Loading...
12 - FINANCING PURCHASE OF FIRE TRUCKItem No. 12 memorandum TO: City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: FINANCING PURCHASE OF FIRE TRUCK DATE: January 13, 2016 BACKGROUND: The Fire Department is in the process of replacing vehicles that have reached the end of their useful service. In 2014 the City Council approved a lease agreement to purchase a Pierce Dash CF PUC Pumper truck at a cost of $617,114. Annual payments on this vehicle are 72,352.77 bringing the total cost including financing to $723,527.75. STATUS OF ISSUE: The Fire Department would like to place an order for a new Pierce Dash CF Aerial, HA ladder truck this month. Delivery is expected to be approximately one year from the order date. BUDGET: The cost of this vehicle is expected to be $975,185. Financing will be done through Liberty National Bank for a ten year period at an interest rate of 3.00 %. The annual payments on this vehicle would be $114,337.15 bringing the total cost including financing to $1,143,371.50. This resolution authorizes the City Manager to sign all documents necessary to facilitate acquisition of the vehicle. RECOMMENDATION: Motion to approve the resolution and authorizing the Mayor and City Manager to sign necessary documents to finance and acquire a new fire truck. RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF AN EQUIPMENT LEASE/PURCHASE AGREEMENT WITH RESPECT TO THE ACQUISITION, PURCHASE, FINANCING AND LEASING OF A FIRE TRUCK; AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS REQUIRED IN CONNECTION THEREWITH; AND AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION. WHEREAS, the City of Paris, Texas (the "Lessee "), a body politic and corporate duly organized and existing as a political subdivision, municipal corporation or similar public entity of the State of Texas, is authorized by the laws of the State of Texas to purchase, acquire and lease personal property for the benefit of the Lessee and its inhabitants and to enter into contracts with respect thereto; and WHEREAS, the Lessee desires to purchase, acquire and lease certain equipment with a cost not to exceed $1,000,000 constituting personal property necessary for the Lessee to perform essential governmental functions (the "Equipment "); and WHEREAS, in order to acquire such equipment, the Lessee proposes to enter into that certain Municipal Lease Agreement (the "Agreement") with Liberty National Bank (or one of its affiliates)(the `Lessor "), the form of which has been presented to the governing body of the Lessee at this meeting; and WHEREAS, the governing body of the Lessee deems it for the benefit of the Lessee and for the efficient and effective administration thereof to enter into the Agreement and the documentation relating to the financing of the Equipment for the purchase, acquisition and leasing of the equipment to be therein described on the terms and conditions therein provided; NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS AS FOLLOWS: Section 1. Approval of Documents. The form, terms and provisions of the Agreement are hereby approved in substantially the forms presented at this meeting, with such insertions, omissions and changes as shall be approved by the Mayor of the Lessee or other members of the governing body of the Lessee executing the same, the execution of such documents being conclusive evidence of such approval; and the Mayor of the Lessee is hereby authorized and directed to execute, and the City Clerk of the Lessee is hereby authorized and directed to attest and countersign, the Agreement and any related Exhibits attached thereto and to deliver the Agreement (including such Exhibits) to the respective parties thereto, and the Mayor and City Clerk of the Lessee are hereby authorized to affix the seal of the Lessee to such documents. Section 2. Other Actions Authorized. The officers and employees of the Lessee shall take all action necessary or reasonably required by the parties to the Agreement to carry out, give effect to and consummate the transactions contemplated thereby (including the execution and delivery of Acceptance Certificates and any tax certificate, tax return or other agreement, 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. Section 3. No General Liability. Nothing contained in this Resolution, the Agreement nor any other instrument shall be construed with respect to the Lessee as incurring a pecuniary liability or charge upon the general credit of the Lessee or against its taxing power, nor shall the breach of any agreement contained in this Resolution, the Agreement or any other instrument or document executed in connection therewith impose any pecuniary liability upon the Lessee or any charge upon its general credit or against its taxing power, except to the extent that the amounts payable under the Agreement are special limited obligations of the Lessee as provided in the Agreement. Section 4. Appointment of Authorized Lessee Representatives. The Mayor and the City Manager of the Lessee are each hereby designated to act as authorized representatives of the Lessee for purposes of the Agreement until such time as the governing body of the Lessee shall designate any other or different authorized representative for purposes of the Agreement. Section 5. Severability. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. Section 6. Repealer. All bylaws, orders and resolutions or parts thereof, inconsistent herewith, are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed as reviving any bylaw, order, resolution or ordinance or part thereof. Section 7. Effective Date. This Resolution shall be effective immediately upon its approval and adoption. Section 8. Designation as Qualified Tax - Exempt Obligations. The Lessee hereby designates the Agreement as a "qualified tax - exempt obligation" as defined in section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code "). In furtherance of such designation, the Lessee represents, covenants and warrants the following: (a) that during the current calendar year the Lessee (including any subordinate entities) has not designated nor will designate tax - exempt obligations, which when aggregated with the Agreement, will result in more than $10,000,000 of "qualified tax - exempt obligations" being issued; (b) that the Lessee reasonably anticipates that the amount of tax - exempt obligations issued during the current calendar year by the Lessee (or any subordinate entities) will not exceed $10,000,000; and, (c) that the Lessee will take such action or refrain from such action as necessary, and as more particularly set forth in Article II of the Agreement, in order that the Agreement will not be considered a "private activity bond" within the meaning of section 141 of the Code. PASSED AND APPROVED this 25th day of January, 2016. A.J. Hashmi, M.D., Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, Interim City Attorney