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.
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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
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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.
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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
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