HomeMy WebLinkAboutRES 10-068 RESOLUTION 10-068
DECLARATION OF OFFICIAL INTENT
Lessee: CITY OF BEAUMONT
Principal Amount Expected To Be Financed: $2,278,209.00.
WHEREAS,the above Lessee is a political subdivision of and is located in the State
of Texas (the "State") and is duly organized and existing pursuant to the constitution and
laws of the State of Texas.
WHEREAS, pursuant to applicable law, the governing body of the Lessee
("Governing Body") is authorized to acquire, dispose of and encumber real and personal
property, including, without limitation, rights and interests in property, leases and
easements necessary to the functions or operations of the Lessee.
WHEREAS,the Governing Body herebyfinds and determines that the execution of
one or more lease-purchase agreements("Equipment Leases")in the principal amount not
exceeding the amount stated above ("Principal Amount")for the purpose of acquiring the
property generally described below ('Property") and to be described more specifically in
the Equipment Leases is appropriate and necessary to the functions and operations of the
Lessee.
Brief Description Of Property: Six(6)Autocar ACX64 Refuse Trucks and
One (1) Pierce Aerial Fire Truck
WHEREAS, Chase Equipment Finance, Inc. ("Lessor") is expected to act as the
lessor under the Equipment Leases.
WHEREAS,the Lessee may pay certain capital expenditures in connection with the
Property prior to its receipt of proceeds of the Equipment Leases ("Lease Purchase
Proceeds")for such expenditures and such expenditures are not expected to exceed the
Principal Amount.
WHEREAS, the U.S. Treasury Department regulations do not allow the proceeds
of a tax-exempt borrowing to be spent on working capital and the Lessee shall hereby
declare its official intent to be reimbursed for any capital expenditures for Property from the
Lease Purchase Proceeds.
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
Section 1.
Either one of the City Manager OR the Chief Financial Officer(each an "Authorized
Representative"), acting on behalf of the Lessee City of Beaumont, is hereby authorized
to negotiate, enter into, execute, and deliver one or more Equipment Leases in
substantially the form set forth in the document presently before the Governing Body,
which document is available for public inspection at the office of the Lessee. Each
Authorized Representative acting on behalf of the Lessee is hereby authorized to
negotiate, enter into, execute, and deliver such other documents relating to the Equipment
Lease(including, but not limited to, escrow agreements)as the Authorized Representative
deems necessary and appropriate. All other related contracts and agreements necessary
and incidental to the Equipment Leases are hereby authorized.
Section 2.
By a written instrument signed by any Authorized Representative, said Authorized
Representative may designate specifically identified officers or employees of the Lessee
to execute and deliver agreements and documents relating to the Equipment Leases on
behalf of the Lessee.
Section 3.
The aggregate original principal amount of the Equipment Leases shall not exceed
the Principal Amount and shall bear interest as set forth in the Equipment Leases and the
Equipment Leases shall contain such options to purchase by the Lessee as set forth
therein.
Section 4.
The Lessee's obligations under the Equipment Leases shall be subject to annual
appropriation or renewal by the Governing Body as set forth in each Equipment Lease and
the Lessee's obligations under the Equipment Leases shall not constitute a general
obligations of the Lessee or indebtedness under the Constitution or laws of the State.
Section 5.
The Governing Body of Lessee anticipates that the Lessee may pay certain capital
expenditures in connection with the Property prior to the receipt of the Lease Purchase
Proceeds for the Property. The Governing Body of Lessee hereby declares the Lessee's
official intent to use the Lease Purchase Proceeds to reimburse itself for Property
expenditures. This section of the Resolution is adopted by the Governing Body of Lessee
for the purpose of establishing compliance with the requirements of Section 1.150-2 of
Treasury Regulations. This section of the Resolution does not bind the Lessee to make
any expenditure, incur any indebtedness, or proceed with the purchase of the Property.
Section 6.
This Resolution shall take effect immediately upon its adoption and approval.
PASSED BY THE Cl�-b` b'4 of the City of Beaumont this the 23rd day of
March, 2010.
I - Mayor Becky Ames -
The undersigned Secretary/G� ove-named Lessee hereby certifies and attests
that the undersigned has access to the official records of the Governing Body of the
Lessee, that the foregoing resolutions were duly adopted by said Governing Body of the
Lessee at a meeting of said Governing Body and that such resolutions have not been
amended or altered and are in full force and effect on the date stated below.
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ck, I yu'wo_'J-
Signature of Secretary/Clerk of Lessee
Print Name: !i n cL-
Official Title: C-1+4 U Er k-
Date: a rc� 3 . ao I c�