Presenter
Presented by Mr. Motznik
Title
Resolution amending Resolution 632 of 2002 to provide for an agreement with Baruch & Company for the purpose of financing the City's lease/purchase of a seasonal support structure to be used to operate the Mellon Park tennis center.
Body
Whereas Resolution 632 of 2002 authorizes the City to enter into a finance Agreement with American Express Business Finance ("AMEX") to finance the lease/purchase of a Seasonal Support Structure from a qualified vendor; and
Whereas, during negotiations of the finance Agreement, it was determined that, inter alia:
1. Baruch and Company, a company specializing in providing tax-exempt financing to municipal entities acquiring equipment, is a business partner of AMEX; and
2. Baruch and Company will actually be entering into the finance Agreement with the City rather than AMEX; and
3. Payments will be made to Baruch and Company or its assignee semi-annually rather than annually.
Be it resolved by the Council of the City of Pittsburgh as follows:
Section 1 of Resolution No. 632, effective October 3, 2002, which presently reads:
Section 1. The Mayor and the Director of the Department of Parks and Recreation, on behalf of the City of Pittsburgh, are hereby authorized to enter into an Agreement, in a form approved by the City Solicitor, with American Express Business Finance (AMEX), a qualified finance company for the purpose of financing the lease/purchase of a Seasonal Support Structure which will be used in the operation of the Mellon Park Tennis Center within the Department of Parks and Recreation at a total cost not to exceed Four Hundred Ninety Eight Thousand Seven Hundred Sixty One Dollars and Sixty Two Cents ($498,761.62). The City's obligation to AMEX shall be Four Hundred Ninety Eight Thousand Seven Hundred Sixty One Dollars and Sixty Two Cents ($498,761.62) subject to and contingent upon annual appropriation of funds, which are chargeable to and payable from 2003-2008 Contract/Budget Years (See attached schedule) from a newly created trust fund approved by City Council for the Department of Parks and Recreation.
Is hereby amended to read:
Section 1: The Mayor and the Director of the Department of Parks and Recreation, on behalf of the City of Pittsburgh, are hereby authorized to enter into an Agreement, in a form approved by the City Solicitor, with Baruch and Company for the purpose of financing the lease/purchase of a Seasonal Support Structure which will be used in the operation of the Mellon Park Tennis Center within the Department of Parks and Recreation at a total cost not to exceed Five Hundred Nineteen Thousand, Four Hundred and Four dollars and Ninety-Nine cents ($519,404.99). The City's obligations to Baruch and Company or its assignee shall be Five Hundred Nineteen Thousand, Four Hundred and Four Dollars and Ninety-nine cents ($519,404.99), which shall be chargeable to and payable from 2003-2008 Contract/Budget Years from a newly created trust fund approved by City Council pursuant to Resolution number 633 of 2002 for the Department of Parks and Recreation, Mellon Park Tennis Trust Fund, Fund 2833, Org 500000, Sub 600 and/or from the General Fund, Fund 1000, Org 500000 Sub 150, Acc 525500 in the event such trust funds are insufficient for the applicable period.
Section 2 of Resolution No. 632, effective October 3, 2002, which presently reads:
Section 2. The purchase of the Seasonal Support Structure shall be via a financing Agreement with a six-year amortization period. The City shall pay interest to the finance company at the annual percentage rate of 5.52%. At the conclusion of the lease term, the City shall have the option to purchase the Seasonal Support Structure at a purchase price of One Dollar ($1). The net financing proceeds shall be placed in an Escrow Account, invested at City's direction and drawn down for disbursement to the vendor based on performance targets approved by City.
Is hereby amended to read:
Section 2: The purchase of a Seasonal Support Structure shall be via a financing Agreement with a six-year amortization period. The City shall pay interest to Baruch and Company or its assignee at the annual percentage rate of 5.520%. At the conclusion of the lease term and upon making final payment, the City shall own the Seasonal Support Structure.
Section 3 of Resolution No. 632, effective October 3, 2002, which presently reads:
Section 3. Pursuant to the terms of the aforementioned financing Agreement, the City Controller shall encumber Eighty Three Thousand One Hundred Twenty Six dollars and Ninety Four Cents ($83,126.94), per year for the 2003-2008 Contract/Budget years (See attached schedule). These funds have been appropriated for the lease/purchase of the Seasonal Support Structure pursuant to the finance Agreement authorized hereunder, in the respective fiscal years, chargeable to and payable from a newly created trust fund approved by City Council for the Department of Parks and Recreation.
Is hereby amended to read:
Section 3: Pursuant to the terms of the aforementioned Financing Agreement, the City Controller shall encumber Forty-three Thousand, Two Hundred and Eighty-Three Dollars and Seventy-five cents ($43,283.75) biannually for the 2003-2008 Contract/Budget years (see attached schedule for payment amounts). These funds have been appropriated for the lease/purchase of the Seasonal Support Structure pursuant to the finance Agreement authorized hereunder, in the respective fiscal years, chargeable to and payable from a newly created trust fund approved by City Council for the Department of Parks and Recreation and/or the General Fund in the event that the trust funds are insufficient for the applicable period.