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HomeMy WebLinkAboutReso 33-2000 RESOLUTION NO. 33-2000 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A LEASE/OPTION AGREEMENT AND ESCROW AGREEMENT, AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH THE ACQUISITION OF AN AMBULANCE, FIRE TRUCK AND STREET SWEEPER 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 ambulance, fire truck and street sweeper (the "Project") in an approximate amount of $564,000.00; 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 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, it is resolved by the City Council as follows: SECTION 1. Lease/Option Agreement and Escrow Agreement. The City Manager or a 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 of the 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 and 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. Oualified Tax-Exempt Obligations. The Lease is hereby designated as a "qualified tax-exempt obligation" 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, does 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 $564,000.00 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. 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 26th day of May, 2000 by the following vote: AYES: Councilmembers James L. Datzman, and Eugene R. Mullin Mayor Pro Tem Joseph A. Fernekes and Mayor Karyl Matsumoto NOES: None. ABSTAIN: None. ABSENT: Councilman John R. Penna ATTEST: City Clerk C:\W INDOWS\TEMP\ABAGIease.res.doc