HomeMy WebLinkAboutProposal - public-finance - 2017 vehicle and equipment lease financing1316 COUNTY -CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND. INDIANA 46601-1830
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
BOARD OF PUBLIC WORKS
March 28, 2017
Timothy Holmes
public-finance.com
100 East Hospital Road
Franklin, IN 46131
RE: Proposal
Dear Mr. Holmes:
PHONE 574/235-9251
FAX 574/235-9171
The Board of Public Works, at its meeting held on March 28, 2017, approved the above
referenced proposal for 2017 vehicle and equipment lease financing in the amount of
$2,916,500 with an interest rate of 2.073%.
Enclosed please find a copy of the agreement for your records.
If you have any farther questions regarding this matter, please call this office at (574) 235-
9251.
Sincerely, .
Linda M. Martin, Clerk
Enclosure
c: John Murphy, Administration and Finance
Jeri Hockenhull, Administration and Finance
Mary Wisniewski, Central Services
GARY A. GILOT SUZANNA M. FRITZBERG ELIZABETH A. MARADIK JAMES A. MUELLER THERESE J. DORAU
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
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When the prospective Contractor is unable to certify to any of the statements below, it shall attach an explanation to this Affidavit.
CONTRACTOR'S NON -COLLUSION AND NON -DEBARMENT AFFIDAVIT,
CERTIFICATION REGARDING INVESTMENT WITH IRAN, EMPLOYMENT ELIGIBILITY
VERIFICATION, NON-DISCRIMINATION COIV MITMENT AND CERTIFICATION OF USE
OF UNITED STATES STEEL PRODUCTS OR FOUNDRY PRODUCTS
(Must be completed for all quotes and bids, Please type or print)
STATE OF L 6LU ��Jn IJCi )
COUNTY )
The undersigned Contractor, being duly sworn upon his/her/its oath, affirms under the penalties of perjury that:
I. Contractor has not, nor has any other member, representative, or agent of the firm,
company, corporation or partnership represented by him, entered into any combination, collusion
or agreement with any person relative to the price to be bid by anyone at such letting nor to
prevent any person from bidding nor to induce anyone to refrain from bidding, and that this bid
is made without reference to any other bid and without any agreement, understanding or
combination with any other person in reference to such bidding. Contractor further says that no
person or persons, firms, or corporation has, have or will receive directly or indirectly, any
rebate, fee, gift, commission or thing of value on account of such sale; and
2. Contractor certifies by submission of this proposal that neither contractor nor any of its
principals are presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from participation in this transaction by any Federal department or agency;
and
3. Contractor has not, nor has any successor to, nor an affiliate of, Contractor, engaged in
investment activities in Iran.
a. For purposes of this Certification, "Iran" means the government of Iran and any agency or
instrumentality of Iran, or as otherwise defined at Ind. Code § 5-22-16.5-5, as amended from
time -to -time.
b. As provided by Ind. Code § 5-22-16.5-8, as amended from time -to -time, a Contractor is
engaged in investment activities in Iran if either:
i. Contractor, its successor or its affiliate, provides goods or services of twenty million
dollars ($20,000,000) or more in value in the energy sector of Iran; or
ii. Contractor, its successor or its affiliate, is a financial institution that extends twenty
million dollars ($20,000,000) or more in credit to another person for forty-five (45)
days or more, if that person will (i) use the credit to provides goods and services in
Non -Collusion Non -Debarment Affidavit Non Iran Form
Contractor agrees not to discriminate against or intimidate any employee or applicant for
employment in the performance of this contract with privileges of employment, or any matter
directly or indirectly related to employment, because of race, religion, color, sex, gender
expression, gender identity, sexual orientation, handicap, national origin or ancestry. Breach of
this provision may be regarded as material breach of contract,
I; the undersigned bidder or agent as contractor on a public works project, understand my
statutory obligations to the use of steel products or foundry products made in the United States
(I.C. 5-16-8-1). I hereby certify that I and all subcontractors employed by me for this project will
use steel products or foundry products on this project if awarded. I understand that violations
hereunder may result in forfeiture of contractual payments.
I hereby affirm under the penalties of perjury that the facts and information contained in the foregoing bid for
public works are true and correct,
jlI yy���� I
Dated this / T� day of l"il�!C 0 i / /
LI . S �z»Ge>1/� C7bVtiV`jh/�L��Sl�nstp,i��
Contractor/Bidder (Firm) n,P);wc ; Inc
/
Signature onnactor/Bidder or Its Agent
h stopherR.Jones
Senior Vice President
Printed Name and Title
Subscribed and sworn to before me this {{ E day of TAl2 20
My Commission Expires v 13 aOj - ��E
Notary ublic
�_
County of Residence 7priny(�2--
I . A L ALBRECHT
NOTARY PUBLIC
STATE OFCOLORADO
NOTARY ID 2004030063
MY COMMISSION EXPIRES MAY 13, 2017
Non -Collusion Non-Delonno l Affidavit Non Iran Fomr
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publicCIPAL Efinance.coEm
Date March 13, 2017
Lessee City of South Bend, Indiana
Equipment Municipal Equipment
Structure Lease Purchase (NBQ)
Lease Amount $ 2,916,500
Term 10 semi-annual payments (Jan 14 & Jul 14)
First payment date January 14, 2018
Interest Rate
2.073%
Payment
$ 310,150 (Based on closing on or before April 14, 2017)
Purchase Price
$0 at end of lease
Tax Opinion:
None required
Fees:
$ 0 escrow fee
Opinion of Counsel
Validity opinion only
Conditions
This lease is subject to negotiation of mutually acceptable
documentation and credit approval.
Closing
Interest rates and terms offered herein expire on April 14, 2017,
unless an extension is granted in writing.
Submitted by
Timothy J Holmes
public-finance.com, inc. • 100 East Hospital Road • Franklin, IN 46131
TEL 317-736-7275 tim@public-finance.com FAX 317-736-7275
M FRX NO. :3177367275 Mar. 13 2017 4:54PM P1
pTHE ubl i�cE finance.coEm
March. 13, 2017
John Murphy, City Controller
City of South Bend
Department of Administration and Finance
227 W. Jefferson Boulevard
South Bend, Indiana 46601
RE: Capital Equipment Lease
Mr. Murphy,
Attached is our proposal in response to your RFP dated March 3, 2017_
This 2017 lcasc can be donc as an additional schedule added to the lcasc from carly last
year. This will greatly reduce the paperwork required. We are still the endorsed leasing
program for Accelerate Indiana Municipalities (Formerly IACT).
We work forward to working with you and the City of South Bend again.
R`esp�ectfully,
Timo o m s
Vice President
Public-Finance.com
100 Hospital Road
Franklin, Indiana 46131
public-finance.com, Inc. • 100 East Hospital Road • Franklin, IN 46131
TEL 317-736-7275 tim@publiafinance.com FAX 317-736-7275
South Bend 2017A
3/13/2017 12:28 PM Pagel
Compound Period: Semiannual
Nominal Annual Rate: 2.073%
CASH FLOW DATA
Event
Date
Amount
Number Period End Date
1 Loan
2 Payment
4/14/2017
1/14/2018
2,916,500.00
310,150.00
1
10 Semiannual 7/14/2022
AMORTIZATION SCHEDULE - Normal Amortization, 360 Day Year
Date
Payment
Interest
Principal
Balance
Loan 4/14/2017
2,916,500.00
2017 Totals
0.00
0.00
0.00
1 1/14/2018
310,150.00
45,670.39
264,479.61
2,652,020.39
2 7/14/2018
310,150.00
27,488.05
282,661.95
2,369,358.44
2018 Totals
620,300.00
73,158.44
547,141.56
3 1/14/2019
310,150.00
24,558.27
285,591.73
2,083,766.71
4 7/14/2019
310,150.00
21,598.13
288,551.87
1,795,214.84
2019 Totals
620,300.00
46,156.40
574,143.60
5 1/14/2020
310,150.00
18,607.31
291,542,691,503,672.15
6 7/14/2020
310,150.00
15,585.48
294,564.52
1,209,107.63
2020 Totals
620,300.00
34,192.79
586,107.21
7
1/14/2021
310,150.00
12,532.34
297,617.66
911,489.97
8
7/14/2021
310,150.00
9,447.54
300,702.46
610,787.51
2021 Totals
620,300.00
21,979.88
598,320.12
9
1/14/2022
310,150.00
6,330.78
303,819.22
306,968.29
10
7/14/2022
310,150.00
3,181.71
306,968.29
0.00
2022 Totals
620,300.00
9,512.49
610,787.51
Grand Totals 3,101,500.00 185,000.00 2,916,500.00
BOARD OF PUBLIC WORKS
AGENDA ITEM REVIEW REQUEST FORM
Date 3/13/17
Name John Murphy Department Adm/Finance
BPW Date 3/28/16 Phone Extension 7678
Required Prior to Submittal to Board
Legal ® Attorney Name Michael Schmidt
Controller ® Controller review is required for all Contracts $5,000.00 or more and
greater than one year in length per the City Purchasing Policy
Purchasing ® George King
Check the Appropriate Item Type — Required for All Submissions
® Agreement ® Contract ® Proposal ❑ Addendum
❑ Professional Services ❑ Resolution
❑ Bid Opening ❑ Bid Award ❑ Req. to Advertise ❑ Title Sheet
❑ Quote Opening ❑ Quote Award
❑ Change Order No. ❑ C/O & PCA No. ❑ PCA
❑ Ease/Encroach. ❑ Traffic Control
71 Other: Lease Financine
or
New Vendor
MBE/WBE Contractor
Project Name
Project Number
Funding Source
Account No.
Amount
Terms of Contract
Information
public-finance.com
J Yes ZI No ❑ If Yes, Approved by Purchasing
] MBE ❑ WBE
2017 Vehicle and Equipment Lease No. 1
None
Solid Waste, Building Department, Water Works, Code Enf, Wastewater
Funds 61, 600, 620, 641
$ $2,916,500.00 lease financing
Lease financing, 10 semi-annual payments of $310,150.2.073% interest
rate. Eleven proposals solicited, five proposals were received.
Purpose/Description
❑ Required Contractor's Certification Form Attached (Non -
Collusion, Non -Discrimination, Non -Debarment, E-Verify, Iran, etc.)
Required For Change Orders Only
Amount of ❑ Increase $
❑ Decrease $
Previous Amount $
Current Percent of Change: %
New Amount $
Total Percent of Change: %
Dispersal After Approval
Copy Original
® ❑ Jennifer Hockenhull
® ❑ Mary Wisniewski
❑ ❑