R-2017-4841 - 10/12/2017 RESOLUTION NO. R-2017-4841
A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF
A MUNCIPAL EQUIPMENT LEASE/PURCHASE AGREEMENT WITH
FROST BANK; AND RELATED INSTRUMENTS, AND DETERMINING
OTHER MATTERS IN CONNECTION THEREWITH.
WHEREAS, the City of Round Rock, Texas ("City"), as Lessee, proposes to enter into a
Municipal Lease/Purchase Agreement with Frost Bank ("Bank"), as Lessor; and
WHEREAS, the principal amount expected to be financed is $3,000,000.00 ("Principal
Amount"); and
WHEREAS, Lessee is a political subdivision of the State of Texas in which Lessee is
located(the"State") and is duly organized and existing pursuant to the constitution and laws of the
State of Texas; and
WHEREAS, pursuant to applicable law,the governing body of Lessee ("City Council") is
authorized to acquire, dispose of and encumber real and personal property including, without
limitation, rights and interests in property, leases and easements necessary to the functions or
operations of Lessee; and
WHEREAS, the City Council desires to obtain certain equipment described in Exhibit B
"Equipment List" to the Municipal Equipment Lease/Purchase Agreement in an amount not to
exceed $3,000,000.00 (collectively the "Lease") with Bank; and
WHEREAS, the City Council hereby finds and determines that the execution of one or
more lease-purchase agreements ("Equipment Leases") in the principal amount not exceeding the
Principal Amount for the purpose of acquiring the property ("Property") described specifically in
the Equipment Leases is appropriate and necessary to the functions and operations of Lessee, and
that the Equipment is essential for Lessee to perform its governmental functions; and
0112.1704;00387172/ss2
WHEREAS, Lessee has taken the necessary steps, including those relating to any
applicable legal bidding requirements, to arrange for the lease and acquisition of the Equipment;
and
WHEREAS,Lessee may pay certain capital expenditures in connection with the Property
prior to its receipt of the proceeds of the Equipment Leases ("Lease Purchase Proceeds") for such
expenditures and such expenditures are not expected to exceed the Principal Amount; and
WHEREAS, the U.S. Treasury Department regulations do not allow the proceeds of tax-
exempt borrowing to be spent on working capital and the Lessee shall hereby declare its official
intent to be reimbursed for any capital expenditures for Property from the Lease Purchase Proceeds,
Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
Section 1. That the Mayor ("Authorized Representative") acting on behalf of Lessee is
hereby authorized to negotiate, enter into, execute, and deliver one or more Equipment Leases in
substantially the form set forth in Exhibit A attached hereto and incorporated herein and presently
before the City Council, which document is available for public inspection at the office of the
Lessee. Each Authorized Representative acting on behalf of Lessee is hereby authorized to
negotiate, enter into, execute, and deliver such other documents relating to the Equipment Leases as
the Authorized Representative deems necessary and appropriate. All other related contracts and
agreements necessary and incidental to the Equipment Leases are hereby authorized.
Section 2. That by a written instrument signed by an Authorized Representative, said
Authorized Representative may designate specifically identified officers or employees of Lessee
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to execute and deliver agreements and documents relating to the Equipment Leases on behalf of
Lessee.
Section 3. That the aggregate original principal amount of the Equipment Leases shall not
exceed the Principal Amount and shall bear interest as set forth in the Equipment Leases and the
Equipment Leases shall contain such options to purchase by Lessee as set forth therein.
Section 4. The City Council of Lessee anticipates that the Lessee may pay certain capital
expenditures in connection with the Property prior to the receipt of the Lease Purchase Proceeds
for the Property. The City Council hereby declares the Lessee's official intent to use the Lease
Purchase Proceeds to reimburse itself for Property expenditures. This section of the Resolution
is adopted by the City Council for the purpose of establishing compliance with the requirements
of Section 1.150-2 of Treasury Regulations. This section of the Resolution does not bind the
Lessee to any expenditures, incur any indebtedness, or proceed with the lease or purchase of the
Property.
Section 5. This Resolution shall take effect immediately upon its adoption and approval.
The City Council hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Resolution was adopted was posted and that such meeting was
open to the public as required by law at all times during which this Resolution and the subject
matter hereof were discussed, considered and formally acted upon, all as required by the Open
Meetings Act, Chapter 5 51, Texas Government Code, as amended.
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RESOLVED this 12"' day of October, 2017.
/' A z
CRAI MORG , Mayor
City o Round ck, Texas
ATTEST:
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SARA L. WHITE, City Clerk
The undersigned City Clerk of the above-named Lessee hereby certifies and attests that the
undersigned has access to the official records of the City Council of Lessee, that the foregoing
Resolution was duly adopted by said City Council of Lessee at a meeting of said City Council,
and that such Resolution has not been amended or altered and is in full force and effect on the
date stated below.
Signature of Clerk of Lessee
Print Name: Sara L. White
Official Title: Cites
Date: October 12, 2017
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