HomeMy WebLinkAboutResolution 7532 brush medical vehicleCITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
No.7532
A RESOLUTION AND DECLARATION OF OFFICIAL INTENT TO ENTER INTO A
BANK QUALIFIED LEASE AGREEMENT FOR THE PURCHASE OF A
BRUSH MEDICAL UTILITY VEHICLE
Whereas, the City of Orono ("Lessee") is a political subdivision of the State of
Minnesota and is duly organized and existing pursuant to the constitution and laws of the State;
and
Whereas, pursuant to applicable law, the City Council of the City of Orono is authorized
to purchase, lease, acquire, and to encumber, real and personal property, including, without
limitation, rights and interests in property, leases and easements necessary to the functions or
operations of the Lessee; and
Whereas, the City Council hereby finds and determines that the execution of one or more
lease -purchase agreements including any and all exhibits thereto ("Property Leases") in the
principal amount not exceeding the amount of $225,259.00 ("Principal Amount") for the
purpose of acquiring the property generally described as (One) 1.2024 Ford F-550 CET Fire
Brush Truck; Crew Cab 4x4 Chassis with Custom Poly Rescue Body; Upgraded Warning
Package ("Property") and to be described more specifically in the Property Leases is appropriate
and necessary to the functions and operations of the Lessee; and
Whereas, Huntington Public Capital Corporation or an affiliate or related entity
("Lessor") is expected to act as the lessor under the Property Leases; and
Whereas, the Lessee may pay certain capital expenditures in connection with the
Property prior to its receipt of proceeds of the Property Leases ("Lease Purchase Proceeds") for
such expenditures and such expenditures are not expected to exceed the Principal Amount; and
Whereas, the U.S. Treasury Department regulations do not allow the proceeds of a tax-
exemptborrowing to be spent on working capital and the City of Orono shall hereby declare its
official intent to be reimbursed for any capital expenditures for Property from the Lease Purchase
Proceeds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orono as
follows:
Any one of the Authorized Representatives identified as the Mayor, City Administrator, City
Clerk and Finance Director (each an "Authorized Representative") acting on behalf of the
Lessee is hereby authorized to negotiate, enter into, execute, and deliver one or more Property
Leases in substantially the form set forth in the document presently before the Governing Body,
which document is available for public inspection at the office of the Lessee. Each Authorized
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
No.7532
Representative acting on behalf of the Lessee is hereby authorized to negotiate, enter into,
execute, and deliver such other documents relating to the Property Leases (including, but not
limited to, escrow agreements) as the Authorized Representative deems necessary and
appropriate. All other related contracts and agreements necessary and incidental to the Property
Leases are hereby authorized.
By a written instrument signed by any Authorized Representative, said Authorized
Representative may designate specifically identified officers or employees of the Lessee to
execute and deliver agreements and documents relating to the Property Leases on behalf of the
Lessee.
The aggregate original principal amount of the Property Leases shall not exceed the Principal
Amount and shall bear interest as set forth in the Property Leases and the Property Leases shall
contain such options to purchase or prepay by the Lessee as set forth therein.
The Lessee's obligations under the Property Leases shall be subject to annual appropriation or
renewal by the Governing Body as set forth in each Property Lease and the Lessee's obligations
under the Property Leases shall not constitute general obligations of the Lessee or indebtedness
under the Constitution or laws of the State. In addition, the funds necessary to meet the principal
and/or interest payments under the Property Leases for the current fiscal year are hereby
appropriated.
The Governing Body of Lessee anticipates that the Lessee may pay certain capital expenditures
in connection with the Property prior to the receipt of the Lease Purchase Proceeds for the
Property. The Governing Body of Lessee hereby declares the Lessee's official intent to use the
Lease Purchase Proceeds to reimburse itself for Property expenditures. This section of the
Resolution is adopted by the Governing Body of Lessee for the purpose of establishing
compliance with the requirements of Section 1.150-2 of Treasury Regulations. This section of
the Resolution does not bind the Lessee to make any expenditure, incur any indebtedness, or
proceed with the purchase of the Property.
As to each Property Lease, the Lessee reasonably anticipates that it and entities controlled by it
will not issue more than $10,000,000 oftax-exempt obligations (other than "private activity
bonds" which are not "qualified 501(c)(3) bonds") during the calendar year in which each such
Property Lease is issued and hereby designates each Property Lease as a qualified tax-exempt
obligation for purposes of Section 265(b) of the Internal Revenue Code of 1986, as amended.
This Resolution shall take effect immediately upon its adoption and approval.
ADOPTED by the City Council of the City of Orono, Minnesota, and this 25th day of
November, 2024.
CITY OF ORONO
RESOLUTION OF THE CITY COUNCIL
NO.7532
ATTEST:
Christer LusiAy, tity Clerk Dennis Walsh, Mayor