SR-700-006 (2)
.
I
rtJt?-CJob
c~=aH
MAR 2 8 1989
,,-"-"i r (""-J - ,./ Jr;,..,.
f'v...... LLI,f.-"
,
FD:CMD:aks:srelP~
Council Meeting: ~arch 28, 1989
..
Santa Mon~ca,
TO:
Mayor and City Council
FROM:
City staff
SUBJECT: Approval of Resolution Authorizing city Manager to
Execute Lease-Purchase Agreement with Municipal Leasing
Associates, Inc. for a 1500 GPM Triple Combination
Pumper Fire Truck
Introduction
This report is to recommend that the City Council approve the
attached resolution authorizing the City Manager to execute a
lease-purchase agreement for a 1500 GPM Triple Combination Pumper
Fire Truck with Municipal Leasing Associates, Inc.
Background
As part of the Fire Department's on-going program of equipment
replacement, the FY1987/88 budget appropriated funds for the
lease-purchase of a 1500 GPM triple combination pumper fire
truck. This new fire truck will replace a 1968 1250 GPM pumper
truck at the Headquarters Fire Station, Station #1. The replaced
pumper truck will be retained for approximately 5 years as a
reserve pumper truck.
On June 23, 1988, the O'Neil Seagrave Co. was notified of the
city's intent to purchase a new Seagrave 1500 GPM Triple
Combination Pumper through Los Angeles city Fire Department
contract number 5964, Seagrave bid number E2-101. This was done
to secure the price of the base unit as it was bid to the city of
Los Angeles. To use the bid of another public agency in this
manner is authorized by Section 2506 (A) (2) of the Santa Monica
Municipal Code.
b-H
MAR 2 8 1989
FD:CMD:aks:srelP~
Council Meeting: 'March 28, 1989
santa~nical California
The pumper truck has now been constructed, meets all City of
Santa Monica specifications and requirements and is ready for
delivery.
During February, 1989, proposals were solicited from seventeen
financing sources to lease-purchase this equipment over a seven
year period. Eleven proposals were received. staff has
evaluated the proposals and has determined that the proposal from
Municipal Leasing Associates, Inc. represents the lowest total
lease-purchase cost to the city. specifically:
Total Cost of Equipment: $176,149.94
(includes sales tax)
Interest 42[761.06
Total Lease-Purchase Cost:
Annual Interest Rate:
Annual Payments:
$218,911. 00
7.93%
$ 31,273.00
BUdgetary/Financial Impact
Sufficient appropriation authority is available in the Capital
Improvement Budget, Public Safety Category, account number
01-730-313-000-910, "Triple Combo Lease".
Recommendation
It is recommended that the attached resolution be approved
authorizing the City Manager to execute a lease-purchase
agreement with Municipal Leasing Associates, Inc. for a 1500 GPM
Triple Combination Pumper Fire Truck.
Prepared by: Mike Dennis, Director of Finance
J
FD:CMD:aks:srelP~
Council Meeting: Xarch 28, 1989
santa~nica, California
RESOLUTION NO.
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA AUTHORIZING LEASE AGREEMENT
AND SIGNATORIES
WHEREAS, CITY OF SANTA MONICA, County of Los Angeles,
State of California (tfCity") is duly authorized and existing
under the laws of said State; and
WHEREAS, the city solicited third party proposals for
lease-purchase financing of one (1) new Seagrave 1500 GPM Triple
Combination Pumper ("Property") having a purchase cost of
$176,149.94; and
WHEREAS, Municipal Leasing Associates, Inc., on behalf
of itself or its nominee ("Lessor"), has offered the City the
most cost effective financing requiring periodic lease payments
including principal plus interest computed at a 7.93% annual
percentage rate,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Manager is authorized on behalf of
City to enter into such agreements for leasing the Property upon
such terms as may seem advisable to said officer, and to execute,
as agent for the City, the agreements, leases, consents to
assignment, acceptance certificates, and any other documents in
FD:CMD:aks:srelp~
Council Meeting:~arch 28, 1989
santa~nica, California
connection therewith. The City Manager is also authorized to
accept or direct delivery of the Property.
SECTION 2.
The contemplated lease transaction be
designated by the City council as a qualified tax exempt
obligation pursuant to section 265 (b) of the Internal Revenue
Code of 1986 and the City Manager is authorized to execute the
UDesignation of Qualification" document permitted by the Code.
SECTION 3. The city Clerk shall certify the adoption
of this Resolution, and thenceforth and thereafter the same shall
be in full force and effect.
APPROVED AS TO FORM:
~ "'^. ~
ROBERT M. MYERS ~/
City Attorney