HomeMy WebLinkAboutAGR-7915 - PNC BANK - PIERCE ENFORCER URBAN SEARCH & RESCUE APPARATUSDocusign Envelope ID:088311 F8-9584-4806-AD36-5DA1 B035B051
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FINANCIAL SOLUTIONS
Initial
AGR-7915 naNovember25, 2025 TAX EXEMPT LEASE PURCHASE
Sales Organization: South Coast Equipment:Pierce
Sales Representative: Tim 011ey Search and Rescue
Lessee: City of Orange Apparatus Cost: 2,031,793.00
Delivery Time: Per contract Taxes/discounts: -$100,186.50
Payment Type: Yearly Down Payment: 0.00
First Payment Due Date: 1 year after lease start Trade In: Amount 0.00
Commencement Date: TBD Financed: 1,931,606.50
Term 5 Year Lease Purchase
5
434,256.93
4.03%
TYPE OF FINANCING: Tax-exempt Lease Purchase Agreement with a$1.00 buy-out option at end of lease term. Said agreement
shall be a net lease arrangement whereby lessee is responsible for all costs of operation, maintenance, insurance, and taxes.
PERFORMANCE BOND:To utilize the prepay program, a performance bond is required. Said performance bond shall be paid for
directly to Pierce Manufacturing or financed by PNC Bank as part of the transaction.
1.AUTHORIZING RESOLUTION AND SIGNORS:The lessee's governing board shall pass a Resolution or ordinance
acceptable to PNC Bank, National Association ("PNC") (PNC's form is strongly preferred)authorizing the transaction
designating the individual(s)to execute all necessary documents used therein.
2. BANK QUALIFICATION: This proposal assumes that the lessee will not be issuing more than $10 million in tax-exempt
debt this calendar year.Furthermore, it is assumed that the lessee will designate this issue as a qualified tax-exempt
obligation per the tax act of 1986.
3. LEGAL TITLE: Legal title to the equipment during the lease term shall vest in the lessee,with PNC perfecting a first
priority security interest.
4.LEGAL OPINION: The lessee's counsel shall furnish PNC with an opinion in a form and substance satisfactory to PNC
PNC's form is strongly preferred).
5. ESCROW FUNDING OPTION: At lease closing, if all of the equipment has not yet been delivered, Lessor will fund an
escrow account from which disbursements will be made to the equipment provider(s) upon receipt of a Requisition Request
and Certificate of Acceptance from Lessee. Escrow agent will either be Lessor or third-party provider selected by Lessor
and approved by Lessee. All escrow earnings will be for the benefit of Lessee.The escrow agent will assess a$250.00
account set up fee payable at closing.
VOLUNTEER FIRE DEPARTMENTS: If Lessee is a Volunteer Fire Department, a public hearing under the requirements of Section
147(f)of the Internal Revenue Code of 1986 shall be conducted to authorize this transaction. It is recommended that a notice of the
public hearing be published 10 to 14 days in advance of the public hearing.
This proposal will be valid for Seven Days (7)from the above date and is subject to final credit approval by PNC Bank and approval
of the lease documents in PNC Bank's sole discretion. To render a credit decision, lessee shall provide PNC Bank with their most
recent three years audited financial statements, copy of their most recent interim financial statement,and current budget.
City of Orange
oocuaq„w ey.
Proposal Accepted : Su 6_ Proposal Submitted :
Lessee:
D 1t R. Slater, Mayor
Representative:Kim Simon
TTEST:
cid.,--
areveteweerteman,City Clerk PNC Bank I Kim Simon I Vice President
PPRovED As To FORM: Phone: 614.670.3994 I Fax: 866.852.3101 I Kim.Simon@PNC.com
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Docusign Envelope ID:088311 F8-9584-4806-AD36-5DA1 B035B051
Budgetary Numbers: Date 5 Year Lease Purchase
Pierce Apparatus: 1) Search and Rescue Unit December 2025 Order/Lease Start
Estimated Delivery: Per Contract December2026 434,256.93
Cost: 2,031,793.00 December2027 434,256.93
Sales Tax @ 7.75%: 157,463.96 December 2028 434,256.93
CA Tire fee: 17.50 December 2029 434,256.93
Consortium Fee: 2,000.00 December2030 434,256.93
Performance Bond: 4,977.89 Rate 4.03%
Total Cost without Discounts: 2,196,252.35 Total Pa ments 2,171,284.64
Effective Rate 0.38%
Cost: 2,031,793.00
Budgetary Prepayment Discount: $245,611.00 Rate as of November 25,2025 and is fixed at closing.
Cost with Discounts: 1,786,182.00
Sales Tax @ 7.75%: 138,429.11 Effective rote is the rate based on the price of the apparatus excluding
CA Tire Fee: 17.50 prepayment discounts.It's what the rate needs total!to at the time of
Consortium Fee: 2,000.00 delivery to obtain the lease payment available today with the 100%the
Performance Bond: 4,977.89 lease payment available today with the 100%prepayment discount.
Amount Financed: 1,931,606.50
Total Savings: 264,645.85