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Home My WebLink AboutResolution No. R2025-29RESOLUTION NO. R2025-29 A RESOLUTION OF THE CITY OF COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A FINANCE CONTRACT WITH GOVERNMENT CAPITAL CORPORATION FOR THE FINANCING OF TECHNOLOGY AND VARIOUS EQUIPMENT, INCLUDING, BUT NOT LIMITED TO, GENERATORS AND ASSOCIATED EQUIPMENT, EMERGENCY EQUIPMENT, AND AMBULANCE CHASSIS AND REFIT IN AN AMOUNT NOT TO EXCEED ONE MILLION THREE HUNDRED SEVENTY-EIGHT THOUSAND NINE HUNDRED SIXTY-ONE AND NO1100 DOLLARS ($1,378,961.00); AUTHORIZING ADVANCE FUNDING AND EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED; AND PROVIDING FOR THE EFFECTIVE DATE. WHEREAS, the City of Friendswood (the "City") desires to enter into a certain Finance Contract by and between the City and Government Capital Corporation ("GCC") for the purpose of financing technology and various equipment, including, but not limited to, generators and associated equipment, emergency equipment, and ambulance chassis and refit (collectively the "Financed Project"); and WHEREAS, the City desires to reimburse itself for the costs associated with the Financed Project from the proceeds of obligations to be issued subsequent to the date hereof; and WHEREAS, the City desires to designate City Manager Morad Kabiri as an authorized signer of the Finance Contract; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF TEXAS: Section 1. The facts and matters set forth in the preamble of this resolution are hereby found to be true and correct. Section 2. That the City Council hereby authorizes the City Manager to enter into a Finance Contract with Government Capital Corporation and to execute other necessary documents for the purpose of financing the Financed Project subject to the following not to exceed: PropertyPublic Equipment Costs $ 1,378,961.00 Annual Term 5 payments Interest Rate 4.45% Payment Amount $309,128.89 Payments Beginning March 2026, annually thereafter Section 3. The City reasonably expects to reimburse itself for costs that have been or will be paid subsequent to the date that is sixty (60) days prior to the date hereof and that are to be paid in connection with the Financed Project from the proceeds of the obligations to be issued subsequent to the date hereof in accordance with Treasury Regulation § 1.150-2, as promulgated under the Internal Revenue Code of 1986, as amended. Section 4. That the City reasonably expects that the maximum principal amount of the obligations issued to reimburse the City for costs associated with the Financed Project will not exceed the ONE MILLION THREE HUNDRED SEVENTY-EIGHT THOUSAND NINE HUNDRED SIXTY-ONE AND NO/100 DOLLARS ($1,378,961.00). Section 5. That unless otherwise advised by bond counsel, any reimbursement allocation will be made not later than eighteen (18) months after the later of (i) the date the original expenditure is paid or(ii)the date on which the Financed Project to which the expenditure relates is placed in service or abandoned, but in no event more than three (3) years after the original expenditure. Section 6. This resolution shall be effective immediately upon its passage and approval. INTRODUCED,READ, AND PASSED by the affirmative vote of the City Council of the City of Friendswood on this the 8th day of September, 2025. MI E F• ' . Mayor ATTEST: e- ( Y° FFt�EN�� 4 / / / k,f6114-i - -0 RA E I ARTINEZ, City Secre co APPROVED AS TO FORM: TE OF FLI -qc9(A1C01) KAREN L. HORNER, City Attorney H:\City Council\Resolutions\2025\09-08-2025\Resolution-Financing Agreement with Government Capital Corporation.docx 2 4, , GOVERNMENT CAPITAL CORPORATION Financing Proposal Prepared For TM *v„coos WO '.- " t • "# j;s; / • 11, TEXAS City of Friendswood August 29, 2025 Submitted By Government Capital Corporation 345 Miron Drive Southlake, Texas 76092 Matt Sullivan Municipal Finance Specialist I Client Services Main: (817) 421-5400 Direct: (817) 722-0212 4414 GOVERNMENT CAPITAL CORPORATION Table of Contents Corporate Overview 3 Representative Experience 3 Partial Listing of Texas City Clients 4 Proposal Summary 5-6 Resolution 7 GOVERNMENT CAPITAL CORPORATION Corporate Overview Government Capital Corporation(GCC)was founded in 1992 with the primary purpose of providing tax-exempt financing solutions for state and local government entities including cities, schools, counties, and special districts. Since our inception, GCC and its affiliates have provided financing solutions exceeding $6 billion for many different types of projects. These financings have provided funding for a wide variety of municipal needs including vehicles, technology, facilities, and heavy-duty equipment. Although we serve clients in all 50 states,one of our primary areas of focus is assisting Texas cities with acquiring essential personal property and equipment. Our team possesses extensive experience assisting local Texas governments in creating, evaluating and implementing financing structures of every type authorized by state borrowing authorities.Since our inception,we've been honored to provide financing solutions for over 560 Texas cities, representing over 45 percent of the cities in the state. In many cases, we have helped our clients adapt to and comply with regulatory changes as well as enable them to execute financings more rapidly, efficiently,and economically. Representative Experience City of Mathis - Government Capital's longest client relationship is with the City of Mathis, Texas. From the firm's very first funding in January of 1993 to the present day,GCC has provided the City of Mathis with millions of dollars in financing. Projects have included public works,public safety,capital equipment, energy efficiency, and technology improvements as well as various economic development projects. City of San Saba - For over 20 years, Government Capital has assisted the City of San Saba with providing tailored financing solutions for more than 55 projects.With GCC's support,the city has financed a wide variety of vehicles,equipment,infrastructure improvements, and real estate acquisitions. The city's Economic Development Corporation has also partnered with Government Capital to fund playground and water park projects. City of Van Horn - Since 2002, GCC has partnered with the City of Van Horn to create various financing solutions that fit the needs of the city.Projects have included numerous vehicle and equipment acquisitions as well as utility improvement projects. City of Corrigan-Government Capital's relationship with the City of Corrigan began in 2006 and has included funding a variety of acquisitions for police vehicles, technology, and public safety equipment. Most recently, the city financed a water meter replacement project to install radio-read meters to recapture water loss. City of Hillsboro-Since 2010,the City of Hillsboro and Government Capital have completed numerous projects and acquisitions together. These projects have included public safety vehicle acquisitions, HVAC upgrades, capital equipment procurement, and utility meter updates.Most recently,the city financed hardware and software technology upgrades for the police department. City of Post - Government Capital has partnered with the City of Post since 2020 to fund projects from heavy equipment acquisitions to water meter replacements.Additionally,GCC has provided multiple refinancings designed to reduce interest costs, allowing the city to reallocate critical funds. City of La Feria-Since 2005,Government Capital has provided financing solutions to the City of La Feria.Funded projects have included acquiring public safety vehicles and public works equipment. Most recently, GCC funded a city-wide utility meter replacement project. I/ 1110 GOVERNMENT CAPITAL CORPORATION Partial Listing of Texas City Clients trbBRADY km/ �.� ems' -10'''1 ,, TROUP-TEXAS411;P TEXAS *ii ,,,� _, City of Brady City of Stephenville City of Troup City of Anson CITY Of 2 4 OF k 4 0466 EASTLAND *,� 0,,„ TEXAS City of Dilley City of Early City of Eastland City of Katy s, ..411 v 0134 / `je as Ai if.. .1- City of Rails City of Poteet City of Dublin City of Whitney o e ► t 0) o • V 0�yliab ..PE%►.S,;' 1DIOI ' om Town of Anthony City of Panhandle City of Roma City of Liberty Hill o4,,. PE G S ..90.1.10 T.) I ►. % A 4 ,l City of East Tawakotti Town of Pecos City City of Dalhart City of Hidalgo t... .__ cRm orE R, _ -. CITY OF C. -`- A II � l, ,i 1 / LAMESA CANYON City of Mineral Wells City of Chandler City of Lamesa City of Canyon 410 GOVERNMENT CAPITAL CORPORATION August 29, 2025 Bloskas CGFO Rhonda, CPA City of Friendswood (281) 996-3216 rbloskas@friendswood.com Dear Mrs. Bloskas, CPA, CGFO, Thank you for the opportunity to present proposed financing for The City of Friendswood. I am submitting for your review the following proposed structure: ISSUER: City of Friendswood, TX FINANCING STRUCTURE: Public Property Finance Contract issued under Local Government Code Section 271.005 EQUIPMENT COST: $ 1,378,961.00 ANNUAL TERM: 5 Payments INTEREST RATE: 4.45% PAYMENT AMOUNT: $ 309,128.89 PAYMENTS BEGINNING: March 2026, annually thereafter The above payment amount includes all applicable fees expressed as 0.01. These costs can include documentation fees, legal fees, issuance expenses, etc. The above proposal is subject to audit analysis, assumes bank qualification and mutually acceptable documentation. The terms outlined herein are based on current markets. Upon credit approval, rates may be locked for up to thirty (30) days. If funding does not occur within this time period, rates will be indexed to markets at such time. Our finance programs are flexible and as always, my job is to make sure you have the best possible experience every time you interact with our brand. We're always open to feedback on how to make your experience better. If you have any questions regarding other payment terms, frequencies or conditions, please do not hesitate to call. With Best Regards, Matt SU,U /Va , Matt Sullivan Client Services Main: 817-421-5400 The transaction described herein is an arm's length,commercial transaction between you and Government Capital Corporation. The terms of the proposed financing are being provided solely in response to your specific inquiry and for your professional consideration. Compound Period: Annual Nominal Annual Rate: 4.450% AMORTIZATION SCHEDULE-Normal Amortization,360 Day Year Date Payment Interest Principal Loan 9/29/2025 1 3/3/2026 309,128.89 26,684.71 282,444.18 2 3/3/2027 309,128.89 49,408.64 259,720.25 3 3/3/2028 309,128.89 37,851.09 271,277.80 4 3/3/2029 309,128.89 25,779.22 283,349.67 5 3/3/2030 309,128.89 13,170.18 295,958.71 Grand Totals 1,545,644.45 152,893.84 1,392,750.61