HomeMy WebLinkAboutR-10705 - Lease Purchase of Fire Engine and Street SweeperRESOLUTION NO. 10705 (2016 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE LEASE PURCHASE OF A
FIRE ENGINE AND A STREET SWEEPER FROM PNC EQUIPMENT
FINANCE, LLC AND APPROVING THE FINAL FORM OF FINANCING
DOCUMENTS AND OFFICIAL ACTIONS
WHEREAS, the City of San Luis Obispo (the "City") is a political subdivision of the
State of California and is duly organized and existing pursuant to the Constitution and laws of
the State; and
WHEREAS, the City of San Luis Obispo (the "City") maintains fire protection and street
maintenance services and which includes rolling stock equipment which must be replaced from
time to time.
WHEREAS, pursuant to applicable law, the City of San Luis Obispo may acquire,
dispose of and encumber real and personal property, including, without limitation, rights and
interest in property, leases and easements necessary to the functions or operations of the city.
WHEREAS, the City Council has considered a Lease Purchase Financing proposal
offered by PNC Equipment Finance, LLC and desires to authorize the execution of the lease in
the amount of $1,141,468.09.
WHEREAS, the final form of the legal documentation relating to the financing has been
prepared and the City Council wishes at this time to approve the final financing plan and the
final form of such legal documentation
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows/or that (whatever action is needed):
SECTION 1. Approval of Lease Purchase Financing Proposal. The City Council hereby
approves the Lease Purchase of a new 2016 Pierce Arrow XT PUC Quint Aerial Fire Apparatus
in the not to exceed amount of $894,650.29 and a new 2016 TYMCO Model 600 Regenerative
Air Street Sweeper Truck in the not to exceed amount of $246,817.80 from PNC Equipment
Finance, LLC in accordance with the Lender Financing Proposal in the form on file with the City
Clerk.
SECTION 2. The City's obligations under the Lease shall be subject to annual
appropriation or renewal by the City Council as set forth in the Lease and the Municipality's
obligations under the Lease shall not constitute general obligations of the Municipality or
indebtedness under the Constitution or laws of the State.
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Resolution No. 10705 (2016 Series) Page 2
SECTION 3. Master Lease Purchase Agreement. The City Council hereby approves the
Master Lease Purchase Agreement relating to the financing of the fire engine, between the City
and PNC Equipment Finance, LLC in the form thereof on file with the City Clerk together with
any changes therein or additions thereto deemed advisable by an Authorized Officer; provided
that the execution thereof by an Authorized Officer shall be conclusive evidence of the approval
of any such changes or additions. An Authorized
Officer is hereby authorized and directed for and in the name and on behalf of the City to
execute, and the City Clerk is hereby authorized and directed to attest, the final form of the
Installment Sale Agreement.
SECTION 4. Official Actions. The Mayor, the City Manager, the Director of Finance
and Information Technology, the City Clerk and all other officers of the City are each authorized
and directed in the name and on behalf of the City to make any and all assignments, certificates,
requisitions, agreements, notices, consents, instruments of conveyance, warrants and other
documents, which they or any of them deem necessary or appropriate in order to consummate
any of the transactions contemplated by the agreements and documents approved under this
Resolution. Whenever in this Resolution any officer of the City is authorized to execute or
countersign any document or take any action, such execution, countersigning or action may be
taken on behalf of such officer by any person designated by such officer to act on his or her
behalf in the case such officer is absent or unavailable.
SECTION 5. As to the Lease Agreement, the City reasonably anticipates to issue not
more than $10,000,000 of tax-exempt obligations (other than "private activity bonds" which are
not "qualified 501(c)(3) bonds") during the current calendar year in which the Lease is issued
and hereby designates this Lease as a qualified tax-exempt obligation for purposes of Section
265(b) of the Internal Revenue Code of 1986, as amended.
SECTION 6. Effective Date. This Resolution shall take effect immediately upon its
passage and adoption.
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Resolution No. 10705 (2016 Series)
Page 3
Upon motion of Council Member Ashbaugh, seconded by Vice Mayor Carpenter, and on the
following roll call vote:
AYES: Council Members Ashbaugh, Christianson and Rivoire,
Vice Mayor Carpenter and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this 19th day of April 2016.
Mayor J arx
ATTEST:
04�' -
Lee Price, MMC
Interim City Clerk
APPROVED AS TO
J.�k'fine Dietrick
C' Attorney
IN WITNESS WHEREOF, I have hereunto set my han and affixed the official seal of the City
of San Luis Obispo, California, this day of U
Interim City Clerk
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