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