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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. R 10705 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. R 10705 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 R 10705