Title
Authorizing 2012 tax-exempt capital lease financing and related documents under a master tax-exempt lease/purchase agreement, and naming U.S. Bancorp Government Leasing and Finance, Inc. as the lender for the purchase of public safety and public works vehicles and determining other matters in connection therewith. (This item is a companion to RES PH 12-113 and does not require a public hearing.)
Body
WHEREAS, the City of Saint Paul, Minnesota (the "City") is undertaking the purchase of approximately 45 police vehicles, six motorcycles, one fire vehicle and two paramedic vehicles (the "Public Safety Equipment"); and
WHEREAS, the City is undertaking the purchase of approximately nine dual purpose public works trucks (the "Public Works Equipment" and, together with the Public Safety Equipment, the "2012 Equipment"); and
WHEREAS, the City's Office of Financial Services initiated a Request for City Financing 2012 Public Equipment Leases on March 26, 2012 and received responses from five qualified bidders; and
WHEREAS, the City Treasurer, Deputy Director and Debt Manager recommend awarding the bid to U.S. Bancorp Government Leasing and Finance, Inc. ("U.S. Bank") for a three-year capital lease for purchase of the Public Safety Equipment and a seven-year capital lease for purchase of the Public Works Equipment, which will close on May 1, 2012; and
WHEREAS, the City now wishes to enter into the Master Tax-Exempt Lease/Purchase Agreement, which will not be designated as a bank-qualified obligation, along with Property Schedule No. 1 thereto related to the purchase of the Public Safety Equipment (the "Public Safety Property Schedule") and Property Schedule No. 2 thereto related to the purchase of the Public Works Equipment (the "Public Works Property Schedule") (collectively, the "Lease Purchase Agreement") with U.S. Bank, which provides for a three-year lease in the principal amount of $2,700,000 at an approximate interest rate per annum of 1.131% for ...
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