Loading...
HomeMy WebLinkAbout4.g. Resolution for Lease Purchase Agreement CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: May 7, 1996 AGENDA ITEM: Resolution for Lease Purchase Agreement AGENDA SECTION: Consent . PREPARED BY: Jeff May, Finance Director AGENDA NO. ITE1I # 4 G ATTACHMENTS: Resolution APPROVED BY: 4� Attached for your consideration is the resolution necessary to formally authorize staff to complete the work necessary on a lease purchase agreement for the aerial platform fire truck which the Council authorized at the April 16th meeting. On advice from FBSISI and Briggs & Morgan(Bond Counsel), the necessary resolution has been prepared for your approval allowing staff to finalize the lease purchase agreement. RECOMMENDED ACTION: Motion to approve A RESOLUTION AUTHORIZING LEASE PURCHASE FINANCING OF CAPITAL EQUIPMENT. COUNCIL ACTION: CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1996 - A RESOLUTION AUTHORIZING LEASE PURCHASE FINANCING OF CAPITAL EQUIPMENT WHEREAS, Minnesota Statutes, Section 465.71, authorizes a statutory city to lease real or personal property with an option to purchase under a lease purchase agreement; and WHEREAS, the City desires to acquire certain public safety capital equipment in the form of an aerial platform fire truck pursuant to a lease purchase agreement for a term of ten years; and WHEREAS, a form of lease purchase agreement between the City and FBS Investment Services, Inc. ("FBSISI") (the "Lease Purchase Agreement") has been prepared and is on file with the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota, as follows: 1. Subject to the provisions of paragraphs 2 and 3 hereof, the Lease Purchase Agreement, in substantially the form submitted, is hereby approved, and the Mayor and City Clerk are authorized to execute the Lease Purchase Agreement and any and all other documents necessary to consummate the transaction contemplated by the Lease Purchase Agreement. 2. The amount of rental payments under the Lease Purchase Agreement shall not exceed a principal component of$476,445 and the interest rate on the principal component shall not exceed 6.00%. The Mayor and City Clerk are hereby delegated the authority to establish the amount of the principal component and the interest rate on the interest component of the rental payments, and the execution of the Lease Purchase Agreement by the Mayor and City Clerk shall be conclusive evidence of the establishment and acceptance thereof by the City. 3. The Lease Purchase Agreement and related documents may include such modifications thereof, deletions therefrom and additions thereto as may be necessary or appropriate and approved by Briggs and Morgan, Professional Association, acting as Bond Counsel, prior to the execution of the documents, and the execution of such documents by the appropriate officer or officers of the City of Rosemount herein authorized shall be the conclusive evidence of the approval of such documents in accordance with the terms hereof. RESOLUTION 1996 - 4. In the event of the disability or resignation or other absence of the Mayor or City Clerk, such other officers of the City who may act on their behalf shall, without further act or authorization of the City Council, do all things and execute all instruments and documents required under the Lease Purchase Agreement to be done or to be executed by such absent or disabled officials. ADOPTED this 7th day of May, 1996. Cathy Busho, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted Against: