Resolution 1995-46
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RESOLUTION NO. 95-46
A RESOLUTION
SIGNATORIES,
QUALIFICATION
REIMBURSED.
AUTHORIZING
DESIGNATION
AND NOTICE
LEASE AGREEMENT,
OF TAX-EXEMPT
OF INTENT TO BE
WHEREAS, city of Gilroy, County of Santa Clara, State of
California ("City") is duly authorized and existing under the laws
of said State; and
WHEREAS, the City has entered into an agreement with
Honeywell, Inc. and an addendum thereto for the acquisition and
installation of a mechanical retrofit and energy management project
("Property"); and
WHEREAS, the City Council has determined it is in the
best interests of the City and the citizens it serves to secure
lease-purchase financing to provide moneys in the approximate
amount of $246,414.00 necessary to pay for the Property; and
WHEREAS, Saulsbury Hill Financial ("Lessor") has offered
the City a cost effective lease-financing arrangement requiring
periodic rental payments including principal plus interest computed
at a 7.28% annual percentage rate;
NOW,
THEREFORE,
BE
IT RESOLVED
THAT
the
city
Administrator or the Mayor, acting alone be and hereby are
authorized in the name and on behalf of city to enter into binding
agreements with the Lessor for leasing the Property, and to
execute, as agent for the city, all necessary agreements including,
but not limited to, a lease/option agreement, custodial agreement,
acknowledgement of assignment and acceptance certificate.
Each
officer is also authorized to accept or direct delivery of the
Property.
The authority given hereunder shall be deemed
retroactive and any and all acts authorized hereunder performed
prior to the passage of this resolution are hereby ratified and
affirmed.
BE IT FURTHER RESOLVED that the City of Gilroy declares its
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RESOLUTION NO. 95-46
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official intent to be reimbursed from the proceeds of the
lease/option agreement approved hereby for a maximum principal
amount of $246,414.00 of expenditures occurring no earlier than
sixty days prior 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.
BE IT FURTHER RESOLVED that this approved lease financing be
designated as a qualified tax exempt obligation for the calendar
year in which the lease is issued pursuant to Section 265(b) of the
Internal Revenue Code of 1986 (as amended) and the authorized
officers be directed to execute the "Designation of Qualification"
document.
PASSED AND ADOPTED this 5th day of June 1995 by the
following vote:
COUNCILMEMBERS: GILROY, KLOECKER, MORALES, ROGERS,
RO~~ISON, VALDEZ and GAGE.
NOES: COUNCILMEMBERS: NONE
AYES:
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
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ATTEST:
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Susanne E.
\077\ 191529. 1
53-060604706002
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RESOLUTION NO. 95-46
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 95-46 is an original
resolution, duly adopted by the Council of the City of Gilroy at a regular
June
, 1 9...,2L ,
meeting of said Council held on the 5th day of
at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Official Seal of the City of Gilroy this 6th day of
,1995.
June
(Seal)