HomeMy WebLinkAboutReso. 1988-443 - Authorizing the execution and delivery of an equipment 411 411 ,
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RESOLUTION NO. 25"'S?- $11K/
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING THE EXECUTION AND DELIVERY OF AN EQUIPMENT LEASE
AGREEMENT AND RELATED INSTRUMENTS BETWEEN THE CITY OF
REDDING AND MNC LEASING CORPORATION (ITS ASSIGNEES OR
NOMINEE) .
WHEREAS , the City Council of the City of Redding ("Lessee")
has determined that a true and very real need exists for the
Equipment described in the Transaction Summary of Lease Proposal
dated October 12 , 1988 , as presented to this meeting, said
equipment being a street sweeper, drop boxes, bins, side loader
and truck; and
WHEREAS, Lessee has taken the necessary steps, including
those relating to any applicable legal bidding requirements, to
arrange for the acquisition of said equipment; and
WHEREAS , Lessee proposes to enter into a Lease Agreement
substantially in the form presented to this meeting;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Redding as follows:
1 . It is hereby found and determined that the terms of the
Lease Agreement and purchase option, substantially in the form
{ presented to this meeting and incorporated in this Resolution,
are in the best interests of Lessee for the acquisition of said
equipment, and are hereby approved.
2 . The Mayor and Clerk of Lessee are hereby authorized to
execute, acknowledge, and deliver the Transaction Summary of
Lease Proposal dated October 12 , 1988 , and any subsequent
documentation relating thereto, with any changes, insertions, and
omissions therein as may be approved by the officers who execute
the agreements , such approval to be conclusively evidenced by
such execution and delivery of the agreements . The City Clerk of
Lessee is hereby authorized to affix the official seal of Lessee
to the documentation and attest the same.
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3 . The Mayor and Clerk of Lessee are hereby authorized and
directed to execute and deliver any and all papers , instruments,
opinions , certificates , affidavits , and other documents , and to
do or cause to be done any and all other acts and things
necessary or proper for carrying out this Resolution and the
agreements relating thereto.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 20th day of December, 1988 , and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Buffum, Carter, Dahl , Fulton, & Johannessen
NOES : COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
/
K MAU•ICE JOHANNESSEN, Mayor
City of Redding
ATTEST:
LCA �. �✓
ETHEL A. NICHOLS , City Clerk
O' ►'PROVED:
RA 'BALL A. HAYS , C ty Attorney
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CITY OF REDDING, CALIFORNIA
TRANSACTION SUMMARY
OF LEASE PROPOSAL
OCTOBER 12, 1988
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LESSOR: MNC Leasing Corporation (its
Assignees or Nominee)
LESSEE: CITY OF REDDING, CALIFORNIA
EQUIPMENT: Street sweeper, drop boxes, bins,
side loader and truck.
ESTIMATED FUNDING AMOUNT: $209,598.09
LEASE TERM: Five (5) Years
FUNDING: The Lessor will fund the transaction
upon final equipment acceptance,
which is expected to be on or before
November 30, 1988.
LEASE PAYMENTS: The Lessee will be required to make
sixty (60) monthly lease payments,
each in arrears, comprised of
principal and interest. Based upon
the estimated funding amount of
$209,598.09, the monthly lease
payment would equal $4,228.86. These
payments equate to an annual
percentage rate of 7.79% interest
(see attached Schedule of Payments) .
The first lease payment will be due
one (1) month after funding.
The above rate will remain firm
until November 30, 1988.
PURCHASE OPTION: At the end of the lease term, the
Lessee will have the option to
purchase the equipment for one
dollar ($1 .00) . The Lessee will also
have the option to purchase the
equipment after any lease payment
for the amount indicated on the
attached Schedule of Payments.
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NON-APPROPRIATION: In order not to increase the level
of the Lessee's current indebtedness
with regard to constitutional
limitations, the lease agreement
will contractually limit the
Lessee's obligation to make lease
payments to the Lessee's then-
current fiscal period.
TITLE: The Lessee will retain title to the
equipment throughout the lease term.
However, the Lessor will retain a
first priority security interest in
the equipment and in the lease until
the Lessee has performed all duties
required by such lease.
LESSEE'S RESPONSIBILITIES: All responsibilities imposed by the
ownership or possession of the
equipment including, but not limited
to, taxes, insurance and equipment
maintenance, shall be borne by the
Lessee.
QUALIFIED OBLIGATION: This transaction is contingent upon
the Lessee designating the lease as
a "qualified tax-exempt obligation"
as defined in section 265 (b) of the
Internal Revenue Code of 1986.
DOCUMENTATION: In addition to the Master Lease
Agreement, the Lessor will require
the following ancillary documents:
. Opinion of Counsel
. Incumbency Certificate
. Certificate of Resolutions
. Acceptance Certificate
. Schedule of Payments
. UCC Financing Statements
. Evidence of Insurance
. IRS Form 8038-G
Final documentation will be subject
to the approval of Lessee and
Lessor.
EXPENSES: The Lessee will be responsible for
the expenses associated with the
rendering of the opinion by Lessee's
counsel .
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CONDITION PRECEDENT: This proposal is subject to final
acceptance by the Senior Management
Committee of the Lessor.
ACCEPTED AND APPROVED
BY:
TITLE:
DATE:
F® APPROVED
CITY LEGAL D PT.
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i SCHEDULE OF PAYMENTS
' PRINCIPAL ANNUAL PERCENTAGE
, AMOUNT: 209,598.09 RATE: 7.79%
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PAY PAYMENT PRINCIPAL INTEREST PAYMENT OPTION
NUM DATE COMPONENT COMPONENT AMOUNT PURCHASE PRICE
1 30-Dec-88 2,868.22 1,360.64 4,228.86 211,898. 12
2 30-Jan-89 2,886.84 1,342.02 4,228.86 208,939. 11
3 28-Feb-89 2,905.58 1,323.28 4,228.86 205,960.89
4 30-Mar-89 2,924.44 1 ,304.42 4,228.86 202,963.34
5 30-Apr-89 2,943.43 1,285.43 4,228.86 199,946.33
6 30-May-89 2,962.53 1,266.33 4,228.86 196,909.73
7 30-Jun-89 2,981 .76 1,247.09 4,228.86 193,853.42
8 30-Jul -89 3,001 . 12 1 ,227.74 4,228.86 190,777.27
9 30-Aug-89 3,020.60 1,208.26 4,228.86 187,681 . 16
10 30-Sep-89 3,040.21 1, 188.65 4,228.86 184,564.94
11 30-Oct-89 3,059.95 1,168.91 4,228.86 181,428.49
12 30-Nov-89 3,079.81 1, 149.05 4,228.86 178,271 .68
13 30-Dec-89 3,099.81 1 , 129.05 4,228.86 175,094.38
14 30-Jan-90 3, 119.93 1,108.93 4,228.86 171,896.46
15 28-Feb-90 3, 140. 18 1,088.68 4,228.86 168,677.77
16 30-Mar-90 3, 160.57 1 ,068.29 4,228.86 165,438. 19
17 30-Apr-90 3, 181 .08 1 ,047.78 4,228.86 162, 177.58
18 30-May-90 3,201 .73 1 ,027. 12 4,228.86 158,895.80
19 30-Jun-90 3,222.52 1,006.34 4,228.86 155,592.72
20 30-Jul -90 3,243.44 985.42 4,228.86 152,268.19
21 30-Aug-90 3,264.49 964.37 4,228.86 148,922.08
22 30-Sep-90 3,285.69 943.17 4,228.86 145,554.25
23 30-Oct-90 3,307.02 921.84 4,228.86 142,164.56
24 30-Nov-90 3,328.48 900.38 4,228.86 138,752.87
1 25 30-Dec-90 3,350.09 878.77 4,228.86 135,319.02
' 26 30-Jan-91 3,371 .84 857.02 4,228.86 131,862.89
27 28-Feb-91 3,393.73 835. 13 4,228.86 128,384.32
28 30-Mar-91 3,415.76 813. 10 4,228.86 124,883. 16
29 30-Apr-91 3,437.93 790.93 4,228.86 121,359.28
30 30-May-91 3,460.25 768.61 4,228.86 117,812.53
31 30-Jun-91 3,482.71 746. 15 4,228.86 114,242.74
32 30-Jul -91 3,505.32 723.54 4,228.86 110,649.79
33 30-Aug-91 3,528.08 700.78 4,228.86 107,033.51
34 30-Sep-91 3,550.98 677.88 4,228.86 103,393.75
j 35 30-Oct-91 3,574.03 654.83 4,228.86 99,730.37
36 30-Nov-91 3,597.23 631 .63 4,228.86 96,043.21
' 37 30-Dec-91 3,620.59 608.27 4,228.86 92,332. 11
38 30-Jan-92 3,644.09 584.77 4,228.86 88,596.91
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39 28-Feb-92 3,6E ilk 561 .11 4,228.8E 0 84,837.47
II .•40 30-Mar-92 • 3,691 ...o 537.30 4,228.86 81,053.63
41 30-Apr-92 3,715.52 513.34 4,228.86 77,245.22
42 30-May-92 3,739.64 489.22 4,228.86 73,412.09
43 30-Jun-92 3,763.92 464.94 4,228.86 69,554.08
44 30-Jul -92 3,788.35 440.51 4,228.86 65,671.02
45 30-Aug-92 3,812.94 415.92 4,228.86 61,762.75
46 30-Sep-92 3,837.70 391. 16 4,228.86 57,829. 11
1 47 30-Oct-92 3,862.61 366.25 4,228.86 53,869.94
48 30-Nov-92 3,887.68 341. 18 4,228.86 49,885.06
49 30-Dec-92 3,912.92 315.94 4,228.86 45,874.32
50 30-Jan-93 3,938.32 290.54 4,228.86 41,837.54
51 28-Feb-93 3,963.89 264.97 4,228.86 37,774.55
52 30-Mar-93 3,989.62 239.24 4,228.86 33,685. 19
I 53 30-Apr-93 4,015.52 213.34 4,228.86 29,569.28
54 30-May-93 4,041 .59 187.27 4,228.86 25,426.66
55 30-Jun-93 4,067.82 161 .04 4,228.86 21,257. 14
56 30-Jul -93 4,094.23 134.63 4,228.86 17,060.55
57 30-Aug-93 4,120.81 108.05 4,228.86 12,836.72
' 58 30-Sep-93 4,147.56 81.30 4,228.86 8,585.47
59 30-Oct-93 4,174.48 54.37 4,228.86 4,306.62
60 30-Nov-93 4,201 .58 27.28 4,228.86 0.00
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