16-11 Enter equipment leases w/ Key Bank

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the Leased Property and the Equipment Leases constitute "public obligations" as defined in Chapter 133.01(GG), Ohio Revised Code. Section 2. That the Director of Finance acting on behalf of the City is hereby authorized to negotiate, enter into, execute, and deliver one or more Equipment Leases in the form approved by the Director of Law. The Director of Finance is hereby authorized to negotiate, enter into, execute, and deliver such other documents relating to the Equipment Leases (including, but not limited to, escrow agreements) as the Director of Finance deems necessary and appropriate. All other related .contracts and agreements necessary and incidental to the Equipment Leases are hereby authorized. By a written instrument signed by the Director of Finance, the Director of Finance may designate specifically identified officers or employees of the City to execute and deliver agreements and documents relating to the Equipment Leases on behalf of the City. Section 3. The aggregate original principal amount of the Equipment Leases shall not exceed $3,500,000. The payments under the Equipment Teases shall include interest at the rates determined in accordance with KeyBank's proposal, but in no event to exceed an annual rate of 6%. The Equipment Leases shall be for the term or terms selected by the Director of Finance, in accordance with KeyBank's proposal, but in no event to exceed 10 years. The Equipment Leases shall contain such options to purchase by the City as set forth in KeyBank's proposal and the Equipment Leases, and approved by the Director of Finance. Section 4. The City's obligations under the Equipment Leases shall be subject to annual appropriation or renewal by the City as set forth in each Equipment Lease and the City's obligations under the Equipment Leases shall not constitute general obligations of the City or indebtedness under the Constitution or laws of the State. Section 5. This Council intends that the interest component of the lease payment under the Equipment Leases constitute tax-exempt interest for federal, state, and local tax purposes, to the full extent permitted by federal and state law. (a) In furtherance of this intention, the City covenants that it will take those. actions required to maintain the tax-exempt status of that interest and will not take or permit to be taken any actions that would adversely affect that tax-exempt status. Those action include actions with respect to private activity use of the Leased Equipment, arbitrage and arbitrage rebate, and information reporting. ('o} This Council designates the Equipment Leases as "qualified tax-exempt obligations'' for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, including as amended by the federal stimulus law-The American Recovery and Reinvestment Act of 2009. (c) This Council anticipates that the City may pay certain capital expenditures in connection with the Leased Property prior to the receipt of the lease purchase proceeds for the Leased Property. This Council hereby declares the City's official intent to use the lease purchase proceeds to reimburse itself for any such expenditures. This section of this Ordinance is enacted for the purpose of establishing compliance with the requirements of