Minutes 04/27/1999 (2) - Laserfiche WebLink

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TUESDAY, APRIL 27, 1999 the Equipment to continue to be essential to the governmental functions of the City for a period not less than the term of the Lease Agreement (as hereat~er defined); and WltEREAS, the City Council has taken the necessary steps under the Procurement Act of the Code of Virginia, 1950, as amended, 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 amount of not to exceed $1,021,700 (the "Lease Agreement") with Patrick Henry Bank (the "Lessor"), to finance the purchase and installation of the Equipment 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 amounts payable by the City Council under the Lease Agreement (the "Lease Obligations") are subject to appropriation by the City Council; (ii) the City Council is under no obligation to make any appropriation 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) amounts 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 WHEREAS, the City Council reasonably anticipates that it and its subordinate entities will not issue tax-exempt obligations in the face amount 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 1986, as mended (the "Code") and not including refunding obligations not taken into account under Section 265(bX3 )(D)(i) of the Code by vim. re of the provisions of Section 265(b)(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 appropriation as more particularly set forth therein, and (ii) designate the Lease Agreement as a "qualified tax-exempt obligation" under the provisions of Section 265(b)(3) of the Code; NOW, THEREFORE, BE IT RESOLVED BY THF~ CITY COUNCIL, THAT: 1. The terms and conditions of the Lease Agreement in substantially the form presented to the City Council and incorporated in this resolution are in the best interests of the City for the acquisition of the Equipment by the City Council. 2. The execution and delivery of the Lease Agreement and related financing documents is hereby directed and approved by the City Council in substantially the form presented to this meeting with such changes, insertions and omissions therein as may be approved by the individuals executing the Lease Agreement and such other documents, such approval to be conclusively evidenced by such execution and delivery. 3. All officials, employees and agents of the City, including but not limited to the City Manager, the Finance Director of the City, and the Mayor, Vice-Mayor and Clerk of the City Council, are hereby authorized and directed to execute and deliver any and all instruments, opinions, certificates, affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper for carrying out the purposes and intents of this resolution and the Lease Agreement.