HomeMy WebLinkAbout4.e. Resolution for Lease/Purchase Agreement � "' CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: March 7, 1995
AGENDA ITEM: Resolution for Lease/Purchase Agreement AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director AGENDA ���� � � �
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ATTACHMENTS: Resolution APPROVED BY:
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Attached for your consideration is the resolution necessary to formally authorize staff to complete
the work necessary on a lease purchase agreement for equipment for the City. At your February
21 st Council meeting, Council directed staff to proceed with the lease purchase. On advice from
FBSISI and Briggs and Morgan(Bond Counsel), the necessary resolution has been prepared for
your approval allowing us to proceed forward with the lease purchase.
RECOMMENDED ACTION:
Motion to approve A RESOLUTION AUTHORIZING LEASE PURCHASE FINANCING OF
CAPITAL EQUIPMENT.
COUNCIL ACTION:
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CITY OF ROSEMOUNT
, DAKOTA COUNTY, MINNESOTA
RESOLUTION 1995 -
A RESOLUTION AUTHORIZlNG LEASE PURCHASE FtNANC1NG
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 capitai equipment inciuding, but not
limited to, computer, law enforcement, maintenance and public safety equipment (the
°Equipment") pursuant to one or more lease purchase agreements for terms of three,
five and ten years, the term of the leases to be based on the economic life of the
Equipment financed pursuant to the respective leases; 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 ay the
Lease Purchase Agreement, including, but not limited to, an escrow agreement the
City and First Trust National Association.
2. The amount of rental payments under the Lease Purchase Agreement shall not
exceed a principal component of $650,000 and the interest rate on the principal
component shall not exceed 6.70%. The Mayor and City Clerk are hereby delegated
the authority to establish the amount of the principal component and the interest rate
or rates 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 herin
authorized shall be conclusive evidence of the approval of such documents in
accordance with the terms hereof.
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RESOLUTION 1995 -
4. In the event of the disabilify or resignation or other absence of the Mayor or
City Cierk, such other officers of the City who may act on their behalf shail, 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 March, 1995.
E.B. McMenomy, Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Seconded by:
Voted in favor:
Voted Against: