1996-11 Authorizing the Execution of an Equipment Lease/ Purchase Agreement by and Between the Borough and National Bank of Alaska Leasing Corporation and Providing for Related Matters.KODIAK ISLAND BOROUGH
RESOLUTION NO. 96 -11
Introduced by: Mayor Selby
Requested by: Finance Director
Drafted: Bond Attorneys
Introduced: 03/21/96
Adopted: 03/21/96
A RESOLUTION OF THE KODIAK ISLAND BOROUGH AUTHORIZING
THE EXECUTION OF THE MASTER EQUIPMENT LEASE /PURCHASE
AGREEMENT (CONTRACT NO. 95 -66) FOR THE KODIAK ISLAND HOSPITAL
BY AND BETWEEN THE BOROUGH AND THE NATIONAL BANK OF ALASKA
LEASING CORPORATION AND PROVIDING FOR RELATED MATTERS
WHEREAS, the Kodiak Island Borough (the "Borough ") desires to lease certain
medical and office equipment for the expansion and remodeling of the Kodiak
Island Hospital (the "Equipment "); and
WHEREAS, on December 7, 1995, the Borough Assembly awarded Contract No.
95 -66 for this lease financing to National Bank of Alaska Leasing Corporation (the
"Lessor "); and
WHEREAS, the Borough considers that the acquisition and leasing of the
Equipment from the Lessor is in the best interest and will promote the public
purpose of the Borough; and
WHEREAS, there has been presented to the Borough the form of a Master
Equipment Lease /Purchase Agreement (the "Agreement ") which the Borough
proposes to enter into in connection with the leasing of the Equipment; and
WHEREAS, it appears that the Agreement, which now is before the Borough, is
in appropriate form and is an appropriate instrument for the purposes intended;
NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE
KODIAK ISLAND BOROUGH THAT:
Section 1: The leasing by the Borough of the Equipment from the Lessor under
the Agreement is hereby approved. The aggregate principal amount advanced to
acquire Equipment under the Agreement shall not exceed $ 1,000,000. Each
principal amount advanced under the Agreement shall bear interest at a fixed rate
per annum equal to the then - current Municipal Bond Rate Baa for a five -year
maturity published by Bloomberg Daily plus one and one -tenth percent (1.10 %).
Kodiak Island Borough, Alaska Resolution No. 96 -11
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Section 2: The form and content of the Agreement hereby are in all respects
authorized, approved and confirmed, and the mayor or his designee each hereby
is authorized, empowered and directed to execute and deliver the Agreement to the
counterparty for and on behalf of the Borough in substantially the form and content
now before this meeting but with such changes, modifications, additions and
deletions therein which shall to him seem necessary, desirable and appropriate, the
execution thereof to constitute conclusive evidence of the approval of any and all
changes, modifications, additions or deletions therein from the form and content
of the Agreement now before this meeting, and from and after the execution and
delivery of the Agreement, the mayor or his designee, finance director and borough
clerk each is hereby authorized, empowered and directed to do all such acts and
things and to execute all documents as may be necessary to carry out and comply
with the provisions of the Agreement as executed.
Section 3: The mayor or his designee, finance director and borough clerk or any
other person authorized by the Borough each hereby is authorized to execute and
deliver for and on behalf of the Borough any and all additional certificates,
documents, opinions or other papers and perform all other acts as they may deem
necessary or appropriate in order to implement and carry out the intent and
purposes of this Resolution.
Section 4: The Borough covenants that it will not use any of the proceeds of the
Agreement in such manner, or take or omit to take any other action in such
manner, as to impair the exclusion from gross income for federal income tax
purposes of the interest component or rent payable under the Agreement. The
Agreement is hereby designated as a "qualified tax exempt obligation" for purposes
of Section 265(b)(3) of the Internal Revenue Code of 1986 (the "Code "). The
Borough hereby covenants that it shall not issue during the calendar year 1996
more than $ 10,000,000 in aggregate principal amount of tax - exempt obligations
other than tax - exempt obligations described in Section 265(b)(3)(C)(ii) of the Code.
The Borough further covenants that no part of the gross proceeds of the
Agreement or any other funds of the Borough shall at any time be used directly or
indirectly to acquire securities or obligations, the acquisition of which would cause
the Agreement to be or become an "arbitrage bond" as defined in Section 148 of
the Code. The Borough shall not permit any of the proceeds of the Agreement, or
any products purchased with such proceeds, to be used in any manner that would
cause the Agreement to constitute a "private activity bond" within the meaning of
Section 141 of the Code.
Section 5: The Borough intends to allocate proceeds of the Agreement to
reimburse expenditures for costs of the acquisition of medical and office equipment
for the expansion and remodeling of the Kodiak Island Hospital incurred prior to the
issue date of the Agreement.
Kodiak Island Borough, Alaska Resolution No. 96 -11
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Section 6: The provisions of this Resolution are hereby declared to be separable
and, if any section, phrase or provision shall for any reason be declared to be
invalid, such declaration shall not affect the validity of the remainder of the
sections, phrases or provisions.
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS TWENTY -FIRST DAY OF MARCH, 1996
Donna F. Smith, CMC /AAE, Borough Clerk
KODIAK ISLAND BOROUGH
Je, me M. Selb
or
G. y L. Steens, Presiding Officer
Kodiak Island Borough, Alaska Resolution No. 96 -11
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