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HomeMy WebLinkAbout11144RESOLUTION NO. 11144 A RESOLUTION APPROVING A MASTER LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND SUNTRUST LEASING CORPORATION, APPROVING EQUIPMENT SCHEDULE NO. 01 AND ADDENDUM TO EQUIPMENT SCHEDULE NO. 01 WITH RESPECT THERETO, AUTHORIZING EXECUTION THEREOF BY THE PRESIDENT OF THE CITY COUNCIL, AND AUTHORIZING THE EXECUTION AND DELIVERY OF ALL OTHER DOCUMENTS REQUIRED THEREWITH BY THE CITY MANAGER, AND AUTHORIZING ALL OTHER ACTION NECESSARY TO THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS RESOLUTION. WHEREAS, the City of Pueblo, a municipal corporation (hereinafter "City ") is a Colorado home rule city duly organized and existing under and by virtue of Article XX of the Colorado Constitution, and is authorized thereby to purchase and lease personal property for its municipal purposes for the benefit of City and its inhabitants and to enter into contracts with respect thereto; and WHEREAS, City desires to purchase, acquire and lease certain firefighting equipment constituting personal property necessary for the City to perform essential governmental functions; and WHEREAS, in order to acquire such equipment, City proposes to enter into a Master Lease Agreement (the "Agreement ") and separate Equipment Schedule No. 01 and Addendum to Equipment Schedule No. 01 (collectively, the "Lease ") with SunTrust Leasing Corporation, a Virginia Corporation (the "Lessor"), in substantially the form as attached hereto as Exhibits "A ", and "B "; and WHEREAS, City Council, as the governing body of the City, deems it for the benefit of City and for the efficient and effective administration thereof to enter into the Lease for the purchase, acquisition and leasing of the equipment therein described on the terms and conditions therein provided; and WHEREAS, the funds made available under the Lease will be applied to the acquisition of the equipment in accordance with the terms of such Lease; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The form, terms and provisions of the Agreement and the separate Equipment Schedule No. 01 and Addendum to Equipment Schedule No. 1 (the "Addendum "), as provided in the Agreement, are hereby approved in substantially the form attached hereto with such insertions, omissions and changes as shall be approved by the President of City Council and the City Attorney, the execution of such documents being conclusive evidence of such approval; and the President of the City Council is hereby authorized and directed to execute the Agreement and said Equipment Schedule and Addendum and any related Exhibits attached thereto and to deliver the Agreement, Equipment Schedule and Addendum, and the City Clerk is authorized and directed to attest same and affix the seal of the City thereto. SECTION 2 The City Manager is authorized and directed to take all action necessary or reasonably required by the parties to the Agreement, Equipment Schedule and Addendum to carry out, give effect to and consummate the transactions contemplated thereby (including the execution and delivery of Acceptance Certificates, Payment Requests, any Tax Agreement and Arbitrage Certificate, and Incumbency Certificate each with respect to the Equipment Schedule, as contemplated in the Agreement) and to take all action necessary in conformity therewith, including, without limitation, the execution and delivery of any closing and other documents required to be delivered in connection with the Agreement and such Equipment Schedule and Addendum. SECTION 3_ The Agreement and such Equipment Schedule and Addendum, are expressly made subject to sufficient appropriations being made therefore in each fiscal year after 2007. Nothing contained in this Resolution, the Agreement, and the Equipment Schedule and Addendum nor any other instrument, shall be construed with respect to the City as incurring a pecuniary liability or charge upon the general credit of the City or against its taxing power, nor shall the breach of any agreement contained in this Resolution, the Agreement or such Equipment Schedule and Addendum or any other instrument or document executed in connection therewith impose any pecuniary liability upon the City or any charge upon its general credit or against its taxing power, except to the extent that the rental payments payable under each Lease are special limited obligations of the Lessee as provided in such Lease. Nothing in the Agreement or such Equipment Schedule and Addendum is intended, nor shall it be construed, to create any multiple - fiscal year direct or indirect debt or other financial obligation whatsoever of the City. SECTION 4 The City Manager and Director of Finance of the City are each hereby designed to act as authorized representatives of the City for purposes of the Agreement and such Equipment Schedule and Addendum until such time as the City Council shall designate any other or different authorized representative for purposes of the Agreement, such Equipment Schedule and Addendum. SECTION 5_ Pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended (the "Code "), the City Council hereby designates the Lease as a "qualified tax - exempt obligation" for purposes of Section 265(b)(3) of the Code. SECTION 6_ This Resolution shall be effective immediately upon final passage and approval. INTRODUCED November 12, 2007 BY Randy Thurston Councilperson APPROVED: a u & " e - ) #?ESIDEINTof City Council ATTESTED BY: CITY CLERK Qzso. m14 Background Paper for Proposed RESOLUTION AGENDA ITEM # (� DATE: November 12, 2007 DEPARTMENT: CHRISTOPHER P. RILEY, FIRE CHIEF TITLE A RESOLUTION APPROVING A MASTER LEASE AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND SUNTRUST LEASING CORPORATION, APPROVING EQUIPMENT SCHEDULE NO. 01 AND ADDENDUM TO EQUIPMENT SCHEDULE NO. 01 WITH RESPECT THERETO, AUTHORIZING EXECUTION THEREOF BY THE PRESIDENT OF THE CITY COUNCIL, AND AUTHORIZING THE EXECUTION AND DELIVERY OF ALL OTHER DOCUMENTS REQUIRED THEREWITH BY THE CITY MANAGER, AND AUTHORIZING ALL OTHER ACTION NECESSARY TO THE CONSUMMATION OF THE TRANSACTION CONTEMPLATED BY THIS RESOLUTION. ISSUE Should the City of Pueblo enter into a lease- purchase agreement for the acquisition of firefighting equipment? RECOMMENDATION Approval of resolution. BACKGROUND Bid proposals were received by City Purchasing for the purchase of (1) 1250 GPM 4 -door Fire Triple Combination Pumper and (1) Ladder Truck with equipment. Proposals have been reviewed and a vendor selected. FINANCIAL IMPACT The cost of the equipment and the lease amount will be $1,252,033.86. Payment schedule is as follows: 1/15/2009 $178,861.98 1/1512011 $178,861.98 1/15/2013 $178,861.98 1/15/2015 $178,861.98 1/15/2010 $178,861.98 1/15/2012 $178,861.98 1/15/2014 $178,861.98 City's obligation under the equipment lease shall be subject to annual appropriation and renewal by the City Council.