HomeMy WebLinkAbout3/21/2001 - STAFF REPORTS (16) DATE: March 21, 2001
TO: City Council
FROM: Procurement Manager and Director of Finance
APPROVE SUPPLEMENT NUMBER 6 TO CALEASE MASTER LEASE/PURCHASE AGREEMENT
FOR THE PURCHASE OF SEVENTEEN (17) VEHICLES FOR VARIOUS DEPARTMENTS
RECOMMENDATION:
That the City Council approve Supplement (Takedown) Number 6 in an amount not to exceed
$411,000 under the Master Lease Agreement with CaLease to finance the purchase of three police
patrol units, one police administrative unit, nine F150 CNG-powered pickups, one F150 supercab
pickup, one F250 pickup and two (2) 4x4 mini-pickups.
BACKGROUND:
It is recommended that the purchase of required vehicles (total equipment cost not to exceed
$411,000) be financed on a lease/purchase basis over five years under the Master Lease
Agreement with CaLease approved by the City Council on October21, 1998. The vehicle purchase
is described in a separate staff report to Council.
Of the vehicles to be lease/purchased four units are eligible for a three-year payback term and the
remaining thirteen vehicles have a 5-year payback term eligibility. CaLease's program will provide
the required funding at an interest rate of approximately 5.6%which is about 1/2%less than the rate
of return on the City's invested funds. CaLease will finalize the rate through placement in the
competitive market within ten days after notification of approval by the City Council. The payments
will be semi-annually, due on December 30 and June 30.
This financing program was created as a joint powers authority of the League of California Cities
and the California State Association of Counties; it was intended to provide California cities and
counties access to the best possible financing for large capital acquisitions by leveraging tax-
exempt rates. Participation in the program allows the City to spread the acquisition cost of an asset
over the expected useful life of the asset. The vehicles will become property of the City outright at
the end of the payment terms.
HAROLD E. GOOD THOMAS M. KA ARR
Procurement Manager Director of Finance
APPROVED:
City Manager
Attachment: (1) Minute Order
'v
MINUTE ORDER NO. 6828
APPROVING SUPPLEMENT (TAKE-
DOWN) NUMBER 6, IN AN AMOUNT NOT
TO EXCEED $411,000, UNDER THE
MASTER LEASE AGREEMENT WITH
CALEASE TO FINANCE THE PURCHASE
OF THREE (3) POLICE PATROL UNITS,
ONE (1) POLICE ADMINISTRATIVE
UNIT, NINE (9) F150 CNG-POWERED
PICKUPS, ONE (1) F150 SUPERCAB
PICKUP, ONE (1) F250 PICKUP AND
TWO (2)4X4 MINI-PICKUPS.
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I HEREBY CERTIFY that this Minute Order, approving Supplement
(Takedown) Number 6, in an amount not to exceed $411,000, under
the Master Lease Agreement with Calease to finance the purchase of
three (3) police patrol units, one (1) police administrative unit, nine (9)
F150 supercab pickup, one (1) F250 pickup and two (2) 44 mini-
pickups, was adopted by the City Council of the City of Palm Springs,
California, in a meeting thereof held on the 21st day of March, 2001.
PATRICIA A. SANDERS
City Clerk