2021-384-01 - REQUEST FOR PROPOSAL ON EQUIPMENT AND VEHICLE FINANCING

The City of Taylor, Texas is purchasing vehicles and equipment for use by city staff in daily operations.

Cost and Financing
The current projection of the costs and financing of the project are shown below:
(1) Police Vehicle - Tahoe    $     64,700

• The payments are to be scheduled on an annual basis starting September 1, 2021, with subsequent charges each year on September 1st, until a total of 5 (five) payments are made.
• No balloon payments are acceptable.
• The City of Taylor’s obligation to make payments is subject to the annual availability of appropriations.  Appropriations are included in the current budget, and the City of Taylor will use its best efforts to obtain such appropriations in subsequent fiscal years.
• The financing agreement must include a standard non-appropriation of funds clause.
• The equipment and vehicles will become the property of the City of Taylor at the end of the term upon making the final payment.
• The City of Taylor will have the right to terminate the financing agreement by purchasing the equipment and vehicles on any payment date by paying the principal balance that remains plus any pre-payment penalty.  The pre-payment penalty may not exceed two percent (2%) of the remaining principal balance.  Existence of a pre-payment penalty will be a factor in the City’s decision to award bids on this financing.  Any bids received with a pre-payment penalty in excess of the above stated percentage will not be accepted.
• The City of Taylor will be responsible for insuring the equipment and vehicles financed.
• The funding amount is not anticipated to exceed $232,600 for the purchase of the equipment and vehicles.  
• The total principal amount will be deposited into an escrow account, and the City of Taylor will receive all interest earned on the escrow account.
• The obligation may not be sold to a third party without the advance written permission of the City of Taylor.
• No loan origination fee, documentation fee or any other fee will be allowed.
• The interest rate will be fixed for the entire life of the obligation.
• The proposed interest rate will be firm for sixty (60) days following the opening of the proposals.
• Funds must be available no later than April 1, 2021 and the City of Taylor intends to draw the entire principal amount no later than December 31, 2021.
• The company making the successful proposal shall indemnify and hold harmless the City of Taylor and its officers, agents and employees from any and all claims, demands, actions, causes of action, liabilities, damages, costs, expenses, and attorney fees, as and when incurred by the City of Taylor and all liability of any kind, descriptions, or character whatsoever or any other loss or detriment brought for or on account of any injuries or damages received or sustained by any person, persons, or property on account of any act or fault of the successful proposing company or its agent, employee, subcontractor, or supplier in the execution of, or performance under, any contract which may result from the award.  The company making the successful proposal shall pay any judgment with cost which may be obtained against the City of Taylor resulting from such injury.  The City of Taylor reserves the right to employ legal counsel of its choice.
• A written addendum will be provided to all parties for any changes made to this request for proposal.  The City of Taylor will not be bound by any oral representation, clarification or change.

• Interest rate stated in terms of Annual Percentage Rate (APR).
• An amortization schedule based on estimated principal that includes separate columns for the total payment, principal, interest, and payoff amount including any pre-payment penalty.
• A statement showing the total financial obligation such as interest and issuance costs throughout the life of the obligation.
• The financing agreement and any other documentation the lender requires in connection with this obligation that do not conflict with the terms and conditions of this request for proposal.
• The most recent financial statements of the financing company, including an unqualified opinion from a certified public accountant.
• At least three (3) references that have used the company for financing on similar terms.
• A copy of the attached summary sheet for the proposal dated and signed by an official who is authorized to make binding commitments for the company.

• The proposal must be signed by an authorized officer or agent having the authority to bind the company in a contract.
• Each proposal must be submitted in a sealed envelope bearing on the outside the name of the company making the proposal and the phrase “Proposal to Finance Equipment 2021-384-01.”
• No electronic or facsimile transmissions will be accepted.
• Any proposal received after the date and time stated for opening will not be considered.
• The company making the successful proposal is required to execute and deliver all necessary contracts and documents within seven (7) calendar days of receiving electronic notice of the acceptance of their proposal.  
• A company may make alternative proposals.  Each alternative should be clearly marked as such and be complete in its own right.
• Any ambiguity in the proposal will be interpreted in the way most favorable to the city.
• No changes, additions or deletions will be allowed after submission of the proposal.
• A proposing company may withdraw their sealed proposal prior to the scheduled opening time provided that the request to withdraw is submitted to the City of Taylor Finance Department in writing