Proposal - public-finance - 2017 vehicle and equipment lease financing

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I� Request for Proposals - Tax Exempt Municipal Lease Financing March 3, 2017 Date: March 3, 2017 City of South Bend, Indiana Various new vehicles and equipment per the attached Equipment Specification List. The Equipment Specification List Is a general description of the vehicles and equipment to be purchased. It is expected that modifications to this listing may be necessary. Cost: South Bend Vehicles and Equipment: Solid Waste - $820,000.00 Building Department - $69,000.00 Water Works - $960,000.00 Organic Resources - $900,000.00 Code Enforcement - $167,500.00 Total - $2,916,500.00 Payments: Five year term. Lessee shall make ten (10) equal, consecutive semi-annual payments beginning on January 14, 2018. Payments will be on January 14th and July 14th. The interest rate and semi-annual lease payments will be provided by the lessor in its proposal. The City requests a fixed interest rate and semi-annual lease payment that is guaranteed not to change if closing occurs by April 14, 2017. Option: At the end of the lease, the Lessee will have the option to purchase the equipment for one dollar ($1.00). Approval Date: Tuesday, March 28, 2017 by the City of South Bend Board of Public Works (Agenda Items due date March 21, 2017) (Agenda Review date March 23, 2017) r of Closing/Escrow Funding: (Friday, April 14, 2017 ISecurity/Insurance: The -Lessor will retain title to the equipment throughout the term. The Lessor shall retain a first priority security Interest In the equipment until the Lessee has performed all duties required under the lease. Lessee will provide appropriate proof of Insurance upon request. The Lessor will secure title after the lease term is completed. for Payment Tax Reporting The Lessor or escrow trustee shall be responsible for any Form 1099 tax reporting on payments made to vendors from the escrow account. ,ayment: The Lessee shall be allowed to prepay the lease at any payment due date. A prepayment penalty, if any, will be stated by the Lessor in its proposal. Fund Source: Funding through user charges, property taxes, Income taxes, gas taxes and other revenue. Lease: The lease will be a net obligation and all costs and responsibilities associated with ownership including maintenance, insurance, licenses and other items shall be borne by the Lessee. As a governmental unit, the City of South Bend is exempt from sales, use and property taxes. tract: Contract subject to review by the City of South Bend's Legal Department and City Controller. 'ow Funding: The Lessor will establish an escrow account for the payment of equipment purchased under this lease agreement. Any Interest earnings from the escrow account will be for the benefit of the Lessee. K Documentation or other closing fees, if any, will be stated In the Lessor's proposal. irtlzation Schedule: A principle and Interest amortization schedule will be provided by the Lessor with the proposal. on: Non -Bank qualified (more than $10,000,000.00 in debt will likely be issued during 2QWPEOVE Duo Date: Monday, March 13, 2017 at 2:00 P.M. EST Board of PuMic Format: E-mail proposals only. Please reply to jmurphy@southbendin.gov Ai_ MAR 2 A )X John Murphy, City Controller City of South Bend Department of Administration and Finance 227 W. Jefferson Boulevard South Bend, Indiana 46601 Telephone (574) 235-7678 Fax (574) 235-9928