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HomeMy WebLinkAboutResolution No. 2020-06 RESOLUTION NO. R2020-06 A RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS, GALVESTON/HARRIS COUNTIES, APPROVING CAPITAL EQUIPMENT LEASING FINANCING TERMS FOR THE PURCHASE OF A FIRE TRUCK. * * * * * * * * * * * WHEREAS,the City of Friendswood, Texas (the"Borrower")has previously determined to undertake a project for the financing of the purchase of an engine fire truck(the"Project"), and the finance officer (`Finance Officer") has now presented a proposal for the financing of such Project. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF TEXAS: Section 1. That the Borrower hereby determines to finance the Project through Truist Bank ("Lender") in accordance with the proposal dated February 14, 2020. The amount financed shall not exceed $580,000.00, the annual interest rate (in the absence of default or change in tax status) shall not exceed 2.05%, and the financing term shall not exceed seven (7) years from closing. Section 2. That 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 Borrower 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. Section 3. That the Finance Officer 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 Finance Officer is authorized to approve changes to any Financing Documents previously signed by Borrower 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 Finance Officer shall approve, with the Finance Officer'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. That the Borrower 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 Borrower 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. That the Borrower intends that the adoption of this resolution will be a declaration of the Borrower's official intent to reimburse expenditures for the Project that are to be financed from the proceeds of the Lender financing described above. The Borrower intends that funds that have been advanced, or that may be advanced, from the Borrower's general fund or any other Borrower fund related to the Project, for project costs may be reimbursed from the financing proceeds. Section 6. That all prior actions of Borrower 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 adopted this 2nd day of March,2020. 14 ;A ,. /I/11 e Fore an Mayor Attest: ••••`0. '• . FRS . •. • U.10. Ar :moo Melinda Welsh, TRMC ; N• City Secretary :�.9' .,. .• •'. •�•T�O .•.. R2020-06 2