RESOLUTION NO. 7228

 

RESOLUTION AUTHORIZING THE CITY OF LAWRENCE, KANSAS TO ENTER INTO A LEASE PURCHASE TRANSACTION, THE PROCEEDS OF WHICH WILL BE USED TO PAY THE COSTS OF ACQUIRING CERTAIN EQUIPMENT FOR USE IN THE CITY; AND TO APPROVE THE EXECUTION OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH.

 

WHEREAS, under the constitution and statutes of the State of Kansas, particularly Article 12, §5 of the Kansas Constitution and K.S.A. 12-101, the City of Lawrence, Kansas (the “City”) is empowered to enter into certain lease purchase agreements and installment purchase agreements for the lease and/or acquisition of property; and

 

WHEREAS, K.S.A. 10-1116b provides in pertinent part that nothing in the provisions of K.S.A. 10-1101 et. seq. (Kansas Cash Basis Law) shall prohibit a municipality from entering into a lease agreement, with or without an option to buy, or an installment-purchase agreement, if any of such agreements specifically state that the municipality is obligated only to pay periodic payments or monthly installments under the agreement as may lawfully be made from (a) funds budgeted and appropriated for that purpose during such municipality’s current budget year of (b) funds made available from any lawfully operated revenue producing source; and

 

WHEREAS, the City has a need for vehicles, dump trucks, an emergency vehicle traffic signal preemption system, crime scene scanning technology and related equipment (collectively, the “Equipment”) to further its governmental and public purposes as contemplated by law; and

 

WHEREAS, the governing body of the City (the “Governing Body”) has considered various means of financing the acquisition of the Equipment, and has found and determined that it would further the governmental interest to acquire the Equipment through the execution and delivery of an annually-renewable Equipment Lease Purchase Agreement (the “Lease”) with U.S. Bancorp Government Leasing and Finance, Inc., as lessor (the “Lessor”), pursuant to which the City will lease, as lessee, the Equipment from the Lessor, with an option to purchase, for a lease term of not to exceed 10 years and for rental payments with aggregate principal components of an estimated $1,083,700.00 and interest components of rental payments to be computed at a rate of 2.264% per annum; and

 

NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS, AS FOLLOWS:

 

            Section 1.         Authorization and Approval of the Lease.  The Lease is hereby approved in substantially the form submitted to and reviewed by the Governing Body on the date hereof, with such changes therein as shall be approved by the Mayor, the Mayor’s execution of the Lease and related documents to be conclusive evidence of such approval.

 

            The obligation of the City to make Rental Payments (as defined in the Lease) under the Lease is subject to annual appropriation and shall constitute a current expense of the City and shall not in any way be construed to be an indebtedness or liability of the City in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness or liability by the City, nor shall anything contained in the Lease constitute a pledge of the general tax revenues, funds or moneys of the City, and all provisions of the Lease shall be construed so as to give effect to such intent.

 

            The Mayor is hereby authorized and directed to execute and deliver the Lease for and on behalf of the City.  If required, the City Clerk is hereby authorized to affix the City’s seal to the Lease and attest said seal.

 

            Section 2.         Further Authority. The City shall, and the officials and agents of the City are hereby authorized and directed to, take such actions, expend such funds and execute such other documents, certificates and instruments (including, without limitation, a federal tax certificate) as may be necessary or desirable to carry out and comply with the intent of this Resolution.

 

            Section 3.         Effective Date.  This Resolution shall be in force and take effect from and after its adoption by the Governing Body of the City.

 

            ADOPTED by the Governing Body of the City of Lawrence, Kansas on November 14, 2017.

 

 

 

(SEAL)                                                            _________________________________

                                                                        Leslie Soden, Mayor

 

ATTEST:

 

 

_________________________________

Sherri Riedemann, City Clerk