42-08 Enter Lease Financing for Motorized Vehicles & Equip

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Placed on 1st Reading & Referred to the Finance Committee 3/3/08. Reported out on, placed on Second Reading and recommended for adoption 3/17/08. ORDINANCE NO. 42-08 Antonio, Bullock,)Butler, Dever, By: Madigan, Powers, Summers. AN ORDINANCE to take effect immediately provided it received the affirmative vote of at least five (5) members elected to Council, otherwise, it shall take effect and be in force after the earliest period allowed by law, to enter into a lease financing arrangement for motorized vehicles and equipment and computer equipment, and declaring an emergency. BE IT ORDAINED by the City of Lakewood, Ohio: Section 1. Findings and Determinations. This Council makes the following findings and determinations (capitalized terms are defmed in Section 9): (a) The City has acquired and owns certain motorized vehicles and equipment and computer equipment. (b) The City financed the acquisition of the Equipment through the issuance of the Series 2006 Notes, which were refunded with the proceeds of the Outstanding Notes. ( c) The City can achieve significant armual cost savings in refinancing the Outstanding Notes by entering into a lease-purchase financing transaction for the Equipment and retiring the Outstanding Notes, (d) The City is exercising its home rule powers of local self-government under Section 3 of Article XVIII of the Ohio Constitution and Article I of the Charter of the City by entering into the financing transaction. Section 2. Proposals for the Equipment Lease-Purchase Financing. This Council authorizes and directs the Director of Finance to seek proposals for the Equipment Lease- Purchase Financing, The Director of Finance may seek such proposals by competitive bidding, by an internet bid procedure, by an informal solicitation of proposals, or by a negotiated proposal, as approved by the Director of Law, Section 3. Terms ofthe Equipment Lease-Purchase Financing. The principal amount of the Equipment Lease-Purchase Financing must not exceed $4,000,0000, or such lesser amount as is necessary to retire the Outstanding Notes and pay financing costs of the transaction. The term of the Equipment Lease-Purchase Financing must be at least as long as the maximum maturity of the bonds anticipated by the Outstanding Notes, The annual rental to be paid on the Equipment Lease-Purchase Financing must not be greater than the estimated debt service on the bonds anticipated by the Outstanding Notes, based on the maximum maturity of those bonds and the estimated interest rate on those bonds, all as established in the ordinances authorizing the Outstanding Notes. The City's obligation under the Equipment Lease-Purchase Financing must be subject to annual appropriation by this Council, and no money raised by taxation will be pledged to the payment of the Equipment Lease-Purchase Financing, The Leasing Company must be either a company authorized to do business in Ohio, or an Ohio political subdivision or