HomeMy WebLinkAboutReso 75-2010RESOLUTION NO. 75-2010
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTH SAN FRANCISCO DECLARING ITS INTENT TO
ISSUE TAX-EXEMPT OBLIGATIONS TO BE USED TO
REIMBURSE THE CITY FOR EXPENDITURES PRIOR TO
THE ISSUANCE OF SUCH TAX-EXEMPT OBLIGATIONS,
AND AUTHORIZIl~fG THE CITY MANAGER TO SIGN LEASE
DOCUMENTS RELATED TO LEASE/PURCHASE OF FIRE
ENGINES AND AM:BULANCES
WHEREAS, the City of South San Francisco (the "City") desires and intends to finance
the acquisition of two fire engines a:nd two ambulances (the "Property"); and
WHEREAS, the City expects to cause the issuance of tax-exempt obligations for the
purpose of providing financing for• all or a portion of the Property in a principal amount of
approximately $1,700,000.00 (the "Obligations"); and
WHEREAS, the City expects to incur certain Property expenditures and to pay for such
expenditures from legally available funds of the City prior to the execution and delivery of the
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;
NOW, THEREFORE, TH:E CITY COUNCIL OF THE CITY OF SOUTH SAN
FRANCISCO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Declaration of Official Intent. The City hereby declares its official intent,
subject to the further approval of this City Council, to use approximately $1,700,000.00 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..
Section 2. City Manager Authorized to Sin Lease Documents. The City Manager
is hereby authorized to execute a Lease with Option to Purchase and to execute all other
agreements, documents, and certificates to finance the Property, provided that the principal
amount of the lease shall not exceed $1,700,000.00, the lease term shall not exceed ten years for
the ambulances and 15 years for the fire engines, and the interest component of each lease
payment shall accrue at a rate per annum not to exceed 6.0%, excluding amounts charged with
respect to any payments that are not; made when due.
Section 3. Other Approvals. The adoption of this Resolution shall not bind the City
to proceed with execution and delivery of the Obligations until and unless all other necessary
actions and approvals are taken or rE;ceived in accordance with all applicable laws.
Section 4. Effective Date. This Resolution shall become effective immediately upon
its adoption.
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 28th day of
July, 2010 by the following vote:
AYES: Councilmembers Pedlro Gonzalez, Richard A. Garbarino, and Karyl Matsumoto,
Vice Mayor Kevin N[ullin and Mayor Mark Addiego
NOES: None
ABSTAIN: None
ABSENT: N
ATTES
city lerk