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HomeMy WebLinkAbout2018-05-07-Resolutions 18-183_Bonds - Golf Course Equipment Lease Purchase Agr - IssuanceRESOLUTION 18-183 RESOLUTION AUTHORIZING ACTION TO ENTER INTO A LEASE PURCHASE AGREEMENT IN THE PRINCIPAL AMOUNT OF $28,500 FOR A LEASE OR LEASE PURCHASE OF GOLF COURSE EQUIPMENT FOR A GENERAL CORPORATE PURPOSE WHEREAS,the City of Waukee,State of Iowa (the "City"),is in need of funds to pay costs of the lease or lease purchase of golf course equipment,and it is deemed necessary and advisable that a lease purchase agreement in the aggregate principal amount of $28,500 be entered into for such purpose;and WHEREAS,pursuant to notice published as required by Sections 362.4(4)and 384.26 of the Code of Iowa,as amended (the "Code"),this Council has held a public meeting and hearing upon the proposal to institute proceedings for the authorization of a lease purchase agreement in the aggregate principal amount of not to exceed $35,000 for such purposes,and the Council is therefore now authorized to proceed with the authorization of the lease purchase agreement;and WHEREAS,VGM Financial Services,having its principal place of business in Waterloo, Iowa ("VGM"),has agreed to loan the City the principal sum of $28,500 pursuant to the terms of a 2018 Schedule,as an addendum to the underlying Master Lease Agreement (the "Lease")dated as of January 13,2014,between the City,as Lessee,and VGM,as Lessor thereunder;and WHEREAS,the City will agree in the Lease to repay VGM the principal sum of $28,500, plus interest on such amount at a rate of 5 lo per annum and any applicable taxes or miscellaneous payment due thereunder,over a period of 54 months,resulting in total payments thereunder of $32,762.50,all as set forth in the Lease;and WHEREAS,this Council has determined that the terms of the Lease do not exceed the economic life of the property being acquired pursuant thereto;and WHEREAS,the Lease will be payable from the Debt Service Fund;and WHEREAS,there have been presented to this meeting the form of Lease documents between the City and VGM which the City proposes to enter into;and WHEREAS,it appears that such instruments are in appropriate form and are appropriate instruments for the purposes intended. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WAUKEE,STATE OF IOWA: Section 1.Definitions.The following terms shall have the following meanings in this Resolution unless the text expressly or by necessary implication requires otherwise: "Equipment"shall mean the new golf course equipment,as more particularly described in the Lease. "Financing Documents"shall mean any insurance,delivery,transcript and incumbency certificates to be delivered in conjunction with the closing of the Lease, relating to the Equipment to be acquired pursuant to the Lease,and Form 8038-GC Inforination Reporting Returns. "Issuer"or "City"or "Lessee"shall mean the City of Waukee,State of Iowa. "Lease"shall mean the Master Lease,in the initial principal amount of $28,500, by and between the City and VGM. "Project Fund"shall mean the fund established by this Resolution for the deposit of the proceeds of the Lease. "Rebate Fund"shall mean the fund so defined in and established pursuant to the Tax Exemption Certificate. ETax Exemption Certificate"shall mean the Tax Exemption Certificate executed by the Director of Finance and delivered at the time of issuance and delivery of the Lease. EVGM"or "Lessor"shall mean VGM Financial Services of Waterloo,Iowa. Section 2.Authori and P ose.The Lease authorized by this Resolution shall be issued pursuant to Sections 362.4(4)and 384.26 of the Code of Iowa,and in compliance with all applicable provisions of the Constitution and laws of the State of Iowa.The Lease is hereby authorized in the aggregate principal amount of $28,500 for the purpose of paying costs of acquiring the Equipment. E ti 3.~At fh .VGM h lid li th Eq ip tt th City dhy the Lease in the aggregate principal sum of $28,500,which provide for the repayment by the City in an amount equal to the principal and interest at a per annum rate of 5'yp on the unpaid balance thereof from the date of delivery of the Lease to VGM,in the amounts and at the rates and in installments as specified therein,and the form and content of the Lease,the provisions of which are incorporated herein by reference,hereby are in all respects authorized,approved and confirmed,and the Mayor and the City Clerk are hereby authorized,empowered and directed to execute,attest,seal and deliver the Lease for and on behalf of the City,including necessary counterparts and in substantially the form and content now before this meeting but with such changes,modifications,additions or deletions therein as shall to them seem necessary,desirable or appropriate,their execution thereof to constitute conclusive evidence of their approval of any and all changes,modifications,addition or deletions therein from the form and content of the Lease now before this meeting,and from and after the execution and delivery of the Lease,the Mayor and the City Clerk are hereby authorized,empowered and directed to do all such acts and things and execute all such documents as may be necessary to carry out and comply with the provisions of the Lease as executed. Section 4.Additional Documents.The Mayor,City Clerk and Director of Finance hereby are authorized,empowered and directed to execute,attest,seal and deliver for and on behalf of the City any and all Financing Documents and any other additional certificates,documents, opinions or other papers and perform all other acts,including without limitation the execution of all closing documents,as they may deem necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. Section 5.Lev and Certification of Annual Tax Other Funds to be Used. (a)Lev of Annual Tax.That for the purpose of providing funds to pay the principal and interest of the Lease hereinafter authorized to be issued,there shall be levied in the Debt Service Fund for each future year the following direct annual tax on all of the taxable property in City of Waukee,Iowa,to-wit: AMOUNT FISCAL YEAR (JULY I TO JUNE 30) YEAR OF COLLECTION $5,552.50* $5,552.50 $5,552.50 $5,552.50 $10,552.50 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 "Payable from cash on hand. (NOTE:For example the levy to be made and certified against the taxable valuations of January 1,2017,will be collected during the fiscal year commencing July I,2018). (b)Resolution to be Filed With Count Auditor.A certified copy of this Resolution should be filed with the County Auditor of Dallas County,State of Iowa,and said Auditor is hereby instructed in and for each of the years as provided,to levy and assess the tax hereby authorized in Section 2 of this Resolution,in like manner as other taxes are levied and assessed,and such taxes so levied in and for each of the years aforesaid be collected in like manner as other taxes of the City are collected,and when collected be used for the purpose of paying principal and interest on said Bonds issued in anticipation of said tax,and for no other purpose whatsoever. (c)Additional Cit Funds Available.Principal and interest coming due at any time when the proceeds of said tax on hand shall be insufficient to pay the same shall be promptly paid when due from current funds of the City available for that purpose and reimbursement shall be made from such special fund in the amounts thus advanced. Section 6.Lease Fund.The tax shall be assessed and collected each year at the same time and in the same manner as,and in addition to,all other taxes in and for the City,and when collected they shall be converted into a special fund within the Debt Service Fund to be known as the "LEASE PURCHASE FUND 2018 NO.I"(the "Lease Fund"),which is hereby pledged for and shall be used only for the payment of the principal of and interest on the Lease herein authorized to be issued. Section 7.Re istration of Lease'A ointment of Re istrar Transfer Ownershi and ~Deliver . ()R~it q .Th hip fth L yb t f d lybyth making of an entry upon the books kept for the registration and transfer of ownership of the Lease,and in no other way.The City Clerk is hereby appointed as Registrar and Paying Agent under the terms of this Resolution.Registrar shall maintain the books of the Issuer for the registration of ownership of the Lease for the payment of principal of and interest on the Lease as provided in this Resolution.The Lease shall be negotiable as provided in Article 8 of the Uniform Commercial Code subject to the provisions for registration and u'ansfer contained in the Lease and in this Resolution. (b)Transfer.The ownership of the Lease may be transferred only upon the Registration Books kept for the registration and transfer of the Lease and only upon surrender thereof at the office of the Registrar together with an assignment duly executed by the holder or his duly authorized attorney in fact in such form as shall be satisfactory to the Registrar,along with the address and social security number or federal employer identification number of such transferee (or,if registration is to be made in the name of multiple individuals,of all such transferees).In the event that the address of the registered owner of the Lease (other than a registered owner which is the nominee of the broker or dealer in question)is that of a broker or dealer,there must be disclosed on the Registration Books the information pertaining to the registered owner required above. Upon the transfer of the Lease,a new fully registered Lease,of any denomination permitted by this Resolution in aggregate principal amount equal to the unmatured and unredeemed principal amount of such transferred fully registered Lease,and bearing interest at the same rate and maturing on the same date or dates shall be delivered by the Registrar.Any costs or expenses,including counsel fees,of the Registrar incurred in connection with an exchange or transfer of the Lease shall be paid by the holder of the Lease requesting such transfers as a condition precedent to the exercise of the privilege of making such exchange or transfer. (c)Re istration of Transferred Lease.In all cases of the transfer of the Lease, the Registrar shall register,at the earliest practicable time,on the Registration Books,the Lease,in accordance with the provisions of this Resolution. fdi ~Otd.A t th L,th p t h th htp f the same shall be registered on the Regisn'ation Books of the Registrar shall be deemed and regarded as the absolute owner thereof for all purposes,and payment of or on account of the principal of the Lease and the premium,if any,and interest thereon shall be made only to or upon the order of the registered owner thereof or his legal representative.All such payments shall be valid and effectual to satisfy and discharge the liability upon the Lease,including the interest thereon,to the extent of the sum or sums so paid. Section 8.A lication of Lease Proceeds.Any proceeds of the Lease,except as may be provided below,shall be credited to the Project Fund and expended only for the purposes of acquiring the Equipment.Any amounts on hand in the Project Fund shall be available for the payment of the principal of or interest on the Lease at any time that other funds shall be insufficient to the purpose,in which event such funds shall be repaid to the Project Fund at the earliest opportunity. Section 9.Invesnnent of Pro'ect Fund Proceeds.All moneys held in the Project Fund shall be invested subject to the provisions of the Tax Exemption Certificate.All such investments shall mature before the date on which the moneys are required for payment of principal of or interest on the Lease as herein provided. Section 10.Non-Arbitra e Covenants.The Issuer reasonably expects and covenants that no use will be made of the proceeds from the Lease authorized hereunder which will cause the Lease to be classified as an arbitrage bond within the meaning of Section 148(a)and (b)of the Internal Revenue Code of the United States,and that throughout the term of the Lease it will comply with the requirements of the statute and regulations issued thereunder. To the best knowledge and belief of the Issuer,there are no facts or circumstances that would materially change the foregoing statements or the conclusion that it is not expected that the proceeds of the Lease will be used in a manner that would cause the Lease to be an arbitrage bond.Without limiting the generality of the foregoing,the Issuer hereby agrees to comply with the provisions of the Tax Exemption Certificate and the provisions of the Tax Exemption Certificate are hereby incorporated by reference as part of this Resolution.The Treasurer is hereby directed to make and insert all calculations and determinations necessary to complete the Tax Exemption Certificate in all respects and to execute and deliver the Tax Exemption Certificate at issuance of the Lease to certify as to the reasonable expectations and covenants of the Issuer at that date. Section 11.Additional Covenants Re resentations and Warranties of the Issuer.The Issuer certifies and covenants with the purchasers and holders of the Lease that the Issuer through its officers,(a)will make such further specific covenants,representations and assurances as may be necessary or advisable;(b)comply with all representations,covenants and assurances contained in the Tax Exemption Certificate,which Tax Exemption Certificate shall constitute a part of the contract between the Issuer and the owners of the Lease;(c)consult with bond counsel (as defined in the Tax Exemption Certificate);(d)pay to the United States,as necessary, such sums of money representing required rebates of excess arbitrage profits relating to the Lease;(e)file such forms,statements and supporting documents as may be required and in a timely manner;and (fl if deemed necessary or advisable by its officers,to employ and pay fiscal agents,financial advisors,attorneys and other persons to assist the Issuer in such compliance. Section 12.Amendment of Resolution to Maintain Tax Exem tion.This Resolution may be amended without the consent of any owner of the Lease if,in the opinion of bond counsel, such amendment is necessary to maintain tax exemption with respect to the Lease under applicable Federal law or regulations. Resolution be held invalid,such invalidity shall not affect any of the remaining provisions hereof,and this Resolution shall become effective immediately upon its passage and approval. Section 14.Re eal of Conflictin Resolutions.All resolutions in conflict herewith are hereby repealed. PASSED AND APPROVED this 7'"day of May,2018. yor Pro Tem ATTEST: City Clerk RESULTS OF VOTE: Anna Bergman R.Charles Bottenberg Courtney Clarke Shelly Hughes Larry R.Lyon AYE X X X X NAY ABSENT ABSTAIN X