HomeMy WebLinkAboutResolution No. R2022-22RESOLUTION NO. R2022-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS, AUTHORIZING A MASTER LEASE -PURCHASE AGREEMENT WITH
TRUIST BANK AND OTHER DOCUMENTS REQUIRED IN CONNECTION WITH
FINANCING A DUMP TRUCK, HEAVY EQUIPMENT, TECHNOLOGY AND
VARIOUS EQUIPMENT; APPROVING CERTAIN MATTERS RELATED
THERETO; REPEALING ALL RESOLUTIONS OR PARTS OF RESOLUTIONS
INCONSISTENT OR IN CONFLICT HEREWITH; AND PROVIDING FOR AN
EFFECTIVE DATE.
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WHEREAS, the City Council has determined that it is in the best interest of the public and a
public purpose to finance a dump truck, heavy equipment, technology and various equipment (the
"Project") with proceeds of a lease -purchase agreement; and
WHEREAS, the City Council of the City of Friendswood (the "City") desires to enter into a
master lease -purchase agreement with Truist Bank, for such purpose; and
WHEREAS, the City desires to designate such agreement as a "qualified tax-exempt obligation"
of the City for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended;
NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE
OF TEXAS:
Section 1. That the facts and matters set forth in the recitals of this resolution are hereby
found to be true and correct.
Section 2. That the City Council hereby determines that the Project shall be financed via a
lease -purchase agreement through Truist Bank in accordance with Exhibit "A,"; provided that the amount
financed shall not exceed ONE MILLION FOUR HUNDRED FIFTY-SEVEN THOUSAND SIX
HUNDRED FORTY AND NO/100 DOLLARS ($1,457,640.00), the annual interest rate (in the absence
of default or change in tax status) shall not exceed 3.03%, and the financing term shall not exceed five (5)
years from closing. The master lease purchase agreement together with all related documents for the
closing of the financing (the "Financing Documents") will be consistent with the foregoing terms.
Section 3. That the City Manager and his designees are hereby authorized and directed to
execute and deliver all 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 herein.
Section 4. 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. That 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 are to be financed from the
proceeds of the Lender 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 the City and its officers in furtherance of the purposes of this
resolution are hereby ratified, approved and confirmed.
Section 7. All resolutions or parts of resolutions inconsistent or in conflict herewith are, to
the extent of such inconsistency, hereby repealed.
Section S. That this resolution shall be effective immediately upon its passage and approval.
PASSED, APPROVED and ADOPTED by the affirmative vote of the City Council of the City of
Fri endswood on this the I" day of August, 2022. 4
MIKF? 0 E; 11 Mayor
ATT .
IXTICIA BRYSCH, City S � e a1v
APPROVED AS TO F'OR_ ;
KAREN HORNER, City Attorney
HACity Councilaesolutions12022108-01-20MResolution - Truist Lease Purchase.doex
EXHIBIT "A"
PROJECT: Master Lease Purchase
AMOUNT: $1,457,640.00
TERM: Five (5) Years
INTEREST RATE: 3.03 %
TAX STATUS: Tax Exempt-BQ
PAYMENTS: Interest: Annual
Principal: Annual
INTEREST RATE
CALCULATION: 30/360
SECURITY: First lien security interest in all vehicles and equipment purchased with
proceeds
PREPAYMENT
TERMS: Callable in whole at par at any time
RATE
EXPIRATION: 08/06/22
DOCUMENTATION/
LEGAL REVIEW
FEE: $0
FUNDING: Proceeds will be deposited into an account to be held with Lender
pending disbursement unless equipment is delivered prior to closing.
REPORTING
REQUIREMENTS: Lender will require financial statements to be delivered within 270 days
after the conclusion of each fiscal year end throughout the term of the
financing.