Okaloosa County BOCC — November 16, 2013 — Motor Grader Attachment — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: May 21, 2013 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Lease of Motor graders DEPARTMENT: Public Works BCC DISTRICT: 1 and3 STATEMENT OF ISSUE: Bids were opened April 25, 2013. Bids were received from five (5) companies (see attached tabulation). Cowin Equipment company (Pensacola, FL) is the low bidder meeting specifications with a lease price per grader of $15,976.56. BACKGROUND: Public Works currently holds two leases with ASC Volvo - Kansas State Bank of Manhattan (4 units per lease). The current leases expire on 06/15/2013 (4 units) and 01- 15-2014 (4 units). The current lease cost is $20,370.96 per grader for the lease expiring in June and $18,745.92 per grader per year for the lease expiring in January 2014. Cowin Equipment's bid also include the longest warranty period. Funding for the 1st four (4) units would come from the FY 12/13 budget. The additional four (4) units would be budgeted in the FY 13/14 budget. OPTIONS: Approve or Reject RECOMMENDATION: Staff recommends awarding the leases to Cowin Equipment Company, they being the low bidder meeting specifications and authorize the execution of the leases. | John Hofstad, Director 5/14/2013 RECOMMENDED BY: “A , County Administrator if 5/15/2013 APPROVED BY: Ernie Padgett, County Administrator Simafled Jihe Claud. wif fais OY a PO FRREPRA FPP G@ EA CE [RAITEBRIA! FAMBERIALATIS @LIEE? “ONTRACT & LEASE INTERNAL COORDINATION SHEET Coniract/Lease Number: Tracking Number: 639-13 a a Name: Ka S45 Saw Fanl of Men grap} funded: YES Now Ye Purpose: P10 foc kreer teas a Date/Term: 37 moths 1. [A GREATER THAN $50,000 Amount: Bs 32 5.53 per Month 2. 1] GREATER THAN $25,000 Depariment: Ab/Pe Maeles 3. [1 $25,000 OR LESS Dept. Monitor Name: ¢ l htop, Li Simmons Document has been reviewed and includes any attachments or exhibits. Purchasing Review PLL H- are met: f c Date: L/P Y Pusefasing Director or designee Risk Management Review S.0F #S.0S cant enero ¢ WHITTEN: Te AN Ris ks - “hla pare rae pate kis Risk Manager or designee County Afforney Review ae me ple GO ~ Sukyst Date: A [\s ‘©, Following Okaloosa County approval: Contracts & Grants Document has been received: Date: Contracts & Granis Manager Jack Allen From: Richard Brannon Sent: Monday, August 26, 2013 2:52 PM To: Jack Allen Subject: FW: Motor Grader Acquisition Attachments: Contrach with revisions 8-22-13.pdf; Buy Back Bond.pdf; RESOLUTION NO Final Motor Graders.docx; sample invoice for performance bond.pdf; Okaloosa County letter for buyback04 2013.doc Richard Brannon CPPB FCCM Purchasing Director Okaloosa County Board of County Commissioners 602 C North Pearl Street Crestview, Florida 32536 850-689-5960 rbrannon@co.okaloosa.fl.us “Please note: Due to Florida's very broad public records laws, most written communications to or from County employees regarding County business are puk records, available to the public and media upon request. Therefore, this written e-mail communication, including your e-mail address, may be subject to publ disclosure.” From: John Dowd Sent: Monday, August 26, 2013 2:33 PM To: Richard Brannon; John Hofstad Cc: Gary Stanford Subject: Motor Grader Acquisition John and Richard; The Board originally approved this item earlier this year. The delivery date was delayed and it was necessary to revise the documents to reflect that change. In addition, upon review of the final documents to consummate this transaction it was discovered that additional revisions were necessary. We revised the non-appropriation provision and prepared an appropriate Resolution for the Board to adopt. Please submit to the Board for final approval. It was also necessary to make certain that we qualified for the financing by not having issued $ 10 million in tax exempt obligations during the calendar year. Thanks, John DOCUMENTATION INSTRUCTIONS The instructions listed below should be followed when completing the enclosed documentation. Documentation completed improperly will dela: funding. If you have any questions regarding the Conditions to Funding, instructions or the documentation, please call us at (877) 587-4054. Attached Documentation 10. Lease with Option to Purchase Agreement @ = Anauthorized individual that is with the Obligor should sign on the first space provided. Exhibit A — Description of Equipment @ Review equipment description. Complete serial number/VIN if applicable. List the location where the equipment will be located after delivery/installation. Exhibit B - Payment Schedule @ Sign and print name and title Exhibit C - Certificate of Acceptance @ Sign and print name and title Exhibit D - Obligor Resolution @ Type in the date of the meeting in which the purchase was approved. ¢@ Print or type the name and title of the individual(s) who is authorized to execute the Contract. @ The secretary, chairman or other authorized board member of the Obligor must sign the Resolution where indicated. @ Asecond authorized individual that is with the Obligor should attest the Resolution where indicated. Exhibit E - Bank Qualified Certificate ¢ Sign and print name and title Opinion of Counsel @ Request that your legal counsel retype Opinion of Counsel onto letterhead, sign and date it. ¢ Legal counsel shall not alter the opinion. If counsel would like changes made to the opinion, they must first contact Obligee. Insurance Requirements @ Complete insurance company contact information where indicated. Debit Authorization — (Preferred) @ Complete form and attach a voided check 8038G IRS Form @ Please read 8038 Review Form @ = In Box 2, type Employer Identification Number @ Sign and print name and title Additional Documentation Required PwenNP First payment check as stated on attached invoice Insurance Certificate as stated on the Insurance Requirements Form Vendor Invoice for the amount to finance listing applicable SN/VIN, down payment, trade, etc. Front and back copies of MSO or title listing “Kansas State Bank AOIA” as first lien holder Condition to Funding if, for any reason: (i) the required documentation is not returned by July 28, 2013, is incomplete, or has unresolved issues relating thereto, or (i on, or prior to the return of the documentation, there is a change of circumstance which adversely affects the expectations, rights or security of th Obligee or its assignees; then Obligee or its assignees reserve the right to adjust the quoted interest rate or withdraw/void its offer to fund th transaction in its entirety. All documentation should be returned to: Kansas State Bank of Manhattan 1680 Charles Place Manhattan, Kansas 66502 FL Standard Non-App BC LEASE WITH OPTION TO PURCHASE AGREEMENT Obligor Obligee Okaloosa County Board of Commissioners Kansas State Bank of Manhattan 302 N. Wilson Street, Suite 203 1010 Westloop; P.O. Box 69 Crestview, Florida 32536 Manhattan, Kansas 66505-0069 Dated as of August 19, 2013 This Lease with Option to Purchase Agreement dated as of the date listed above is between Obligee and Obligor listed directly above. Obligee desires to finance the purchase of the Equipment described in Exhibit A to Obligor and Obligor desires to have Obligee finance the purchase of the Equipment subject to the terms and conditions of this Contract which are set forth below. 1 Definitions Section 1.01 Definitions. The following terms will have the meanings indicated below unless the context clearly requires otherwise: “Additional Schedule” refers to the proper execution of additional schedules to Exhibit A and Exhibit B, as well as other exhibits or documents that may be required by the Obligee all of which relate to the financing of additional Equipment. “Budget Year” means the Obligor's fiscal year. “Commencement Date” is the date when Obligor's obligation to pay Contract Payments begins. “Contract” means this Lease with Option to Purchase Agreement and all Exhibits attached hereto, all addenda, modifications, schedules, refinancing’s, guarantees and all documents relied upon by Obligee prior to execution of this Contract. “Contract Payments” means the payments Obligor is required to make under this Contract as set forth on Exhibit B. “Contract Term” means the Original Term and all Renewal Terms. “Exhibit” includes the Exhibits attached hereto, and any “Additional Schedule”, whether now existing or subsequently created. “Equipment” means all of the items of Equipment listed on Exhibit A and any Additional Schedule, whether now existing or subsequently created, and all replacements, restorations, modifications and improvements. “Government” as used in the title hereof means a State or a political subdivision of the State within the meaning of Section 103(a) of the Internal Revenue Code of 1986, as amended (“Code”), or a constituted authority or district authorized to issue obligations on behalf of the State or political subdivision of the State within the meaning of Treasury Regulation 1.103-1(b), or a qualified volunteer fire company within the meaning of section 150(e)(1) of the Code. “Obligee” means the entity originally listed above as Obligee or any of its assignees. “Obligor” means the entity listed above as Obligor and which is financing the Equipment through Obligee under the provisions of this Contract. “Original Term” means the period from the Commencement Date until the end of the Budget Year of Obligor. “Purchase Price” means the total cost of the Equipment, including all delivery charges, installation charges, legal fees, financing costs, recording and filing fees and other costs necessary tc vest full, clear legal title to the Equipment in Obligor, subject to the security interest granted to and retained by Obligee as set forth in this Contract, and otherwise incurred in connection with the financing of this Equipment. “Renewal Term” means the annual term which begins at the end of the Original Term and which is simultaneous with Obligor's Budget Year and each succeeding Budget Year for the number of Budget Years necessary to comprise the Contract Term. “State” means the state in which Obligor is located. I. Obligor Warranties Section 2.01 Obligor represents, warrants and covenants as follows for the benefit of Obligee or its assignees: (a) Obligor is an “issuer of tax exempt obligations” because Obligor is the State or a political subdivision of the State within the meaning of Section 103(a) of the Internal Revenue Code oi 1986, as amended, (the “Code”) or because Obligor is a constituted authority or district authorized to issue obligations on behalf of the State or political subdivision of the State within the meaning of Treasury Regulation 1.103-1(b), or a qualified volunteer fire company within the meaning of section 150(e)(1) of the Code. (b) | Obligor has complied with any requirement for a referendum and/or competitive bidding. (c) | Obligor has complied with all statutory laws and regulations that may be applicable to the execution of this Contract; Obligor, and its officer executing this Contract, are authorized under the Constitution and laws of the State to enter into this Contract and have used and followed all proper procedures of its governing body in executing and delivering this Contract. The officer of Obligor executing this Contract has the authority to execute and deliver this Contract. This Contract constitutes a legal, valid, binding and enforceable obligation of the Obligor in accordance with its terms. (d) Obligor shall use the Equipment only for essential, traditional government purposes. (e) Should the IRS disallow the tax-exempt status of the interest portion of the Contract Payments as a result of the failure of the Obligor to use the Equipment for governmenta purposes, or should the Obligor cease to be an issuer of tax exempt obligations, or should the obligation of Obligor created under this Contract cease to