Resolution No 57-2018 - 2018 Vehicle and Equipment Lease Financing #2

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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. Jefferson Boulevard South Bend, Indiana 46601 Telephone (574) 235-7678