HomeMy WebLinkAboutReso 2006-187 - Fire Engine purchase
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RESOLUTION NO. 2006 - 187
AUTHORIZING THE EXECUTION AND DELIVERY OF A LEASE WITH OPTION TO
PURCHASE, AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City of Redding (the "City") is a municipal corporation duly organized and
existing under and pursuant to the Constitution and laws of the State of California; and
WHEREAS, the City desires to provide for financing in the approximate amount of $250,000.00
for the acquisition of a fire engine (the "Property"); and
WHEREAS, Municipal Finance Corporation (the "Corporation") has proposed a cost-effective
lease purchase financing arrangement at a 4.23% interest rate;
WHEREAS, the City has determined that this lease financing arrangement IS the most
economical means for providing the Property to the City.
NOW, THEREFORE, it is resolved by the City Council ofthe City of Redding as follows:
SECTION 1. Lease with Option to Purchase. The Mayor, City Manager, Finance Director 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's legal counsel.
SECTION 2. Attestations. The Secretary of the Board or other appropriate City officer are hereby
authorized and directed to attest the signature of the Mayor, City Manager, Finance Director or of such
other person or persons as may have been designated by the Mayor, City Manager or Finance Director,
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, Finance Director 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. 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
$250,000.00 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 5. Effect. This Resolution shall take effect immediately upon its passage.
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I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a regular
meeting of the City Council on the 17th day of October, 2006, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
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Attest:
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Dickerson, Mathena, Pohlmeyer, Stegall, and Murray
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