HomeMy WebLinkAbout22392 - RESOLUTIONS - 11/19/2008 RESOLUTION NO. 22392
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AUTHORIZING THE
EXECUTION AND DELIVERY OF A LEASE WITH OPTION
TO PURCHASE PUBLIC SAFETY COMMUNICATIONS
EQUIPMENT, AND AUTHORIZING CERTAIN ACTIONS IN
CONNECTION THEREWITH. A5757. A5858.
WHEREAS, the City of Palm Springs (the "City") is a municipal corporation duly
organized and existing under and pursuant to the constitution and laws of the State of
California; and
WHEREAS, the City desires to provide for financing in the approximate amount of
$3,366,477.91 for the acquisition of Motorola communications equipment (the
'Property"); and
WHEREAS, Municipal Finance Corporation (the "Corporation") has proposed a cost-
effective ten year lease purchase financing arrangement at a 4.35% interest rate;
NOW, THEREFORE, it is resolved by the City Council of the City of Palm Springs as
follows:
SECTION 1. Lease with Option to Purchase and Acquisition Fund Agreement. The City
Manager is hereby authorized to enter into a Lease with Option to Purchase and
Acquisition Fund Agreement (collectively, the "Financing Agreements") with the
Corporation to finance the Property, subject to approval as to form by the City Attorney.
SECTION 2. Attestations. The City Clerk is hereby authorized and directed to attest the
signature of the City Manager or of such other person or persons as may have been
designated by the City Manager, and to affix and attest the seal of the City, as may be
required or appropriate in connection with the execution and delivery of the Financing
Agreements.
SECTION 3. Other Actions. The City Manager and other officers of the City are each
hereby authorized and directed, jointly and severally, to take any and all actions and to
execute and deliver any and all agreements, documents and certificates which they may
deem necessary or advisable in order to carry out, give effect to and comply with the
terms of this Resolution and the Financing Agreements. Such actions are hereby
ratified, confirmed and approved.
SECTION 4. Qualified Tax-Exempt Obligations. The Lease is hereby designated as
"qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended (the "Code"). The City, together with all
subordinate entities of the City, do not reasonably expect to issue during the calendar
Resolution No. 22392
Page 2
year in which the Lease is issued more than $10,000,000 of obligations which it could
designate as "qualified tax-exempt obligations" under Section 265(b) of the Code.
SECTION 5. Reimbursement of Prior Expenditures. The City declares its official intent
to be reimbursed from the proceeds of the Lease approved hereby for a maximum
principal amount of $3,366,477.91 of expenditures occurring no earlier than sixty days
prior to the adoption of this Resolution. All reimbursed expenditures will be capital
expenditures as defined in Section 1.150-1(b) of the Federal Income Tax Regulations.
SECTION 6. Effect. This Resolution shall take effect immediately upon its passage.
ADOPTED THIS 19T" DAY OF NOVEMBER, 2008.
David H. Ready, G t�anager
ATTEST:
mes Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 22392 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 19t�' day of November,
2008, by the following vote:
AYES: Councilmember Hutcheson, Councilmember Weigel, Mayor Pro Tem Foat,
and Mayor Pougnet.
NOES: None.
ABSENT: Councilmember Mills.
ABSTAIN: None,
Xofeshompson, City Clerkalm Springs, California l z�t zoog