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HomeMy WebLinkAboutItem 04 - Fire Truck MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER BV' MEETING DATE: NOVEMBER 6, 2012 SUBJECT: RESOLUTION AUTHORIZING THE REIMBURSEMENT OF CERTAIN EXPENDITURES TO BE INCURRED FROM FUTURE TAX-EXEMPT OBLIGATIONS OF THE CITY AND PROVIDING AN EFFECTIVE DATE RECOMMENDATION: City Council to consider approving a resolution expressing intent to finance expenditures to be incurred relative to purchasing a fire truck and providing an effective date. FUNDING SOURCE: Future sale of Certificates of Obligation. BACKGROUND: This item is placed on your agenda to allow for the expenditure of funds related to the purchase of a new Pierce Ladder Fire Truck as specified by the Fire Department from Siddons-Martin Emergency Group through an interlocal participation agreement with the Local Government Purchasing Cooperative (Buyboard). This resolution allows for expenditure of funds occurring prior to the bond sale to be reimbursed from the proceeds of the bonds. The City reasonably expects to reimburse itself for all costs that have been or will be paid subsequent to the date that is 60 days prior to the date hereof. Administrative Services Director recommends approval. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas (the "City") is a political subdivision of the State of Texas authorized to finance its activities by issuing obligations; and WHEREAS, the City will make, or has made not more than 60 days prior to the date hereof, payments with respect to the acquisition of a new Pierce Ladder Fire Truck as specified by the Fire Department; and WHEREAS, the City has concluded that it does not currently desire to issue obligations to finance the costs associated with the acquisition; and WHEREAS, the City desires to reimburse itself for the costs associated with the acquisition from the proceeds of obligations to be issued subsequent to the date hereof; and WHEREAS, the City reasonably expects to issue obligations to reimburse itself for the costs associated with the acquisition. NOW, THEREFORE, BE IIf I RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That the City reasonably expects to reimburse itself for costs that have been or will be paid subsequent to the date that is 60 days prior to the date hereof and that are to be paid in connection with the acquisition of a new Pierce Ladder Fire Truck as specified by the Fire Department from the proceeds of obligations to be issued subsequent to the date hereof. Section 2. That the City reasonably expects that the maximum principal amount of obligations issued to reimburse the City for the costs associated with the acquisition will be $1,300,000.00. Section 3. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this 6th day of November, 2012. APPROVED: ATTEST: APPROVED AS TO FORM: RES. NO. 2