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HomeMy WebLinkAboutResolution No 57-2018 - 2018 Vehicle and Equipment Lease Financing #2RESOLUTION NO. 57-2018 A RESOLUTION OF THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA, APPROVING TAX-EXEMPT LEASE -PURCHASE FINANCING WITH U.S. BANCORP GOVERNMENT LEASING AND FINANCE, INC. WHEREAS, the City of South Bend Board of Public Works ("Board") of the City of South Bend, Indiana ("City"), has the authority under the laws of the State of Indiana to purchase, acquire, and lease property; and WHEREAS, the Board has determined that a need exists for the purchase and financing of certain property for the benefit of the City's operations; and WHEREAS, in order to acquire such property, the Board desires to enter into the necessary agreement(s) and/or lease schedule(s) as are determined appropriate to consummate the tax-exempt financing offered by U.S. Bancorp Government Leasing and Finance, Inc. (the "Lessor") under its proposal dated October 11, 2018 (the "Proposal"), attached hereto as Exhibit A; and NOW, THEREFORE, BE IT RESOLVED by the City of South Bend Board of Public Works as follows: 1. The terms of the Lessor's Proposal are hereby approved. 2. The Board hereby authorizes Benjamin Dougherty, in his capacity as Deputy City Controller of the.City of South Bend, Indiana, to act on behalf of the Board to formalize the terms of the financing, as they are substantially presented in the Proposal, and to execute any documents necessary to effect the same. 3. This Resolution shall be in full force and effect after its adoption by the City of South Bend Board of Public Works. [Signature page follows.] ADOPTED at a meeting of the Board of Public Works of the City of South Bend, Indiana, held on October 23, 2018, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND BOARD OF PUBLIC WORKS Gary Gilot, President Therese Dorau, Member Suzanna Fritzberg, Member --- Elizabeth Maradik, Member Ja S Mueller, Member ATTEST: L4i�a M. HIMi44 � I Government Leasing and Finance 'Quote #PQ-19555 ............................ .... GLF Muni Tax-Exernpt_Periodic Average life ............................... ...... 2.482 years Ave rage rate ................................ .......... .... 3.19600000% starting debt ending date balance takedowns. service !interest principal balance 11/6/2018 $ - $522,878.28 $ - $ - $ - $ 522,878.28 1/W2019 $ 522,878.28 $ $ 56,434.87 $ 3,156.56 $ 53,278.32 $ 469,599.916 7/14/2019 $469,599.96 $ W $ 56,434.87 $ 7,504.21 $ 48,930.67 $420,669.30 1/14/2020$420,669.30 $ $ 56,434.87 $ 6,722,30 $ 49,712,58 $,370,956.72 17/14/2020, $ 370,956.72 $ $ 56,434.87 $ 5,927,89 $ 50,506.918 $320,449.74 1/14/2021; $320,449.74 $ $ 56,434.87 $ 5,120.79 $ 51,314.09 $ 269,135.65 7/14/20211 $ 269,135.65 $ $ 56,434.87 $ 4,300.79 $ 52,134.09 $ 217,001.57 1/14/2022 $ 217,001.57 $ $ 56,434.87 $ 3,467.69 $ 52,9,67.19 $ 164,034.38 7/14/2022 $164,034.38 $ $ 56,434.87 $ 2,621.27 $ 53,81160 $ 110,220.77 1/14/2023 $110,220.77 $ - $ 56,434.87 $ 1,761.33 , $ 54,673.55 $ 55,547.23 7/14/2023 $ 55,547,23 $ - $ 560434.87 $ 88,7.64 $ 55,547.23 $ - 'total $522,878.28 $564,348.73 $41,470.45 $522,87823 ----- ------ [To be, provided on letterhead of Lessee's counsel.] City of South Bend, Indiana Request for Proposals - Tax Exempt Municipal Lease Financing Date: October 8, 2018 ae: City of South Bend, Indiana )ment: 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. )ment Cost: South Bend Vehicles and Eauipment: Police Department - $260,378.28 Streets Department - $262,500.00 Total - $522,878.28 Payments: Five-year term. Lessee shall make ten (10) equal, consecutive semi-annual payments beginning on January 14, 2019. Payments will be on January 14th and July 14th. t Rate: The interest rate and semi-annual lease payments will be provided by the Lessor in its proposal. At a minimum, the City requests a fixed interest rate and semi-annual lease payment that are guaranteed not to increase if closing occurs by November 6, 2018. The City will consider alternative rate proposals as well, as defined by a proposer. Purchase 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, October 23, 2018, by the City of South Bend Board of Public Works Date of Closing/Escrow Funding: November 6, 2018 ISecurityllnsurance: 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. dor 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. Contract: Contract subject to review by the City of South Bend's Legal Department and City Controller. At the time of submitting a proposal, please submit (1) a copy of the desired form of legal opinion and (2) a statement concerning whether a tax opiniontbond counsel opinion will be requested. Escrow 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. Fees: Documentation or other closing fees, if any, will be stated in the Lessor's proposal. Amortization Schedule: A principal and interest amortization schedule will be provided by the Lessor with the proposal. Non -Bank qualified (more than $10,000,000.00 in debt will likely be issued during 2018). al Due Date: Monday, October 15, 2018, at 2:00 P.M. EDT at Format: E-mail proposals only. Please reply to bdougher@southbendin.gov. Benjamin Dougherty, Deputy City Controller City of South Bend Department of Administration and Finance 227 W. 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(D [D 00 0 VN (D N W V A fA m o 00p00 A 000 N K) 0) (A V V 0 N N N N 0) co as o 0 0) GO 0 0 0 00 0 00 0 A 0 0 0 4a 0 fA (A 0) co 0 0 0 .J. 0 00 N A 0 A 0) fA (A fA iA 69 (A 69 (A 0 fA (R (A (A (A w to w w v) w 6) 69 w 6A 60 60 69 69 fA 69 di N N o o fAN Ih — 00 pAi N N N N N N -� A O (D (D (Wia O) p O 00 o 0 0 (nD N 0 W (D W M 02 W 0 — A (D W (A N A W— fA ..x ..x N 1 N pa P O P Vtl N 0o 74 pQ 00��AO(P WW N, D hoN 90CO NpW D U9aa N DOO CO OO A A 0coVO N00N0 co Oaa00 o CO C0 Cl) O o 0 O 00 000 N OO 0 A BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date October 16, 2018 Name Benjamin Dougherty Department Admin & Finance BPW Date October 23, 2018 Phone Extension 7678 Required Prior to Submittal to Board Legal X Elliot Anderson Controller review is required for all Contracts $5,0010.00 or more Controller Z and greater than one year in length per the City Purchasing Policy Purchasing F H Agreement H Contract Proposal Addendum F-1 Professional Services El Amendment Fj Bid Opening El Bid Award El Req. to Advertise El Title Sheet El Quote Opening F] Quote Award Chg Order No. F1 C/O & PCA No. F-1 PCA Ease./Encroach. F Traffic Control Z Resolution Other: Equipment Lease Claim inancina Company or Vendor Name New Vendor MBENVBE Contractor Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description uired Information Government Leasing and Finance, Inc. FEW= N No El MBE Completed E-Verify Form Attached El Yes E] WBE E] No, 2018 Vehicle and Equipment Lease Financing #2 None Departmental bu Various Interest rate: 3.196% Resolution approving lease financing for vehicles and equipment and authorizing Deputy City Controller to finalize and execute documents in connection with same ($522,878,28). Amount of ❑ increase $ ❑ Decrease $ Previous Amount $ Current Percent of Change: % New Amount Total Percent of Change Time Extension: Dispersal After Approval Copy Original D 0 n F]