HomeMy Public PortalAbout003-2008 - Lease-purchase agreement (street sweepers).pRESOLUTION NO. 3 -2008
RESOLUTION AND
DECLARATION OF OFFICIAL INTENT
Lessee: CITY OF RICHMOND, INDIANA
Principal Amount Expected To Be Financed: $ 245,000.00
WHEREAS, the above Lessee is a political subdivision of the State in which Lessee is
located (the "State ") and is duly organized and existing pursuant to the constitution and
laws of the State.
WHEREAS, pursuant to applicable law, the governing body of the Lessee ( "Governing
Body ") is authorized to acquire, dispose of and encumber real and personal property,
including, without limitation, rights and interests in property, leases and easements
necessary to the functions or operations of the Lessee.
WHEREAS, the Governing Body hereby finds and determines that the execution of one
or more lease - purchase agreements ( "Equipment Leases ") in the principal amount not
exceeding the amount stated above ( "Principal Amount ") for the purpose of acquiring the
property generally described below ( "Property ") and to be described more specifically in
the Equipment Leases is appropriate and necessary to the functions and operations of the
Lessee.
Brief Description Of Property: See Attached Schedule A -1
WHEREAS, Chase Equipment Leasing Inc. ( "Lessor ") is expected to act as the lessor
under the Equipment Leases.
WHEREAS, the Lessee may pay certain capital expenditures in connection with the
Property prior to its receipt of proceeds of the Equipment Leases ( "Lease Purchase
Proceeds ") for such expenditures and such expenditures are not expected to exceed the
Principal Amount.
WHEREAS, the U.S. Treasury Department regulations do not allow the proceeds of a
tax - exempt borrowing to be spent on working capital and the Lessee shall hereby declare
its official intent to be reimbursed for any capital expenditures for Property from the
Lease Purchase Proceeds.
NOW, THEREFORE, Be It Resolved by the Governing Body of the Lessee:
Section 1. Either one of the President of the Board of Public Works and Safety OR the
President of Common Council OR the Mayor (each an "Authorized Representative ")
acting on behalf of the Lessee is hereby authorized to negotiate, enter into, execute, and
deliver one or more Equipment Leases in substantially the form set forth in the document
presently before the Governing Body, which document is available for public inspection
at the office of the Lessee. Each Authorized Representative acting on behalf of the Lessee
is hereby authorized to negotiate, enter into, execute, and deliver such other documents
relating to the Equipment Lease (including, but not limited to, escrow agreements) as the
Authorized Representative deems necessary and appropriate. All other related contracts
and agreements necessary and incidental to the Equipment Leases are hereby authorized.
Section 2. By a written instrument signed by any Authorized Representative, said
Authorized Representative may designate specifically identified officers or employees of
the Lessee to execute and deliver agreements and documents relating to the Equipment
Leases on behalf of the Lessee.
Section 3. The aggregate original principal amount of the Equipment Leases shall not
exceed the Principal Amount and shall bear interest as set forth in the Equipment Leases
and the Equipment Leases shall contain such options to purchase by the Lessee as set
forth therein.
Section 4. The Lessee's obligations under the Equipment Leases shall be subject to
annual appropriation or renewal by the Governing Body as set forth in each Equipment
Lease and the Lessee's obligations under the Equipment Leases shall not constitute a
general obligations of the Lessee or indebtedness under the Constitution or laws of the
State.
Section 5. The Governing Body of Lessee anticipates that the Lessee may pay certain
capital expenditures in connection with the Property prior to the receipt of the Lease
Purchase Proceeds for the Property. The Governing Body of Lessee hereby declares the
Lessee's official intent to use the Lease Purchase Proceeds to reimburse itself for
Property expenditures. This section of the Resolution is adopted by the Governing Body
of Lessee for the purpose of establishing compliance with the requirements of Section
1.150 -2 of Treasury Regulations. This section of the Resolution does not bind the Lessee
to make any expenditure, incur any indebtedness, or proceed with the purchase of the
Property.
Section 6. As to each Equipment Lease, the Lessee reasonably anticipates to issue not
more than $10,000,000 of tax - exempt obligations (other than "private activity bonds"
which are not "qualified 501(c)(3) bonds ") during the calendar year in which each such
Equipment Lease is issued and hereby designates each Equipment Lease as a qualified
tax - exempt obligation for purposes of Section 265(b) of the Internal Revenue Code of
1986, as amended.
Section 7. This Resolution shall take effect immediately upon its adoption and approval.
ADOPTED AND APPROVED on this
The undersigned President of the above -named Lessee hereby certifies and attests that the
undersigned has access to the official records of the Governing Body of the Lessee, that
the foregoing resolutions were duly adopted by said Governing Body of the Lessee at a
meeting of said Governing Body and that such resolutions have not been amended or
altered and are in full force and effect on the date stated below.
Richmond Board of Public Works and Safety
Vicki Robinson, President
Date: May , 2008