DEPARTMENT: Finance Department
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: All
SUBJECT: Authorizing the Execution of the 2014 Master Tax-Exempt Lease Purchase Agreement
SUMMARY:
A. This Ordinance approves the Master Tax-Exempt Lease Purchase Agreement with SunTrust Equipment Finance & Leasing Corp. and an Escrow and Account Control Agreement with SunTrust Equipment Finance & Leasing Corp. and Frost Bank, approving Exhibits and related Schedules to the Master Tax-Exempt Lease Purchase Agreement in the amount of $4,470,161, for the acquisition of various Solid Waste Management collection trucks and other trucks.
B. This Resolution authorizes the reimbursement of funds previously expended from the proceeds of the 2014 Master Tax-Exempt Lease Purchase Agreement entered into between the City of San Antonio and SunTrust Equipment Finance & Leasing Corp.
BACKGROUND INFORMATION:
On April 28, 2014, the City released a Request for Bid ("RFB") for a Tax-Exempt Equipment Lease/Purchase Financing Agreement (the "Lease"). The Lease was to be awarded to the firm that provided the lowest interest rate producing the lowest interest cost to the City over the life of the Lease and whose terms and conditions of the proposed Lease were most consistent with the City's objectives. The notification of the RFB was emailed to thirty-three (33) firms on April 28, 2014. On May 16, 2014, ten (10) firms submitted bids. The results were as follows:
Firm
7-Year Rate
SunTrust Equipment Finance & Leasing Corp.
1.690%*
Banc of America Public Capital Corp
1.690%*
Santander Bank, N.A.
1.730%
JP Morgan Chase Bank, N.A.
1.780%
US Bancorp Government Leasing and Finance, Inc.
1.911%
Capital One Public Funding
1.950%
PNC Equipment Finance, LLC
2.090%
Clayton Holdings, LLC - An equity subsidiary of Commerce Bank
2.180%
Frost Bank
2.250%
Branch Banking & Trust Company
2.370%
*SunTrust Equipment Finance & Leasing Corp. and Banc of America Public Capita...
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