04/01/85 Board of Public Works Minutes

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REGULAR MEETING APRIL 1, 1985 Annual Percentage Rate: 9.36 Floating at 96% of the 20 Bond Index and fixed the week prior to funding. Special Requirement: Option B: Term: 6 years Fundings must be for an amount of $400,000.00 or more with the exception of the last funding. Payment mode: Semi-annual Annual Percentage Rate: lst payment due January 16, 1986 Special Requirement: Lease commences and entire funding amount (estimated at $2,000,000.00) to be deposited into an escrow on or before July 16, 1985. Benefit: Interest earned on the escrowed monies will accrue to the City. This additional income to the City should serve to lower the Annual Percentage Rate and provide a Net Effective Rate in the low 8% range. These rates are valid through July 15, 1985, subject to the following requirements: 1. Credit Review and approval for the City's last three years financial statements. 2. Proper execution of mutually acceptable documentation. SECURITY PACIFIC LEASING CORPORATION Edward J. Fleming, IV Lease Marketing Officer Regional Office: 2340 Des Plaines Avenue, Suite 106 Des Plaines, Illinois 60018 DELIVERY & TAKEDOWN: Between April 1, 1985 and December 31, 1985. LEASE TERM: Six (6) Years The Lease Term for each item of Equip- ment will commence on and as of the date of acceptance of said Equipment by the Lessee. RENTALS: Lessee would be required to make 12 equal consecutive semi-annual rental payments payable on January 15, 1986. As requested, no amount included in the overall financing package shall begin accruing until the equipment has been delivered, accepted, and funded. The rental factor and payment will be calculated on an interest rate of 8.39% (simple). INTEREST RATE: 8.39% (Simple) TYPE OF LEASE: This will be a municipal leasing transaction for the term under which the interest element of the rentals will not be subject to Federal (and State of California) income taxes. Fiscal Funding Language will be provided by the Lessor.