Loading...
HomeMy Public PortalAboutResolution 06-96 Equipment Leas/Purchase Agreement-Street SweeperRESOLUTION NO.6-96 A RESOLUTION OF THE CITY OF MCCALL, IDAHO AUTHORIZING ENTERING INTO A MASTER EQUIPMENT LEASE/PURCHASE AGREEMENT DATED APRIL 11, 1996, OF THE CITY OF MCCALL, STATE OF IDAHO, FOR THE PURPOSE OF FINANCING THE ACQUISITION OF A VACUUM STREET SWEEPER, ONE 3/4 TON PICK UP AND THREE POLICE PATROL UNITS AS EQUIPMENT NEEDED BY THE CITY AND CREATING THE OBLIGATIONS OF THE CITY STRICTLY ACCORDING TO THE TERMS HEREOF; AUTHORIZING ENTERING INTO SAID MASTER EQUIPMENT FINANCE AGREEMENT AND RELATED DOCUMENTS; PROVIDING TERMS FOR THE SECURITY OF THE HOLDER OF SAID MASTER EQUIPMENT FINANCE AGREEMENT, AND OTHERWISE APPROVING SUCH ACTIONS AS MAY BE NECESSARY FOR THE ENTERING INTO, EXECUTION AND LAWFUL ISSUANCE OF SAID AGREEMENT. WHEREAS, the City of McCall, State of Idaho (the "City" herein) desires to acquire for essential purposes of the City's lawful governmental functions, certain equipment (the "Equipment") hereinafter described, and the City Council as the Council ("Council") of the City has determined that a real need exists for said Equipment and for the financing thereof as provided herein; and WHEREAS, the City is authorized pursuant to the provisions of Section 50-301 of the Idaho Code, as amended, (sometimes referred to herein as the "Law") to create obligations for its lawful government purposes and for its ordinary expenses as provided herein; and WHEREAS, the City is taken all necessary steps, including any legal bidding procedure if any, under applicable law to arrange for the acquisition of such Equipment and She City itself has selected said Equipment and the vendor thereof and is prepared to acquire the same pursuant to the terms hereof; and WHEREAS, upon fulfillment of all conditions hereof, the City proposes to enter into a Master Lease Purchase Agreement (the "Agreement") with First Security Bank of Idaho, N.A., or its assignee. Under said Agreement, the City will finance all or part of the Equipment with payments constituting current expense of the City to be appropriated from year to year by the Council of the City; WHEREAS, the plan to proceed with the acquisition of the Equipment and the financing thereof pursuant to the Agreement has been and hereby is approved by the Council, of the City, there being no other or further governing body or governmental entity of any kind required under law to provide approval thereof; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF MCCALL, STATE OF IDAHO THROUGH ITS COUNCIL, THAT: Section 1. Equipment Authorized. The acquisition and financing of the Equipment are hereby authorized in accordance with law. Said Equipment shall consist of items more full described in Exhibit A to the Agreement, including accessions and other appurtenances which may be used in connection therewith. Section 2. Agreement Authorized. For the purposes of financing and paying all or part of the costs of the acquisition of the Equipment and all costs incidental thereto including costs of financing, the City hereby authorizes the entering into and the execution• of the attached agreement, dated as of April 11, 1996, the Council specifically finds that the financing and payment on an installment basis, subject to annual appropriations of said payment by the Council, represents an obligation of the City as a current expense for the necessary governmental functions of the City. Section 3. Agreement as Eligible Investment. It is hereby declared to be the intent of this Resolution that the Agreement issued under authority hereof shall be a municipal obligation constituting an eligible investment for all insurance companies, credit unions, building companies, executors and trustees and other fiduciaries, pension profit-sharing and retirement funds and all other such public or quasi -public organizations specified by the statutes of the State of Idaho. Section 4. Severabilitv. In case any one or more of the provisions of this Resolution, the Agreement, or other documents executed in connection therewith, shall for any reason be held in any court of competent jurisdiction to be illegal, invalid, such illegality or invalidity shall not affect any of the other provisions of this Resolution or any such documents and this Resolution and all such documents shall be construed and enforced as if such illegal or invalid provisions had not been contained therein. Section 5. Conditions Precedent. All acts and conditions relating to the passage of this Resolution, necessary to provide authority for execution of the Agreement and other documents necessary in connection therewith, required by the Constitution or the Act or other laws of the State of Idaho, have happened or do exist sufficient to comply with law. Section 6. Officers and Successors. The members of the Council, the Mayor, the City Clerk and all other applicable officers, attorneys, and other agents or employees of the City are hereby authorized and instructed to execute the Agreement and all related documents and to do all acts and things required of them by this resolution, the Agreement and other documents executed in connection therewith, for the full punctual and complete performance of all the terms, covenants and agreements contained therein and constituting obligations of thh City. In the event, the Mayor, the City Clerk, or any other officer of the City shall be replaced hereafter by election, resignation, removal or otherwise, or in the event a designated officer is at any time unable to act by reason of illness, disability or absence from the State of Idaho, then in either such event, the duly elected, appointed or acting successor or lawful substitute, as the case may be, shall be entitled to act, including in the execution of the Agreement and other documents, and such act or signature shall be fully effective and binding on the City. Section 7. Interpretation. This resolution, the Agreement, and other documents executed in connection therewith shall be interpreted and construed in accordance with the laws of the State of Idaho, with the intent and purpose that all such documents shall carry forth the matters necessary for the acquisition and financing of the Equipment and performance of all other obligation of the City herein contained or referred to. Liberal construction of all thereof shall be observed for the assurance and protection of the holder of the Agreement, and any ambiguities or minor errors herein shall not invalidate this resolution, and the further documents in furtherance hereof may be executed in substantial compliance herewith. Section 8. The City determines that it is a government unit with general taxing powers, that ninety-five (95%) or more of the net proceeds of the Agreement will be used for local governmental activities of the City, and the City will not authorize issuance of obligations of the City (including all "subordinate entities') of the City with the meaning of Section 265(b)(3) of the Internal. Revenue Code, exceeding a total amount of $10,000,000.00 during the 1996 calendar year, and the City hereby designates the City's obligations under the Agreement as "qualified tax-exempt obligations" under Section 265(b)(3) of the Internal Revenue Code. Section 9. This resolution shall be in full force and effect on and after its passage and approval. PASSED AND APPROVED THIS l lth DAY OF APRIL, 1996. Al 1EST: City Clerk