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HomeMy WebLinkAbout2018-04-16-I02 Golf Course Equipment Lease Purchase_Additional ActionAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: April 16, 2018 AGENDA ITEM:Consideration of approval of a resolution instituting proceedings to take additional action for the authorization and issuance of a General Obligation Lease Purchase Agreement in the amount of not to exceed $35,000 for the acquisition of golf course equipment FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:Amount not to exceed $35,000. $5,552.50 per year for five years. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the resolution approving a General Obligation Lease Purchase Agreement in the amount of not to exceed $35,000 for the acquisition of golf course equipment. ATTACHMENTS: I. Proposed Resolution II. Lease Documents PREPARED BY: Matt Jermier REVIEWED BY: I2 RESOLUTION 18- RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION AND ISSUANCE OF A GENERAL OBLIGATION LEASE PURCHASE AGREEMENT IN THE AMOUNT OF NOT TO EXCEED $35,000 FOR THE ACQUISTION OF GOLF COURSE EQUIPMENT WHEREAS, pursuant to notice published as required by law, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the authorization and the issuance of not to exceed $35,000 General Obligation Lease Purchase Agreement, for the purpose of paying costs of the lease or lease-purchase of golf course equipment, and has considered the extent of objections received from residents or property owners as to the proposal and, accordingly the following action is now considered to be in the best interests of the City and residents thereof: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF CITY OF WAUKEE, STATE OF IOWA: Section 1. That this Council does hereby institute proceedings and take additional action for the authorization and issuance in the manner required by law of not to exceed $35,000 General Obligation Lease Purchase Agreement, to evidence the obligation thereof for the foregoing purpose. PASSED AND APPROVED this 16th day of April, 2018. Mayor ATTEST: City Clerk ! ! "#$%!&’#()*+,-!./0+1#2+! 345($!65$7+-!852#+!39;<=!<#$/05>+!?)-(@,=! !! ! "#$%&’()%*+,-.($-/01234&0(56!7-)8!989;8;<!=>;??9!@A!!=B;CB9D;?!;;EDC!30! ! 4FG-!;! ! ’,-!HI-FJ-KE!!!&’#()*+,-!./0+1#2+!A#*B+$!CCDECFGHFCHEHCI!J5-+1!65$/0!HFK!ICHL!-@!65>-+$!M+5>+!A#*B+$!FGHFCHM!J5-+1!N5,#5$O!HPK!ICHD! HI-JJ--KE9(-O!@%!Q5#7++K!R@S5K!IPC!T(/7*5,!U@51K!Q5#7++K!R;!!GCIFP! 2#5LF+LE!M(,15!V#$705$-!4,#5-E!! 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Golf_OpinionOfCounsel ver. 01.21.14 351882 SL 3/16/2018 10:55 AM Page 1 OPINION OF COUNSEL (To be on Attorney's Letterhead) Date: Lessee: City of Waukee, Iowa 230 Hickman Road, Waukee, IA 50263 Lessor: VGM Financial Services, a division of TCF National Bank 1111 West San Marnan Dr, Suite A2 West Waterloo, IA 50701-8926 Re: Contract 004-0651601-102, dated as of March 16, 2018, to Master Lease Number 651601L dated January 13, 2014 by and between City of Waukee, Iowa and VGM Financial Services, a division of TCF National Bank Ladies and Gentlemen: I have acted as counsel to Lessee with respect to the contract described above (the “Lease”) and various related matters, and in this capacity have reviewed a duplicate original or certified copy of the Lease and exhibit thereto. Based upon the examination of these and such other documents as I deem relevant, it is my opinion that: 1. Lessee is a public corporation and political subdivision of the State of Iowa (the "State") duly organized, existing and operating under the Constitution and laws of the State. The full, true and correct legal name of Lessee is ___________________________________________________. 2. The Uniform Commercial Code, as adopted in the State (the “UCC”), and no other statute of the State, governs the creation, perfection, priority or enforcement of a security interest created by Lessee. 3. Lessee is authorized and has power under State law to enter into the Lease, and to carry out its obligations thereunder and the transactions contemplated thereby. 4. The Lease and the other documents described above have been duly authorized, approved, executed and delivered by and on behalf of Lessee, and the Lease is a valid and binding contract of Lessee enforceable in accordance with its terms, except to the extent limited by State and Federal laws affecting remedies and by bankruptcy, reorganization or other laws of general application relating to or affecting the enforcement of creditors' rights. 5. The authorization, approval and execution of the Lease and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all open meeting laws, public bidding laws and all other applicable State and Federal laws. 6. The execution of the Lease and the appropriation of moneys to pay the payments coming due under the Lease do not result in the violation of any constitutional, statutory or other limitation relating to the manner, form or amount of indebtedness which may be incurred by Lessee. 7. There is no litigation, action, suit, or proceeding pending or before any court, administrative agency, arbitrator or governmental body, that challenges the organization or existence of Lessee; the authority of the organization or existence of Lessee; the authority of its officers; the proper authorization, approval and execution of the Lease and the other documents described above; the appropriation of monies to make Rental Payments under the Lease for the Golf_OpinionOfCounsel ver. 01.21.14 351882 SL 3/16/2018 10:55 AM Page 2 current fiscal year, or the ability of Lessee otherwise to perform its obligations under the Lease and the transactions contemplated thereby. This opinion of counsel may be relied upon by Lessor and its successors and assigns. Very truly yours, Golf_ FMV_Resolution_Muni v 06.03.16 351882 3/16/2018 10:39 AM RESOLUTION LEASE NO. 004-0651601-102 DATED AS OF MARCH 16, 2018 A resolution authorizing the negotiation, execution, and delivery of Lease No. 004-0651601-102 dated March 16, 2018 (the “Lease”), between City of Waukee, Iowa, 230 Hickman Road, Waukee, IA 50263 and VGM Financial Services, a division of TCF National Bank, 1111 West San Marnan Dr, Suite A2 West, Waterloo, IA 50701-8926; and prescribing other details in connection therewith. WHEREAS, City of Waukee, Iowa, (the "Lessee") is a political subdivision duly organized and existing pursuant to the Constitution and laws of the State of Iowa; and WHEREAS, Lessee is duly authorized by applicable law to acquire such items of personal property as are needed to carry out its governmental functions and to acquire such personal property by entering into lease-purchase agreements; and WHEREAS, Lessee hereby finds and determines that the execution of a Lease for the purpose of leasing with the option to purchase the property designated and set forth in the Lease is appropriate and necessary to the function and operations of the Lessee; and WHEREAS, VGM Financial Services, a division of TCF National Bank, (the "Lessor") shall act as Lessor under said Lease; and WHEREAS, the Lease shall not constitute a general obligation indebtedness of the Lessee within the meaning of the Constitution and laws of the State; NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF City of Waukee, Iowa: Section 1. The Lease, in substantially the form as presently before the governing body of the Lessee , is hereby approved, and the ________________________ of the Lessee, is hereby authorized to negotiate, enter into, execute, and deliver the Lease and related documents in substantially the form as presently before the governing body of the Lessee, with such changes therein as shall be approved by such officer, and which Lease will be available for public inspection at the offices of Lessee. Section 2. The Lessee shall, and the officers, agents and employees of the Lessee are hereby authorized and directed to take such further action and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Resolution, and to carry out, comply with and perform the duties of the Lessee with respect to the Lease. Section 3. The Lessee’s obligations under the Lease shall be expressly subject to annual appropriation by Lessee; and such obligations under the Lease shall not constitute a general obligation of Lessee or indebtedness of Lessee within the meaning of the Constitution and laws of the State of Iowa. Section 4. All other related contracts and agreements necessary and incidental to the Lease are hereby authorized, ratified and approved. Section 5. This resolution shall take effect immediately upon its adoption and approval. CERTIFIED AS TRUE AND CORRECT this _____ day of __________________, 20____. ______________________________________________ Signature of Clerk, Secretary or Assistant Secretary ______________________________________________ Printed Name of Clerk, Secretary or Assistant Secretary ! "#$%&’()*(&+$,#-.($,/!0123134135!673884!9;!6<3=<4238!32>6?!@"! 3! ! ! "#$%&’&"(%#!)’!&*"+,-#*".! !/#(0#!*)1!223425675274728! !9(%#9!(0!)’!,;<=>!75?!827@! ! ! ! +A!&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&A!BC!D(E(./!,(EF%G/!FD)F!+!)-!FD(! B#H/!(H(,F(B!CE!)IIC%$F(B!)$B! ),F%$J!KH(EL<M(,E(F)E/!CG!K%F/!CG!9)#L((A!+CN)!OFD(!P’(**((PQA!)!ICH%F%,)H!*#.B%0%*%C$!B#H/!CEJ)$%R(B!)$B!(S%*F%$J!#$B(E! FD(!H)N*!CG!FD(!MF)F(!CG!+CN)A!)$B!FD)FA!)*!CG!FD(!B)F(!D(E(CGA!FD(!%$B%0%B#)H*! $)-(B!.(HCN!)E(!FD(!B#H/!(H(,F(B! CE! )IIC%$F(B!CGG%,(E*!CG!FD(!’(**((!DCHB%$J!FD(!CGG%,(*!*(F!GCEFD!CIIC*%F(!FD(%E!E(*I(,F%0(!$)-(*1!!!! ! ! ! T@"U! ! ! ! V+V’U! ! ! ! M+WT@V;XU! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! +T!9+VTUMM!9YUXUZ[A!+!D)0(!B#H/!(S(,#F(B!FD%*!,(EF%G%,)F(!!FD%*!&&&&&!B)/!CG!&&&&&&&&&&&&&&&&&&&A!42&&&&1! ! ! ! M%J$(B>! ! ! ! ! ! ! ! V%FH(>! ! ! ! ! ! ! ! TZVU>!!VD(!KH(EL!CE!M(,E(F)E/!CG!FD(!’(**((!*DC#HB!*%J$!#$H(**!FD)F!I(E*C$!%*!)H*C!FD(!*%J$CE!CG!FD(!BC,#-($F*!%$!ND%,D!,)*(!FD(!\E(*%B($F!CE!*C-(! CFD(E!ZGG%,(E!CG!FD(!’(**((!*DC#HB!(S(,#F(!FD%*!BC,#-($F1! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! Insurance Certificate Request 11100 Wayzata Blvd, Suite 801 Minnetonka, MN 55305 THE INFORMATION CONTAINED IN THIS FACSIMILE IS CONFIDENTIAL AND IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL NAMED ABOVE.IF THE READER OF THIS INFORMATION IS NOT THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED AND YOU ARE DIRECTED TO DESTROY IT.IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE CONTACT US IMMEDIATELY BY TELEPHONE AT 800-442-7811. Insurance_CertRequest_Lease ver.09.03.14 351882 SL 3/16/2018 10:39 AM To To Whom It May Concern From Marisa Meyers Company Fax (866) 465-3149 Fax Phone (800) 215-4738 x Phone Email mmeyers@financediv.com Subject INSURANCE CERTIFICATE REQUEST Date March 16, 2018 Message: Our mutual customer, City of Waukee, Iowa,is leasing equipment through VGM Financial Services, a division of TCF National Bank. We are in need of an INSURANCE CERTIFICATE for the equipment leased prior to us closing out their transaction. Please see below for specifics. Thanks! Please include the following items on the certificate: 1. INSURED: City of Waukee, Iowa, 230 Hickman Road, Waukee, IA 50263 2. COVERAGES: •Liability Insurance – Minimum $1,000,000.00 per occurrence in Combined Single Limit or such greater minimum as may be prescribed by any applicable state law specifying minimum insurance requirements. !Policy Number !Policy Effective Date & Policy Expiration Date •Property Damage – Cost: $28,500.00 or ACV !Comprehensive & Collision Deductibles (if applicable) or Physical Damage Deductible (Shall not exceed $10,000 or 10% of Total Cost) !Policy Number !Policy Effective Date & Policy Expiration Date 3. DESCRIPTION OF EQUIPMENT: (1) Jacobsen Greens King IV Plus Triplex Mower together with all attachments and accessories thereto Or reference: “Leased Equipment on TCF Contract Number 004-0651601-102”, if the description is too long 4. TCF National Bank, its successors and assigns needs to be listed as Loss Payee & Additional Insured on the Insurance Certificate. If you have any questions, please feel free to contact me. Please send the certificate to my attention as soon as possible to mmeyers@financediv.com or fax to (866) 465-3149. Thank you! Marisa Meyers Senior Transaction Coordinator VGM Financial Services, a division of TCF National Bank, 1111 West San Marnan Dr, Suite A2 West, Waterloo, IA 50701-8926 AUTHORIZATION FOR AUTOMATIC ELECTRONIC PAYMENT ACH.doc ver. 04.01.2005 351882 SL 3/16/2018 11:07 AM By signing and completing this Authorization and returning it to VGM Financial Services, a division of TCF National Bank (together with its successors and assigns, “Creditor”), you authorize all payments due to Creditor under all existing and future agreements with Creditor (as amended or otherwise modified from time to time, the “Contracts”) to be made from the designated account on the terms and conditions set forth herein. Please make your regular payment until your invoice indicates that automatic electronic payment will be made. Please complete the following (if any account information is not completed, you authorize Creditor to rely on the attached check or deposit slip to obtain the relevant information). Name of Account Holder: ________________________________________________________ Authorized Signature: _______________________________________________ Date:________________________ Title of Signor (if Account Holder is NOT an individual): ____________________________________________ Name of Financial Institution: ___________________________________________________________ Account Number: __________________________________________ (Account is a Checking Account or Savings Account) Bank Routing Number: _______________________________________________________ (usually found next to account number) PLEASE ATTACH A VOIDED CHECK (a deposit slip may be attached if account does not have checks) Terms and Conditions: You authorize Creditor to initiate debit entries to your designated account for making your payments due to Creditor, including your regularly scheduled payment amount plus any past due amounts and any other outstanding fees and charges due and owing under your Contracts. Creditor typically will initiate such debit entries on your regularly scheduled due dates. If a due date falls on a weekend or holiday, Creditor may initiate the debit entries on either (i) the last business day prior to the due date or (ii) the first business day after the due date. If an attempted debit entry is returned for any reason, including insufficient funds, Creditor may assess a fee for each failed debit entry and may, but is not required to, attempt the debit entry up to two (2) more times. Creditor also may make credit entries to your designated account for purposes of adjusting debit entries made in error. This authorization will remain in full force and effect until Creditor has received written notice of your intent to cancel this authorization in such time and in such manner as to afford Creditor a reasonable opportunity to act on such notice. Creditor may cancel or suspend your automatic payment at any time and require non- automatic payments. If Creditor suspends automatic payment at its discretion, it may subsequently resume automatic payment. You represent that the designated account is used primarily for business and commercial purposes. You should immediately notify Creditor of any automatic payment error. If you desire to change the account from which automatic payments are made, you must timely notify Creditor and execute a new Authorization for Automatic Electronic Payment. Payments under this Authorization will be made using the automated clearing house (“ACH”) funds transfer system and will be made in accordance with this authorization, the ACH Rules and other applicable law in effect from time to time. This authorization does not alter or lessen your obligations under your Contracts with Creditor including but not limited to those provisions regarding the amount of the monthly payments, when payments are due, the application of payments, the assessment of late charges or the determination of delinquencies. For Office Use Only (do not complete) Contract No. ____________________________ First ACH Date: ____________________________ !"#$%"&’()*+(,--"./)*-"( ! "#$%&#’()*++#,-./+#!&#’0!1231435166!726885!9;!736<35168!61=7>!*?! ! ! ! @A#BB##C! 0$/’(12(3)45""6(718)6(9;<(=$-5>)*(?1)+6(3)45""6(7,((@<9A;((( @A#BBD’C! BCD(E$*)*-$)#(F"&%$-"G6()(+$%$G$1*(12(H0E(I)/$1*)#(J)*56(KKKK(3"G/(F)*(D)&*)*(!&6(F4$/"(,9(3"G/6(3)/"&#116(7,((@<L<KMNO9A( ( ( ( "#$%&#’(!./E!*++#,-./+#!.F’##G#/-!.--.+H#E!-D!./E!G.E#!.!,.’-!DI!A#.B#(<<PM<A@KA<KMK<9(E.-#E(D)&-Q(KA6(9<KN(J-H#!KA#.B#KLR( ! HQ$G(0"&/$2$-)/"(&"#)/"G(/1(/Q"(ST4$.>"*/(U/Q"(VST4$.>"*/WX(/Q)/($G(+"G-&$Y"+($*(/Q"(Z")G"R( ! MN’BN./-!-D!-H#!A#.B#O!A#BB##!.+P/DQ$#EF#B!-H.-!A#BBD’!H.B!.+RN%’#E!-H#!SRN%,G#/-!%/!+D//#+-%D/!Q%-H!-H#!A#.B#!./E!A#BB##!H.B!#%-H#’! ’#+#%&#E!.!+D,(!DI!-H#!,N’+H.B#!.F’##G#/-!Q%-H!-H#!&#/ED’!DI!-H#!SRN%,G#/-!D/!D’!T#ID’#!B%F/%/F!-H#!A#.B#!D’!H.B!.,,’D&#E!BN+H!,N’+H.B#0!! 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