HomeMy WebLinkAboutReso 16-2006
RESOLUTION NO. 16-2006
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING THE EXECUTION AND
DELIVERY OF LEASE/OPTION AGREEMENT, AN ESCROW
AGREEMENT, AND AUTHORIZING CERTAIN ACTIONS IN
CONNECTION WITH THE ACQUISITION OF AN ALS
AMBULANCE, AND STREET SWEEPER 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 of the acquisition of an ALS
aIubulance and street sweeper in an approxiluate aIuount of $300,095; and
WHEREAS, the City expects to incur certain Property expenditures and to pay for
such expenditures frOlu the City's luoney on hand prior to the execution and delivery of the
Obligations (the "Reiluburseluent Expenditures"); and
WHEREAS, the City reasonably expects to use all or a portion of the proceeds of the
Obligations to reiluburse the City for expenditures luade prior to the date the Obligations are
entered into; and
WHEREAS, the Association of Bay Area Govermuents ("ABAG") provides a Tax-
Exelupt Lease Program, adluinistered 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%;
WHEREAS, the Corporation will solicit cOlupetitive 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 that the City Council hereby resolves as follows:
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SECTION 1. Lease/Option Agreeluent and Escrow Agreeluent. The City Manager
and/or Finance Director is hereby authorized to enter into a Lease/Option Agreeluent (the
"Lease") and Escrow Agreement (the "Escrow Agreement") with the Corporation to finance
the Propeliy, subject to approval as to tonu by the City Attorney.
SECTION 2. Attestations. The Clerk or other appropriate City officer are hereby
autholized and directed to attest the signature of the City Manager, the Finance Director or of
such other person or persons as luay have been designated by the Mayor or City Manager,
and to affix and attest the seal of the City, as luay be required or appropriate in connection
with the execution and delivery of the Lease and the Escrow Agreeluent.
SECTION 3. Other Actions. The City Manager, the Finance Director, 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 doculuents and certificates which they luay
deelu necessary or advisable in order to carry out, give effect to and cOluply with the tenus of
this Resolution, the Lease, and the Escrow Agreeluent. Such actions are hereby ratified,
confirmed and approved.
SECTION 4. Declaration of Official Intent. The City herby declares its official
intent, subject to the further approval of this Board of Directors, to use approxiluately
$300,095 of the proceeds of the Obligations to reiluburse itself for the Rein1burseluent
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 prOluulgated
under Section 150 of the Internal Revenue Code of 1986, as aluended. City further declares
that any expenditures to be reilubursed occurred 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 IncOlue Tax Regulations
SECTION 5. Qualified Tax-Exelupt 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 aluended (the "Code").
SECTION 6. 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 22nd day of March
2006 by the following vote:
AYES:
Councilmembers Mark N. Addiego. Pedro Gonzalez and Karyl Matsumoto.
Vice Mayor Richard A. Garbarino and Mayor Joseph A. Fernekes
NOES:
ABSTAIN:
ABSENT:
ATTEST:
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