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PN: C EQUIPMENT FINANCE April 30, 2018 Ms. Jennifer Hockenhull City Controller City of South Bend Department of Administration and Finance 227 W. Jefferson Boulevard South Bend, IN 46601 RE: Request for Proposal's —Tax Exempt Municipal Lease Financing — Lease Purchase Financing (the "FP"") Dear Ms. Hockenhull, �PNC Equipment Finance, LLC for itself, its successors and assigns, is pleased to submit this tax-exempt Lease Purchase Agreement Proposal (the "Proposal") to City of South Bend for the purchase of Capital Equipment and Vehicles (further described! below). Our Proposal is as follows: LESSEE: City of South Bend LESSOR: PNC Equipment Finance, LLC TYPE OF FINANCING: Tax-exempt Lease Purchase Agreement (the "Agreement") with $1,00 buyout 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. NON-BANIK QUALIFICATION: This Proposal assumes that the Lessee, will be issuing more than $10 million in tax-exempt debt during calendar year 2018. Furthermore, it is assumed that the Lessee will NOT designate this issue as a qualified tax- exempt obligation pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "'Code"). A portion of each Lease Payment allocated as "interest" will be excludable from the gross income for federal income tax purposes pursuant to Section 103(a) of the Code. TYPE OF EQUIPMENT/PROJECT: Building Department $ 43,780.00 Code Enforcement $ 78,940.00 Fire Department $1,550,534.00 Information Technology $ 217,124.00 Police Department $1,495,968.00 Solid Waste Department $1,192,960.00 Streets and Traffic & Lighting Department $ 910,990.00 Venues, Parks & Arts Department $ 600,000.100 Water Works Department $ 25,138.00 Total Equipment Cost $6,115,434.00 Alll prices, terms, conditions and selection are solely by Lessee.