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Authorizing the execution and delivery of property schedules number 3 and 4 to a tax-exempt/lease purchase agreement and related documents for the purchase of Public Safety equipment, Public Works equipment, and certain other capital equipment, and determining other matters in connection therewith.
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WHEREAS, the City of Saint Paul, Minnesota (the "City") entered into a capital Master Tax-Exempt/Lease Purchase Agreement, dated May 7, 2012 (the "Master Lease Purchase Agreement"), by and between the City and U.S. Bancorp Government Leasing and Finance, Inc. (the "Lessor"), where the City may enter into individual tax-exempt leases for the purchase and financing of various items of capital equipment; and
WHEREAS, at the same time as the City entered into the Master Lease Purchase Agreement, the City also entered into Property Schedule Nos. 1 and 2 to the Master Lease Purchase Agreement, which provided for the acquisition of certain capital equipment; and
WHEREAS, pursuant to a Request for Proposal Regarding Financing, the Office of Financial Services recently solicited proposals from qualified financial institutions to provide lease purchase financing to the City for future capital equipment purchases in fiscal years 2013-2015 for the City; and
WHEREAS, after a review of proposals that the City received from financial firms, the Lessor provided the proposal that the Office of Financial Services deems most advantageous for the City; and
WHEREAS, the City now wishes to enter into Property Schedule Nos. 3 and 4 to the Master Lease Purchase Agreement (the "Supplements") (collectively, with the Master Lease Agreement, the "Lease Purchase Agreement"), which provide for three and seven year leases in the aggregate principal amount not to exceed $4,100,000; and
WHEREAS, the interest rates on the Supplements are estimated to not to exceed the following: (i) 0.858% for the three year Supplement, and (ii) 1.339% for the seven year Supplement provided th...
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