Presenter
Presented by Mr. Motznik
Title
Resolution providing for an Agreement with American Express Business Finance (AMEX), a qualified finance 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, the City is entering into an Agreement with American Express Business Finance (AMEX), a qualified vendor for the lease/purchase of a Seasonal Support Structure, and wishes to finance the said lease/purchase pursuant to the terms of a finance Agreement authorized herein.
Be it resolved by the Council of the City of Pittsburgh as follows:
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.
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.
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.