HomeMy WebLinkAboutRes2001-029
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Sponsored by: Janke
CITY OF SEWARD, ALASKA
RESOLUTION 2001-029
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,
AUTHORIZING THE EXECUTION OF AN EQUIPMENT LEASE/PURCHASE
AGREEMENT BY AND BETWEEN THE CITY AND KOCH FINANCIAL
CORPORATION AND PROVIDING FOR RELATED MATTERS
WHEREAS, the City of Seward, Alaska (the "City"), is a home rule city and under Section
11 of Article X ofthe Alaska Constitution may exercise all legislative power not prohibited by law
or by the Charter of the City, and it has been determined that the matters set forth in this Resolution
are not prohibited by law or the Charter; and
WHEREAS, the City desires to lease a loader, equipment trailer and a grader (the
"Equipment") from Koch Financial Corporation (the "Lessor"), and the Lessor desires to lease the
Equipment to the City; and
WHEREAS, the City considers that the acquisition and leasing ofthe Equipment from the
Lessor is in the best interest and will promote the public purpose of the City; and
WHEREAS, the City intends to reimburse expenditures made for financing the lease ofthe
equipment incurred up to 60 days prior to the effectiveness of this resolution; and
WHEREAS, there has been presented to the City the form of an Equipment Lease/Purchase
Agreement (the "Agreement") which the City proposes to enter into in connection with the leasing of
the Equipment; and
WHEREAS, it appears that the Agreement, which now is before the City, is in appropriate
form and is an appropriate instrument for the purposes intended;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The leasing by the City ofthe Equipment from the Lessor under the Agreement is
hereby approved. The aggregate principal component of rent payable under the Agreement shall not
exceed $373,044.00 and said amount shall bear interest at a rate per annum not exceeding 5.16%.
Section 2. The form and content of the Agreement hereby are in all respects authorized,
approved and confirmed, and the City Manager, Director of Administrative Services and City Clerk
CITY OF SEWARD, ALASKA
RESOLUTION 2001-029
each hereby is authorized, empowered and directed to execute and deliver the Agreement to the
counterparty for and on behalf of the City in substantially the form and content now before this
meeting but with such changes, modifications, additions and deletions therein which shall to him
seem necessary, desirable and appropriate, the execution thereof to constitute conclusive evidence of
the approval of any and all changes, modifications, additions or deletions therein from the form and
content of the Agreement now before this meeting, and from and after the execution and delivery of
the Agreement, the City Manager, Director of Administrative Services and the City Clerk each is
hereby authorized, empowered and directed to do all such acts and things and to execute all
documents as may be necessary to carry out and comply with the provisions of the Agreement as
executed.
Section 3. The City Manager, Director of Administrative Services, City Clerk or any other
person authorized by the City each hereby is authorized to execute and deliver for and on behalf of
the City any and all additional certificates, documents, opinions or other papers and perform all other
acts as they may deem necessary or appropriate in order to implement and carry out the intent and
purposes ofthis Resolution.
Section 4. The City covenants that it will not use any ofthe proceeds ofthe Agreement in
such manner, or take or omit to take any other action in such manner, as to impair the exemption of
the interest component or rent payable under the Agreement from federal income taxation. The
Agreement is hereby designated as a "qualified tax exempt obligation" for purposes of Section
265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"). The City hereby
covenants that it shall not issue during the calendar year 2001 more than $10,000,000 in aggregate
principal amount of tax-exempt obligations other than tax-exempt obligations described in Section
265(b)(3)(C)(ii) of the Code. The City further covenants that no part of the gross proceeds of the
Agreement or any other funds of the City shall at any time be used directly or indirectly to acquire
securities or obligations, the acquisition of which would cause the Agreement to be or become an
"arbitrage bond" as defined in Section 148 of the Code. The City shall not permit any of the
proceeds of the Agreement, or any products purchased with such proceeds, to be used in any manner
that would cause the Agreement to constitute a "private activity bond" within the meaning of Section
141 of the Code. The City intends to use a portion of the proceeds of the Agreement to reimburse
the City for costs of financing the Equipment incurred up to 60 days before the effective date of this
resolution.
Section 5. The provisions ofthis Resolution are hereby declared to be separable and, if any
section, phrase or provision shall for any reason be declared to be invalid, such declaration shall not
affect the validity of the remainder of the sections, phrases or provisions.
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CITY OF SEWARD, ALASKA
RESOLUTION 2001-029
Section 6. Upon adoption ofthis Resolution, the Clerk ofthe City shall cause a true copy of
same to be posted on the City Hall bulletin board and notice ofthe same to be published as provided
in Seward City Code Section 2.15.035(D).
Section 7. This Resolution shall become effective upon passage and approval in accordance
with Seward City Code Section 2.15.050(C).
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th
day of February, 2001.
THE CITY OF SEWARD, ALASKA
CJ-, \~~~---i
Edgar Blatchford, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Brossow, Clark, King, Orr, Shafer
None
Calhoon
None
ATTEST:
Patrick Reilly, City Clerk
(City Sean,....",
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