05-562Council File# �S � S�/`2
GreenSheet# ��o��o ��
CITY
Presented By
Referred
RESOLUTION
AINT PAUL, MINNESOTA
Committee: Date
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AUTHORIZING THE EXECUTION OF SCHEDULE NO. 3
TO A MASTER EQUIPMENT LEASE
3 WHEREAS, pursuant to a Master Equipment Lease-Purchase Agreement (the "Lease-
4 Purchase AgreemenY') by and beriveen Banc of America Leasing & Capital, LLC, as lessor (the
5 "Lessar"), and the City of Saint Paul, Minnesota (the "City"), as lessee, dated as of July 1, 2004,
6 the City may over the next four years enter into individual tas-exempt leases for the purchase of
7 capital equipment; and
8 WHEREAS, there has been prepared and is before this meeting Schedule of Property No.
9 3("Schedule No. 3") to the Lease-Purchase Agreement, which provides for a lease in the amount
10 of approximately $1,000,000 of public safety vehicles for the City of Saint PauPs Police
11 Department (the "ProjecY'); and
12 WHEREAS, in entering into Schedule No. 3, the City is exercising powers under its
13 home rule charter and powers granted by Minnesota Statues, Section 465.71; and
14 WHEREAS, Schedule No. 3 is subject to annual non-appropriation, and the City has the
15 right to ternunate Schedule No. 3 at the end of any fiscal year during its term:
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NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul,
Minnesota, as follows:
1. Approval of Documents. Schedule No. 3 is hereby approved in substantially the
forms submitted, with such deletions, completions, and changes therein as are necessary and
appropriate and approved by the City Attorney. The Mayor or executive assistant to the Mayor
and the Director of the Office of Financiai Services are hereby authorized and directed to execute
Schedule No. 3, and such other documents as are contemplated thereby or necessary in
connection therewith.
24 2. Pixrnose. Schedule No. 3 shall provide funds for the acquisition of the Project.
25 3. Prepa�nent; Purchase. Schedule No. 3 shall be subject to prepayxnent at the
26 option of the City. The City shall have the option to purchase any equipment acquired pursuant
27 to Schedule No. 3 for $1.00 at the end of the full term of Schedule No. 3.
28 4. ReQistration; Transfer. The Director of the Office of Financial Services is hereby
29 appointed the City's registrar with respect to Schedule No. 3. The City will cause to be kept a
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1 register in which the registraz shall provide for the registrafion of Schedule No. 3 and the
2 regishation of transfers of Schedule No. 3.
3 Schedule No. 3 shall be registered in the name of the payee on the books of the registrar
4 inirially and when notice of any transfer or assignment is received. The City and registrar may
5 treat the registered owner of Schedule No. 3 as the person exclusively entitled to exercise all the
6 rights and powers of the owner.
7 The registrar may require payment of a sum su£ficient to cover any taac or other
8 governmental chazge payable in connection with the transfer of Schedule No. 3.
9 5. Treatment of Ret?istered Owner. The City and registrar may treat the person in
10 whose name Schedule No. 3 is registered as the owner of Schedule No. 3 for the purpose of
11 receiving payxnents thereon and for all other purposes whatsoever, and neither the City nor the
12 registraz shall be affected by notice to the contrary.
13 6. No Funds; Arbitra�e. Until expended on the Project, the proceeds of Schedule
14 No. 3 shall be held in the custody of the Lessor pursuant to an Escrow Agreement. Payments on
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Schedule No. 3 shall be made from annual appropriations, and moneys to make such payment
shall not be segregated in any special fund.
No portion of the proceeds of Schedule No. 3 shall be used directly or indirectly to
acquire higher yielding investments or to replace funds which were used directly or indirectly to
acquire higher yielding investments, except (1) for a reasonable temporary period until such
proceeds are needed for the purpose for which Schedule No. 3 is entered into, and (2) in addition
to the above in an amount not greater than $100,000. To this effect, any proceeds of Schedule
No. 3 and any sums from rime to time held in any City account which will be used to make
payments on Schedule No. 3 in excess of axnounts which under then-applicable federal arbitrage
regulations may be invested without regard as to yield shall not be invested at a yield in excess of
the applicable yield restrictions imposed by said arbitrage regulations on such investments after
taking into account any applicable "temporary periods" or "minar portion" made available under
the federal azbitrage regulations. In addition, the proceeds of Schedule No. 2 and moneys used
to make payments on Schedule No. 3 shall not be invested in obiigations or deposits issued by,
guazanteed by or inswed by the United States or any agency or instrumentality thereof if and to
the extent that such inveshnent would cause Schedule No. 3 to be "federally guazanteed" within
the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the
"Code").
33 7. No General Obligation Pledge: Inirial Avpronriation. Schedule No. 3 is not a
34 general obligation of the City but rather is payable from amounts to be annually appropriated,
35 and the full faith, credit and taxing powers of the City shall not be and are not pledged. By other
36 actions taken with respect to the 2005 budget the City Council has appropriated moneys to make
37 the payments due on Schedule No. 3 in 2005.
38 8. Records and Certificates. The officers of the City are hereby authorized and
39 directed to prepare and fixrnish to the Lessor, and to the attorneys approving the legality of
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1 Schedule No. 3, certified copies of all proceedings and records of the City relating to Schedule
2 No. 3 and to the financial condition and affairs of the City, and such other affidavits, certificates
3 and informarion as are required to show the facts relating to the legality and marketability of
4 Schedule No. 3 as the same appear from the books and records under their custody and control or
5 as otherwise Irnown to them, and all such certified copies, certificates, and affidavits, including
6 any heretofore fiunished, shall be deemed representations of the City as to the facts recited
7 therein.
8 9. Negative Covenants as to Use of Proceeds and Prolect. The City hereby
9 covenants not to use the proceeds of Schedule No. 3 or to use the Project, or to cause or permit
10 them to be used, or to enter into any defened payment arrangements for the cost of the Project, in
11 such a manner as to cause Schedule No. 3 to be a"private activity bond" within the meaning of
12 Secrions 103 and 141 through 150 of the Code. The City reasonably expects that no acrions will
13 be taken over the term of Schedule No. 3 that would cause it to be a private activity bond, and
14 the average term of Schedule No. 3 is not longer than reasonably necessary for the governmental
15 purpose of Schedule No. 3. The City hereby covenants not to use the proceeds of Schedule No.
16 3 in such a manner as to cause Schedule No. 3 to be a"hedge bond" witkun the meaning of
17 Section 149(g) of the Code.
18 10. Tax-Exemnt Status of Schedule No. 3; Rebate; Elections. The City shall comply
19 with the requirements necessary under the Code to establish and maintain the exclusion from
20 gross income under Section 103 of the Code of the interest on Schedule No. 3, including, without
21 limitation, requirements relating to temporary periods for investments, limitations on amounts
22 invested at a yield greater than the yield on Schedule No. 3, and the rebate of excess investment
23 earnings to the United States.
24 If any elections are available now or hereafter with respect to arbitrage or rebate matters
25 relating to Schedule No. 3, the Mayor, Clerk, Treasurer and Director of the Office of Financial
26 Services, or any of them, aze hereby authorized and directed to make such elections as they deem
27 necessary, appropriate or desirable in connection with Schedule No. 3, and all such elecrions
28 shall be, and shall be deemed and treated as, elections of the City.
29 11. No Desienation as Qualified Tax-Exem�t Obli ag tion. Schedule No. 3, together
30 with other obligations to be issued by the City in 2005, exceeds in amount those which may be
31 qualified as"qualified tas-exempt obligations" within the meaning of Section 265(b)(3) of the
32 Code, and hence is not designated for such purpose.
33 12. Severabilitv. If any section, pazagraph or provision of this resolution shall be held
34 to be invalid or uneforceable for any reason, the invalidity or unenforceability of such section,
35 paragraph, or provision shall not affect any of the remaining provisions of this resolution.
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1 13. HeadinQS. Headings in this resolution are included for convenience of reference
2 only and are not a part hereof, and shall not limit or define the meaning of any provision hereto.
Requested by Department of:
• -.
��l'l.iiR�(
i
Form App�ved by City
Adoption Certifie by Council Secretary By: .�a-'
By: %�s4
Approved b or: Date• � _ �v _ y Mayor for
�
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Adopted by Councfl: Date �'/en� �3„ �/ld�:
os s�a.
� et Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
��:,:._ Green She ..,. _ ., . ., _ �.:.. . , � ..
FS — F��;� sm;�
Conqd Person & Phone:
Todd Fknley
266-SS37
Must Be on Council Agenda by
t,•aa�a�
ContraMType:
AR-F2ESELUTION W/$ "fRANSACTION
._ :,_,
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Assign
NumbeY
For
RouBng
Order
0
1
2
3
4
5
6
Green Sheet NO: 3026803
mancial 'tes nt Di r
ancial rvica ceFn ncial �vi
i A e �
a or' a or(Assisfant
oun - ci council
rk Ci terk
Total # of Signature Pages _(Clip NI Lowtions fo� SignaWre)
Action Requested:
Approval of attached resolution au[horizing ihe execu&on of schedule #3 to a mater equipment lease to provide financing for the
acquisidon of public safety vehicles for the St:Paul police department.
(R):
Questions:
Plannirg Commission �, ryy� this persoNfirtn e�erwoiiced undera contract forthis departmeM?
CIB Committee Yes No
Citil Service Commission � 2. Has this person/firm e�er been a city employee?
Yes No
, 3. Does this persorJfirtn possess a skill not normally possessed by any
cuirent ciry employee? �
Yes No "
Expiain aN yes answea on separate sheet and attach M green sheet
±,i;, �. � .
�; Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): �
St.Paul police deparhnent is scheduled to purchase public safety vehicles as part of the 2005 budget
Advantage5lf Approved:
� St.Paul police deparknent will be able to acquire these vehicles
Disadvantages MApproved:
none
Disadvanqpes If NotApproved:
St.Paul police department will not be able to acquire these vehicles
iotalAmountof $1,000,000
Transaction:
Fu�aino source: lease financing
Financial information:
(Explain)
CosNRevenue Budgeted: y
" ActivityNumber.' 001
June 10, 2005 2:57 PM Page 1.
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