08-391Council File # 6g " y �
Green Sheet # 3052050
2
3
4
5
6
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
RESOLUTION
OF
PAUL, MfNNESOTA
Presented by
RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF
A 2008 CAPITAL LEASE AGREEMENT AND RELATED DOCi7MENTS
FOR THE PURCHASE OF 36 POLICE VEHICLES AND DETERMIlVING
OTHER MATTERS IN CONNECTION THEREWITH
lb
WIIEREAS, the City of Saint Paul, Minnesota (the "City") proposes to enter into a capital Master Lease
Agreement, dated on or after April 1, 2008 (the "Master Lease Purchase AgreemenY'), by and between the City and
SunTrust Equipment Finance & Leasing Corp., a Virginia corporation, its successors and assigns (the "Lessor"),
where the City may enter into individual tax-exempt leases for the purchase and financing of various items of capital
equipment; and
WHETZEAS, there has been prepared and is before this meeting a form of the Master Lease Purchase
Agreement and Schedule No. Ol to the Master Lease Purchase Agreement (collectively, the "Lease Purchase
AgreemenY'), which provides for an approximately three yeaz lease in the approximate principal amount of $771,000
at an interest rate per annum of 2.65% for the acquisifion of 36 police vehicles (the "EquipmenY'), to be acquired
with money segregated pursuant to an Escrow Agreement, dated on or after April 1, 2008 (the `Bscrow
AgreemenY'), by and between Lessor, the City and SunTrust Bank, a Geargia banking corporation, its successors
and assigns (the "Bscrow Agent"); and
WHEREAS, the City ran a request for proposal far the purchase of the Equipment through Contract
Analysis and Services in March 2008 and the Lessor submitted a proposal to the City that provided the lowest
financing cost for the Equipment; and
WHEREAS, the City has taken the necessary steps, including those relaring to any applicable legal bidding
requiremenYs, to arrange far the acquisition of the Equipment; and
WHEREAS, by entering into the Lease Purchase Agreement, the City will exercise the powers under the
City's home rule charter and Minnesota Statutes, Section 465.71, as amended; and
WHEREAS, the Equipment is essential for the City to perform its govemmental functions; and
WHEREAS, the funds made available under the Lease Purchase Agreement will be deposited with the
Escrow Agent and will be applied to reimburse the City for the acquisition of the Equipment in accordance with the
Escrow Agreement; and
WHEREAS, the Lease Purchase Agreement is subject to annual non-appropriation, and the City has the
right to ternunate the Lease Purchase Agreement, in accordance with the terms thereof, as the end of any fiscal year:
and
WHEREAS, the City Attorney's office recommends that Kennedy & Graven, Chartered, assist with the legal
work relating to the Lease Purchase Agreement and provide the required taac exempt legal opinion.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows:
1. Anproval of Documents. It is hereby found and determined that the terms of the Master Lease
Purchase Agreement, the Lease Purchase Agreement and the Escrow Ageement, and related documents, certificates
a��3yi
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
6�
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
and instruments (collecrively, the "Financing Documents") in the forms presented to this meeting and incorporated
in this resolution are in the best interests of the City for the acquisirion and financing of the Equipment. The
Equipment financed with proceeds of the Lease Purchase Agreement is capital equipment.
2. Authorized Officials. The Financing Documents and the acquisirion and financing of the Equipment
under the terms and condirions as described in the Financing Documents are hereby approved. The Mayor of the
City, the Duector of the O�ce of Financial Services, and any other officer of the City who are authorized to execute
contracts on behalf of the City are, and each of them hereby is, authorized to execute, aclmowledge and deliver the
Financing Documents with any changes, insertions and omissions therein as may be approved by the officers who
execute the Financing Docuxnents, such approval to be conclusively evidenced by such execurion and delivery of the
Financing Documents. The Mayor of the City, the Director of the Office of Financial Services, and any other officer
of the City are authorized to affix the official seal of the City to the Financing Documents and attest the same.
3. Execution of Documents. The proper officers of the City be, and each of them hereby are,
authorized and directed to execute and deliver any and all papers, instruments, docuxnents opinions, certificates,
affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper for
carrying out this resolution and the Financing Documents.
4. Not Oualified Taac-Exemnt Obli¢arions. The Lease Pischase Agreement, to together with other taac-
exempt obligations previously issued by and anticipated to be issued by the City in calendar year 2008 exceed
$10,000,000. Therefore, the City cannot and does not designate the Lease Purchase Agreement as a"qualified tax-
exempt obligation" for pwposes of Secrion 265 of the Internal Revenue Code of 1986, as amended (the "Code").
5. No Arbih Until expended on the Equipment, the proceeds of the Lease Pwchase Agreement
will be deposited and utilized in conformance with the terms of the Escrow Agreement. Payments on the Lease
Purchase Ageement shall be made from annual appropriations, and money to make such payment shall not be
segregated in any special fund of the City. No portion of the proceeds of the Lease Purchase Agreement will be used
directly or indirectly to acquire higher yielding inveshnents or to replace funds which were used directly or
indirectly to acquire higher yielding inveshnents, except (1) for a reasonable temporary period unfil such proceeds
aze needed for the purpose for which the Lease Purchase Agreement is entered into, and (2) an addition to the above
in an amount not greater than five percent (5.00%). In addition, the proceeds of the Lease Purchase Agreement and
moneys used to make payments on the Lease Purchase Ageement shall not be invested in obligations or deposits
issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the e�tent
that such inveshnent would cause the Lease Purchase Agreement to be "federally guaranteed" within the meaning of
Secfion 149(b) of the Code.
6. No General Oblieation P1edQe; 7nitial Apurooriarion. The Lease Purcl�ase Agreement is not a
general obligation of the City, but rather the Lease Purchase Agreement is payable from amounts to be annually
appropriated, and the full faith, credit and taxing powers of the City are not pledged to the payment of the Lease
Purchase Agreement. By other actions taken with respect to the 2008 budget, the City Council has appropriated
money to make the payments due on Lease Purchase Agreement in fiscal yeaz 2008.
7. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and
furnish to the Lessor and Kennedy & Graven, Chartered, as bond counsel to the City, certified copies of all
proceedings and records of the City relaring to Lease Purchase Agreement and to the financial condirion and affairs
of the City, and such other affidavits, certificates and information as are required to show the fact relating to the
legaliry of the L,ease Purchase Agreement, and all such certified copies, certificates, and affidavits, including any
heretofore furnished, shall be deemed representarions of the City as to the facts recited therein.
8. Ne¢ative Covenants as to Use or Proceeds and Equipment. The City hereby covenants not to use the
proceeds of the Lease Purchase Agreement or to use the Equipment, or to cause or pernut them to be used, or to
Gg� 39�
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
enter mto any deferred paytnent arrangements for the cost of the Equipment, in such a manner as to cause the Lease
Purchase Agreement to be a"private activity bond" within the meaning of Sections 103 and 141 through 150 of the
Code. The City reasonably expects that no actions will be taken over the term of the Lease Purchase Agreement that
would cause it to be a"private activity bond", and the average term of Lease Purchase Ageement is not longer than
reasonably necessary for the govemmental purpose. The City hereby covenants not to use the proceeds of the Lease
Purchase Agreement in such a manner as to cause the Lease Purchase Ageement to be a"hedge bond" within the
meaning of Section 149(g) of the Code.
9. Tax-Exempt Status of Lease Purchase Agreement: Rebate� Elecrions. The City shall comply with
the requirements necessary under the Code to establish and maintain the exclusion from gross income under Secrion
103 of the Code of the interest on the Lease Purchase Agreement. If any elecrions are available now, or hereafter
with respect to arbitrage or rebate matters relaring to Lease Purchase Ageement, the Mayor, Clerk, Treasurer and
Director of the Office of Financial Services, or any of them, are hereby authorized and directed to make such
elecrions as they deem necessary, appropriate or desirable in connection with the Lease Purchase Agreement, and all
such elecfions shall be, and shall be deemed and treated as, elections of the City.
10. Bond Counsel. Kennedy & Graven, Chartered is hereby designated as bond counsel to the City with
respect to the Lease Purchase Agreement and is hereby authorized to take all acrions necessary to prepaze necessary
documents to pernrit the execurion of the Lease Purchase Agreement and the financing of the Equipment.
11. Severabilltv. If any section, paragraph or provision on this resolution shall be held to be invalid, or
unenforceable for any reason, the invalidity or unenforceability of such section, paragraph, or provision shall not
affect any of the remaining provisions of this resolution.
12. Headines. Headings in this resolufion are included for convenience only and aze not a part hereof.
The Headings in this resolurion are not intended to limit or define the meaning of any provision hereto.
Adopted by the City Council of the City of Saint Paul, Minnesota on this 16th day of April, 2008.
Bostrom
Stark
I
✓
Requesb `t �
.
By:
Approved
Services
By:
I I / '/ I O I (O II By:
Adopted by Council: Date '7'�/� ��/f/Jj�/ Apl
Adoption Certified by Council Secretary B
By: �
Approved or: Date �!�( ��
BY�
SA385-10 (BWJ)
331332v.4
�reen Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
D��3� l
� �epartment/o�ce%ounciL• �
Fs - F��i� s��
CoMact Person & Phone:
Alexa�dra O'Leary
266-8832
Must Be on Council Agenda by (DaEe):
'16-AP42-�8
� Doa Type: RESOLUTION W/5 TRANSAC
E-Docume� Required: Y
- Document Contact: Alexandre O'Leary
Conpct phone: 266-8832
07-APR-08
y
Assign
Number
For
Routing
Order
Green Sheet NO: 3052050
0 �Yuancial Services ����.K� �
1 � ancial Services e ar�ent D"uector
2 inancialServices fficeFina ' Services � 1/,.,
3 i Attornev `" Z Z (Ny
4 avoCS Office Mavor/Assistant (
5 ouncil Ci Council
6 " Clerk C7 Clerk
ToWI # of Sigirature Pages _(Ctip All Locations for Signature)
Approval of the resolution authorizing the execution of a 2008 capital lease agreement, for three years for police cazs.
iaauons: Hpp�ove (A) o� h
Pianning Commission
C�B Committee
Cinl Service Commission
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3. Does this person/firm possess a skill not normally possessed by any
curtent city employee?
Yes No
Explain a11 yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Oppottunity (Who, What, When, Where, Why): �
City ran a request for proposal for the purchase of 36 Police vehicles. SunTrust Bank has been selected for 36 cazs for 3 yeazs at
2.65% interest rate. Principal amount of the lease is $771,000.00
AdvanWges If Approved:
Ciry will be able to lease 3G Potice cazs
DisadvantagesifApproved:
None laiown
Disadvantages If Not Approved:
City will not be able to lease Police vehicles
Transaction: ��71,000.00
Funding Source:
Financial information:
(Explain)
Cost/Revenue Budgeted: N
Adivity Number:
n.,�:i o onno ��.eo nnn n...... n