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Home My WebLink AboutRESOLUTION NO. 2018-20 Fairfax/419915-25/2018Lease/PurchSkid loader—Hrg/Appry Hearing/Approval/Lease Purchase Skid loader 419915-25 Fairfax, Iowa April 10, 2018 The City Council of the City of Fairfax, Iowa, met on April 10, 2018, at 6:00 o'clock p.m., at 300 — 801h Street Court, Fairfax, Iowa. The meeting was called to order by the Mayor, and the roll was called showing the following Council Members present and absent: Present: Otto, Daly, Kell, Volk, and Wainwright Absent: None. This being the time and place specified for taking action on the proposal to enter into a Lease Purchase Agreement related to the acquisition of a skid loader, the Mayor called for any written or oral objections. Written objections were filed by the following: None. Oral objections were made by the following: None. Whereupon, the Mayor declared the hearing closed. -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-25/2018Lease/PureliSkid loader—Hrg/Appry After due consideration and discussion, Council Member Wainwright introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Volk. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: Otto, Daly, Kell, Volk, and Wainwright. Nays: None. Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. -2- DORSEY& WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-25/2018Lease/PurchSkid loader—Hrg/Appry RESOLUTION NO. 2018-20 APPROVING AND AUTHORIZING A LEASE PURCHASE AGREEMENT FOR SKID LOADER WHEREAS, the City of Fairfax (the "City"), in the County of Linn, State of Iowa, has heretofore proposed to enter into a lease-purchase agreement (the "Lease Purchase Agreement") in the principal amount not to exceed $50,681, pursuant to the provisions of Section 364.4 of the Code of Iowa, for the purpose of acquiring a skid loader, and has published notice of the proposed action and has held a hearing thereon, and the Council may now authorize the Lease Purchase Agreement in the amount as published; NOW, THEREFORE, Be It Resolved by the City Council of the City of Fairfax, Iowa, as follows: Section 1. The City Council hereby determines to enter into the Lease Purchase Agreement with Caterpillar Financial Services Corporation as lessor (the "Lessor"), in substantially the form that has been placed on file with the City Clerk, providing for a lease to the City in the principal amount of$50,681 for the purpose set forth in the preamble hereof. Section 2. The Lease Purchase Agreement is hereby approved, and the Mayor and City Clerk are hereby authorized to execute the Lease Purchase Agreement on behalf of the City and also to execute all related documents. Section 3. It is the intention of the City that interest payable under the Lease Purchase Agreement be and remain excluded from gross income for federal income tax purposes pursuant to the appropriate provisions of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations in effect with respect thereto (all of the foregoing herein referred to as the "Internal Revenue Code"). In furtherance thereof, the City covenants to comply with the provisions of the Internal Revenue Code as they may from time to time be in effect or amended and further covenants to comply with the applicable future laws, regulations, published rulings and court decisions as may be necessary to insure that the interest payable under the Lease Purchase Agreement will remain excluded from gross income for federal income tax purposes. Any and all of the officers of the City are hereby authorized and directed to take any and all actions as may be necessary to comply with the covenants herein contained. The City hereby designates the Lease Purchase Agreement as a "Qualified Tax Exempt Obligation" as that term is used in Section 265(b)(3)(B) of the Internal Revenue Code. -3- DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax/419915-25/2018Lease/PurchSkid loader—Hrg/Appry Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved April 10, 2018. Burnell G. Frieden, Mayor Attest: Cynt r la Stimson, City Clerk/Treasurer On motion and vote, the meeting adjourned. Burnell G. Frieden, Mayor Attest: 01-44k N/All l? Cy thia Stimson, City Clerk/Treasurer -4- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Caterpillar Financial Services Corporation Finance Proposal CUSTOMER Name: CffY OF FAIRFAX Address ................. Good if: City ...........................I......... Acknowledged by ..................... May-04-18 State ..................................... Funded by ........................... May-04-18 Zipcode .................................. County ................................... DEALER ALTORFER INC. Quote number .............................. 584-7708 Salesperson ............................... Fax number ...................................... Dealer contact .... .I...I.. ................. Quote date ................. ............... 03/05/2018 Telephone ....I..................I........ Quote time ................................. 11:07:57 FINANCE PROPOSAL This is Caterpillar Financial Services Corporation's confirmation of the following finance proposal.This is a proposal only and is subject to credit approval,execution of documentation,and execution and approval of the application survey. Financing type ........... CAT VALUE OPTION Purchase option ......................... Stated option Number of payments .................. 3 Annual Equipment .............................. Construction Payments ......................... in Arrears Quoted by ............................... BENSAJPO Report created by ......................... BENSAJPO ADR Ann. Amount Purchase Model Code I3ours Qty Financed Payment Option New 259D 15.00 500 1 50,681.00 9,137.69 32,760.00 Special Conditions: 259D Model Year-2018,Standard Environment;Major Attachments-Ride Control,Air Conditioning,Cab;Blades/Buckets/Rippers-Two Speed,General Purpose Bucket, Quick Coupler Payment Model Insurance w/Insurance New 259D 883.58 10,021.27 The estimate for insurance is provided through Caterpillar Insurance Company(Provided by Westchester Insurance Company in Rhode Island)and is not an offer to contract for insurance. CONDITIONS Insurance: The customer must provide evidence of physical damage and liability insurance in an amount and from an insurance carrier satisfactory to CFSC. CFSC must be named on the policies,as loss payee and additional insured, as applicable,and a certificate of insurance,in form and substance acceptable to CFSC,must be provided to CFSC. Taxes: All taxes are the responsibility of the customer and may or may not be included in the above payment amounts. Under the CAT Master Tax Lease and CAT Long Term Rental Agreement,a lessee is required to indemnify the lessor for loss of tax benefits. Equipment: The equipment cannot be delivered until all documents are executed by CFSC. All equipment must reside in the United States at all times. Approval: This proposal is subject to,among other things,final pricing,credit approval and document approval by CFSC. The terms and conditions outlined herein are not all-inclusive and are based upon information provided to date. This proposal may be withdrawn or modified by Lessor at anytime. This proposal does not represent an offer or commitment by CFSC to enter into a transaction or to provide financing,and does not create any obligation for CFSC. A commitment to enter into the transaction described herein may only be extended by CFSC after this transaction has been approved by all appropriate credit and other authorities within CFSC. Caterpillar Financial Services Corporation 2120 West End Avenue,Nashville,'FN 37203 (615)-341-1000 We appreciate the opportunity to provide you a proposal for this transaction. Proposed by: Acknowledged by: 584-7708 Caterpillar Financial Services Corporation Page I Caterpillar Financial Services Corporation Finance Proposal Caterpillar Financial Services Corporation CITY OF FAIRFAX Date 584-7708 Caterpillar Financial Services Corporation Page 2 Fairfax/419915-25/2018Lease/PurchSkid loader—Hrg/Appry STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX 1, the undersigned, City Clerk of the City of Fairfax, Iowa, do hereby certify that as such City Clerk I have in my possession or have access to the complete corporate records of the City and of its Council and officers and that I have carefully compared the transcript hereto attached with the aforesaid corporate records and that the transcript hereto attached is a true, correct and complete copy of all the corporate records in relation to the authorization and approval of a certain Lease Purchase Agreement, and that the transcript hereto attached contains a true, correct and complete statement of all the measures adopted and proceedings, acts and things had, done and performed up to the present time with respect thereto. I further certify that no appeal has been taken to the District Court from the decision of the City Council to enter into the Lease Purchase Agreement. WITNESS MY HAND this. ., day of April, 2018. J V44\ Cy hia Stimson, City Clerk/Treasurer -5- DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA April 5, 2018 Cynthia Stimson City Clerk/City Hall PO Box 337 Fairfax, Iowa 52228-0337 Re: Lease Purchase Agreement/Skid loader Our File No. 419915-25 Dear Cynthia: We have prepared and enclose proceedings to be used at the Council meeting on April 10 to hold the hearing and to adopt the resolution approving the Lease Purchase Agreement for the skid loader. The proceedings include the following items: 1. Minutes of the Council meeting covering the hearing, followed by the resolution approving the Lease Purchase Agreement and authorizing you and the Mayor to sign all documents. 2. Certificate attesting the transcript. As these proceedings are completed, please return one fully executed copy to our office. If you have any questions, please contact me. Very truly yours, Robert E. Josten Cc by email: Maggie Burger