1996-17 Authorizing the Execution of the Master Equipment Lease/Purchase Agreement for the Kodiak Island Hospital by and Between the Borough and Signet Leasing and Financial Corporation and Providing for Related Matters. (Energy Conservation Project) (CKODIAK ISLAND BOROUGH
RESOLUTION NO. 96 -17
Introduced by: Mayor Selby
Requested bgF.inance Director
Drafted: Bond Attorneys
Introduced : 06/20/96
Adopted: 06/20/96
A RESOLUTION OF THE KODIAK ISLAND BOROUGH AUTHORIZING THE
EXECUTION OF THE MASTER EQUIPMENT LEASE /PURCHASE AGREEMENT
(CONTRACT NO.96 -30) FOR THE KODIAK ISLAND HOSPITAL BY AND
BETWEEN THE BOROUGH AND SIGNET LEASING AND FINANCIAL
CORPORATION AND PROVIDING FOR RELATED MATTERS
(ENERGY CONSERVATION PROJECT)
WHEREAS, the Kodiak Island Borough (the "Borough ") desires to lease certain
equipment for the expansion and remodeling of the Kodiak Island Hospital (the
"Equipment "); and
WHEREAS, the Borough has received a proposal dated June 13, 1996, from
Signet Leasing and Financial Corporation (the "Lessor ") for lease financing of the
Equipment; 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 ") and an Escrow
Agreement (the "Escrow Agreement ") which the Borough proposes to enter into
in connection with the leasing of the Equipment; and
WHEREAS, it appears that the Agreement and Escrow Agreement, which now are
before the Borough, are in appropriate form and are appropriate instruments 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 $3,926,046. Each
principal amount advanced under the Agreement shall bear interest at a rate not
exceeding 6.18 %per annum.
Kodiak Island Borough, Alaska Resolution No. 96 -17
Page 1 of 3
Section 2: The form and content of the Agreement and Escrow 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 and Escrow Agreement to the counterparties 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 and Escrow Agreement now before this meeting, and from and after
the execution and delivery of the Agreement and Escrow 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 and Escrow 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 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 -17
Page 2 of 3
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.
Section 7: This Resolution shall take effect immediately.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS TWENTIETH DAY OF JUNE, 1996
ATTEST:
n i --- 2 C) 2 1 7 1 . c 41� c i
Donna F. Smith, CMC /AAE, Borough Clerk
Kodiak Island Borough, Alaska
KODIAK ISLAND BOROUGH
7/1
Th Jer4rhe M. Selby, Boro
zc_
G. y L tevens, Presiding Officer
Resolution No. 96 -17
Page 3 of 3