HomeMy WebLinkAboutReso 99-2010RESOLUTION NO. 99-2010
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING THE >=;XECUTION AND
DELIVERY OF A LEASE WITH OPTION TO PURCHASE;
THE EXECUTION OF A COPIER MAINTENANCE
AGREEMENT AND AN EQUIPMENT PURCHASE
AGREEMENT; AND AUTHORIZING CERTAIN ACTIONS IN
CONNECTION THEREWITH.
WHEREAS, the City of South San Francisco (the "City") is a municipal corporation
organized and existing under and pursuant to the Constitution and laws of the State of California;
and
WHEREAS, on June 18, 2010 City staff sent out requests for proposals from copier
machine vendors for citywide copier machines to replace aging copier equipment for City
departments; and
WHEREAS, representatives from the City departments assisted in the selection of The
Swenson Group as the most qualified to provide copiers with the functions & features needed,
along with favorable maintenance terms; and
WHEREAS, the City now wishes to enter into an E3quipment Purchase Agreement and a
Consulting Services, Supplies and Maintenance of Equipment Agreement ("Maintenance
Agreement") between the City and The Swenson Group and;
WHEREAS, it will be cost effective for the City to also provide for lease/purchase
financing in an amount not to exceed $155,000.00 for the acquisition of citywide copiers (the
"Property") in order to take advantage of low tax-exempt interest rates; and
WHEREAS, Municipal Finance Corporation (the "Corporation"), as program manager of
the Association of Bay Area Governments (ABAG) Leasing Program, is in the process of
obtaining quotations for the lease/purchase financing of the 1roperty with an interest rate not to
exceed 4.5%;
NOW, THEREFORE, it is resolved by the City Council of the City of South San
Francisco as follows:
SECTION 1. The City Manager is hereby authorized to enter into a Lease with Option to
Purchase (the "Lease") and an Acquisition Fund Agreement with the Corporation in order to
finance the Property, subject to approval as to form by the City Attorney.
SECTION 2. The City Manager is hereby authorized to enter into an Equipment
Purchase Agreement and a Maintenance Agreement with t11e Swenson Group for purchase of the
Property and ongoing maintenance of the Property.
SECTION 3. The City Manager is hereby authorized and directed to execute the Lease,
the Maintenance Agreement, and 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, provided
that the principal amount of the Lease shall not exceed $155,000, the Lease term shall not
exceed five (5) years, and the interest component of the Lease payments shall accrue at a rate per
annum not to exceed 4.5%, excluding amounts charged with respect to any payments that are not
made when due. Any such actions heretofore taken are hereby ratified, confirmed and
approved.
SECTION 4. 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 2010 calendar year in which the Lease is issued more than $30,000,000 of
obligations which it could designate as "qualified tax-exempt; obligations" under Section 265(b)
of the Code.
SECTION 5. 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 8th day of
December 2010 by the following vote:
AYES: Councilmembers Mark Addie~o, Pedro Gonzalez, and Karyl Matsumoto,
Vice Mayor Richard A. Garbarino and Mayor Kevin Mullin
NOES:
ABSTAIN:
ABSENT:
ATTEST
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