Agenda 04/27/1999 - Laserfiche WebLink

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04/23/99 ,[ 1 ~. ~. 25__Fax Enclosure ~ 004/007 #2 (Updated) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARTINSVILLE, VIRGINIA APPROVI~G EQUIPMENT LEASE PURCHASE AGREEMENT At a duly called meeting of the City Council of the City of Martinsville, Virginia (the "City Council") held in accordance with all applicable legal requirements, on the 27th day of April, 1999, the following resolution was introduced and adopted. WHEREAS, the City Council has determined (i) that a need exists for the equipment (the "Equipment") described in that certain proposed Lease Agreement (as heroinafter defined); (it) that the Equipment is essential to the governmental functions of the City Council; and (iii) that it reasonably expects the Equipment to continue to be essential to the governmental functions of the City for a period not less than the term ofthe Lease Agreement (as hereafter defined); and WHEREAS, the City Council has taken the necessary steps under the'Procurernent Act of the Cede of Virginia, 1950, as mended, to arrange for the acquisition of the Equipment; and WHEREAS, the City Council proposes to enter into an Equipment Lease Purchase Agreement in the principal mount of not to exceed $1,021,700 (the "Lease Agreement.t) with Patrick Henry Bank (the "Lessor"), to finance the purchase and immllation of the Equipmere and the refunding of certain obligations previously incurred in the purchase and installation of a portion of the Equipment, in substantially in the form presented to this meeting; and WHEREAS, (i) all mounts payable by the City Council under the Lease Agreemere (the "Lease Obligations") arc subject to appropriation by the City Council; (ii) the City Council is under no obligation to make any appwpriafion with respect to the Lease Agreement; (iii) the Lease Agreement is not a general obligation of Martinsville City (the "City") or the City Council or a charge against the general credit or taxing power of the City; and (iv) mounts payable by the City Council under the Lease Agreement do not constitute a debt of the City Council or the City within the meaning of any constitutional, charter or statutory limitation; and WI-W-REAS, the City Council reasonably anticipates that it and its subordinate entities will not issue tax-~xempt obligations in the face mount of more than $10,000,000 during the current calendar year, not including "private activity bonds" other than "qualified 501(c)(3) bonds,"as those terms are defined in the Internal Revenue Code of 1996, as mended (the "Code") and not including refunding obligations not taken into account under Section 265Co)(3)(DXi) of the Code by virtue ofthe.provisions of Section 265Co)(3)(D)(ii) of the Code; and WHEREAS, the City Council desires to (i) enter into the Lease Agreement and the financial arrangements described therein, all subject to annual aFp~oFtlation as more particularly set forth therein. and (ii) designate the Lease Agreement as a "qualified ta~.-exempt obligation" under the provisions of Section 265Co)(3) of the Code;