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Home My WebLink AboutResolution 96-18 RESOLUTION NO. 96-18 A RESOLUTION OF THE CITY OF OCOEE, FLORIDA APPROVING A SUPPLEMENTAL AMENDMENT TO AN EQUIPMENT LEASE/PURCHASE AGREEMENT WITH FORD MOTOR CREDIT COMPANY AND DESIGNATING IT AS A QUALIFIED TAX-EXEMPT OBLIGATION WHEREAS, the City has heretofore entered into a certain Florida Equipment Lease- Purchase Agreement (Lease No. 36895) dated as of March 10, 1993 ("the Equipment Lease") with Ford Motor Credit Company ("Lessor"); and WHEREAS, the City desires to lease additional equipment from Lessor pursuant to and subject to the terms and conditions of the Equipment Lease. NOW, THEREFORE, the City Commission of the City ofOcoee, Florida hereby adopts the following resolutions: RESOL YED, that this City enter into a certain supplemental amendment to the Equipment Lease with Lessor in substantially the form attached hereto and by this reference made a part hereof ('the Supplement Amendment") and that this City lease equipment from Lessor pursuant to the terms of such Equipment Lease and Supplemental Amendment; and that the Mayor and City Clerk of this City be and hereby are authorized and directed in the name and on behalf of this City to execute the Supplemental Amendment with Lessor in substantially the form presented at this meeting, with such changes therein and additions thereto as shall be approved by such officers who execute the same, and such execution shall be conclusive evidence that each such document so executed has been authorized and approved by this vote. FURTHER RESOLVED, that the City Commission of the City of Ocoee, Florida finds that a true and very real need exists for the acquisition of the Equipment described in the Supplemental Amendment and that such acquisition is in the best interests of the City of Ocoee. FURTHER RESOLVED, that the City Commission of the City ofOcoee, Florida finds that the City of Ocoee has taken the necessary steps, including compliance with any applicable legal bidding requirements, under applicable law to arrange for the acquisition of such equipment. FURTHER RESOLVED, that the obligations of the City under the Supplemental Amendment be hereby designated, pursuant to Section 265(b) (3) (0) of the Internal Revenue Code of 1986, as amended (hereinafter called the "Code"), as comprising a portion of the $10,000,000.00 in aggregate issues which may be designated as "Qualified Tax-Exempt Obligations" eligible for the exception to the general rule of the Code which provides for a total disallowance of a deduction for interest expense allocable to the carrying of tax-exempt obligations. FURTHER RESOL YED, that the Mayor and the City Clerk of this City be and hereby are authorized to execute and deliver such other instruments and take such other actions as they shall deem necessary and desirable for the purpose of carrying out these resolutions and consummating the transactions contemplated by the Supplement Amendment. FURTHER RESOLVED, that the foregoing resolutions shall remain in full force and effect until written notice of their amendment or rescission shall have been received by Lessor and that receipt of such notice shall not affect any action taken by Lessor prior thereto. FURmER RESOLVED, that the City Clerk of this City be and hereby is authorized and directed to certify to the Lessor the foregoing resolutions and that the provisions thereof are in confonnity with the charter of this City. ADOPTED this / & Tft day of tTUI ';I . , 1996. ATTEST: APPROVED: CITY OF OCOEE, FLORIDA (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA. APP~9VED AS TO .EP~_AND LEGALITY this --/J2- day of ~~ ' 1996 FOLEY & LARDNER By: fJ)~ City Attorney APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON THE DATE INDICATED ABOVE UNDER AGENDA ITEM NO. 'V1 C. 1. Page 1 SCHEDULE A-V - EQUIPMENT LEASE-PURCHASE AGREEMENT Lease No.36895 This Equipment Schedule dated as of 7/16/96, is being executed by Ford Motor Credit Company ("Lessor"), "'1d City of Ocoee("Lessee"), as a supplement to, and is hereby attached to and made a part of that certain juipment Lease-Purchase Agreement dated as of 3/10/93 ("Lease"), between Lessor and Lessee. Lessor hereby leases to Lessee under and pursuant to the Lease, and Lessee hereby accepts and leases from Lessor under and pursuant to the Lease, subject to and upon the terms and conditions set forth in the Lease and upon the terms set forth below, and following items of Equipment: QUANTITY DESCRIPTION (MANUFACTURER, MODEL AND SERIAL NO.) SUPPLIER 1 1996 Ford Crown Victoria P71 Police Sedan Don Reid Ford, S.N.2FALP71VV7TX161428 Inc. EQUIPMENT LOCATION: City of Ocoee Police Department 150 North Lakeshore Drive, Ocoee, FL 34761-2258 Initial Term: 30 Months Commencement Date: 7/16/96 Periodic Rent: 9 Consecutive Quarterly Payments of $2,016.95 each (including interest), followed by one final payment of $2,016.88 due under this Lease-Purchase Agreement. The Periodic Rent Payment also include any applicable sales/use tax due and payable on the Lease Payment Dates, set forth in Schedule A, Page 2. EXECUTED as of the date first herein set forth. LESSEE: City of Oeoee LESSOR: Ford Motor Credit Company By: By: Title: S. Scott Vandergrift Mayor Title: W. Paul Rau Supervisor, Municipal Financing OPINION OF COUNSEL . 'e opinions expressed in the Opinion of Counsel dated 3/10193 provided to Lessor shall apply to the Lease as .Iended and Lessor may rely upon such opinion as if it were addressed and had been delivered to Lessor on the dale _. FD {~ ,v~n.ln{t' fJ;," (J!?~~ Attorney for Lessee Paul Rosenthal Schedule A-V Page 2 Payment Schedule Lease Number: 36895 Lease Lease Payment Payment Lease Interest Principal Concluding Number Date Payment Portion Portion Payment 1 7 I 16 I 1996 2,016.95 0.00 2,016.95 16,883.05 2 10 I 16 I 1996 2,016.95 249.02 1,767.93 15,115.12 3 1 I 16 I 1997 2,016.95 222.95 1,794.00 13,321.12 4 4 I 16 I 1997 2,016.95 196.49 1,820.46 11,500.66 5 7 I 16 I 1997 2,016.95 169.63 1,847.32 9,653.34 6 10 I 16 I 1997 2,016.95 142.39 1,874.56 7,778.78 7 1 I 16 I 1998 2,016.95 114.74 1,902.21 5,876.57 8 4 I 16 I 1998 2,016.95 86.68 1,930.27 3,946.30 9 7 I 16 I 1998 2,016.95 58.21 1,958.74 1,987.56 10 10 I 16 I 1998 2,016.88 29.32 1,987.56 1. 00 TOTAL 20,169.43 1,269.43 18,900.00 LESSOR: FORD MOTOR CREDIT COMPANY P. O. Box 1739 Dearborn, MI 48121-1739 DELIVERY AND ACCEPTANCE CERTIFICATE .e undersigned Lessee hereby acknowledges receipt of the Equipment described below ("Equipment") as fully installed and in good working condition; and Lessee hereby accepts the Equipment after full inspection thereof as satisfactory for all purposes of the Equipment Lease-Purchase Agreement ("Lease") executed by Lessee and Lessor. LEASE DAlE LEASE NUMBER SCHEDULE A DEUVERY PURCHASE PURCHASE DAlE NUMBER DAlE ORDER NO. 7/16/96 36895 A-V 1 EQUIPMENT INFORMATION I QUANTITY I DESCRIPTION (MANUFACTURER, MODEL AND SERIAL NO.) I SUPPUER I 1 1996 Ford Crown Victoria P71 Police Sedan Don Reid Ford, S.N. 2FALP71VV7TX161428 Inc. LESSEE: City of Ocoee 150 North Lakeshore Drive Ocoee, FL .34761-2258 BY: (Title) DATE ACCEPTED: Form 8038-GC Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales (Rev. May 1995) OMS No. 1545-0720 Department of the Treasury Internal Revenue Service P~l. . I Reporting Authority Issuer's name ~ Under Internal Revenue Code section 149(e) ~ For calendar year ending 19_ (Use Form 8038-G if the issue price of the issue is $100,000 or more.) Check box if Amended Return ~ [ ] 2 Issuer's employer identification number 3 City of Ocoee Number and street (or P.O. box if mail is not delivered to street address) 150 North Lakeshore Drive 4 City, town, or post office, state, and ZIP code Ocoee, FL 34761-2258 p~n Description of Obligations 59-6019764 Room/Suite $18,900.00 5 Issue price of small tax-exempt governmental obligations reported on this form. 6 Check the box that most nearly approximates the weighted average maturity of the obligation(s): a [xl Less than 5 years b [l From 5 to 10 years c [] More than 10 years 7 Check the box that most nearly approximates the weighted average interest rate on the obligations(s): a [] Less than 5% b [xl From 5% to 10% c [l More than 10% 8 Total issue price of the obligation(s) reported on line 5 that is/are: a Obligation(s) issued in the form of a lease or installment sale c Obligation(s) issued to refund prior issues b Obligation(s) designated by the iss,uer under section 265(b) (3)(8) (i) (iii) d Loans made from the proceeds of another tax-exempt obligation 9 Check box if issuer has elected to pay a penalty in lieu of arbitrage rebate 8a $18,900.00 8b 8c .()... 8d .()... [ ] Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct and complete. PLEASE SIGN HERE Date: Issuer's authorized representative: S. Scott Vandergrift, Mayor Paperwork Reduction Act Notice We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws. The time needed to complete and file this form varies depending on individual circumstances. The estimated average time is: Learning about the law or the form Preparing the form Copying, assembling, and sending the form to the IRS . 16 min. If you have comments concerning the .Accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can write to the Internal Revenue Service, Attention: Tax Forms Committee, PC:Fp, Washington, DC 20224. DO NOT send the form to this address. Instead, see Where To File on page 2. 1 hr., 46 min. 2 hr., 50 min. General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form Form 8038-GC is used by issuers of tax- exempt governmental obligations to provide the IRS with the information required by section 149(e) and to monitor the requirements of sections 141 through 150. Who Must File Issuers of tax-exempt governmental obligations with issue prices of less than $100,000 must file Form 8038-GC. Issuers of a tax-exempt governmental obligation with an issue price of $100,000 or more must file Form 8038-G, Information Return for Tax-Exempt Governmental Obligations. Filing a separate return.-Issuers have the option to file a separate Form 8038-GC for any tax-exempt governmental obligation with an issue price of less $100,000. Each such separate return should specify the calendar year in which the issue was issued. An issuer of a tax-exempt bond used to finance construction expenditures must file a separate Form 8038-GC for each issue to give notice to the IRS that an election was made to pay a penalty in lieu of arbitrage rebate (see line 9 instructions). Filing a consolidated retum. - For all tax-exempt governmental obligations with issue prices of less than $100,000 that are not reported on a separate Form 8038-GC, an issuer must file a consolidated information return including all such issues issued within the calendar year. Thus, an issuer may file a separate Form 8038- GC for each of a number of small issues and report the remainder of small issues issued during the calendar year on one consolidated Form 8038-GC. However, a separate Form 8038- GC must be filed to give the IRS notice of the election to pay a penalty in lieu of arbitrage rebate. NXA Form 8038-GC (Rev. 5-95) Form 8038-GC (Rev. 5-95) Page 2 When To File To file a separate return, file Form 8038-GC on or before the 15th day of the second calendar month after the close of the calendar quarter in which the issue is issued. To file a consolidated return, file Form 8038-GC on or before February 15th of the calendar year following the year in which the issue is issued. 18 filing. - An issuer may be granted an .tension of time to file Form S038-GC under Section 3 of Rev. Proc. 88-10, 1988-1 C.B. 635, if it is determined that the failure to file on time is not due to willful neglect. Send a late Form S038-GC to: Internal Revenue SERvice, Philadelphia Service Center, Statistics of Income Unit, P:DA: Unit F-SOI, Philadelphia, PA 19255, Stop #335. Type or print at the top of the form, 'This Statement is Submitted in Accordance with Rev. Proc. 88-10.' Attach to the Form 8038-GC a letter briefly stating why Form 8038-GC was not submitted to the IRS on time. Also indicate whether the obligation in question is under examination by the IRS. Do not submit copies of any bond documents, leases, or installment sale documents. Where To File File Form 8038-GC with the Internal Revenue Service Center, Philadelphia, PA 19255. Rounding Off to Whole Dollars You may show the money items on this return as whole-dollar amounts. To do so, drop any amount less than 50 cents and increase any amount from 50 cents through 99 cents to the next higher dollar. Definitions . Obligations refer to a single tax-exempt governmental obligation if Form 8038-GC is used for separate reporting and refer to multiple tax-exempt governmental obligations if the form is used for consolidated reporting. . A 'tax-exempt obligation' is not limited to the formal issuance of bonds. It also includes installment purchase agreements and financial leases. . A 'tax-exempt governmental obligation' is a tax-exempt obligation that is not a private activity bond. . A 'private activity bond' is generally an obligation issued as part of an issue of which (1) more than 10% of the proceeds are to be used for any private business use, and (2) more than 10% of the payment of principal or interest of the issue is either secured by an interest in property to be used for a private business use (or payments in respect of such property), or is to be derived from payments in respect of property (or borrowed money) used for a private business use. An obligation is also considered a private activity bond if the amount of the proceeds to be used'to make or finance loans (other than loans described in "ection 141 (c)(2) to certain persons exceeds e smaller of 5% of the proceeds, or $5 ,nillion. Report private activity bonds on Form 8038, Information Return for Tax-Exempt Private Activity Bond issues. . 'Issue.' In general, obligations are treated as part of the same issue only if they are issued (1) by the same issuer, (2) on the same date, and (3) pursuant to a single transaction or to a series of related transactions. Exceptions - (a) Draw-down loans, commercial paper, etc. - Obligations issued during the same calendar year (1) pursuant to a loan agreement under which amounts are to be advanced periodically ('draw-down loan'), or (2) with a term not exceeding 270 days, may be treated as part of the same issue if the obligations are equally and ratably secured under a single indenture or loan agreement and are issued pursuant to a common financing arrangement; e.g., pursuant to the same official statement that is periodically updated to reflect changing factual circumstances. In addition, for obligations issued pursuant to a draw-down loan that meets the requirements of the preceding sentence, obligations issued during different calendar years may be treated as part of the same issue if all the amounts to be advanced pursuant to the draw-down loan are reasonably expected to be advanced within 3 years of the date of issue of the first obligation. (b) Leases and installment sales.- Obligations other than private activity bonds may be treated as apart of the same issue if (1) the obligations are issued pursuant to a single agreement that is in the form of a lease or installment sale and (2) all of the property covered by that agreement is reasonably expected to be delivered within 3 years of the date of issue of the first obligation. Arbitrage rebate.- Generally, interest on a state or local bond is not tax exempt unless the issuer of the bond rebates to the United States arbitrage profits earned from investing proceeds of the bond in higher yielding nonpurpose investments. See section 148(f). Construction issue.- A construction issue is an issue of tax-exempt bonds if (1) at least 75% of the available construction proceeds of the issue are to be used for construction expenditures with respect to property that is to be owned by a governmental unit or a 501 (c) (3) organization, and (2) all of the bonds that are part of the issue are qualified 501 (c) (3) bonds; bonds that are not private activity bonds; or private activity bonds issued to finance property to be owned by a governmental unit or a 501 (c) (3) organization. In lieu of rebating any arbitrage that may be owed to the United States, the issuer of a construction issue may make an irrevocable election to pay a penalty. The penalty is equal to 1 y, of the amount of construction proceeds that do not meet certain spending requirements. See section 148(f) (4)(C). Specific Instructions In general.- A form 8038-GC must be completed on the basis of available information and reasonable expectations as of the date the issue is issued. Forms that are filed on a consolidated basis, however, may be completed on the basis of information readily available to the issuer at the close of the calendar year to which the form relates, supplemented by estimates made in good faith. Part I - Reporting Authority Amended return.- If this is an amended Form 8038-GC, check the amended return box. Complete Part 1 and only those lines of Form 8038-GC that are being amended. Do not amend estimated amounts previously reported once the actual amounts are determined. (see the Part II instructions below.) Una 1.- The issuer's name is the name of the entity issuing the obligations, not the name of the entity receiving the benefit of the financing. In the case of a lease or installment sale, the issuer is the lessee or purchaser. Une 2.- An issuer that does not have an employer identification number (EIN) should apply for one on Form SS-4. Application for Employer Identification Number. This form may be obtained from most IRS and Social Security Administration offices. File Form SS-4 according to the instructions on that form. If the EIN has not been received by the due date for Form S03S-GC, write 'Applied for' in the space for the EIN. Part II - Description of Obligations Une 5.- Small governmental obligations are those with an issue price of less than $100,000. If the obligations are reoffered to the public by an intermediary, the issue price is the reoffering price (excluding accrued interest). If Form 8038-GC is being filed for a single issue only, enter the issue price of that issue. The issue price of an obligation means the principal amount due on the obligation and does not include interest paid or to be paid. Therefore, line 5 should include only the principal amount due on obligations. For example, only the purchase price of an asset acquired pursuant to a lease should be included on line 5. A lease or installment sale is treated as issued on the date interest starts to accrue. Une 6.- The weighted average maturity is determined by multiplying the issue price of each obligation reported on this form by its maturity in years, adding the results for all the obligations reported on this form, and then dividing the total by the total issue prices of all the obligations. For a lease or installment sale, the maturity is the total number of years the lease or installment sale will be outstanding. Une 7.- The weighted average interest rate is the average interest rate on all the obligations reported on this form, weighted in proportion to the issue price and length of maturity of each obligation. Une 6.- Enter the total issue price of the obligations reported on line 5 that are described on lines 8a through 8d. More than one line may apply to a particular obligation. For example, report on line 8b and line 8c, obligations issued to refund prior issues that were designated by the issuer under section 265(b) (3) (B) (i) (iii). Une 9.- Check this box if the issue is a construction issue and an irrevocable election to pay a penalty in lieu of arbitrage rebate has been made on or before the date the bonds were issued. The penalty is payable with a Form 8036-1; Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate, for each 6-month period after the date the bonds are issued. Do not make any payment of penalty in lieu of rebate with this form. See Rev. Proc. 92-22, 1992-1 C.B. 736, for rules regarding the 'election document.'