2001 AGN DEC 18 I16 - Laserfiche WebLink

Browse Search

Item #16 CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF DECEMBER 18, 2001 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: DILU DE ALWIS, FINANCE DIRECTOR 0 v;,, SUBJECT: ADOPT THE ATTACHED RESOLUTION TO ENTER INTO A MASTER LEASE AGREEMENT FOR CERTAIN EQUIPMENT AND IMPROVEMENTS, WITH MUNICIPAL FINANCE . CORPORATION IN THE PRINCIPAL AMOUNT OF $1,150,496. DATE: DECEMBER 10, 2001 At the City Council meeting of July 17, 2001, the City Council adopted Resolution #R-61-01, to show it's intent to enter into a tax-exempt lease to provide financing for reimbursement of the acquisition of a triple combination fire engine and other equipment. The master lease will consist of the equipment and improvements as shown on Exhibit A of the Resolution. The City Hall Annex needs to be remodeled to better utilize the space available for Public Works and accommodate the move in of the Redevelopment Agency. The dump trucks are being purchased so the Street Department can better utilize the asphalt -paving machine that was purchased last fiscal year. The other equipment items including the Fire Truck were budgeted as lease equipment. The City receives a better interest rate when financing a large amount of money at once, instead of making several smaller loans. The principal amount of the lease will be $1,150,496. DISCUSSION/ ANALYSIS Once the City Council has adopted the attached Resolution and lease agreements, the funds will be placed in an escrow account. The City will be reimbursed $258,626.09 for the Fire Truck, and the additional equipment and improvements will be paid for with the funds from the escrow account as they are purchased. The City will accrue interest on all monies in the escrow account until the purchases are made. The City solicited and received three proposals from the following vendors for this lease: Vendor Interest Rates Municipal Finance Corporation 4.50% - 5.25% First Municipal Leasing Corporation 4.60% - 5.40% CitiCapital Commercial Corporation 4.95% - 5.92% Attached for your review and approval is the Resolution, Lease Agreements and a list of equipment and improvements for this master lease. The list of equipment and improvements shows the equipment item or improvement, the requesting department along with the estimated price and the lease terms. Municipal Finance Corporation submitted their proposal through Wedbush Morgan Securities (Financial Advisor).