R 3623
RESOLUTION NO. 3623
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE AUTHORIZING THE EXECUTION
AND DELIVERY OF A LEASE WITH OPTION TO
PURCHASE, AND AUTHORIZING CERTAIN ACTIONS IN
CONNECTION THEREWITH
WHEREAS, City of Arroyo Grande, County of San Luis Obispo, State of California
("City") is duly authorized and existing under the laws of said State; and
WHEREAS, the City desires to provide for financing in the approximate amount of
$175,500.00 for the acquisition of computer hardware and software (the "Property");
and
WHEREAS, Municipal Finance Corporation (the "Corporation") has proposed a cost-
effective lease purchase financing arrangement at a 3.50% interest rate,
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Arroyo
Grande as follows:
SECTION 1. Lease with Option to Purchase. The Mayor, City Manager or a designee is
hereby authorized to enter into a Lease with Option to Purchase (the "Lease") with the
Corporation to finance the Property, subject to approval as to form by the City Attorney.
SECTION 2. Attestations. The Clerk or other appropriate City officer are hereby
authorized and directed to attest the signature of the Mayor or City Manager or of such
other person or persons as may have been designated by the Mayor or 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 Lease.
SECTION 3. Other Actions. The Mayor, 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 Lease. Such actions are hereby ratified,
confirmed and approved.
SECTION 4. Qualified Tax-Exempt ObliQations. The Lease is hereby designated as a
"qualified tax-exempt obligation" 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
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.
RESOLUTION NO. 3623
PAGE 2
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 $175,500.00 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.
On motion by Council Member Runels, seconded by Council Member Lubin, and on the
following roll-call vote, to wit:
AYES: Runels, Lubin, Dickens, Ferrara, Lady
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 22nd day October, 2002.
RESOLUTION NO~623
PAGE 3
MICHA4t'AYOR
ATTEST:
Q!U----'
RE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
~~~"
S;TE N ADAMS, ~ITY MANAGER
APPROVED AS TO FORM:
~
/
RESOLUTION NO. 3623
OFFICIAL CERTIFICATION
I, KELLY WETMORE, Director of Administrative ServiceslDeputy City Clerk of
the City of Arroyo Grande, County of San Luis Obispo, State of California, do
hereby certify under penalty of pe~ury, that Resolution No. 3623 is a true, full,
and correct copy of said Resolution passed and adopted at a regular meeting of
the City Council of the City of Arroyo Grande on the 22nd day of October, 2002.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 25th
day of October, 2002.
(JWJ)IJL
ORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK