HomeMy WebLinkAbout6436_CCv0001.pdf RESOLUTION NO. 6436
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
$450,326.04 for the acquisition of two street sweepers (the "Property"); and
WHEREAS, Municipal Finance Corporation (the "Corporation") has proposed a cost-
effective lease purchase financing arrangement at a 3.65% 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, City Manager or a designee 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 Clerk or other appropriate City officer are hereby
authorized and directed to attest the signature of the Mayor or City Manager or of such other
person or persons as may have been designated by the Mayor or City Manager, 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, City Manager and other officers of the City are
each hereby authorized and directed, jointly and severally, 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, confirmed and approved.
SECTION 4. Qualified Tax-Exempt Obligations. 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$450,326.04 of expenditures occurring no earlier than sixty days prior to the adoption
Resolution No. 6436
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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 4th day of October, 2004.
Mayor f the City of RedYangs
ATTEST:
City elerk
I, Lorrie Poyzer, City Clerk of the City of Redlands, California, do hereby certify that the
foregoing Resolution No. 6436 was duly adopted by the City Council at a regular meeting
thereof held on the 4th day of October, 2005,by the following vote:
AYES: Councilmembers Gil, Gilbreath, George, Harrison; Mayor Peppler
NOES: None
ABSENT: None
ABSTAIN: None
Lori Poyzer, Cit er
City of Redlands, ah ornia
Resolution No.6436
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