HomeMy WebLinkAboutReso 84-2005
RESOLUTION NO. 84-2005
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING THE EXECUTION AND
DELIVERY OF LEASE/OPTION AGREEMENT AND ESCROW
AGREEMENT AND AUTHORIZING CERTAIN ACTIONS IN
CONNECTION WITH THE ACQUISITION OF AN AMBULANCE
AND EMS COMPUTER SYSTEM, INCLUDING THE DECLARATION
OF THE COUNCIL'S INTENT TO ISSUE TAX-EXEMPT
OBLIGATIONS TO BE USED TO REIMBURSE THE CITY FOR
EXPENDITURES PRIOR TO THE ISSUANCE OF SUCH TAX-EXEMPT
OBLIGATIONS
WHEREAS, the City of South San Francisco (the "City") is a city organized and existing
under and pursuant to the Constitution and laws of the State of California (the "State"); and
WHEREAS, the City desires to provide for financing ofthe acquisition of an ALS ambulance
and EMS Computer System in an approximate amount of $300,000; and
WHEREAS, the City expects to incur certain property expenditures and to pay for such
expenditures from the City's money on hand prior to the execution and delivery ofthe Obligations
(the "Reimbursement Expenditures"); and
WHEREAS, the City reasonably expects to use all or a portion of the proceeds of the
Obligations to reimburse the City for expenditures made prior to the date the Obligations are entered
into; and
WHEREAS, the Association of Bay Area Governments ("ABAG") provides a Tax-Exempt
Lease Program, administered by Municipal Finance Corporation (the "Corporation"), which program
provides interested jurisdictions with the opportunity to engage in privately-placed lease financings:
and
WHEREAS, the City desires to secure lease financing through the ABAG program at an
interest rate not to exceed 5.25%; and
WHEREAS, the Corporation will solicit competitive proposals on behalf of the City and will
assign the lease to the financial institution offering the most cost-effective lease financing
arrangement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco as follows:
SECTION 1. Lease/Option Agreement and Escrow Agreement. The City Manager or
designee is hereby authorized to enter into a Lease/Option Agreement (the "Lease") and Escrow
Agreement (the "Escrow Agreement") 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 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 ofthe City, as
may be required or appropriate in connection with the execution and delivery of the Lease and the
Escrow Agreement.
SECTION 3. Other Actions. The 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 all 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, the Lease, and the Escrow
Agreement. Such actions are hereby ratified, confirmed and approved.
SECTION 4. Declaration of Official Intent. The City hereby declares its official intent,
subject to the further approval of this Board of Directors, to use approximately $300,000 of the
proceeds of the Obligations to reimburse itself for the Reimbursement Expenditures. It is intended
that this Resolution shall constitute a declaration of "official intent" within the meaning of Section
1.150- 2 of the Treasury Regulations promulgated under Section 150 of the Internal Revenue Code of
1986, as amended. City further declares that any expenditures to be reimbursed occurred no earlier
than sixty days prior to the adoption ofthis Resolution. All reimbursed expenditures will be capital
expenditures as defined in Section 1.150-1 (b) of the Federal Income Tax Regulations
SECTION 5. Effect. This Resolution shall take effect immediately upon its passage.
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I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a regular meeting held on the 13th day of July
2005 by the following vote:
AYES:
Councilmembers Pedro Gonzalez and Karyl Matsumoto, Mayor Pro Tern
Joseph A. Fernekes and Mayor Raymond 1... Green
NOES: None.
ABSTAIN: None.
ABSENT: Councilmember Richard A. Garbarino
ATTEST: 0Igft:/l!' ~