DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Authorizing the Execution of the 2016 Master Tax-Exempt Lease Purchase Agreement for Police Helicopter
SUMMARY:
A. This Ordinance approves the Master Tax-Exempt Lease Purchase Agreement with JP Morgan Chase Bank and an Escrow and Account Control Agreement with JP Morgan Chase Bank and Frost Bank, approves Exhibits and related Schedules to the Master Tax-Exempt Lease Purchase Agreement in the amount of $2,858,759 for a helicopter for the Police Department.
B. This Resolution authorizes the reimbursement of funds previously expended from the proceeds of the 2016 Master Tax-Exempt Lease Purchase Agreement entered into between the City of San Antonio and JP Morgan Chase Bank.
BACKGROUND INFORMATION:
On December 13, 2015, the City released a Request for Bid ("RFB") for a Tax-Exempt Equipment Lease/Purchase Financing for Police Helicopter (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 are most consistent with the City's objectives. The notification of the RFB was emailed to thirty-four (34) firms on December 13, 2015. On January 15, 2016, eight (8) firms submitted bids. The results were as follows:
Firm
Helicopter
7-Year Rate
JP Morgan Chase Bank
1.654%
Banc of America Public Capital Corp
1.680%
Regions Bank
1.730%
US Bancorp Government Leasing
1.980%
Signature Public Funding Corp.
2.110%
Frost Bank*
2.179%
PNC Bank
2.380%
Pinnacle Public Finance Corp.
2.390%
* Bid included an additional $4,000 filing fee.
The City contacted JP Morgan Chase Bank for the contract negotiation process because it was determined that they had the lowest interest cost and terms and conditions of the proposed Lease that were most consistent with the City's objectives.
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