Okaloosa County BOCC — May 15, 2013 — Cowin Proposal for New Motor Graders — reading text

FICOWIN EQUIPMENT COMPANY, INC. BIRMINGHAM MOBILE HUNTSVILLE MONIGOMERY OXFORD PENSACOLA ATLANTA Don Amunds April 22, 2013 Chairman, Board of County Commissioners Okaloosa County Florida 302 N. Wilson Street, #203 Crestview Florida 32536 Re: Bid on Motor Grader Lease Dear Mr. Amunds, | want to thank you for allowing Cowin Equipment the opportunity to serve the needs of the citizens of Okaloosa County. It is hard to describe the feeling | get when | travel through the county in the course of daily life and see how the infrastructure of the county | live in is maintained with a product that | provide. Over the past few years, the Volvo G930 Motor Graders have continued to be work horses for your road department. | have spent many hours following up on the graders and making sure that they live up to our promises and your expectations. From the superior blade force and blade pull to the excellent fuel efficiency, the G930’s have done what we promised they would do. For that reason, | am even more honored to be able to offer a new fleet of Volvo G930B’s for your consideration. Through my conversations with John and Clay, they have expressed that they have been very satisfied with the product and are looking to keep good, high quality graders at the amount they have placed in their budget. Because Okaloosa is a continued, valued customer of John Edwards, Cowin Equipment and Volvo, | am pleased to be able to offer new Volvo G930B graders at a lease rate that will help you exceed your goals and put money back to work in the road department. The basic lease terms are as follows: Lease term........ 36 months Payments per month with first month due at signing............ $1,331.38 per unit per month Final payment at end of term of $148,967.00 per unit. Guaranteed Buyback amount of $ 148,967.00 per unit, if you choose to exercise our buyback agreement. This lease is based on 1500 hours of usage per year and is cumulative during the lease term. This lease and buyback arrangement will give you valuable options at the end of the lease term. You may want to pay the final payment and keep the graders or you can pay the final payment and we will pay you for the graders and take ownership of them. John Edwards, Governmental Sales Manager 850-685-7055 jedwards@cowin.com ga j EICOWIN EQUIPMENT COMPANY, INC. BIRMINGHAM MOBILE HUNTSVILLE MONIGOMERY OXFORD PENSACOLA ATLANTA The Volvo G930B’s will also come with a one year/1500 hour full machine warranty and a 3 year, 6000 major component warranty that will pick up at the end of the first year of warranty. Warranty Documents are attached. During the initial full machine warranty period, any travel time and mileage needed will be covered under this warranty. As with the last delivery of the Volvo G930’s, we will provide operator training as well as Caretrack Telematics training for your folks. Because of the design of the Volvo G930B controls, your operators will have the confidence needed to use our graders to the fullest extent without fear of learning a new system. | have tracked the fuel efficiency of the G930’s all along and they are averaging 3.5 gallons per hour, which is what we projected they would consume. The new G930B’s are experiencing similar fuel economy, so the amount of fuel your road department has budgeted will not be affected by the new G930B Motor Graders. As per your bid request, you have asked for delivery to take place by June 15, 2013 for the first four units and January 2104 for the second four units. We are able to offer the same finance rate and lease terms for all 8 units with the split delivery. Because we have a lead time of 60-90 days, we would like to offer Okaloosa County the ability to keep the four Volvo G930 graders you currently have on lease until we make delivery of the first four units. The delivery of the second four units will not be an issue. There will be no cost to Okaloosa County to operate these units other than the normal cost of daily operation such as fuel. We trust that this will be acceptable and is demonstration along with our low lease payment of our commitment to help you meet your production and budgetary goals. Mr. Amunds, | really appreciate the opportunity to serve our neighbors right along with you and want to thank you for the trust you have placed with me over the years. | am confident that together we can help Okaloosa County continually prove that it is the place to be. Sincerely, Fohn Edwards John Edwards, Governmental Sales Manager 850-685-7055 jedwards@cowin.com ag y Volvo Financial Services April 25, 2013 FORMAL PROPOSAL OBLIGOR: OKALOOSA COUNTY ¥ This is a finance/ownership contract. v Fixed interest rate for the three (3) year term. EQUIPMENT: OPTION 1 Acquisition Cost: $739,868.00 Term: Three (3) years First Payment Due: At Closing Document Fee: $395.00 Payment Mode: Monthly in Advance Payment Amount (1-36)*: $5,325.53 Trade In: $0.00 Buy Rate: 2.370% Final Payment Due: One Month After 36" Pmt Principal Balance: $740,263.00 Rate Factor: 0.007188 Final Payment Amount (37): $595,868.00 % This is a proposal only and is not a commitment to finance. This proposal is subject to credit review and approval and proper execution of mutually acceptable documentation. # Failure to consummate this transaction once credit approval is granted and the documents are drafted and delivered to Obligor will result in a documentation fee being assessed to the Obligor. # It is the responsibility of the Broker to ensure Obligor is aware of this charge and assist in its collection. # The Buy Rate given is the rate at which Obligee or its Assignee will purchase the obligation. #% This transaction must be credit approved, all documents properly executed and returned to Volvo Financial Services and the transaction funded on ALL proposals on or before May 25, 2013. If funding does not occur within that time-frame, or there is a change of circumstance which adversely affects the expectations, rights, or security of Obligee or its assignees, then Obligee or its assignees reserve the right to adjust and determine a new interest rate factor and payment amount, or withdraw this proposal in its entirety. This transaction must be designated as tax-exempt under Section 103 of the Internal Revenue Code of 1986 as amended. OBLIGOR'S TOTAL AMOUNT OF TAX-EXEMPT DEBT TO BE ISSUED IN THIS CALENDAR YEAR WILL NOT EXCEED THE $10,000,000 LIMIT, OR THE INTEREST RATE IS SUBJECT TO CHANGE. OK VOLVO FINANCIAL SERVICES Signature: Volvo Financial Services Typed Name & Title Date: * If you are awarded this transaction, please complete the following and return this signed Formal Proposal to Baystone Financial Group. * Actual Rate, Rate Factor and Payment Amount Quoted: * This proposal is based on a master lease schedule for all 8 units, using two payment schedules, one for the inital four units and another for the remaining four units. Each of the schedules will be identical. This Proposal is what each schedule will look like and is applicable for the first four units and does not represent the payment amounts for all 8 units inclusively. The monthly payment for each of the eight units will be $1,338.38 each. The terms of the second group of graders is identical to the first group of graders. Volvo Financial Services April 25, 2013 FORMAL PROPOSAL OBLIGOR: OKALOOSA COUNTY ¥ This is a finance/ownership contract. v Fixed interest rate for the three (3) year term. EQUIPMENT: OPTION 1 Acquisition Cost: $739,868.00 Term: Three (3) years First Payment Due: At Closing Document Fee: $395.00 Payment Mode: Monthly in Advance Payment Amount (1-36)*: $5,325.53 Trade In: $0.00 Buy Rate: 2.370% Final Payment Due: One Month After 36" Pmt Principal Balance: $740,263.00 Rate Factor: 0.007188 Final Payment Amount (37): $595,868.00 % This is a proposal only and is not a commitment to finance. This proposal is subject to credit review and approval and proper execution of mutually acceptable documentation. # Failure to consummate this transaction once credit approval is granted and the documents are drafted and delivered to Obligor will result in a documentation fee being assessed to the Obligor. # It is the responsibility of the Broker to ensure Obligor is aware of this charge and assist in its collection. % The Buy Rate given is the rate at which Obligee or its Assignee will purchase the obligation. % This transaction must be credit approved, all documents properly executed and returned to Volvo Financial Services and the transaction funded on ALL proposals on or before May 25, 2013. If funding does not occur within that time-frame, or there is a change of circumstance which adversely affects the expectations, rights, or security of Obligee or its assignees, then Obligee or its assignees reserve the right to adjust and determine a new interest rate factor and payment amount, or withdraw this proposal in its entirety. This transaction must be designated as tax-exempt under Section 103 of the Internal Revenue Code of 1986 as amended. OBLIGOR'S TOTAL AMOUNT OF TAX-EXEMPT DEBT TO BE ISSUED IN THIS CALENDAR YEAR WILL NOT EXCEED THE $10,000,000 LIMIT, OR THE INTEREST RATE IS SUBJECT TO CHANGE. He VOLVO FINANCIAL SERVICES Signature: Volvo Financial Services Typed Name & Title Date: % Ifyou are awarded this transaction, please complete the following and return this signed Formal Proposal to Baystone Financial Group. % Actual Rate, Rate Factor and Payment Amount Quoted: * This proposal is based on a master lease schedule for all 8 units, using two payment schedules, one for the inital four units and another for the remaining four units. Each of the schedules will be identical. This Proposal is what each schedule will look like and is applicable for the first four units and does not represent the payment amounts for all 8 units inclusively. The monthly payment for each of the eight units will be $1,338.38 each. The terms of the second group of graders is identical to the first group of graders. Mr. Don Amunds April 22, 2013 Okaloosa County Commission 302 N Wilson Street Crestview Fl 32536 Re: Buyback offer for Volvo Motor Graders Dear Mr. Amunds, | want to thank you for allowing us to offer Volvo G930B Motor Graders for your consideration. The following conditions will apply to the buyback of the units. 1. Each unit shall be in good working order and will be inspected by Cowin Equipment. Any repairs deemed necessary will be at the sole discretion of Cowin Equipment. All glass shall be intact and shall have no cracks. The sheet metal shall be in good condition and should only reflect normal wear and tear. The tires shall have at least 50% tread life remaining. All maintenance shall be performed in accordance with Volvo recommendations and Volvo filters shall be used. Preventive maintenance checklist will be provided for your use. Documentation of maintenance records will be required. 6. Each unit shall have less than 1500 hours per year of operation. For a three year buyback this will be 4500 hours. 7. Each unit shall be enrolled in 4 year/6000 hour Extended Warranty program. 8. Cowin Equipment will perform regular inspections at no cost to Chilton County. In the event one of the conditions is not met, the cost to remedy will be deducted from the buyback amount. 9. It will be the responsibility of Chilton County to notify Cowin Equipment 90 days prior to the 36 month delivery anniversary. a ee od Three year Buyback $148,967.00 Mr. Amunds, thank you for allowing us to continue to serve your needs. If you have any questions, please feel free to give me a call. Sincerely, Vopr Li A oF fm John Edwards Governmental Sales Manager Cowin Equipment Company 850-685-7055 Okaloosa County Florida A sosostosiospesnedie pio sisi soo sf ifosgosgasgosg0sg0sgosf sg soso oo shasta stapes sts go ss go gta a ego to to fo to to ro to re to te ge ro re toto go te gore sp go