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HomeMy WebLinkAboutRes1990-004 . . . Sponsored by: Schaefermever CITY OF SEWARD, ALASKA RESOLUTION NO. 90-004 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 U.S. BANK OF WASHINGTON, NATIONAL ASSOCIATION: 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 Constit- ution 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 U.S. Bank of Washington, National Association (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 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 Eight Hundred Seventy Five Thousand Dollars ($875,000.00) and said amount shall bear interest at a rate per annum not exceeding 7.50%. Section 2. The form and content of the Agreement be and the same hereby are in all respects authorized, approved and confirmed, and the Mayor, 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 -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 90-004 substantially the form and content now before this meeting but with such changes, modifications, additions and deletions therein 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, 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 Mayor, 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 "qualifi- ed 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 1990 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) (C) (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 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 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 provisions. -2- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 90-004 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(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 8th day of January, 1990. THE CITY OF SEWARD, ALASKA CY~~~ W11liam C. Noll, Mayor AYES: Burgess, Dunham, Hilton, Meehan, Noll, sieminski, Simutis NOES: None ABSENT: None ABSTAIN: None ATTEST: APPROVED AS TO FORM: Perkins coie, Attorneys for the city of Seward, Alaska \?~~ ~.~. Patricia J. Jones Acting city Clerk 7~ f1/~ Fred B. Arvidson city Attorney (City Seal) -3-