HomeMy WebLinkAbout1998-01-27 - AGENDA REPORTS - FOUR COMMUTER BUSES RESO 98 17 (2)City Manager Approv
Item to be presented
Steve Stark
CONSENT CALENDAR
DATE: January 27,1998
SUBJECT: FINANCING THE PURCHASE OF FOUR COMMUTER BUSES
RESOLUTION NO. 98-17
DEPARTMENT: Administrative Services
Adopt Resolution No. 98-17 authorizing lease with option to purchase agreement for an amount
not to exceed $1.6 million.
Authorize the City Manager to approve all documents associated with the lease with option to
purchase of four commuter buses, subject to City Attorney approval.
City Council approve appropriation of $173,530.50 from Proposition A Fund Balance to
account number 4600-9010.
BACKGROUND
At the regular City Council meeting of January 13, 1998 Council approved waiving the
competitive procurement process and financing of four (4) new commuter buses and authorized
the issuance of a Request for Proposals (RFP) for the acquisition of six additional commuter
buses.
ATCNancom, the City's contractor for transit services, has acquired four commuter buses which
are. available for immediate use. These four vehicles will complete manufacturing this month
and have not yet entered passenger service.
At this time, staff would like to finance these four buses with a lease with option to purchase
arrangement from Baystone Financial Group, for an amount not to exceed $1.6 million. This
lease with option to purchase agreement will be for a term of twelve years at an annual
percentage rate of 5.199%.
Staff contacted several Lease Financing companies and requested quotes. Of the quotes
Adopted: 1
received, Baystone Financial Group provided the most cost-effective lease with option to
purchase financing.
The attached resolution approves the financing and authorizes the City Manager to sign all
documents associated with the completion of the financing.
FISCAL IMPACT
The term of the lease financing is twelve years and an annual percentage rate of 5.199%.
Annual payments will be $173,530.85 from transit revenues.
Resolution No. 98-17
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA AUTHORIZING LEASE WITH OPTION TO PURCHASE AGREEMENT
FOR THE PURCHASE OF FOUR COMMUTER BUSES, FOR AN AMOUNT NOT TO
EXCEED $1,600,000.
WHEREAS, City of Santa Clarita, County of Los Angeles, State of California ("City") is duly
authorized and existing under the laws of said State; and
WHEREAS; the City Council has authorized the acquisition of four commuter buses
("Property").
WHEREAS, Kansas State Bank ("Corporation") has offered the City a cost effective lease with
option to purchase financing arrangement requiring periodic rental payments including
principal plus interest computed at a 5.199 annual percentage rate.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA does resolve
as follows:
SECTION 1: that the Mayor or City Manager acting alone be hereby authorized in the name
and on behalf of the City enter into a binding agreement with the Corporation for leasing the
Property upon such terms as may seem advisable to said officer(s), and to execute, as agent for
the City all necessary agreements including, but not limited to, a Lease/Option Agreement,
Certificate ofAcceptance, Lessee Resolution and Bank Qualified Certificate. Each officer is also
authorized to accept or direct delivery of the Property. The authority given hereunder shall be
deemed retroactive and any and all acts authorized hereunder performed prior to the passage
of this resolution are hereby ratified and affirmed.
SECTION 2: that this approved lease financing be designated as a qualified tax exempt
obligation for the calendar year in which the lease is issued pursuant to Section 265 (b) of the
Internal Revenue Code of 1986 (as amended).
SECTION 3: the City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED, AND ADOPTED THIS DAY OF .1998.
MAYOR
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF SANTA CLARITA )
I, Sharon L. Dawson City Clerkof the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of 1998, by the following
vote of Council:
AYES: COUNCILMEMBERS:
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ABSENT: COUNCILMEMBERS:
CITY CLERK