ $ $
THIS EXHIBIT SHALL BE RETURNED WITH RFQ RESPONSE
FAILURE TO PROVIDE THE REQUIRED INFORMATION WITH THE RFQ RESPONSE
MAY AUTOMATICALLY DISQUALIFY THE RESPONSE FROM CONSIDERATION FOR
AWARD IN CONNECTION WITH THIS TRANSACTION
B -1
7
EXHIBIT C
REFERENCES
List below the name, address, year, and contact person of governmental entities for which you have performed a
successful lease program. If available also include the estimated dollar value of each lease.
THIS EXHIBIT SHALL BE RETURNED WITH RFQ RESPONSE.
FAILURE TO PROVIDE THE REQUIRED INFORMATION WITH THE RFQ RESPONSE MAY
AUTOMATICALLY DISQUALIFY THE RESPONSE FROM CONSIDERATION FOR AWARD IN
CONNECTION WITH THIS TRANSACTION
C -1
8
Date
Estimated Vendor
Payment
Nov 1995
$168,712
Dec 1995
200,000
Feb 1996
130,000
July 1996
610,000
Aug 1996
150,000
Sep 1996
120,000
Nov 1996
154,741
Total Payments
1,533,453
EXHIBIT D
PROJECT PAYMENT SCHEDULE (Progress Payments)
Project Payment Schedule (Progress Payments)
(This schedule is for information only and is subject to change)
D -1
DATE: October 10, 1995
SUBJECT: City Council Meeting, October 12, 1995
ITEM: 13. H. Consider a resolution authorizing the Mayor to enter into an agreement for the
financing of the 800 MHz Trunked Radio System.
STAFF RESOURCE PERSON: David Kautz
This item provides a financing package for the Motorola 800 MHz Trunked Radio system. The
financing structure will include the following terms and conditions:
1. Project value (maximum amount financed) $1,533,453
2. Term
7 -year pay back, semi - annual
payments, accelerated principal
repayment
3. Financing Method Tax Exempt Capital Lease /Purchase obligation
By entering into this financing arrangement, the City commits to providing sufficient funds to fully
pay maturing principal and interest on the obligation. Funding for the first year repayment of
principal and interest has been included in the operating budget.
An analysis of the City's financing alternatives and the estimated financial impact is attached to
this item along with the apparent effective interest rates.
Staff will continue to analyze financing proposals and a final recommendation will be made to the
Council at the meeting.
LESSOR GE Capital Public Finance, Inc.
LESSEE: City of Round Rock, Texas
PURCHASE OPTION: The Lessee will build equity in the equipment with each lease
payment and will have the option to purchase the equipment as
indicated on the appropriate payment schedule. The Lessee
will own the equipment free and clear of GECPFs lien after the
last lease payment is paid.
STRUCTURE: This transaction will be added on to the Master Lease
Agreement recently executed between GECPF and the Lessee
and, in addition, will include an Escrow Agreement.
NET LEASE: All obligations, costs and responsibilities associated with
ownership of the equipment will be bome by the Lessee
including insurance, maintenance, and applicable taxes.
FINANCIAL INFORMATION: This proposal is subject to, among other things, GECPF's
approval of the Lessee's financial condition. The last (3) three
years of audited financial statements for the Lessee and a -
current budget will be required for GECPFs credit review.
EQUIPMENT FINANCING
APPROVAL:
DOCUMENTATION:
LEGAL OPINIONS:
GECPF requires that all equipment to be financed be approved
by GECPF's credit department. By execution of a Lease,
GECPF is not committing to finance equipment. Each request
for equipment financing will be individually reviewed and
approved or disapproved by GECPF. All equipment to be
financed must be considered personal property.
Documents shall include a Master Lease Agreement (the
"Lease ") and certificates as are reasonably necessary to
evidence and carry out the transactions including
representations, warranties and indemnities which are deemed
appropriate by GECPF.
Lessee's Counsel shall provide an opinion as to legality,
enforceability, authority, title and execution and effect of the
Lease and other documents in form and substance satisfactory
to GECPF. Attomey General approval of this transaction may
be required.
Page 3 of 4
The enclosed letter and Term Sheet express the willingness of GECPF to seek the additional approvals
necessary for the transaction. Neither our letter nor the Tenn Sheet constitutes a commitment. Any
such commitment would require the prior approval of GECPF's credit committee and the negotiation
of a definitive structure and documents. No rights, liabilities or obligations shall arise as a result of our
letter, the Term Sheet or discussions we have had or may have in the future prior to execution of the
definitive documents and the satisfaction of each precondition to closing. Further, notwithstanding the
execution of such documents, in the event a bid protest or any other challenge to the transaction is
made prior to the funding of all or part of the transaction, GECPF shall have no obligation to proceed
with the transaction. GECPF may decline further consideration of the transaction at any point in the
approval process.
PROPOSAL ACCEPTED BY: Lessee Name:
Signature:
Name:
Date:
Page 4 of 4
O C t o e c e / ) 9 9 5