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Authorizing the Director of Finance, on behalf of the City of Philadelphia (the "City"), to enter into a lease agreement to lease vehicles and equipment from the Philadelphia Municipal Authority, for the purposes of financing vehicles and equipment and to enter into an escrow agreement pursuant to the terms of the lease agreement, under certain terms and conditions.
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WHEREAS, The Office of Fleet Management has determined there is a current need for vehicles and equipment that exceeds the current funding capacity of the Office of Fleet Management to purchase such vehicles and equipment; and
WHEREAS, The Director of Finance has determined that the most prudent course of action is to lease the vehicles and equipment through The Philadelphia Municipal Authority (the "Authority"); and
WHEREAS, The Authority will arrange for financing of the vehicles through a lease purchase agreement, the form of which is attached hereto as Exhibit "A", with a vendor selected from respondents to a request for proposals (the "Lease Purchase Agreement"), pursuant to which an escrow account will be funded by the vendor to finance the acquisition of the vehicles and equipment and the Authority will lease the vehicles from the vendor over the term provided for in the Lease Purchase Agreement, with an option to purchase such vehicles and equipment at the end of the term; and
WHEREAS, In order to induce the Authority to arrange for the financing of the vehicles, the City will lease the vehicles and equipment from the Authority pursuant to a sub-lease purchaser agreement between the Authority and the City (the "Sub-Lease Agreement"), pursuant to which the City will agree to pay as a lease payment, solely out of its current revenues, amounts necessary to satisfy all of the obligations of the Authority under the Lease Purchase Agreement; and
WHEREAS, The City has included in its Fiscal Year 2011 budget an estimated amount necessary for payment to ...
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