HomeMy WebLinkAboutReso. 1987 - 325 - Authorizing execution and delivery of an equipment lease/purchase agreement and related instruments between City and Maryland National Leasing Corporation for purchase of refuse trucks and containers � � " ,.� � ,
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RESOLUTION NO. �7•.�.�.�
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING THE EXECUTION AND DELIVERY OF AN EQUIPMENT
LEASE/PURCNASE AGREEMENT AND RELATED INSTRUMENTS BETWEEN THE
CITY OF REDDING AND MARYLAND NATIONAL LEASING CORPORATION
FOR THE PURCHASE OF REFUSF TRUCKS AND CONTAINERS .
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 attached Transaction Summary of Lease
Proposal dated October 1 , 1987 , as presented to this meeting; and
WHEREAS, Lessee has taken the necessary steps, including
those relating to any applicable legal bidding requirements, to
arrange for the acquisition of the Equipment outlined therein;
and
WHEREAS , Lessee proposes to enter into a Lease/Purchase
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:
l . It is hereby found and determined that the terms of the
Lease/Purchase Agreement, substantially in the form presented to
this meeting and incorporated in this Resolution, are in the best
interests of Lessee for the acquisition of the Equipment outlined
in the Transaction Summary attached hereto, and are hereby
approved.
2 . The Mayor and Clerk of Lessee are hereby authorized to
execute, acknowledge and deliver the Transaction Summary of Lease �
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Proposal dated October l , 1987 , 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.
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 Cit_y Council of
the City of Redding on the 20th day of October , 19'8'7 , and
was duly adopted at said meeting by the following vote:
AYES : COUNCIL MEMBERS: Carter, Ful ton, Gard, Johannessen, & Dahl
NOES: COUNCIL MEMBERS : None
ABSENT: COUNCIL MEMBERS: None
P;BSTAIN: COUNCIL MEMBERS : None
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MIKE DAHL, Mayor
City of Redding
ATTEST: . FOR APPROVED:
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ETHEL A. NICHOLS, City Clerk RA DALL A. HAYS City Attorney
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CITY OF REDDING, CALIFORNIA
TRANSACTION SUMMARY
OF LEASE PROPOSAL
OCTOBER 1, 1987
LESSOR: Maryland National Leasing
Corporation (its Assignees or �
Nominee)
LESSEE: . CITY OF REDDING, CALIFORNIA
EQUIPMENT: Refuse trucks and containers
ESTIMATED FUNDING AMOUNT: �584,221.73
LEASE TERM: Five (5) Years
LEASE PAYMENTS: The Lessee will make sixty (60) �
monthly lease payments, each in
arrears, comprised of principal and
interest. Based upon the estimated
funding amount of 5584,221.73, the
monthly lease payment would equal
E11,692.73. -This payment equates to
an annual percentage rate of 7.45%
(see attached Schedule of Payments) .
The above rates will remain firm
until November 1, 1987.
- The first lease payment will be due
thirty (30) days after the date of
document execution.
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.
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.
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� TITLE. The Lessee will retain title to the
i equipment throughout the lease term.
However, the Lessor Nill retain a
� � first priority security interest in
i the equipment and in the lease until �
r the Lessee has performed all duties
required by such lease.
LESSEE'S RESPONSIBILITIES: Al1 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
. 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: FORM APPROVED
DATE: �
C1TY LEGAL DEPT
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SCHEDULE OF PAYMENTS�� �
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1' PRINCIPAL �_,. ,_ANNUAL PERCENTAGE.
AMOUNT: 584,221.73 , . `- RATE: , . 7.45�0
-.:: :; : , , .
PAY PAYMENT PRINCIPAL INTEREST PAYMENT� OPTION
NUM DATE COMPONENT COMPONENT _ , . AMOUNT . PURCHASE PRICE
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1 O1-Dec-87 8,065.69 3,627.04 11,692.73 587,679.17
2 O1-Jan-88 8,115.76 3,576.97 11,692.73 579,.401,09
3 O1-Feb-88 8,166.15 3,526.58 11,692.73 571,071.62
4 O1-Mar-88 8,216.84 3,475.89 � 11,692;.73 562,690.44
5 O1-Apr-88 8,261.86 3,424:87 . ; :.. ,11;692:73 554,257.23
6 O1-May-88 8,319.19 3,373:54. . .. 11,692.;73 545,771.66
7 O1-Jun-88 8,370.83 3,321.89 11,692.73 537,233.41
8 O1-Ju1 -88 8,422.80 3,269.93 11,692.73 528,642.15
9 O1-Aug-88 8,475.09 3,217.63 11,692.73 519,997.55
10 O1-Sep-88 8,527.71 3,165.02 11,692.73 511,299.28.
11 O1-Oct-88 8,580.65 3,112.07 11,692.73 502,547.02
12 O1-Nov-88 8,633.93 3,058.80 11,692.73 493,740.41
13 O1-Dec-88 8,687.53 3,005.20 11,692.73 484,879.13
14 O1-Jan-89 8,741.46 2,951.27 11,692.73 475,962.84
15 O1-Feb-89 8,795.73 2,897.00 11,692.73 466,991.20
16 O1-Mar-89 8,850.34 2,842.39 11,692.73 457,963.85
17 O1-Apr-89 8,905.29 2,787.44 11,692.13 448,880.46
18 O1-May-89 8,960.57 2,732.16 11,692.73 439,140.67
19 O1-Jun-89 9,016.20 2,676.53 11,692.73 430,544.15
20 O1-Ju1 -89 9,072.18 2,620:55 11,692.73 421,290.52
21 O1-Aug-89 9,128.50 2,564.23 11,692.13 411,979.45
22 O1-Sep-89 9,185.17 2,507.55 11,692.13 402,610.58
23 O1-Oct-89 9,242.20 2,450.53 11,692.13 393,183.53
24 O1-Nov-89 9,299.58 2,393.15 11,692.13 383,697.96
25 O1-Dec-89 9,357.31 2,335.42 11,692.73 374,153.50
26 O1-Jan-90 9,415.41 2,277.32 11,692.13 364,549.79
27 O1-Feb-90 9,473.86 2,218.87 11,692.73 354,886.45
28 O1-Mar-90 9,532.68 2,160.05 11,692.13 345,163.12
29 O1-Apr-90 9,591.86 2,100.87 11,692.73 335,379.43 �
30 O1-May-90 9,651.41 2,041.32 11,692.73 325,534.99
31 O1-Jun-90 9,711.33 1,981.40 11,692.13 315,629.44
32 O1-Ju1 -90 9,711.62 1,921.11 11,692.73 305,662.39
33 O1-Aug-90 9,832.28 1,860.45 11,692.73 295,633.46
34 O1-Sep-90 9,893.33 1,799.40 11,692.73 285,542.27
35 O1-Oct-90 9,954.75 1,737.98 11,692.73 275,388.42
36 O1-Nov-90 10,016.55 1,676.18 11,692.73 265,171 .54
37 O1-Dec-90 10,078.14 1,613.99 11,692.13 254,891.23
38 O1-Jan-91 10,141.31 1,551.42 11,692.73 244,547. 10
39 O1-Feb-91 10,204.27 1,488.46 11,692.73 234,138.75
40 O1-Mar-91 10,261.62 1,425.11 11,692.13 223,665.71
41 O1-Apr-91 10,331.36 1,361.36 11,692.73 213,127.78
42 O1-May-91 10,395.51 1,291.22 11,692.73 202,524.37
43 O1-Jun-91 10,460.04 1,232.69 11,692.73 191,855.12
44 O1-Ju1 -91 10,524.98 1,167.15 11,692.73 181,119.64
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45 O1-Aug-91 10,590.33 1,102.40 11,692.73 170,317.51
4b O1-Sep-91 10,656.07 1,036.65 11,692.73 159,448.31
47 O1-Oct-91 10,722.23 970.50 11,692.73 . 148,511.64
48 O1-Nov-91 10,788.80 903.93 11,692.13 137,507.06
49 O1-Dec-91 10,855.78 836.95 11,692.73 126,434.17
SO O1-Jan-92 10,923.17 769.55 11,692.73 115,292.53
S1 O1-Feb-92 10,990.99 701.74 11,692.73 104,081.72
52 O1-Mar-92 11,059.22 633.50 11,692.73 92,801.31
S3 O1-Apr-92 11,127.88 564.84 11,692.73 81,450.87
54 O1-May-92 11,196.97 495.76 11,692.73 70,029.96
55 O1-Jun-92 11,266.48 426.24 11,692.73 58,538.15
5b O1-Ju1 -92 11,336.43 • 356.30 11,692.73 46,974.99
57 O1-Aug-92 11,406.81 285.92 11,692.73 35,340.04
58 O1-Sep-92 11,477.63 215.10 11,692.73 23,632.86
._ 59 O1-Oct-92 11,548.89 143.84 11,692.73 11,853.00
60 O1-Nov-92 11,620.58 72.14 11,692.73 0.00
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584,221.13 117,342.01 701,563.74