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HomeMy WebLinkAbout4171 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. ~//~/ AN ORDINANCE authorizing the execution of an executory conditional sales contract for the purchase of emergency medical vehicles to be used for City purposes. WHEREAS, the City of Bremerton, Washington (the "City"), is in need of two emergency medical vehicles to be used for City purposes (collectively, the "Vehicles"); and WHEREAS, the City is authorized by RCW 39.30.010 to enter into executory conditional sales contracts for the purchase of any real or personal property, or property rights, for City purposes; and WHEREAS, the City desires to minimize the budget impact of purchasing the Vehicles by accomplishing the purchase thereof on an installment basis as provided in an executory conditional sales contract substantially in the form attached as Exhibit A and incorporated herein by this reference (the "Form of Contract"); and WHEREAS, Seattle-First National Bank (the "Bank") has offered to purchase from C. L. Kirk Co., Inc. (the "Vendor") the executory conditional sales contract entered into by the City for the purchase of the Vehicles (the "Contract"); NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, AS FOLLOWS: Section 1. Approval of the Contract. The City Council deems it to be in the best interests of the City to purchase the Vehicles on substantially the terms and conditions set forth in the Form of Contract. The City Council also accepts the offer by the Bank attached as Exhibit B and incorporated herein by this reference (the "Offer") to purchase from the Vendor the Contract entered into by the City for the purchase of the Vehicles. Section 2. Execution of Documents. The City Treasurer of the City is authorized and directed to execute and deliver the Contract, up to an aggregate purchase price amount of $190,000, at an interest rate not to exceed 10% per annum, and under t~e terms set forth in the Offer and substantially in the form attached as Exhibit A together with such modifications as are consistent with the purposes of this ordinance. The City Treasurer and other officers and employees of the City are authorized to execute and deliver all documents necessary in connection with the assignment to the Bank from the Vendor of its interest in and to the Contract, and to execute such other documents and take such other actions as are reasonable and necessary to carry out the purposes of this ordinance. Section 3. Payment under the Contract. The full faith, credit and resources of the City are pledged irrevocably for the payment of principal of and interest on the Contract executed and delivered pursuant to this ordinance. The City pledges to budget and appropriate from annual taxes and other revenues available to the City without a vote of the electors of the City amounts sufficient, together with other money legally available therefor, to pay from the General Fund the principal of and interest on the Contract as the same shall come due. Section 4. Appointment and Duties of Registrar. The City Treasurer of the City is appointed Registrar for the Contract, and shall fulfill the duties of Registrar in accordance with Chapter 39.46 RCW and Ordinance No. 3862. The Contract may not be assigned or transferred except on the books of the Registrar. Section 5. Preservation of Tax Exemption for Interest on the Contract. The City covenants that it will take all actions necessary to prevent interest paid under the Contract from being - 2 - included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Contract or other funds of the City treated as proceeds of the Contract at any time during the term of the Contract that will cause interest on the Contract to be included in gross income for federal income tax purposes. The City certifies that it has not been notified of any listing or pro- posed listing by the Internal Revenue Service to the effect that it is an issuer of obligations whose arbitrage certifications may not be relied upon. Section 6. Desiqnatj~q__q~_the Contract as a "Qualified Tax-Exempt Obligation." The City finds and declares that (a) it is a duly organized and existing governmental unit of the State of Washington and has general taxing power; (b) the Contract is not a "private activity bond" within the meaning of Section 141 of the United States Internal Revenue Code of 1986, as it may be amended (the "Code"); (c) at least 95 percent of the net pro- ceeds of the Contract will be used for local governmental activities of the City (or of a governmental unit the juris- diction of which is entirely within the jurisdiction of the City); (d) the aggregate face amount of all tax-exempt obliga- tions (other than private activity bonds) issued by the City and all entities subordinate to the City (including any entity which the City controls, which derives its authority to issue tax- exempt obligations from the City or which issues tax-exempt obligations on behalf of the City) during the calendar year in which the Contract is executed is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt obligations, including the Contract, designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Contract is executed does not exceed $10,000,000. The City therefore -- 3 -- certifies that the Contract is eligible for the arbitrage rebate exemption under Section 148(f)(4)(C) of the Code and designates the Contract as a "qualified tax-exempt obligation" for the purposes of Section 265(b)(3) of the Code. Section 7. Ratification. All actions heretofore taken by the City consistent with the provisions of this ordinance are ratified and confirmed. APPROVED by the City Council on the first reading this day of L~¢ ~ .k~ 1988 PASSED by the City Council on the ~\ day of 1988. ATTEST: Kathleen h. McCluskey, City Clerk 1905b