R98-06 01-12-98RESOLUTION NO. R98-6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
EXECUTE A DECLARATION OF OFFICIAL INTENT OF LESSEE TO USE
PROCEEDS OF LEASE-PURCHASE AGREEMENT(S) WITH BANC ONE
LEASING CORPORATION TO REIMBURSE ITSELF FOR CERTAIN
CAPITAL EXPENDITURES PREVIOUSLY APPROVED BY COUNCIL.
WHEREAS, the City Council has previously approved lease-purchase
agreements with Banc One Leasing Corporation for the acquisition of certain computer
and telephone equipment; and
WHEREAS, the City may elect to pay for said equipment prior to receiving
proceeds from said lease-purchase agreement(s); and
WHEREAS, should the City make such elections, it will expect reimbursement
via the lease-purchase proceeds from Banc One Leasing Corporation pursuant to said
agreements; and
WHEREAS, execution of said declaration is necessary to protect the tax exempt
status of the lease-purchase proceeds; now, therefore,
BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the recitals contained in the preamble of this Resolution are
hereby adopted and confirmed.
Section 2. That the City Manager or his designee is authorized to execute a
Declaration of Official Intent of Lessee to Use Proceeds of Lease-Purchase
Agreement(s) with Banc One Leasing Corporation to Reimburse itself for Certain
Capita/Expenditures previously approved by Council, a copy of which is attached
RESOLUTION NO. R98-6
hereto as Exhibit "A", incorporated herein for all purposes, and is hereby authorized
and approved.
PASSED, APPROVED, and ADOPTED this the 12th day of January ,
A.D., 1998.
TOM REID
MAYOR
ATTEST:
APP/I~VED AS TO FORM:
KIV~' M~TES I~cCULLOU~iH
CITY ATTORNEY
2
REIMBURSEMENT RESOLUTION
OF
THE CITY OF PEARLAND, TEXAS
Exhibit "A"
Page 1 of 2
DECLARATION OF OFFICIAL INTENT OF LESSEE
TO USE PROCEEDS OF LEASE-PURCHASE AGREEMENT(S)
WITH BANC ONE LEASING CORPORATION
TO REIMBURSE ITSELF
FOR CERTAIN CAPITAL EXPENDITURES
WHEREAS, the City of Pearland, Texas (the "Lessee") intends to acquire certain
equipment and other property as more particularly described below (hereinafter, the "Property"):
Computer/telephone equipment
WHEREAS, the Lessee may pay certain capital expenditures in connection with the
Property prior to its receipt of proceeds of the lease-purchase agreement(s) described below
("Lease-Purchase Proceeds") for such expenditures;
WHEREAS, the Lessee reasonably anticipates that it will make expenditures with respect
to the Property in an amount not expected to exceed the Anticipated Property Cost stated below
for which the Lessee may or expects to enter into one or more Lease-Purchase Agreements with
Banc One Leasing Corporation:
Anticipated Property Cost Not to Exceed $200,000.00
WHEREAS, Banc One Leasing Corporation, shall provide the lease-purchase proceeds
for said reimbursement in accordance with the lease-purchase agreement(s) referenced herein;
WHEREAS, Treasury Department and Internal Revenue Service Regulations do not
allow the proceeds of a tax-exempt borrowing to be spent on working capital; now, therefore,
BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. The Governing Body of Lessee finds and determines that the foregoing
recitals are true and correct.
Section 2. This Resolution is adopted by the Governing Body of Lessee for the
purpose of establishing compliance with the requirements of Section 1.150-2 of
Treasury Regulations. This Resolution does not bind the Lessee to make any expenditure, incur
any indebtedness, or proceed with the purchase of the Property.
Section 3. The Governing Body of Lessee expects the Lessee will pay certain capital
expenditures in connection with the Property prior to the receipt of the Lease-Purchase Proceeds
for the Property.
Exhibit "A"
Page 2,of 2
Section 4. The Governing Body of Lessee hereby declares the Lessee's official intent
to use the Lease-Purchase Proceeds received from Banc One Leasing Corporation, pursuant to
the lease-purchase agreement(s) referenced herein.
Section 5. This Resolution shall take effect from and after its adoption.
PASSED, APPROVED, and ADOPTED this the 12th day of January
19 98
The undersigned Secretary of the above-named Lessee hereby certifies and attests that the
undersigned has access to the official records of the Governing Body of the Lessee, that the
foregoing resolution was duly adopted by said Governing Body of the Lessee at a meeting of
said Governing Body and that such resolution has not been amended or altered and is in full
force and effect on the date stated below.
[SEAL]
.rature o~'~y
Printed Name: Young LOrfing
OfficialTitle: City Secretary
Date: January 12, 1998