Loading...
2000-01 Tax Exempt Equipment LeaseKODIAK ISLAND BOROUGH RESOLUTION NO. 2000 -01 Introduced by: Manager Jensen Requested by: Manager Jensen Drafted by: Manager Jensen Introduced: 01/06/2000 Adopted: 01/06/2000 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AUTHORIZING THE ACQUISITION OF TAX EXEMPT EQUIPMENT LEASE PURCHASE FINANCING WITH THE NATIONAL BANK OF ALASKA LEASING CORPORATION WHEREAS, it is deemed necessary to be in the best interest of the Kodiak Island Borough and its inhabitants that the Borough finance certain equipment as described herein; and WHEREAS, contract No. 99 -41 approved the lease /purchase agreement for a new Computed Tomography (CT) Scanner for Providence Kodiak Island Medical Center in the amount of $630,357 at an interest rate of 5.86% through National Bank of Alaska Leasing Corporation; and WHEREAS, National Bank of Alaska requires authorization to provide tax exempt lease /purchase financing through the National Bank of Alaska Leasing Corporation; and WHEREAS, the Kodiak Island Borough has other lease /purchase agreements that have an outstanding balance of $853,445 as of January 7, 2000, with interest rates ranging from 6.14% to 6.26 %. WHEREAS, National Bank of Alaska has also agreed to refinance the Borough's other outstanding lease /purchase agreements of $853,445 at a tax exempt interest rate of 5.86%; and WHEREAS, it is necessary to establish the form, terms, conditions, and covenants of the lease and to make provisions for establishing payment dates, prepayment rights, and maturity thereof; and WHEREAS, the Borough has received a proposal to lease the equipment from the National Bank of Alaska Leasing Corporation (NBALCO) subject to the terms and conditions contained in the Equipment Lease /Purchase Agreement presented. NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: Authorization of Agreement and Purpose of Issuance. For the purpose of financing Schedule A (CT Scanner), and refinancing Schedule B (NBA Leases 1, 2, and 4), and Schedule C (LaSalle Lease) of this Agreement, the Agreement is hereby authorized. Kodiak Island Borough, Alaska Resolution No. 2000 -01 Page 1 of 4 Section 2: Description of the Agreement. The Agreement shall mature, bear interest, and be payable as stated in the Agreement. Section 3: Date and Execution of Agreement. The Agreement shall be executed in the name of the Borough by its Manager. The Agreement shall be dated as of the day of its delivery to NBALCO. Section 4: Covenants. The Borough hereby covenants to comply with all of the terms and conditions contained in the Agreement. The Borough specifically covenants and agrees to take all action necessary to acquire the Equipment. Section 5: Authorization of Officers. The Manager, Chief Fiscal Officer and the Clerk, are authorized and directed to perform all things and determine all matters not determined by this Resolution or to be determined by a subsequent act or resolution of the Borough to the end that the Borough may carry out its obligations under the Agreement and this Resolution. Section 6: Agreement. The Borough hereby authorizes the lease of the Equipment from NBALCO at a price of the principal amount thereof, at the interest rate and upon the terms and conditions stated in the Agreement. The Agreement is approved and the Manager is hereby authorized to execute and deliver the Loan Agreement on behalf of the Borough. Section 7: No Recourse Other Than Revenues. No recourse shall be had for the payment of the principal of or the interest on the Agreement or for any claim based thereon or on this Resolution against any member of the Assembly or officer of the Borough or any person executing the Agreement. The Agreement is not and shall not be in any way a debt or liability of the State of Alaska or of any political subdivision thereof, except the Borough, and does not and shall not create or constitute any indebtedness or obligations, either legal, moral or otherwise, of said state or of any political subdivision thereof, except the Borough, and neither said state, nor any political subdivision thereof, except the Borough, shall be liable on the Agreement, and the Agreement is not and shall not be payable out of any funds other than those of the Borough. Section 8: Manner and Medium of Payment. The principal of and the interest on the Agreement shall be paid, in lawful money of the United States of America, only to the NBALCO. Each principal and interest payment shall be paid by check or draft made payable to the NBALCO thereof, or, in the event the Manager, in his discretion determines to do so, by wire transfer or automatic deduction from any Borough account held by the NBALCO. Section 9: Obligations of the Borough Unconditional. The obligations of the Borough to pay the principal of and interest on the Agreement and to perform and observe the other covenants on its part contained in this Resolution shall Kodiak Island Borough, Alaska Resolution No. 2000 -01 Page 2 of 4 be absolute and unconditional, and shall not be subject to diminution by setoff, counterclaim, abatement or otherwise until such time as the principal of and interest on the Agreement shall have been fully paid or provision for the payment thereof shall have been made in accordance with this Resolution. Section 10: Representations and Warranties of the Borough. The Borough does hereby represent and warrant that it does not anticipate the issuance of more than $10,000,000 in aggregate principal amount of qualified tax exempt bonds in the year of the execution of the Agreement as such bonds are defined by Section 265(b)(3) of the Internal Revenue Code of 1986. Section 11: Tax - Exempt Status of Agreement and Designation of Borough. 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 exemption of interest on the Agreement from federal income taxation. The Agreement is hereby designated as a "qualified tax exempt obligation" in accordance with Section 265(b)(3) of the Internal Revenue Code of 1986. The Borough further covenants that no part of the 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 "arbitrage bond" as defined in Section 148 of the Internal Revenue Code of 1986. 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 Internal Revenue Code of 1986. Section 12: Expenditure of Agreement Proceeds. All of the proceeds of the Agreement shall be expended solely for the payment of the costs of the Equipment and related expenses and for payment of expenses incurred in this financing. Section 13: Contract -- Savings Clause. The covenants of the Borough contained in this Resolution and in the Agreement shall constitute a contract between the Borough and NBALCO. If any one or more of the covenants or agreements provided in this Resolution to be performed on the part of the Borough shall be declared by any Court of competent jurisdiction and final appeal, (if any appeal be taken) to be contrary to law, then such covenants or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements in this Resolution and shall in no way affect the validity of the other provisions of this Resolution or the Agreement. Section 14: Immediate Effect. This Resolution shall take effect immediately upon its adoption. Kodiak Island Borough, Alaska Resolution No. 2000 -01 Page 3 of 4 ATTEST: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SIXTH DAY OF JANUARY, 2000 J ith A. Nielsen, cm B rough Clerk KODIAK ISLAND BOROUGH Gay L. Stevens, Mayor Kodiak Island Borough, Alaska Resolution No. 2000 -01 Page 4 of 4