HomeMy WebLinkAbout1990-12-11 - AGENDA REPORTS - TRANSIT BUS LEASE FINANCING (2)AGENDA REPORT
CONSENT CALENDAR
DATE: December 11, 1990
SUBJECT: Transit Bus Lease Financing
DEPARTMENT: Finance .h
i
BACKGROUND
City Manager
Item to be pr
Andrea Daroca
At the April 17, 1990, Council meeting, the City Council instructed staff to
proceed with the financing for .the twenty-two buses to be used for. -transit
within the city. At that time, staff started research on financing -options.
There were two final options which were analyzed and three consultants were sent
RFPs. The first option was to actually do a lease purchase and the other was
to bond through Certificates of Participation. Included within these figures
are all costs for the buses and for the financing option. Attached you will see
a 10 -year projection with cost with comparisons of the Certificates of Partici-
pation and also the lease option. After reviewing these options, staff's final
recommendation would be to go with the lease purchase. Staff has prepared cash
flow analysis to assure that dollars will be in the treasury in order to cover
the debt service.
The three firms that were interviewed in the Request for Proposals were M.L.
Stern & Company, Stone &. Youngberg, Robert Garnett & Company. Staff held
interviews for these consultants on October 30 and had an opportunity to discuss
all of the financing recommendations at that time with the consultants. By
allowing the staff to hire M.L. Stern, the city will be assured of meeting the
deadline date of March or April for the actual purchase and acquisition of the
Phase I buses. With the lease purchase option, there.are no balloon payments at
the end of the 10 -year period and the city actually outright owns these buses.
The buses have a life of up to 15 years. The main reasons staff would recommend
going with the lease purchase option are 1) that it is a lot easier process to
finance the buses, 2) that it is a much shorter period of time, 3) there is no
need for a bond counsel when you do a lease purchase, 4) there is no need for
printing of certificates or printing of the official statement, and 5) there is
also no need for a 10% reserve fund which would be required for Certificates of
Participation. Therefore, as per the aforementioned points, the cost would be
considerably less.
In conjunction with the financing; staff is also recommending that Fieldman,
Rolapp, & Associates be approved as the financial consultant on this financing
and Burke, Williams & Sorensen as the leasing attorney.
Approve M.L. Stern & Company as the underwriter, Fieldman, Rolapp & Associates
as financial consultant for the lease option, Burke, Williams & Sorensen as the
leasing attorney, ,and allow staff to retain them to perform the financing for
the acquisition of transit buses.
ATTACHMENTS T E 9 n15 "171'
i r_
Amortization Schedule Agenda ltem:
Debt Service Schedule -
9
8.501 MUNICIPAL LEASE
PAYMENT PAYMENT
NUMBER DATE
------- ---------
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
O1 -Oct -91
O1 -Apr -92
01 -Oct -92
O1 -Apr -93
O1 -Oct -93
O1 -Apr -94
01 -Oct -94
O1 -Apr -95
01 -Oct -95
O1 -Apr -96
01 -Oct -96
O1 -Apr -97
O1 -Oct -97
O1 -Apr -98
01 -Oct -98
O1 -Apr -99
01 -Oct -99
01 -Apr -2000
01-OCt-2000
01 -Apr -2001
AMORTIZATION SCHEDULE
AND OPTION TO PURCHASE
CITY OF SANTA CLARITA
PAYMENT
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
$343,377.08
INTEREST
$194,726.25
$188,371.43
$181,744.94
$174,835.16
$167,629.99
$160,116.81
$152,282.43
$144,113.13
$135,594.60
$126,711.90
$117,449.46
$107,791.06
$97,719.76
$87,217.91
$76,267.10
$64,848.15
$52,941.04
$40,524.90
$27,577.97
$14,077.55
AGREEMENT NO. 1991-1
PRINCIPAL
-----------
$148,650.83
$1550005.65
$161,632.14
$168,541.91
$175,747.08
$183,260.27
$191,094.65
$199,263.94
$207,782.48
$216,665.18
$225,927.61
$235,586.02
$245,657.32
$256,159.17
$267,109.98
$278,528.93
$290,436.04
$302,852.18
$315,799.11
$329,299.52
$6,867,541.53 $2,312441.53 $41555,000.00
rc�a=aoi��e iowww=$iiip
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PRINCIPAL
BALANCE
-------------
$4,406,349.17
$4,251,343.52
$4,089011.38
$3,921,169.47
$3,745,422.39
$3,562,162.12
$3,371,067.47
$3,171,803.53
$2,964,021.05
$2,747,355.88
$2,521,428.26
$2,285,842.24
$2,0401184.92
$1,784,025.75
$1,516,915.78
$1,238,386.85
$947,950.81
$645,098.63
$329,299.52
$0.00
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City of Santa Clarita
Certificate of Participation Issue
Transportation Project
DEBT SERVICE SCHEDULE
DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL
........ .............. .......... .............. .............
10/ 1/91 205,523.75 205,523.75
4/ 1/92 270,000.00 6.750000 205,523.75 475,523.75 681,047.50
10/ 1/92 196,411.25 196,411.25
4/ 1/93 285,000.00 7.000000 196,411.25 481,411.25 677,822.50
10/ 1/93 186,436.25 186,436.25
4/ 1/94 310,000.00 7.250000 186,436.25 496,436.25 682,872.50
10/ 1/94 175,198.75 175,198.75
4/ 1/95 330,000.00 7.500000 175,198.75 505,198.75 680,397.50
10/ 1/95 162,823.75 162,823.75
4/ 1/96 355,000.00 7.750000 162,823.75 517,823.75 680,647.50
to/ 1/96 149,067.50 149,067.50
4/ 1/97 385,000.00 8.000000 149,067.50 534,067.50 683,135.00
10/ 1/97 133,667.50 133,667.50
4/ 1/98 415,000.00 8.100000 133,667.50 548,667.50 682,335.00
10/ 1/98 116,860.00 116,860.00
4/ 1/99 450,000.00 8.200000 116,860.00 566,860.00 683,720.00
10/ 1/99 98,410.00 98,410.00
4/ 1/ 0 480,000.00 8.300000 98,410.00 578,410.00 676,820.00
10/ 1/ 0 78,490.00 78,490.00
4/ 1/ 1 520,000.00 8.400000 78,490.00 598,490.00 676,980.00
10/ 1/ 1 56,650.00 56,650.00
4/ 1/ 2 220,000.00 8.500000 56,650.00 276,650.00 333,300.00
10/ 1/ 2 47,300.00 47,300.00
4/ 1/ 3 240,000.00 8.600000 47,300.00 287,300.00 334,600.00
10/ 1/ 3 36,980.00 36,980.00
4/ 1/ 4 260,000.00 8.700000 36,980.00 296,980.00 333,960.00
10/ 1/ 4 25,670.00 25,670.00
4/ 1/ 5 280,000.00 8.750000 25,670.00 305,670.00 331,340.00
10/ 1/ 5 13,420.00 13,420.00
4/ 1/ 6 305,000.00 8.800000 13,420.00 318,420.00 331,840.00
____________............. ('8:Z70,817.50 _ .
5,105,000.00 3,365,817.50. 1 8,470,817.50
ACCRUED
5,105,000.00 3,365,817.50 8,470,817.50
Dated 4/ 1/91 with Delivery of 4/ 1791
Bond Years 40,375.000
Average Coupon 8.336390
Average Life 7.908913
N I C % 8.589269 % Using 98.0000000
T I C % 8.283131 % From Delivery Date
RUNDATE: 10.19.1990 a 09:27:07 FILENAME: STACLAR KEY: CON
PUBLIC FINANCE