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City of South Bend, Indiana
<br />Request for Proposals - Tax Exempt Municipal Lease Financing
<br />April 24, 2018
<br />Date: April 24, 2018
<br />City of South Bond, Indiana
<br />Various new vehicles and equipment per the attached Equipment Specification List,
<br />The Equipment Specification List is a general description of the vehicles and equipment to be
<br />purchased. It is expected that modifications to this listing may be necessary.
<br />Cost: South Bend Vehicles and Equipment:
<br />Building Department - $43,780
<br />Code Enforcement - $78,940
<br />Fire Department - $1,560,534
<br />Information Technology - $217,124 (requesting option for a 4-year carve out)
<br />Police Department - $1,495,968
<br />Solid Waste - $1,192, 960
<br />Streets and Traffic & Lighting Department - $910,990
<br />Venues, Parks & Arts - $600,000
<br />Water Works - $25,138
<br />Total - $6,116,434
<br />se Payments:
<br />Five year term (except as noted on attached Equipment Specification List). Lessee shall make to
<br />(10) equal, consecutive semi-annual payments beginning on January 14, 2019, Payments will be
<br />on January 141h and July 14th.
<br />rest Rate:
<br />The interest rate and semi-annuat lease payments will be provided by the lessor in its proposal.
<br />The City requests a fixed interest rate and semi-annual lease payment that is guaranteed not
<br />to change if closing occurs by May 18, 2018.
<br />:hase Option:
<br />At the end of the lease, the Lessee will have the option to purchase the
<br />equipment for one dollar ($1.00).
<br />Approval Date:
<br />Tuesday, May 8, 2018 by the City of South Bend Board of Public Works
<br />(Agenda Items due date May 1, 2018)
<br />(Agenda Review date May 3, 2018)
<br />of Closing/Escrow Funding:
<br />Friday, May 18, 2018
<br />ISecuritylinsurance:
<br />The Lessor will retain title to the equipment throughout the term. The Lessor
<br />shall retain a first priority security interest in the equipment until the Lessee
<br />has performed all duties required under the lease. Lessee will provide appropriate proof
<br />of insurance upon request. The Lessor will secure title after the lease term is completed.
<br />dor Payment Tax Reporting
<br />The Lessor or escrow trustee shall be responsible for any Form 1099 tax reporting on
<br />payments made to vendors from the escrow account.
<br />myment:
<br />The Lessee shall be allowed to prepay the tease at any payment due date.
<br />A prepayment penalty, if any, will be stated by the Lessor in its proposal,
<br />Fund Source:
<br />Funding through user charges, property taxes, income taxes, gas taxes and other revenue.
<br />Lease:
<br />The tease will be a net obligation and all costs and responsibilities
<br />associated with ownership including maintenance, insurance, licenses and other items
<br />shall be home by the Lessee. As a governmental unit, the City of South Bend is exempt from
<br />sales, use and property taxes.
<br />tract:
<br />Contract subject to review by the City of South Bend's Legal Department and City Controller.
<br />ow Funding:
<br />The Lessor will establish an escrow account for the payment of equipment purchased
<br />under this lease agreement. Any interest earnings from the escrow account
<br />will be for the benefit of the Lessee.
<br />�.
<br />Documentation or other closing fees, if any, will be stated in the Lessor's proposal.
<br />irtization Schedule:
<br />A principal and interest amortization schedule will be provided by the Lessor
<br />with the proposal.
<br />lification:
<br />Non -Bank qualified (more than $10,000,000.00 in debt will likely be issued during 2018)
<br />iosal Due Date:
<br />Monday, April 30, 2018 at 5:00 P.M. EST
<br />)oral Format:
<br />E-mail proposals only. Please reply to jhockenh@soulhbendin.gov
<br />tact:
<br />Jennifer Hockenhull, City Controller
<br />City of South Bend
<br />Department of Administration and Finance
<br />227 W. Jefferson Boulevard
<br />South Bend, Indiana 46601
<br />Telephone (574) 235-9822
<br />Fax (574) 235-9928
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