Title
Authorizing tax-exempt capital lease financing under a governmental lease-purchase agreement and naming Wells Fargo Securities, LLC as the lender for the purchase of public safety vehicles, and determining other matters in connection therewith. (This item is a companion to Res 11-754 and does not require a public hearing.)
Body
WHEREAS, the City of Saint Paul, Minnesota (the “City”) is undertaking the purchase of approximately 46 police vehicles and 3 fire vehicles (the “Equipment”); and
WHEREAS, the City’s Office of Financial Services initiated a Request for Financing - 2011 Public Safety Capital Lease on March 28, 2011 and received responses from four qualified bidders; and
WHEREAS, the City Treasurer and Debt Manager recommend awarding the bid to Wells Fargo Securities, LLC (“Wells Fargo”) for up to $1,950,500 for a three-year capital lease for purchase of the Equipment which will close on May 2, 2011; and
WHEREAS, the City now wishes to enter into Governmental Lease-Purchase Agreement (the “Lease Purchase Agreement”) with Wells Fargo, which provides for a three-year lease in the principal amount of $1,950,500 at an approximate interest rate per annum of 1.55% for the acquisition of the Equipment; and
WHEREAS, by entering into the Lease Purchase Agreement, the City will exercise the powers under the City’s home rule charter and Minnesota Statutes, Section 465.71, as amended; and
WHEREAS, the Equipment is essential for the City to perform its governmental functions; and
WHEREAS, the funds made available under the Lease Purchase Agreement will be deposited with the City and will be used for the acquisition of the Equipment; and
WHEREAS, upon the termination of the three-year lease period, the City will have the option to purchase the Equipment for $1.00; and
WHEREAS, the Lease Purchase Agreement is subject to annual non-appropriation, and the City has the right to terminate the Lease Purchase Agreement, in accordance with the terms thereof, at...
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