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HomeMy WebLinkAboutRes1989-015 . . . Sponsored by: Royle CITY OF SE\-JARD, ALASKA RESOLUTION NO. 89-01s A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE EXECUTION OF AN EQUIPMENT LEASE/PURCHASE AGREEMENT BY AND BETvffiEN THE CITY AND CITICORP NORTH AMERICA, INC.; 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 of the Alaska Constitution may exercise all legislative power not prohibited hy law or by the Charter of the City, and it has been determined that the matters set forth in this Resolu- tion are not prohibited by law or the Charter; and WHEREAS, the City desires to lease certain equipment, described in Attachment "A" hereto (the Equipment) from Citicorp North America, Inc. (the Lessor), and the Lessor desires-to lease the Equipment to the City; and WHEREAS, the City considers that the acquisition and leasing of the Equipment from the Lessor is in the best interest and will promote the public purposes of the City; and \-ffiEREAS, 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 appropri- .ate 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 of the Equipment from the Lessor under the Agreement is hereby approved. The aggregate principal component of rent payable under the Agreement shall not exceed $443,165.04, and said amount shall bear interest at a rate per annum not exceeding 8.057.. Section 2. The form and content of the Agreement be and is confirmed and the Mayor, Manager and Deputy City Hanager be and each hereby is authorized, empowered and directed to execute and deliver said document to the coun- terparty for and on behalf of the city in substantially the form and content now before this meeting but with such -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 89-015 changes, modifications, additions and deletions therein as shall to them 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 said document now before this meeting, and that, from and after the execution and delivery of the said document, the Mayor, Manager, Deputy City Manager and the Clerk of the City are 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 document as executed. Section 3. The Mayor, Manager, Deputy City Manager and the Clerk of the City or any other person authorized by the City be and each hereby is authorized to execute and deliver for and on behalf of the City any and all additional certif- icates, 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 of this Resolution. Section 4. The City covenants that it will not use any of the proceeds of the 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 of rent payable under the Agreement from federal income taxation. The Agreement is hereby designated as a "qualified tax exempt obligation" in accordance with Section 265 (b) (3) of the Internal Revenue Code of 1986 (the Code). The Citv further covenants that no part of the proceeds of the Agr~ement 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. Section S. The prov~s~ons of this 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. Section 6. Upon adoption of this Resolution, the Clerk of the City shall cause a true copy of same to be posted on the City Hall bulletin board, as provided in Seward City Code Section 2.1s.03s(D). -2- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 89-015 Section 7. This resolution shall become effective upon passage and approval in accordance with Seward City Code Section 2.1s.0s0(C). PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this --1.1.- day of February , 19 ~. THE CITY OF SEWARD, ALASKA *~A5<<",~ HARRY GIESELER, MAYOR AYES: NOES: ABSENT: ABSTAIN: GIESELER, DUNHAM, MEEHAN, NOLL, O'BRIEN, SIMUTIS NONE HILTON NONE ATTEST: APPROVED AS TO FORM: PERKINS COlE, Attorneys for the City of Seward, Alaska ~~ ~ J ,) vfflll~ff{kJ ~ 1Zf~ Lin as. Murphy, CMC/l\AE f.~re B. Arvi son ~~::yC~::~) ~ ~~~CitY Attorney -3- . CITY OF SEWARD, ALASKA EQUIPMENT LIST Attachment "A" Est. Description Price Delivery FOB Dispatch Center Console. . . . . . . . $109,821.04 4/01/89 Seward Police Sedan. . . . . . . . . . . . . . . . . 13,460.00 5/16/89 Seward Police Sedan. . . . . . . . . . . . . . . . . 13,460.00 5/16/89 Seward 3/4 ton 4X4 Pickup. . . . . . . . . . . . .13,598.00 5/16/89 Seward 1 ton all wheel truck. . . . . . . . . . . . 20,163.00 5/16/89 Seward 1 ton all wheel truck. . . . . . . . . . . . 20,163.00 5/16/89 Seward . 1980 966G Loader. . . . . . . . . . . . . 75,000.00 3/02/89 Seward 1988 D6D Tractor. . . . . . . . . . . . . .95,000.00 3/02/89 Seward 1982 140G Grader. . . . . . . . . . . . . 82.500.00 3/02/89 Seward Total. . . . . . . . . . . . . . . $443.165.04 .