HomeMy WebLinkAbout6532_CCv0001.pdf RESOLUTION NO. 6532
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
AUTHORIZING THE EXECUTION AND DELIVERY OF A LEASE WITH OPTION
TO PURCHASE, AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION
THEREWITH
WHEREAS, the City of Redlands (the "City") is a municipal corporation duly organized
and existing under and pursuant to the Constitution and laws of the State of California; and
WHEREAS, the City desires to provide for financing in the approximate amount of
$970,000 for the acquisition of two (2) Seagrave fire apparatus (pumpers) and equipment (the
"Property"); and
WHEREAS, Municipal Finance Corporation (the "Corporation") has proposed a cost
effective lease purchase financing arrangement at a 4.35% interest rate;
NOW, THEREFORE, it is resolved by the City Council of the City of Redlands
as follows:
SECTION 1. Lease with Option to Purchase. The Mayor is hereby authorized to enter
into a Lease with Option to Purchase (the "Lease") with the Corporation to finance the Property,
subject to approval as to form by the City Attorney.
SECTION 2. Attestations. The City Clerk is hereby authorized and directed to attest
the signature of the Mayor, and to affix and attest the seal of the City, as may be required or
appropriate in connection with the execution and delivery of the Lease.
SECTION 3. Other Actions. The Mayor, or in his/her absence, the City Manager or
the Finance Director of the City are each hereby authorized and directed to take any and all
actions and to execute and deliver any and all agreements, documents and certificates which they
may deem necessary or advisable in order to carry out, give effect to and comply with the terms
of this Resolution and the Lease. Such actions are hereby ratified, confinned and approved.
SECTION 4. Qualified Tax-Exempt Oblivations. The Lease is hereby designated as
"qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended (the "Code"). The City, together with all subordinate
entities of the City, do not reasonably expect to issue during the calendar year in which the Lease
is issued more than $10,000,000 of obligations which it could designate as "qualified tax-exempt
obligations"under Section 265(b) of the Code.
SECTION 5. Reimbursement of Prior Expenditures. The City declares its official
intent to be reimbursed from the proceeds of the Lease approved hereby for a maximum
principal amount of$970,000.00 of expenditures occurring no earlier than sixty days prior to the
adoption of this Resolution. All reimbursed expenditures will be capital expenditures as defined
in Section 1.150-1(b) of the Federal Income Tax Regulations..
SECTION 6. Effect. This Resolution shall take effect immediately upon its passage.
ADOPTED, SIGNED AND APPROVED this 18th day of July 2006.
4 / ,
,hen Harrison, Mayor
ATTEST"; f
Lorri oyzer, Ci er
1, Lorrie Poyzer, City Clerk of the City of Redlands, hereby certify that the foregoing resolution
was duly adopted by the City Council at a regular meeting thereof held on the 18th day of July,
2006, by the following vote:
AYES: Councilmembers Gilbreath, Gil, Gallagher, Aguilar; Mayor Harrison.
NOES: None
ABSENT: None
ABSTAIN: None
F
Lorri Poyzer, City rk