HomeMy WebLinkAbout1991-04-23 - AGENDA REPORTS - BUS FINANCING (2)CONSENT CALENDER
DATE: April 23, 1991
AGENDA REPORT
CITY MANAGER APPROVAL
ITEM TO BE PRESENTED Ito
ANDREA DAROCA
SUBJECT: ADOPTION OF RESOLUTION 91-58 APPROVING BUS FINANCING AND
CERTAIN PARAMETERS IN CONNECTION WITH THAT CERTAIN
MASTER LEASE AND OPTION TO PURCHASE AGREEMENT NO.
1991-1.
DEPARTMENT: FINANCE A4✓
BACKGROUND
At the meeting of April 9, 1991, the City Council adopted both Resolution
91-52 and 91-53, thus approving the execution and delivery of that
certain Master Lease and Option to Purchase Agreement 199171 between
Chelsea Leasing Corporation and the City to finance the acquisition of
City "Spirit" buses.
Prior to the May 1, 1991 implementation of Agreement 1991-1, it is
necessary for the City Council to adopt Resolution 91-58 in order to set
the financing parameters of the lease. This resolution will give
direction to staff, as to the interest rate limitations on the principal
components of the lease. The interest rate and the underwriter's
discount will be set prior to the consummation of the lease and will not
exceed the parameters set forth in Resolution No. 91-58.
RECO24ENDATION
That City Council review, set an interest rate ceiling, underwriters
discount and adopt Resolution 91-58.
Adopted:
A en.,
RESOLUTION NO. 91-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA CLARITA, CALIFORNIA, APPROVING
CERTAIN FINANCING PARAMETERS IN CONNECTION
WITH THAT CERTAIN MASTER LEASE AND OPTION TO
PURCHASE AGREEMENT NO. 1991-1.
WHEREAS, the City of Santa Clarita, Los Angeles
County, California (the "City"), by its adoption of
Resolution No. 91-52 on April 9, 1991, has approved the
execution and delivery of that certain Master Lease and
Option to. Purchase Agreement No. 1991-1 dated as of
May 1, 1991 (the "Lease"), by. and between the Chelsea
Leasing Corporation (the "Corporation") and the City to
finance the acquisition of buses to be used for public
transportation (the "Project") subject to the determination
and approval by the City of interest rate parameters
therefor; and r
WHEREAS, the Lease provides for the payment of
rental payments, representing principal and interest
components and having principal components in the aggregate
sum of not to exceed $2,250,000, and said rental payments
being made by the City from funds as set forth in the Lease;
and
WHEREAS, the City now desires to set the interest
rate parameters on the principal components of the rental
payments under the Lease;
NOW THEREFORE, BE IT RESOLVED, by the City Council
of the City of Santa Clarita, California, as follows:
SECTION 1. The above recitals are all true and
correct.
SECTION 2. The City hereby determines that the
principal components of the rental payments under the Lease
shall bear interest at a rate of not to exceed seven and
three-quarters percent (7.75%) per annum and the
underwriter's discount in connection therewith shall not
exceed one and eighty-five hundredths percent (1.85%) of the
principal components of the rental payments under the
Lease. The principal amount, interest rate and discount
shall be approved prior to the execution of the Lease by the
City Manager of the City.
SECTION 3. The City hereby ratifies and confirms
all actions heretofore taken in connection with the
authorization, execution and delivery of the Lease and other
documents related thereto.
PASSED AND ADOPTED by the City Council of the City
of Santa Clarita, California, at a regular meeting held on
the day of , 1991.
CITY OF SANTA CLARITA, CALIFORNIA
By:
177 mo
I HEREBY CERTIFY that the foregoing Resolution was
duly adopted by the. City Council of the City of Santa
Clarita, California, at a regular meeting thereof, held on
the day of , 1991, by the following vote
of the Council:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
CITY CLERK