Approved Agreements and Contracts 2023-02-28 Financing a Fire Pumper Truck

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                      Agenda Item Review Form
                           Muskegon City Commission


Commission Meeting Date:                  Title: Financing a Fire Pumper Truck
February 28, 2023


Submitted By: Kenneth D. Grant            Department: Finance


Brief Summary: At this time, we are seeking authorization to enter into a lease agreement
with Huntington Bank for the purchase of a Fire Pumper Truck.


Detailed Summary & Background: Summary: At the August 10, 2021 City Commission
meeting the Commission voted to purchase two Fire Trucks. The first truck has already
been financed in 2021. By the beginning of March 2023, the second Fire Pumper Truck
will be ready to purchase for $761,602.65. At this time, we are seeking authorization to
enter into a lease agreement with Huntington Bank. The proposed terms are for a five-
year lease at 4.4% interest rate with the City purchasing the truck at the end of the lease
for $1. There is a one-time $500.00 processing fee.




Goal/Focus Area/Action Item Addressed: Sustainability in financial practices


Amount Requested:                         Amount Budgeted: $14,163.97 per month for
                                          60 months


Fund(s) or Account(s):                    Fund(s) or Account(s):101-50336-5700


Recommended Motion: To allow staff to enter into a lease agreement with Huntington
Bank for Fire Pumper Truck.


Approvals: Get approval from              Guest(s) Invited / Presenting
division head at a minimum prior
to sending to the Clerk.                  Yes     [J

Immediate Division Head     [i             No     il            L]
Information Technology

Other Division Heads        Ee]                                 C]
Communication

Legal Review                ee


For City Clerk Use Only:

Commission Action:
                                                TERM SHEET

Date:                        February 20, 2023


Issue:                       Installment Purchase Agreement (the “IPA’)
Issuer/Borrower:             City of Muskegon, County of Muskegon, State of Michigan (“Issuer”)

‘Purchaser/Lender:           Huntington Public Capital Corporation (“Huntington”)

Security:                    The Fire Truck

Principal Amount:            $761,602.65


Use of Proceeds:             The City desires to acquire a fire truck.

Bond Counsel:                TBD


Purchaser’s Counsel:         N/A

Closing Date:                March 20, 2023 (estimated)

Tax Status:                  Tax-Exempt (Bank Qualified)

5 Year Final Maturity:       March 20, 2028
 5 Year Interest Rate:       4.40%


 Rate Adjustment:            If the funding of the IPA has not occurred by March 24, 2023, then the Interest Rate and
                             payment will be adjusted to maintain Huntington’s economics as of the date of issuing
                             this Term Sheet.

 Fee to Huntington:          $500 Fee for Document Processing

 Escrow Fee to Huntington:   $500 Fee, if necessary

 Transaction Fees:           All transaction fees, including those of any attorney, shall be the responsibility of the
                             Issuer.


 Interest Payments:          Due and payable monthly, commencing on April 20, 2023 (estimated)

 Principal Payments:         Due and payable monthly, commencing on April 20, 2023 (estimated)

 Optional Prepayment:        The IPA may be subject to optional redemption at any time (in whole, but not in part) at a
                             price equal to the then outstanding balance (“Balance”), plus accrued interest to the date
                             fixed for redemption, plus a prepayment premium calculated as follows: 3% of the
                             Balance if paid in the first year of the IPA term; 2% of the Balance if paid in the second
                             and third years of the IPA term; and 1% of the Balance if paid in the fourth year of the IPA
                             Term; there shall be no prepayment penalty on the IPA if it is called for redemption in the
                             fifth year of the IPA term.

 Direct Placement:            Huntington is extending credit as a lender in the usual course of its loan business through
                             the purchase of the IPA for its own account in its normal and customary business
                             practice, with no current intention on the resale, distribution or transfer thereof.

 Term Bond Election:         The IPA will be single certificate term IPA, with principal payments representing
                              mandatory principal redemptions.
Term Sheet — City of Muskegon — Installment Purchase Agreement                                                                      Page 2


Required Documentation:                   Draft transaction documents prepared by Huntington unless the City has a Bond Attorney
                                          which it prefers to use. If that is the case, the documents will need to be reviewed by
                                          Huntington prior to signature. Huntington also requires a closing memo, with wire
                                          instructions, signed by an officer of the Issuer authorized in the resolution. In addition,
                                          Huntington requires the original IPA, the certified resolution(s), all the signed closing
                                          certificates, the signed legal opinion, if necessary, and a signed 8038G and non-arbitrage
                                          and tax certificate, if the issue is tax-exempt, all emailed two days prior to the closing
                                           date.


Paying Agent:                              Not required by Huntington

Rating:                                    Not required by Huntington

POS/Official Statement:                    Not required by Huntington

CUSIP:                                     Not required by Huntington

 DTC Closing:                              Not required by Huntington

 Proposal Expiration:                      This proposal shall expire at Huntington’s option if (a) Huntington has not received the
                                            Issuer’s written acceptance by March 1, 2023; and (b) if the closing date of the IPA has
                                            not occurred by March 24, 2023.



 Thank you for the opportunity to offer a proposal on this request. We appreciate your consideration and look forward to
 your favorable response. Should you have any questions regarding this term sheet, please do not hesitate to contact me.

 Respectfully Submitted,


 Weredith Ly, Qhanle                                                                   Mare Reen

 Meredith A. Shanle, Vice President                                                    Marc Reen, Vice President, Government Banking
 Huntington Public Capital                                                             Huntington National Bank
 Phone: 313-410-8771                                                                   Phone: 616-235-6486
 Email: Meredith.A.Shanle@Huntington.com                                               Email: Marc.Reen@Huntington.com

 Accepted By:
 City of Muskegon

      (a
 PY       Kenndth Gra
  Name
          Finang Oreedosx
 Title          ra | > 6,

  Date

  Huntington Public Capital® ("HPC"), a division of The Huntington National Bank (the "Bank"), is providing the information         contained in this document for
  discussion  purposes   only in connection  with  an  arm's-length  transaction  under  discussion  between   you and   HPC.   If you  are a “municipal entity" or
  "obligated person" within the meaning   of  the municipal   advisor rules (the  “Rules") of the Securities and  Exchange    Commission,    Rule 15Ba1-1 et seq.
  this information is provided to you pursuant to and in reliance upon the "bank exemption," and/or other exemptionsfrom          and/or the "general information"
  exclusion provided under the Rules. HPC is acting for its own interest and has financial and other interests that differ           yours. HPC is not acting as a
  municipal advisor or financial advisor, and has no fiduciary duty, to you or any other person pursuant to the Rules. The             information provided in this
  document is not   intended  to be and should   not be  construed  as  "advice" within  the meaning  of the Rules.  HPC   is not  recommending    that you take or
  refrain from taking any action with respect to   the  information contained  in  this document.  Before  acting on this information,   you should  discuss it with
  your own financial and/or municipal, legal, accounting, tax and other advisors as you deem appropriate. As used in this notice,               the "Rules" means
  Section 15B of the Securities Exchange Act of 1934, the Securities and Exchange Commission's Rule 15Bat1-1, et seq., and any related municipal
  advisor rules of the Municipal Securities Rulemaking Board, all as they may be amended from time to time.
                                   Interest    Total          Interest           Principal         Outstanding
                 Date       Days     Rate     Payment         Portion             Portion            Balance
Dated Date j 3/20/2023                                                                                761,602.65
     i         4/20/2023     30    4.40%         14,163.97        2,792.54           44,371.43        750,231.22    0.08333333    947.619167
     2         5/20/2023     30    4.40%         14,163.97        2,750.85           11,413.12        738,818.10    0.16666633    1902.18286
     3         6/20/2023     30    440%          14,163.97        2,709.00           11,454.97        727,363.13    0.24999933    2863.73486
     4         7/20/2023     30    4.40%         14,163.97        2,667.00           11,496.97        715,866.16    0.33333233    3832.31184
     5         8/20/2023     30    4.40%         14,163.97        2,624.84           11,539.13        704,327.03    0.41666533    4807.95545
     6         9/20/2023     30    4.40%         14,163.97        2,582.53           11,581.44        692,745.59    0.48999833     5780.7007
     7         10/20/2023    30    4.40%         14,163.97        2,540.07           11,623.90        681,121.69    0.88333133    8780.58509
     8         11/20/2023    30    4.40%         14,163.97        2,497.45           411,666.52       669,455.17    0.66666433    7777.65278
     9         42/20/2023    30    4.40%         14,163.97        2,454.67           41,709.30        657,745.87    0.74999733    8781.94378
    10         1/20/2024     30    4.40%         14,163.97        2,411.73           11,752.24         645,993.63   0.83333033    9793.49808
    41         2/20/2024     30    4.40%         14,163.97        2,368.64           11,795.33        634,198.30    0.91666333    10812.3465
    12         3/20/2024     30    4.40%         14,163.97        2,325.39           11,838.58         622,359.72   0.99999633    11838.5366
    13         4120/2024     30    4.40%         44,163.97        2,281.99           11,881.98         610,477.74   1.08332933    12872.0975
    14         5/20/2024     30    4.40%         14,163.97        2,238.42           11,925.55         598,552.19   1.16666233      13913.09
    15         6/20/2024     30    4.40%         14,163.97        2,194.69           11,969.28         586,582.91   1.24999533    414961.5444
    16         7120/2024     30    4.40%         14,163.97        2,150.80           12,013.47         574,569.74   1.33332833    46017.4999
    17         8/20/2024     30    4.40%         14,163.97        2,106.76           12,057.21         562,512.53   1.41666133    47080.9832
    18         9/20/2024     30    4.40%         14,163.97        2,062.55           12,101.42         550,411.14   1.49999433    48152.0614
    19         40/20/2024    30    4.40%         14,163.97        2,018.17           412,145.80        538,265.31   1,58332733    19230.7771
    20         11/20/2024    30    440%          14,163.97         1,973.64          42,190.33         526,074.98   1.66666033    20317.1395
    21         42/20/2024    30    440%          14,163.97         1,928.94          12,235.03         513,839.95   4.74999333    21411.2209
    22         41/20/2025    30    4.40%         14,163.97         1,884.08          12,279.89         501,560.06   1.83332633    22513.0457
    23         2/20/2025     30    4.40%         414,163.97        1,839.05          12,324.92         489,235.14   1.91665933     23622.673
    24         3/20/2025     30    4.40%         14,163.97         1,793.86          12,370.11         476,865.03   1.99999233    24740.1252
    25         4120/2025     30    4.40%         14,163.97         1,748.51          12,415.46         464,449.57   2,08332533    25865.4423
    26         5/20/2025     30    4.40%         14,163.97         41,702.98         12,460.99         451,988.58   2.16665833    26998.7078
    27         6/20/2025     30    440%          14,163.97         1,657.29          12,506.68         439,481.90   2.24999133    28139.9216
    28         7/20/2025     30    4.40%         14,163.97         1,611.43          12,552.54         426,929.36   2,33332433     29289.147
    29         8/20/2025     30    4.40%         14,163.97         1,565.44          12,598.56         414,330.80   2.41665733    304464024
    30         9/20/2025     30    4.40%         14,163.97         1,519.21          12,644.76         401,686.04   2.49999033    31611.7778
    31         10/20/2025    30    440%          14,163.97         1,472.85          412,691,412       388,994.92   2,58332333    32785.2664
    32         41/20/2025    30    4.40%         14,163.97         1,426.31          12,737.66         376,257.26   2.66665633    33966.9617
    33         12/20/2025    30    440%          14,163.97         1,379.61          12,784.36         363,472.90   2.74998933    35156.8536
    34         1/20/2026     30    4.40%         14,163.97         1,332.73          12,831.24         350,641.66   2,83332233    36355.0389
    35         2/20/2026     30    4.40%         14,163.97         1,285.69          12,878.28         337,763.38   2,.91665533    37561.504
    36         3/20/2026     30    4.40%         14,163.97         1,238.47          12,925.50         324,837.88   2.99998833    38776.3492
    37         4120/2026     30    4.40%         14,163.97         1,191.07          12,972.90         311,864.98   3.08332133    39999,6193
    38         5/20/2026     30    4.40%         14,163.97         4,143.50          13,020.47         298,844.51   3.16665433    41231.3277
    39         6/20/2026     30    4.40%         14,163.97         4,095.76          13,068.21         285,776.30   3.24998733     42471.517
    40         7/20/2026     30    4.40%         14,163.97         1,047.85          13,116.12         272,860.18   3.33332033    43720.2295
    41         8/20/2026     30    440%          14,163.97           999.75          13,164.22         259,495.96   3.41665333    44977.5761
    42         9/20/2026     30    4.40%         14,163.97           951.49          13,212.48         246,283.48   3.49998633    46243.4994
    43         10/20/2026    30    4.40%         14,163.97           903.04          13,260.93         233,022.55   3.58331933    47518.1468
    44         11/20/2026    30    440%          14,163.97           854.42          13,309.55         219,713.00   3.66665233    48801.4926
    45         12/20/2026    30    4.40%         14,163.97           805.61          13,358.36         206,354.64   3.74998533    50093.6541
    46         4/20/2027     30    4.40%         414,163.97          756.63          13,407.34         192,947.30   383331833     513946022
    47         2120/2027     30    4.40%         14,163.97           707.47          13,456.50         179,490.80   3.91665133    52704.4187
    48         3/20/2027     30    4.40%         14,163.97           658.13          13,505.84         165,984.96   3.98998433    54023.1484
    49         4120/2027     30    4.40%         14,163.97           608.61          13,555.36         152,429.60   4,08331733    §5350,8364
    50         5/20/2027     30    4.40%         14,163.97           $58.91          13,605.06         138,824.54   4.16665033    56687.5278
    51         6/20/2027     30    4.40%         14,163.97           509.02          13,654.95         125,169.58   4,24998333    58033.3099
    52         7/20/2027     30    4.40%         14,163.97           458.96          13,705.01         111,464.58   4,33331633    59388.1437
    53         8/20/2027     30    4.40%         14,163.97           408.70          13,755.27          97,709.31   4.41664933    60752.2041
    54         9/20/2027     30    4.40%         14,163.97           358.27          13,805.70          83,903.64   4.49998233    62125.4061
    55         10/20/2027    30    4.40%         14,163.97           307.65          13,856.32          70,047,29   4,58331533    63507.8839
    56         41/20/2027    30    440%          14,163.97           256.84          13,907.13          56,140.16   4.66664833     64899,685
    57         12/20/2027    30    4.40%         414,163.97          205.85          13,958.12          42,182.04   4.74998133    66300.8094
    58         4/20/2028     30    440%          14,163.97           154.67          14,009.30          28,172.74   4,83331433    677171.3505
    59         2/20/2028     30    4.40%         14,163.97           103.30          14,060.67          14,112.07   4.91864733    69131.3557
    60         3/20/2028     30    4.40%         14,163.81               51.74       14,112.07               0.00   4.99998033    70560.0725
                                                                                                                    §,08331333              0


Grand Totals                                    849,838.06       88,235.41          761,602.65                                              0
                                                                                                                                  2005342.51
                                                                                                                                  2.63305612

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