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HomeMy WebLinkAbout2014-001 Four (4) Year Lease/Purchase Agreement with Branch Banking and Trust Company (BB&T) for Various Heavy Equipment included in the FY 13/14 BudgetRESOLUTION NO. 2014-001 A RESOLUTION TO APPROVE THE FOIJR (4) YEAR LEASE /PURCHASE AGREEMENT #9909001665 -00001 WITH BRANCH BANKING AND TRUST COMPANY (BB &T) FOR THE FINANCING OF NEW EQUIPMENT AND VEHICLES FOR $691,937.80 AT AN ANNUAL INTEREST RATE OF 1.39 %. WHEREAS, The City of Ocoee, Florida ( "City ") has previously determined to undertake a project for the financing of (2) Garbage Trucks, (1) Tractor, (1) Asphalt Truck, and (1) Bus, and the City Manager has now presented a proposal for the financing of such Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, 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 January 13, 2014. The amount financed shall not exceed $691,937.80 the annual interest rate (in the absence of default or change in tax status) shall not exceed 1.39%, and the financing term shall not exceed four (4) 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. Officers and employees of the City as required in the lease documents 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 Agreement and Project Fund Agreement. SECTION 3. The City Manager 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 City Manager 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 City Manager shall approve, with the City Manager'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 repeated, to the extent of the conflict. This resolution shall take effect immediately, CITY OF OCOEE SIGNAT(JRE PAGE FOR RESOLUTION APPROVING FINANCING TERMS APPROVED: ATTEST: Beth Eikenberry, City Clerk (SEAL) CITY OF OCOEE, FLORIDA S. Scott Vandergrift, Mayor DATE: FOR USE AND RELIANCE ONLY BY THE CITY OF OCOFF, FLORIDA APPROVED AS TO FORM AND LEGALITY this day of 2014. SHtJFFfEl-,I), LOWMAN & WILSON, P.A. - riey BY: Scott Coo Ci APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON P. Uv%4 ((r 4 201 UNDER AG DA ITEM NO.