(  Leasing News will observe Memorial Day---a day off to salute

          those who have died for our country and serve today in the military,

                 as my son, Dashiell, US Navy. See you, Tuesday. )

 

                              Kit Menkin’s Leasing News

                   www.leasingnews.org  Friday, May 24 2002

Accurate, fair and unbiased news for the equipment Leasing Industry

 

           Headlines----

 

Rates on 30-year and 15-year mortgages drop this week

   LeaseWizard Rolls Out 50-State Live Lease Quotes

      MAEL Golf Tournament- Last Monday, Chicago

       Payments/Information re: Commercial Money Center

             Friday----Odds and Ends

               The Trend Today for Leasing/Leasing Associations Beware

                       Equipment Leasing Association June Events

                         United Association of Equipment Leasing Events

                             Los Angeles to Break-Up—On November Ballot

                                Stan Evans to Join Legal Solutions

 

Automotive Lease Guide (ALG) and Edmunds.com Collaborate to Provide Consumers Lease Versus Buy' Decision Tools (equipment, too)

 

 

### Denotes Press Release

 

_____________________________________________________________

 

Rates on 30-year and 15-year mortgages drop this week

 

By Associated Press,

 

WASHINGTON (AP) Rates for 30-year and 15-year mortgages around the country dropped this week, according to a nationwide survey released Thursday.

 

Freddie Mac, the mortgage company, reported that the average interest rate on 30- year fixed-rate mortgages declined to 6.81 percent this week from 6.89 the previous week. A year ago this time, 30-year mortgages averaged 7.20 percent.

 

Rates on 30-year mortgages hit a low of 6.45 percent in early November, their lowest point since Freddie Mac began conducting its nationwide survey in 1971.

 

Even though rates have moved higher since that time, analysts believe that mortgage rates will be fairly stable this year and will continue to support the housing market.

 

Fifteen-year mortgages, a popular option for refinancing, fell to 6.28 percent from 6.37 percent the week before. A year ago, 15-year mortgages averaged 6.74 percent.

 

However, on one-year adjustable-rate mortgages, lenders were asking an average initial rate of 4.85 percent, up from 4.81 percent the previous week. Last year this time, one-year ARMs averaged 5.85 percent.

 

These rates do not include add-on fees known as points, which averaged around 0.7 percent of the loan amount for all three types of mortgages last week.

 

Even though mortgage rates are low, Frank Nothaft, Freddie Mac's chief economist, predicted home mortgage refinancing activity which hit record levels last year will slow this year.

 

''Although mortgage rates are at gene rationally low levels, refinancing should start to drop off, as just about everyone who had an incentive to refinance into a lower rate has done so,'' he said.

 

########### #########################################

 

 

LeaseWizard Rolls Out 50-State Live Lease Quotes; The Only Provider to Offer Captives and All Major Banks

 

 

 ( While aimed at consumers, also works on equipment leasing for business,

or consumers. editor )

 

 

LITTLETON, Colo / -- LeaseWizard.com announced the official launch of its Live Lender Quote service.  Available to consumers in fifty states, the service provides lease program details from all major banks in the United States as well as virtually all manufacturer finance companies.

 

"Consumers need to know what lease programs are available before they go to the dealership.  The few leasing services on the Internet that offer consumer quotes only provide rates and residuals from the few, usually regional lenders that work with them directly," said consumer leasing expert, Michael Kranitz, who is president and CEO of LeaseWizard(R).  "Getting a quote from one of these services only gives you part of the picture -- the terms on which that particular company is able to lease you a vehicle.  Our service provides consumers the best 6 quotes from virtually every major bank and manufacturer finance company that serves the customer's geography.  No other service provides this type of information," he added.

 

Unlike services that are giving quotes to try to get consumers to lease from them, LeaseWizard(R) has no stake in the consumer's lease and its sole purpose is to provide unbiased market information to give the consumer the broadest possible negotiating power with either a leasing company or a dealership.  Consumers can purchase the quotes, along with auto leasing software bundled with the best selling consumer guide, "Look Before You Lease: Secrets to Smart Vehicle Leasing" by visiting www.leasewizard.com on the Web. Consumers can also access the quote service directly from their LeaseWizard(R) desktop software.

 

LeaseWizard(R) currently has a network of more than 35 partners, including Edmunds.com, Intellichoice.com, InvoiceDealers.com and eLoan that promote LeaseWizard(R) products.

 

About LeaseWizard.com 

 

LeaseWizard(R) is based in Littleton, Colorado and has been providing consumer leasing software, information and advice to consumers since 1995. Recommended in Motor Trend, Automobile, Kiplinger and many other publications, LeaseWizard(R) is the most popular consumer leasing software on the market today.  Consumers may access the site at http://www.leasewizard.com .

 

### #################################################

 

 Mid-American Association of Equipment Lessors Golf Tournament

 

Close to 330 industry stakeholders participated in this years events by

playing one or both days of the Warm-up Weekend or in  the MAEL Invitational

on Monday, attending the reception and dinner and being entertained by the

Bear's new H-back, Mike Leach, or as sponsors. 

 

Needless to say, warming up was a challenge as the Chicagoland area experienced record low temperatures during the entire weekend.  Feel free to confirm with others in attendance, but I believe it is fair to say that everyone had a great time playing,

entertaining and networking with others in our industry. Greek Islands was

once again the scene of a festive Saturday evening dinner after the round at

Ruffled Feather's in Lemont and  Nick Popovich hosted a lovely dinner at his

ranch in Valparaiso, IN after Sunday's round at Aberdeen.

 

 Mike Fleming (president of the Equipment Leasing Association ) was

there on Monday and said a few words on behalf of the ELA, including the

announcement that Rudy Gulliani will be the keynote speaker at the ELA

convention later this year in San Francisco. 

 

More than 200 finished play on Monday despite the sunny but very windy and chilly conditions.  We are preparing a thank you to our sponsors and an announcement to our membership and mailing list announcing the results and winners which we will copy you

on.

 

We will also be sending out a formal announcement in the next few days

announcing a change in the date and format for next years events; 1)the date

will be in either June or August to ensure that warming up is never again a

problem and 2)because of its success and the enthusiasm of a core group of

avid golfers who would like to play (for economic gain) some of the more

famous courses in Chicagoland like Bob-o-Link, Medinah, Butler National,

Kemper Lakes, Black Sheep Golf Club, Olympia Fields, Dubsdread at Cog Hill

(we may also relocate the Team Challenge to Kohler WI, the home of Black

Wolf Run, Whistling Straits, etc.), etc., the Warm-up Weekend will become

the MAEL Team Challenge with room for a limited number of four man teams

(ladies are always welcome as well, unless we have a black out for play at

Bob-o-Link or the Black Sheep Golf Club which are men only clubs, in which

case we will arrange an equally challenging alternate venue for the ladies

or lady teams). 

 

Jeff Elliott of Huntington Bank Equipment Finance and Fred

Summers of Vision Financial Group will be organizing the Team Challenge (I

am working on them to become co-chairmen of the Invitational as well for

next year and to commence a rotation of the chairmanship of these events on

an annual or biannual basis).

 

 We will also be migrating to a new advance registration policy which will

    1)permit our members and their guests

assurance that they will have priority registration rights and to permit

them to plan ahead and

     2) to reduce the volunteer staff's administrative

costs of later event announcements and some participants last minute

registrations. 

 

We expect both 2003 events to be sold out before the end of

this summer.  I hope you and Jim (Merrilees) will be able to make it next year!

 

 

 

Best regards,

 

Clyde D. Cady

President

Facility Capital

333 West Wacker Drive

Suite 1750

Chicago, IL  60606

ccady@facilitycapital.com

312.541.6000 phone

312.541.1275 fax

312.399.9335 mobile

 

 

 (( I thought Jim Merrilees was going this year, maybe next year,

 thank you very much for the report, as it is appreciated by

 all of us. editor )

 

 

Payments/Information re: Commercial Money Center

 

Allow me to offer some assistance to you and your readers with questions

surrounding the servicing (payments, payoffs, lien releases...) of the

Commercial Money Center financial lease agreements.  Stuart Allan &

Associates Inc. is now acting as the sub-servicer of the Safeco Insurance

portfolio and can be reached at the numbers provided below.

 

   Please understand Stuart Allan & Associates Inc is not an agent and or

associate of Commercial Money Center or its principals.  Stuart Allan &

Associates is acting as an authorized independent agent of Safeco Insurance

Company.  Stuart Allan & Associates accepts no responsibility for the

actions taken by Commercial Money Center, its staff and or authorized

agents.

 

 

Respectfully,

 

Troy Lang

 

Stuart Allan & Associates

Ph# 800-880-5400 ext 238

Ph# 520-322-7238

Fax# 520-323-0026

 

 

Friday----Odds and Ends

 

 

MSM Capital, Irvine, California

 

Leasing News received many comments about this article, but since none of

the senders wanted us to use their name, we are not printing them.  Let’s just

say they were not favorable to MSM Capital or its principles. editor

 

 

-------------------------------- 

  From: Tom_Pundyk@nlgroup.ca

 

I regularly trash most of my in and out email so I do not have a copy of

the email I sent on Monday but I know what I said.

 

" I was reviewing the eLNA site and read that there was a "leasing news"

site that I had not hear of. I was pleasantly surprised that the content

and layout was very clean and to the point. I liked the candid approach and

the quality of the articles. Keep up the good work."

 

--- 

 

    From: Tom Kelly <tomk@tommel.tzo.com>

    I just wanted to thank you for your efforts! I read your newsletter daily. Keep up the good work.

 

    Tom Kelly

    Tommel Financial Services, Inc.

    Diamond Equipment Leasing, Inc.

 

 

-----

Monitor Daily

 

                         Jay Foster

               Address = P. O. Box 670807

                  City = Dallas

                 State = TX

               Zipcode = 75229

                 Phone = 214.378.7172

                   Fax = 214.363.3933

                 Email = Jay_Foster@MidParkCapital.com

=

              Comments = Regarding Teri Gerson and her complaint about the

Montior and Molloy Associates.  Last evening I renewed my subscription with

the Monitor ... and remitted a check payable to Molloy Associates (the

recruiter ... and yes, publisher of the Monitor).  I appreciate The Monitor

and believe it to be an excellent resource.  In my mind it represents a

value added service to the industry which also serves as a marketing piece

for Molloy Associates and its recruiting services.  As such, I would not

expect that them to publish the developments of their competitors.  Don't

we all wish we could develop such a marketing piece ... one that is highly

valued and read by its target market ... and one that many of us are

willing to pay for.

                

---

 

from: Stu Kahn

 

full review the law firm web site below:

 

http://www.ppbfh.com/index.htm

 

Be sure to read each link.  You won't believe this one.

 

( Stu was right. This is a riot. editor )

 

------------------------------------------------------------

 

The Trend Today for Leasing/Leasing Associations Beware

 

 The big companies are imploding.  In the next year or so you are going to see all of the consolidation fall apart. Even GE will be looking to get rid of companies that it bought because the changing laws and accounting rules will make it very difficult for them to absorb these companies.  Investors are looking harder at the real numbers and nobody is going to take the word of the “analysts” the way they used to.

 

 Growth by acquisition will no longer be fashionable.  These companies will be out there trying to figure out how to originate deals again.  Like always they will turn to the third parties who have always, without fail, been the best at this.   The leasing industry resists consolidation because it works better as a fragmented industry.  This is true of most financial services that have traditionally revolved around a complicated lender/debtor relationship. Look at the proliferation of community banks. 

 

The big banks get bigger and bigger.  Every time they buy out a regional bank there are 50 community banks that spring up in that region over the next few years. After a while it starts to become evident that our customers prefer a fragmented industry.

 

The same thing is going to happen in leasing.  AMEX, Citigroup, GE, CIT/Tyco are going to lay off more people, downsize, etc.  Just like 25-30 years ago when Woodley, Oren Hall, Mark  Schickendantz, the Mellon brothers,   Gordon Roberts, and many others came out of a group of leasing companies and formed most of the broker business in the west, these laid off people will start the cycle all over again.  Ira Romoff predicted this at the last joint UAEL/EAEL meeting in Vegas.  He said the big companies would collapse under their own weight.  “Funding sources” will come back and some new ones will find their way into the industry. We are already seeing some companies making their mark like Great American and Marlin.  This will be especially true if the industrial sector of the economy continues to lag and there is increasing pressure to bring back Investment Tax Credit and lower marginal tax rates.

 

The next three years will be the most important years in the history of leasing associations that represent the third party segment of the industry.  The associations should be concentrating on training and education.  I still haven’t found a university that offers a degree in “leasing”.  It’s difficult to even find a course in leasing.  It will also be important for the association leadership to realize there may be global opportunities, in both funding and business development even for smaller companies.  I believe that this needs to be at the heart of the association movement.

 

Bob Rodi, CLP

Lease Now

drlease@leasenow.com

 

-----

Equipment Leasing Association Conference

 

( Don’t know if you can attend, except ELA President Mike Fleming said

one event a year is available to non-members.. The Inter-Association Conference was to work on an mutual aid pact, but it appears the committee is headed in different directions.  Perhaps Mr. Fleming is correct.  Better to join ELA,

than remain a non-member. These are great events:

 

 

******************************

7.    Make Plans to Attend BTS Conference June 16-18, 2002

******************************

Plan to attend the ELA Business Technology Solutions Conference, June 16-18,

2002 at the Philadelphia Marriott Hotel in Philadelphia, PA. This year's

conference will guide you in improving your business processes, enhance

customer satisfaction and increase operational effectiveness.

 

For further information on the BTS Conference, and to sign up, visit:

http://www.elaonline.com/events/2002/bustechsol/

 

 

******************************

8.    Golf Anyone?

******************************

Spaces are still available for the Sunday June 10th Golf Tournament at this

year's Credit & Collections Management Conference, June 9-11 at the Hyatt

Regency Hill Country Resort, San Antonio, TX. Cost is $130 and the shotgun

start will be at 8am.

 

To register please go to: http://www.elaonline.com/events/2002/credcoll/

Or for further information contact Jeanne Lund at (703) 516-8366.

 

 

******************************

9.    What are the Accounting Changes, Legal Implications and Financing

Opportunities for Off-Balance Sheet Transactions in the Post-Enron World?

******************************

Join the ELA, IFIAC and the Bar Association of San Francisco on Thursday,

June 13 at the Banker's Club in San Francisco, for a luncheon and program on

"An Update on Off-Balance Sheet Transactions: Synthetic Leases, SPE's, and

Receivables Securitizations". Panelists include Harry Amyotte of Scotia

Capital, Dayton Lierley and Tom Trauger of Ernst & Young, and Pamela

Martinson and William S. Veatch of Cooley Godward. The program will include

a discussion about synthetic leases, special purpose entities, and

receivables securitzations. There will also be a roundtable discussion after

the program, with an opportunity for the audience to ask questions. Cost is

$48 per person for ELA or IFIAC members, or $56 for a non-member (including

lunch).

 

For further information and to register, contact Linda Cain at IFIAC at

01cain@gte.net or (626) 974-5429. This program has been approved for MCLE

credit by the State Bar of California for 1.5 hours

 

 

******************************

10.    Sticking to Your Proven Credit Standards...

******************************

...even strengthening them...will help you weather this tough period. Being

selective is smart business. The ELA Credit & Collections Management

Conference, June 9-11, 2002 at the Philadelphia Marriott, Philadelphia, PA,

helps you handle the issues that keep you up at night.

 

The ELA Credit & Collections Management Conference & Exhibition has been

meeting the needs of credit & collections professionals since 1987. This

year's conference features specific industry evaluations & discussions; tax,

legislative and accounting updates; important legal updates and bankruptcy

focus; timely sessions on credit scoring, fraud and collections management;

together with the usual great networking opportunities and golf tournament.

 

For further information and to sign up, go to:

http://www.elaonline.com/events/2002/credcoll/

 

 

******************************

11.    Principles of Leasing Workshop--Still the Best Way to Prepare New

Employees

******************************

ELA's Principles of Leasing Workshop is your answer to helping new employees

understand the basics of the leasing and finance industry. This 21/2-day

program is taught by veterans of the industry and is scheduled in ten

locations throughout the US. Each year, nearly 400 people attend this

valuable workshop. The next workshop is scheduled for June 17-19, 2002 in

Baltimore, Maryland. A few spaces still remain.

 

To review the agenda for the course or to register for a workshop near you,

go to: http://www.elaonline.com/events/2002/Principles/index.cfm

 

 

----------------------- 

 

 

UAEL 2002 ANNUAL CONFERENCE & EXPOSITION

October 3-6

Sheraton San Diego Hotel & Marina

San Diego, CA

Register before June 1st and save $50 with the Super Early Bird Registration

Attached is the Exhibitor Registration Form, Sponsorship Opportunities and Super Early Bird Registration Form

Online registration is available at www.uael.org

 

AUDIO-CONFERENCE

Wednesday, June 5, 2002—Lessor-Vendor Relationships

Definition of Roles • Traits to Look For • Elements of a Vendor Program • Potential Problems/Potential for Fraud • Creating a vendor program

model that highlights your strengths and builds long-term business

 

INSTITUTE FOR LEASING PROFESSIONALS

June 6 - 8

Balboa Capital

Irvine, CA

Visit the UAEL website at www.uael.org for details and to register online

 

 

CHICAGO REGIONAL BASEBALL GAME

Thursday, June 27th

Chicago Cubs vs. Cincinnati Reds

11:00am - Lunch at Goose Island Brewery

1:20pm - First Pitch

Contact Shari Lipski, CLP at Edwin C. Sigel for details

slipski@edwinsigel.com

 

 

FUNDING, EDUCATION & NETWORKING FORUM

Friday, July 26

Warwick Hotel - Philadelphia, PA

8:00am - 4:00pm

This very exciting day is filled with education and networking opportunities for your entire staff and will include:

*CLP Review

*Anatomy of a Lease 101

*One-on-One Appointments

*CapitalStream Advantage Training

*TimeValue Software Training

*Roundtable Luncheon with UAEL Board of Directors

 

We look forward to welcoming you and your staff to our future UAEL events.  Please contact us should you have any questions or need

additional information.

 

See you soon!

 

Joanie Dalton - Chief Operating Officer

UAEL - United Association of Equipment Leasing

520 Third Street, #201

Oakland, CA  94607

(510) 444-9235 x27 * Fax (510) 444-1346

joanie@uael.org * www.uael.org

 

 

June 10-12 Pennsylvania

 

 

Coming to the East Coast! 802.11 Planet Spring 2002 Conf. & Expo

Sponsored by IBM --The Only Trade Show & Expo

Focused on 802.11 Business-- June 10-12 Pennsylvania

Convention Center, Philadelphia, PA. Whether you're an

expert in 802.11 or need to quickly get up to speed and

profit from it, 802.11 Planet is the premier event for this

exploding industry. Register today & save!

http://www.intmediaevents.com/80211/spring02

 

 

__________________________________________________________________

 

Los Angeles to Break-Up—On November Ballot

 

Secession in Voters' Hands  ( We weren’t kidding when we first reported this )


*Breakup: LAFCO places Valley cityhood on the November ballot, and a powerful coalition of civic leaders gears up to keep Los Angeles whole.


By SUE FOX and PATRICK McGREEVY,  Los Angeles TIMES STAFF WRITERS

A six-year campaign to break the San Fernando Valley from Los Angeles won a spot Wednesday on the November ballot, clearing the way for a historic vote and uncorking a fierce political debate over the future of the nation's second-largest city.

The Local Agency Formation Commission voted 8 to 1 to place the secession measure on the Nov. 5 citywide ballot. Its decision came after a daylong hearing that swung between dry legalese and impassioned pleas to "free the Valley."

"Today, what you are doing is making history," said Paula Boland, a former state assemblywoman who has fought for Valley secession since the 1970s. "You're telling almost a million and a half people that democracy is alive and well in this country." Los Angeles Councilwoman Cindy Miscikowski cast the lone dissenting vote, saying she thought the panel needed more time to review the proposal.

The commission's decision opens a debate whose outcome will determine the shape and identity of Los Angeles. With the stakes high for the Valley and the rest of the city, the campaign already has begun to attract top civic leaders and dominate the agenda of Mayor James K. Hahn, who is spearheading the fight against secession.

The mayor brings some powerful allies to his cause. Former Secretary of State Warren Christopher, former Los Angeles Mayor Richard Riordan, billionaire Eli Broad and real estate developer Ed Roski are scheduled to meet with Hahn today to discuss how to bolster the anti-secession campaign. Hahn has vowed to raise $5 million to fight a breakup.

After the vote, the mayor called secession "a one-way ticket to financial disaster" and vowed to wage an aggressive campaign to defeat the measure.

"This fantasy that there's this utopia around the bend where you can find better services for less money is just that, a myth, and we're going to expose it," Hahn said. Valley secessionists, meanwhile, hope to raise $2 million to $4 million and have hired a political consulting firm known for guiding dozens of ballot measures into law. They predicted a groundswell of support, fueled by dozens of campaigns soon to be launched for seats in the Valley city.

"They can get all the billionaires they want, but we have the public," said Richard Close, chairman of the secession group Valley VOTE. "This is Mayor Hahn's swan song; he has no support throughout the city. The Valley has deserted him. South-Central has deserted him."

Secession backers promise that a Valley city would provide more efficient, responsive government. Opponents insist that it would only spawn more bureaucrats and diminish services on both sides of the Santa Monica Mountains.

While couched in the arid language of municipal budgets and services, the Valley secession drive taps deep-seated sentiments in Los Angeles, pitting those who yearn for more local control against those who see the city's far-flung neighborhoods and unparalleled diversity as its strength.

"Support is growing throughout Los Angeles," said Valley VOTE President Jeff Brain. "The residents, the taxpayers want a change. The opponents are selling what we call 'fud'--fear, uncertainty and doubt ....The Valley is selling hope. We're asking people to trust themselves to form a new city."

In a hint of campaign themes to come, Hahn warned that secession would hurt public safety by jeopardizing bonds to pay for Valley police and fire stations. "The cost to the city's taxpayers will go up and services will go down ... both in the Valley city and the remaining city," he told LAFCO. "We think public safety is jeopardized."

Addressing that concern, the commission gave the city until election day to issue the bonds.

Outside the meeting chamber, a Van Nuys woman chased after the departing mayor, shouting: "Just let us vote!" Hahn turned and faced her before a bank of television cameras. "I'm not trying to delay the vote," he said. "I want you to vote!"

The push for Valley city hood is one of a trio of Los Angeles secession proposals aiming for the voting booth this fall. In the next two weeks, LAFCO must decide whether to put plans for Hollywood and harbor-area independence, both hobbled by questions about their financial strength, on the ballot alongside Valley secession.

If Los Angeles were to lose all three regions, the city's size and population would be cut roughly in half. The Valley alone has 1.35 million residents.

"It will be a real test for Hahn," said Allan Hoffenblum, a Republican political analyst. "If 1.3 million people leave his city, that could cause severe problems if he wants to get re-elected. I don't think he wants secession as his legacy."

Julie Butcher, head of the largest city employees union, told her members to "prepare for the biggest political fight in our city-worker lives." She said city jobs could be threatened if secession passes.

"We're going to marshal every resource and every city worker that we represent--and even those we don't represent," said Butcher, general manager of Service Employees International Union, Local 347. "A worker in South Gate understands what's at stake. This is really about the future of public jobs. If half of the nation's second-largest city decides to bail on the rest of us, it really has an impact on all of us."

Secession drives have been victorious in states such as Florida, but none has been waged on the grand scale presented by the Valley.

"This is monumental," said Peter Muller, an urban geographer at the University of Miami. "As always, Los Angeles is first. If [secession] wins, and it looks like there's a very good chance it could, it could usher in a whole new urban era."

Voting in favor of putting secession on the ballot were county Supervisors Yvonne Brathwaite Burke and Zev Yaroslavsky, Diamond Bar Councilwoman Carol Herrera, Pico Rivera Councilwoman Beatrice Proo, retired judge James DiGiuseppe, former school board member Henri Pellissier and water board members William Wentworth and Jerry Gladbach.

To pass, secession must attract a majority of voters citywide and, in a separate tally, a majority within the breakaway area. A Times poll taken in March showed that 55% of Valley voters thought the Valley should secede, compared with 46% of the city's entire electorate. Citywide, more voters favored secession than opposed it.

Riordan, a longtime foe of secession, questioned the depth of Valley discontent.

"This is not like an angry revolution going on. I think it's just some people who came up with the idea and some politicians in Sacramento that really should have minded their own business," Riordan said. "Right now, I think support both for and against secession is paper thin. Hopefully, people are starting to focus on it. We've got to educate them."

Voters will be asked simply to approve or deny Valley independence. But underpinning that question are reams of budget data showing, at least in the eyes of LAFCO, that the Valley could thrive as a separate city without injuring the financial well-being of the city it leaves behind.

Los Angeles officials have hotly contested that finding, arguing that secession would punch a multimillion-dollar hole in the city treasury. Debate over financial effects raged until the eleventh-hour Tuesday, when LAFCO again revised its calculations and more than doubled the amount an independent Valley would have to pay Los Angeles to make up for lost tax revenue.

Pellissier, LAFCO's chairman, said the vote puts the onus on secession supporters to make their case.

"I'm delighted we were able to reach the conclusion we did, but the facts were there," Pellissier said. "We made the decision that they should have the right to vote. It's fiscally viable."

A breakup would disrupt almost a century and a half of nonstop Los Angeles expansion. The Valley, once a patchwork of ranchland and orchards, joined the city in 1915 so that it could obtain water from the 233-mile Los Angeles Aqueduct. Areas with their own wells, such as Burbank and Glendale, remained independent.

If Valley secession is approved by voters, the new city would be born on July 1, 2003. It would instantly become the nation's sixth-largest city, bigger than Phoenix, San Diego, Dallas and Detroit.

The Valley would have a $1-billion budget, an elected mayor and 14 city council members. Voters who live in the Valley would elect those leaders and choose the city's name on the same November ballot. The five selections range from the obvious (San Fernando Valley) to the dreamy (Camelot).

To keep Los Angeles financially whole, the Valley would have to pay $128 million the first year. This so-called alimony payment would drop 5% annually over 20 years.

For at least its first year, the fledgling city would remain tightly bound to Los Angeles. The Valley would contract with Los Angeles for almost all municipal services, but eventually could set up its own departments and hire employees.

But many uncertainties remain about the long-term health of both cities. Los Angeles officials still say their city will be left with centralized costs, such as running the 911 system, if the Valley breaks away. A financial firm last week warned investors that secession might hurt Los Angeles' bond rating.

"There's so much more we as a city need to know before we can make a qualified or educated decision," said Xavier Flores, vice president of the Mexican American Political Assn., which opposes secession. "The residents of Los Angeles, and that includes people in the Valley, have everything to lose. If there is a mistake or an oversight, we're the ones who are going to have to pay."

The breakup would displace the four Los Angeles City Council members who represent the Valley and force the remainder of the city to redraw its council districts. As an alternative to secession, Councilwoman Wendy Greuel, a newly elected Valley representative, has proposed a system that would divide the city into boroughs, each with power to make local planning and budget decisions.

In some ways, a Valley city would always rely on Los Angeles. After almost nine decades together, the two regions were found to be so intertwined that certain systems, like water, power and sewer lines, would be impossible to untangle. So LAFCO decided that the old city would be forced to provide utility services to the Valley at the same rates Los Angeles customers pay.

Barring a successful lawsuit, the LAFCO decision is all but final. Only a written protest from half of the Valley's registered voters--about 300,000 people--could derail the election.

But LAFCO still has time to tinker with the breakup plan. California law requires a 30-day "reconsideration" period, during which any interested party can ask the commission to review its decision.

The county Board of Supervisors will then hold a hearing on the written protests before formally placing the measure on the ballot. The supervisors have no discretion over the breakup plan; their role is merely administrative.

For Valley secession leaders, a determined band of mostly white, mostly male suburbanites, getting their proposal onto the ballot is a stunning victory. It required years of steady pressure against state and local governments that once swatted aside the idea of secession like a harmless, if bothersome, fly.

An early Valley cityhood drive was crushed in the 1970s when the state Legislature, at the urging of then-Mayor Tom Bradley, gave large cities veto power over secession.

But grumbling over city services and the Valley's perceived lack of clout at City Hall persisted. Two decades later, some leaders of the original secession movement were finally in a position to do something about it. Boland, who was by then an assemblywoman, revived the issue in 1996 with a bill that would have granted voters the power to approve secessions. The measure failed. The following year, state Sen. Tom McClintock (R-Thousand Oaks) and Assemblyman Bob Hertzberg (D-Sherman Oaks) crafted a compromise requiring secession proposals to win voter approval in both the breakaway area and the city at large. In 1997, Gov. Pete Wilson signed the so-called Valley secession bill, breathing new life into dormant movements throughout suburban Los Angeles.

Valley secessionists were the first to collect enough signatures--from 25% of registered voters--to force a study of Valley cityhood. It took LAFCO more than two years and $2 million to conduct the analysis. In a series of findings, the agency concluded that secession was viable, and it dismissed city arguments to the contrary.

"I think there's an underlying feeling that people should have a right to self-determination wherever it's feasible," said William Fulton, an urban planner and author of books about Southern California growth.

Even as the secession drive spun forward, the Valley grew to resemble more and more the city it sought to escape.

A Valley city, though still whiter than the rest of Los Angeles, would have nearly even numbers of white and Latino residents. Democrats now outnumber Republicans in most Valley districts. And among the leafy bedroom communities are large pockets of poverty, particularly in the northeast Valley.

Times staff writers Matea Gold, Kristina Sauerwein and Nita Lelyveld  contributed to this story

---------------------------------------------------------------------------------------------------------------

#################### #######################################

Stan Evans to Join Legal Solutions

Teri Gerson, President of Executive Solutions for Leasing and Finance, Inc., is proud to announce the introduction of a new division called Legal Solutions. Legal Solutions will provide both corporate and private practice legal Talent, with a strong focus on the Leasing industry. Mr. Stan Evans, a 30 year veteran of the Leasing industry and a recruiter with the firm, will be the Managing Director of this new division. For more information or assistance, please contact Ms. Gerson at 908.654.1550 (terigerson@exsolutions.com) or Mr. Evans at 949.640.5272 (stanevans@exsolutions.com).

Sites of Reference:
http://www.exsolutions.com

CONTACT:
Teri Gerson
Executive Solutions For Leasing and Finance, Inc.
Phone Number: 908.654.1550
Fax Number: 908.654.1553
E-mail: terigerson@exsolutions.com

### ######################################## ##########################

 

Automotive Lease Guide (ALG) and Edmunds.com Collaborate to Provide Consumers Lease Versus Buy' Decision Tools

 

 

SANTA MONICA, Calif., / -- Automotive Lease Guide (ALG), the benchmark for residual values in the United States and Canada for over 35 years, and Edmunds.com ( http://www.edmunds.com ), the Web's leading consumer resource for unbiased automotive information, today announced a collaboration that will benefit consumers, financial institutions and the automotive industry.

 

ALG has agreed to supply lease residual values for inclusion in Edmunds.com's Financial Calculator Suite, a set of tools launching on the Edmunds.com Web site on June 12 to help consumers decide how to finance their next vehicle.

 

"The automotive leasing industry regards ALG as the standard for residuals, so we are thrilled we will be able to incorporate their information into our useful consumer tools," said Bob Kurilko, Vice President of Product Development and Marketing for Edmunds.com.

 

In addition, Edmunds will provide ALG with True Market Value(R) (TMV(R)) prices, which ALG will incorporate, along with other automotive data, into their processes to forecast residual values.  Financial institutions use ALG residuals as the benchmark to set their lease rates.

 

"The new vehicle transaction pricing environment is extremely challenging to predict and having access to Edmunds' TMV pricing will be valuable," said Raj Sundaram President of ALG.

 

As a result of this collaboration, ALG joins a long list of respected organizations, including America Online, American Broadcasting Companies (ABC), Automotive News, Excite.com, iWon.com, Morgan Stanley, USA Today, The Wall Street Journal and Yahoo!, who use Edmunds.com data to enhance their automotive offerings.

 

About Automotive Lease Guide 

 

Automotive Lease Guide, a privately held company in Santa Barbara, California, has been the benchmark for residual values in the United States and Canada for over 35 years.  ALG's objective is to provide residual values, analytical data products and consultation to the automotive Industry.

 

About Edmunds.com, Inc.

 

Headquartered in Santa Monica, CA, Edmunds.com ( http://www.edmunds.com ) is the Internet's pioneer and leader in providing free, third party automotive information, tools and services for consumers.  Edmunds.com empowers, educates, and engages visitors by providing them with straightforward information on all aspects of buying, selling, and owning a vehicle. Edmunds.com True Market Value(R) products inform the general public of the actual transaction prices of cars and trucks while Edmunds' Powershopper(SM) offers car shoppers the opportunity to research and pursue online and offline purchase options in an informative, consumer-friendly environment.  Visitors are also provided extensive automobile reviews, current incentives and rebates, consumer advice, safety information, auto show highlights and the Town Hall automotive community.  Many of these resources are powered by Edmunds Data Services, which provides a comprehensive automotive data set to the Edmunds.com Web site and licenses its data, content and tools to third parties.  Edmunds.com was named "best car research" site by Forbes ASAP, is viewed by consumers as the "most useful Web site," according to the J.D. Power and Associates 2001 New Autoshopper.com Study(SM)*, was ranked number one in the Survey of Car-Shopping Web Sites as reported by The Wall Street Journal, and was named as one of Yahoo! Internet Life's 50 Most Incredibly Useful Sites and one of Money's 50 Most Useful Financial Web sites.

 

*J.D. Power and Associates is not affiliated with Edmunds.com, Inc. and does not endorse Edmunds.com or any other Web sites.

 

############# ###########################################

 

---------------------------------------------------------------------------------------------

 

To reach Leasing News, please e-mail kitmenkin@leasingnews.org or use the

contact form at www.leasingnews.org   Fax messages are often difficult to read.

Telephone calls result in “telephone tag” and often take longer to respond due

to time differences and limited time.  E-mail is always best.

 

Leasing News is sent ONLY to people who have requested it.  We do not Spam.

You register using our website www.leasingnews.org or contacting 

kitmenkin@leasingnews.org. . Our subscriber list is NOT made available to

the third parties. Subscription and Removal Assistance can

be accessed through out contact site at www.leasingnews.org or you may

directly contact kitmenkin@leaisngnes.org with you name as you registered it

along with you-mail address ( our list is kept by the name registered, not

by company or e-mail address. We have great difficulty in finding your

e-mail address without your name. If you have signed up and are not

receiving Leasing News, your carrier may be blocking the "mass mail".  You

may notify your carrier or send an  e-mail to us for verification, if

needed.  Online version of this publication is at

http://www.leasingnews.org.

 

Policy Statement

 

Policy Statement---Nothing is sent out that is not "fair." Always unbiased

reporting. Fairness always. If it is questionable, we will ask the writer's

permission to quote them. We will print information without attribution, but

feel as long as we do not name the person who sent it, we can use the

information. Any information we think is suspicious, we try to have if

substantiated first by at least two reliable people. We will not purposely

send out "negative" news. We prefer

"positive" news. We have no "axe" to grind or are not paid or seek or accept

any remuneration for product or promotion. We do not Spam anyone. To be

added to the mailing list, you must request it. We do not send anything

about our company or personal e-mail or jokes to the leasing news list. We

do not share our mailing list with anyone. We try not to send more than one

report a day, if at that, unless an "alert." We follow Internet

Netiquette at all times. Our sole purpose is to provide communication to

improve our profession. We reserve the right to deny sending the newsletter

when requested. We reserve the right to edit or delete an opinion that is

not in good taste or is outright derogatory.

Leasingnews.org

 


Virus Info Center
 
Top Stories


www.leasingnews.org
Leasing News, Inc.
346 Mathew Street,
Santa Clara,
California 95050
Voice: 408-727-7477 Fax: 800-727-3851
kitmenkin@leasingnews.org