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CITY OF SEWARD, ALASKA
RESOLUTION NO. 94-007 SUBSTITUTE
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 UNITED STATES LEASING INTERNATIONAL, INC., AND
PROVIDING FOR RELATED MA TIERS
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 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 certain equipment, described in Attachment
A hereto (the "Equipment") from United States Leasing International, 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 purpose of the City;
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 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 $330,116 and said amount shall bear interest at a
rate per annum not exceeding 5.49%.
Section 2. The form and content of the Agreement be and the same hereby are
in all respects authorized, approved and confirmed, and the City Manager and Assistant
City Manager be and each hereby is authorized, empowered and directed to execute and
deliver said document 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 them seem necessary, desirable and
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 94-007
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 City Manager, Assistant City Manager
and the City Clerk 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 City Manager, Assistant City Manager, City Clerk 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 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 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" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986
(the "Code"). The City hereby covenants that it shall not issue during the calendar year
1994 more than $10,000,000.00 in aggregate principal amount of tax-exempt obligations
other than tax-exempt obligations described in Section 265(b)(3)(ii) of the Code. The City
further covenants that no part of the proceeds of the Agreement or any other funds of
the City shall at any time be sued 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 5. The provisions 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
provision.
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 2.15.035(0).
Section 7. This Resolution shall become effective upon passage and approval
in accordance with Seward City Code Section 2.15.050(C).
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 94-007
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this
10th day of January, 1994.
AYES:
NOES:
ABSENT:
ABSTAIN:
A TrEST:
THE CITY OF SEWARD, ALASKA
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Dave W. Crane, Mayor
Anderson, Crane, Darling, Krasnansky, O'Brien and Sieminski
None
Bencardino
None
APPROVED AS TO FORM:
Wohlforth, Argetsinger, Johnson &
Brecht, Attorneys for the city of Seward,
Alaska
dJll>. ~
City Attorney
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(City Seal)