HomeMy WebLinkAboutResolution No. 2019-32 RESOLUTION NO. R2019-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF FRIENDSWOOD, TEXAS, APPROVING FINANCING
TERMS FOR CAPITAL LEASE PURCHASE AGREEMENT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS:
WHEREAS, The City of Friendswood, Texas (the "City")has previously determined to
undertake a project for the purchase of various vehicles and equipment, and the Director of
Administrative Services has now presented a proposal for the financing of such Project.
BE IT THEREFORE RESOLVED, as follows:
Section 1. The City hereby determines to finance the Project through Branch Banking
and Trust Company ("BB&T"), in accordance with the proposal dated September 25, 2019. The
amount financed shall not exceed$1,019,000, the annual interest rate (in the absence of default
or change in tax status) shall not exceed 2.08% and the financing term shall not exceed five (5)
years from closing.
Section 2.All financing contracts and all related documents for the closing of the
financing (the "Financing Documents") shall be consistent with the foregoing terms. All officers
and employees of the City are hereby authorized and directed to execute and deliver any
Financing Documents, and to take all such further action as they may consider necessary or
desirable, to carry out the financing of the Project as contemplated by the proposal and this
resolution. The Financing Documents shall include a Lease Purchase Agreement and a Project
Fund Agreement as BB&T may request.
Section 3. The Director of Administrative Services is hereby authorized and directed to
hold executed copies of the Financing Documents until the conditions for the delivery of the
Financing Documents have been completed to such officer's satisfaction. The Director of
Administrative Services is authorized to approve changes to any Financing Documents
previously signed by City officers or employees, provided that such changes shall not
substantially alter the intent of such documents or certificates from the intent expressed in the
forms executed by such officers. The Financing Documents shall be in such final forms as the
Director of Administrative Services shall approve, with the director's release of any Financing
Document for delivery constituting conclusive evidence of such officer's final approval of the
Document's final form.
Section 4. The City shall not take or omit to take any action the taking or omission of
which shall cause its interest payments on this financing to be includable in the gross income for
federal income tax purposes of the registered owners of the interest payment obligations. The
City hereby designates its obligations to make principal and interest payments under the
Financing Documents as "qualified tax-exempt obligations" for the purpose of Internal Revenue
Code Section 265(b)(3).
Section 5. The City intends that the adoption of this resolution will be a declaration of the
City's official intent to reimburse expenditures for the project that is to be financed from the
proceeds of the BB&T financing described above. The City intends that funds that have been
advanced, or that may be advanced, from the City's general fund, or any other City fund related
to the project, for project costs may be reimbursed from the financing proceeds.
Section 6. All prior actions of City officers in furtherance of the purposes of this
resolution are hereby ratified, approved and confirmed. All other resolutions (or parts thereof) in
conflict with this resolution are hereby repealed, to the extent of the conflict. This resolution
shall take effect immediately.
PASSED,APPROVED,AND RESOLVED, this the 7th day of October 2019.
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Mayo•
ATTEST:
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Melinda Welsh, TRMC lop
City Secretary : ''
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R2019-32 2