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HomeMy WebLinkAboutR-2007-123 Key Government Finance, Inc. Purchase Agreement (re: trucks for Code Administration)RESOLUTION NO. R- 2007-123 A RESOLUTION of the City of Yakima, Washington, approving and authorizing the acquisition of trucks for the City's Codes Department in the amount of not to exceed $39,000 pursuant to the Master Tax -Exempt Installment Purchase Agreement with Key Government Finance, Inc. WHEREAS, the City of Yakima, Washington ("City"), by Ordinance No. 2003-25 passed on May 6, 2003, authorized the City to enter into a Master Tax -Exempt Installment Purchase Agreement with Key Government Finance, Inc. ("Key") dated as of October 15, 2003 (the "Agreement"); WHEREAS, the City has determined that it is advisable to purchase trucks for the City's Codes Department in the amount of not to exceed $39,000 pursuant to the terms of the Agreement; NOW, THEREFORE, BE IT RESOLVED by the City of Yakima, Washington, as follows: Section 1. Approval of Documents. The proper officers of the City are hereby authorized to execute Property Schedule No. 6 and accompanying exhibits on behalf of the City of Yakima, in substantially the form attached hereto. The above -listed agreements shall be amended only with the approval of the City. Section 2. Authorization of Documents. The Mayor or City Manager are hereby authorized to execute the documents relating to financing the trucks. The Mayor, City Manager, Director of Finance and Budget, and each of the other appropriate officers, agents and representatives of the City are each hereby authorized and directed to take such steps, to do such other acts, and to execute K'2025739\00069\21751 SLA121751R3140 such letters, certificates, agreements, papers, financing statements, assignments or instruments as in their judgment may be necessary, appropriate or desirable in order to carry out the terms and provisions of, and complete the transactions contemplated by this resolution. Section 3. Tax Covenants. (a) Tax Covenant. The City covenants to undertake all actions required to maintain the tax-exempt status of interest on the Lease under Section 103 of the Code. (b) Bank Qualification. The City hereby designates the Lease as a "qualified tax-exempt obligation" for investment by financial institutions under Section 265(b)(3)(B) of the Code. Section 4. Prior Acts. All acts taken pursuant to the authority of this resolution but prior to its effective date are hereby ratified and confirmed. Section 5. Effective Date. This resolution shall be in effect from and after its adoption in accordance with law. ADOPTED by the City Council of the City of Yakima, Washington at a regular meeting thereof, held this 4th day of September, 2007. CITY OF YAKIMA, WASHINGTON ATTEST City Clerk K\ 2025739100069\21751 SLA121751R3140 David dier, Mayor Property Schedule No. 6 Master Tax -Exempt Installment Purchase Agreement This Property Schedule No. 6 is entered into as of the Commencement Date set forth below, pursuant to that certain Master Tax - Exempt Installment Purchase Agreement (the "Master Agreement"), dated as of 10/15/2003, between Key Government Finance, Inc., and City of Yakima. 1. Interpretation The terms and conditions of the Master Agreement are incorporated herein by reference as if fully set forth herein Reference is made to the Master Agreement for all representations, covenants and warranties made by Purchaser in. the execution of this Property Schedule, unless specifically set forth herein. In the event of a conflict between the provisions of the Master Agreement and the provisions of this Property Schedule, the provisions of this Property Schedule shall control. All capitalized terms not otherwise defined herein shall have the meanings provided in the Master -Agreement. 2 Commencement Date. The Commencement Date for this Property Schedule is 9/4/2007 3. Property Description and Payment Schedule. The Property subject to this Property Schedule is described in Exhibit 1 hereto. Purchaser shall not remove such property from the locations set forth therein without giving prior written notice to Seller. The Installment Payment Schedule for this Property Schedule is set forth in Exhibit 1. 4. Opinion The Opinion of Purchaser's Counsel is attached as Exhibit 2. 5. Purchaser's Certificate. The Purchaser's Certificate is attached as Exhibit 3 6. Proceeds Seller shall disburse the proceeds of this Property Schedule in accordance with the instructions attached hereto as Exhibit 4. 7. Acceptance Certificate The form of Acceptance Certificate is attached as Exhibit 5. 8. Additional Purchase Option Provisions. In addition to the Purchase Option provisions set forth in the Master Agreement, Installment Payments payable under this Property Schedule shall be subject to prepayment as follows: See termination amount in Exhibit 1 (Payment Schedule), subject; to per diem adjustment. 9. Bank Qualification and Arbitrage Rebate. Attached as Exhibit 6. 10. Expiration. Seller, at its sole determination, may choose not to accept this Property Schedule if the fully executed, original Agreement (including this Property Schedule at ancillary documents) are not received by Seller at its place of business by 9/20/2007. IN WITNESS WHEREOF, Seller and Purchaser have caused this Property Schedule to be executed in their names by their duly authorized representatives as of the Commencement Date above. Seller: Key Government Finance, Inc. B. ilit Name:_ . r '‘S4--ILI 1 'ao Title: \r • +or Q D. 4; A.1 Purchaser: City of Yakima Name: ?-413, Title: 44, 1/ EXHIBIT 1 Property Description and Payment Schedule Re Property Schedule No. 6 to Master Tax -Exempt Installment Purchase Agreement between Key Government Finance, Inc., and City of Yakima. The Property is as follows: The Property as more fully described in Exhibit A incorporated herein by reference and attached hereto. EQUIPMENT LOCATION: 129 N. 2nd St , Yakima, WA 98901-2613 USE: Transportation operations — This use is essential to the proper, efficient and economic functioning of Purchaser or to the services that Purchaser provides; and Purchaser has immediate need for and expects to make immediate use of substantially all of the Property, which need is not temporary or expected to diminish in the foreseeable future. Installment Payment Schedule If the Due Dates are not defined in this Installment Payment Schedule, they shall be defined as the last day of each quarterly period of this Installment Payment Schedule commencing with the Acceptance Date. Total Principal Amount $38,292.91 Payment No. Due Date Payment Principal Interest Prepayment Amount Portion Portion Balance 1 4 -Dec -2007 3,428.67 2,998 83 429.84 36,352.90 2 4 -Mar -2008 3,428.67 3,032.49 396.18 33,229 44 3 4 -Jun -2008 3,428.67 3,066.53 362.14 30,070 91 4 4 -Sep -2008 3,428.67 3,100.95 327.71 26,876.93 5 4 -Dec -2008 3,428.67 3,135.76 292.91 23,647.09 6 4 -Mar -2009 3,428.67 3,170.96 . 257.71 20,381.00 7 4 -Jun -2009 3,428.67 3,206 55 222 11 17,078.25 8 4 -Sep -2009 3,428.67 3,242.55 186.12 13,738.43 9 4 -Dec -2009 3,428.67 3,278.95 149.72 10,361.11 10 4 -Mar -2010 3,428.67 3,315 75 112 92 6,945.89 11 4 -Jun -2010 3,428.67 3,352.97 75.70 3,492.33 12 4 -Sep -2010 3,428.67 3,390.61 38.06 0.00 Purchaser: City of Yakima Title: e,ry ' EXHIBIT A One 2007 Ford F250 Two 2007 Ford Rangers Property Description K&L GATES September 4, 2007 Key Government Finance, Inc. Superior, Colorado City of Yakima, Washington Kirkpatrick & Lockhart Preston Gates Ellis u 925 Fourlh Avenue Suite 2900 Seattle, WA 98104-1158 r 206.623.7580 www.klgates.com Re: Property Schedule No. 06 dated September 4, 2007 (the "Schedule") to the Master Tax -Exempt Installment/Purchase Agreement, dated as of October 15, 2003 (the "Agreement," together with the Schedule, the "Lease") between Key Government Finance, Inc. as Lessor, and City of Yakima, Washington, as Purchaser (the "City"). Ladies and Gentlemen: Our firm acts as special counsel and bond counsel to the City. The City was authorized to enter into the Agreement with Lessor by City Ordinance No. 2003-25 passed on May 6, 2003 and the Schedule approved by a resolution of the City dated September 4, 2007 for the purpose of financing the acquisition of various equipment for use by the City. This opinion is delivered to you pursuant to the provisions of the Lease as described above. In our capacity as such special counsel, we have examined an original or copy certified or otherwise identified as being a true copy of the Lease. Any capitalized term used herein and not otherwise defined herein shall have the same meaning as set forth in the Lease. Based upon and subject to the foregoing and below in this letter, we express the following opinions. . The City is a public instrumentality created and validly existing under the laws of Washington. 2. The City has full legal right, power and authority to carry out and consummate the transactions contemplated by the Lease to be undertaken by the City. 3. By official action of the City, the City has duly authorized and approved the execution and delivery of and the performance by the City of its obligation contained in the Lease. City of Yakima, Washington Key Government Finance, Inc. September 4, 2007 Page 2 4. The Lease constitutes the legal, valid and binding obligation of the City, enforceable in accordance with its terms. 5. The portion of each payment due under the Lease designated as and comprising interest ("Interest") is excluded from gross income for purposes of federal income taxation pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"). We also arc of the opinion that the Lease is not a "private activity bond" within the meaning of the Code. 6. We are further of the opinion that Interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals, but is taken into account in the computation of the corporate alternative minimum tax under Section 55 of the Code. The City has designated the Lease as a "qualified tax-exempt obligation" for investment by financial institutions under Section 265 of the Code. 7. We express no opinion regarding any other federal tax consequences arising with respect to the Lease. The opinions set forth herein are as of the date hereof and take into account only published state (and federal, to the extent noted) laws and regulations as of the date of this letter. We undertake no responsibility and expressly disclaim any undertaking or obligation to advise you of changes in laws, interpretations of laws or facts which may hereafter be brought to our attention including, but not limited to, any changes between the date hereof and the date of execution of the Lease which change could affect the opinion set forth above. This opinion is solely for your benefit and may not be relied on by, nor copies delivered to, any other person, other than your successor or assign, without our prior written consent in each instance. Very truly yours, K&L PRESTON GATES ELLIS LLP q6L" ei (Y1 • 4Lt By Nancy M. Neraas K \2025739\00069\21751SLA\21751L3141 EXHIBIT 3 Purchaser 's Certificate Re. Property Schedule No. 6 to Master Tax -Exempt Installment Purchase Agreement between Key Government Finance, Inc. and City of Yakima. The undersigned, being the duly elected, qualified and acting keeper of records for the City of Yakima ("Purchaser ") do hereby certify, as of 9/4/2007, as follows: 1. Purchaser did, at a meeting of the governing body of the Purchaser held by resolution or ordinance duly enacted, in accordance with all requirements of law, approve and authorize the execution and delivery of the above -referenced Property Schedule (the "Property Schedule") and the Master Tax -Exempt Installment Purchase Agreement (the "Master Agreement") by the following named representative of Purchaser, to wit: NAMEOF EXECUTING OFFICIAL (Official who signed the documents.) TITLE OF EXECUTING OFFICIAL SIGNATURE OF EXECUTING OFFICIAL ". Title:&Pry} 44-4 P �,� end/Or N, B_QV di(UST SIGN HERE. \� 2. The above-named representative of the Purchaser held at the time of such authorization and holds at the present time the office set forth above. 3. The meeting(s) of the governing body of the Purchaser at which the Master Agreement and the Property Schedule were approved and authorized to be executed was duly called, regularly convened and attended throughout by the requisite quorum of the members thereof, and the enactment approving the Master Agreement and the Property Schedule and authorizing the execution thereof has not been altered or rescinded. All meetings of the governing body of Purchaser relating to the authorization and delivery of Master Agreement and the Property Schedule have been: (a) held within the geographic boundaries of the Purchaser; (b) open to the public, allowing all people to attend; (c) conducted in accordance with internal procedures of the governing body; and (d) conducted in accordance with the charter of the Purchaser, if any, and the laws of the State. • 4. No event or condition that constitutes, or with the giving of notice or the lapse of time or. both would constitute, an Event of Default (as such term is defined in the Master Agreement) exists at the date hereof with respect to this Property Schedule or any other Property Schedules under the Master Agreement. 5. The acquisition of all of the Property under the Property Schedule has been duly authorized by the governing body of Purchaser. 6. Purchaser has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current budget year to make the Installment Payments scheduled to come due during the current budget year under the Property Schedule and to meet its other obligations for the current budget year and such funds have not been expended for other purposes. 7. As of the date hereof, no litigation is pending, (or, to my knowledge, threatened) against Purchaser in any court (a) seeking to restrain or enjoin the delivery of the Master Agreement or the Property Schedule or of other agreements similar to the Master Agreement; (b) questioning the authority of Purchaser to execute the Master Agreement or the Property Schedule, or the validity of the Master Agreement or the Property Schedule, or the payment of principal of or interest on, the Property Schedule; (c) questioning the constitutionality of any statute, or the validity of any proceedings, authorizing the execution of the Master Agreement and the Property Schedule; or (d) affecting the provisions made for the payment of or security for the Master Agreement and the Property Schedule. City of Yakima tom p pri-; By:AAT.,-A„,/ c,„_,_,, ,,, ". Title:&Pry} 44-4 P �,� SOMEONE OTHER THAN THE EXECUTING OFFICIAL(S) SHQ N, B_QV di(UST SIGN HERE. EXHIBIT 4 Pa ment of Proceeds instructions Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Re Property Schedule No. 6 (the "Property Schedule") to Master Tax -Exempt Installment Purchase Agreement between Key Government Finance, Inc. ("Seller "), and City of Yakima ("Purchaser"). Ladies and Gentlemen: The undersigned, an Authorized Representative of the Purchaser hereby requests and authorizes Seller to disburse the net proceeds of the Property Schedule as follows: Name of Payee: By check By wire transfer If by check, Payee's address: I wire transfer, pay to: it Bank Name: Bank Address: 10,2 y Bank City, State, Zip: Bank Phone: , , r., 5157-4 7 For Account of: AP Account No.: q#' 3 City of Yakima By: Name: Title: EXHIBIT 5 Acceptance Certificate Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Re: Property Schedule No. 6 to Master Tax -Exempt Installment Purchase Agreement between Key Government Finance, Inc. and City of Yakima Ladies and Gentlemen: In accordance with the above -referenced Master Tax -Exempt Installment Purchase Agreement (the "Master Agreement"), the undersigned ("Purchaser") hereby certifies and represents to, and agrees with, Key Government Finance, Inc. ("Seller"), as follows: Date: (1) The Property, as such terms are defined in the above -referenced Property Schedule, has been acquired, made, delivered, installed and accepted on the date indicated below. (2) Purchaser has conducted such inspection and/or testing of the Property as it deems necessary and appropriate and hereby acknowledges that it accepts the Property for all purposes. (3) No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default (as such terms are defined in the Master Agreement) exists at the date hereof. A4. 30 ZOO 7 City of Yakima as Purchaser By: Name: R Title: 1f'�Z''r"_ „! % °L!T/�' ,0%,#‹ Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 EXHIBIT 6 Bank Qualification And Arbitrage Rebate Re: Property Schedule No. 6 to Master Tax -Exempt Installment Purchase Agreement between Key Government Finance, Inc. and City of Yakima Qualified Tax -Exempt Obligation This section intentionally left blank Arbitrage Rebate. (a) Purchaser is a governmental unit under the law of the State with general taxing powers, (b) this Property Schedule is not a private activity bond as defined in Section 141 of the Code, and (c) 95% or more of the net proceeds of this Property Schedule will be used for local government activities of Purchaser. Purchaser: City of Yakima Name: Title: 'x , irk �� s , ' ,{ �M1U "} i 'hqa.Tr, i CITIES INSURANCE ASSOGIATIO.N. QF INASNINGTON _CERTi 1C>ATE...CF.IN U.RANC:E • ISSUE:DATE'.9/1342007 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. PRODUCER.:„ Public Risk Underwriters 18106 140th AVENUE N.E. WOODINVILLE, WASHINGTON 98072-6874 PHONE (425) 482-6767 FAX (425) 482-2777 INSURED .' CITY OF YAKIIv1A A MEMBER OF CITIES INSURANCE ASSOCIATION OF WASHINGTON 129 N. 2ND STREET YAKIMA, WA 98901 COMPANIES` AFFORDING, -COVERAGE GENERAL LIABILITY ST PAUL FIRE & MARINE INSURANCE COMPANY AUTOMOBILE LIABILITY ST PAUL FIRE & MARINE INSURANCE COMPANY PROPERTY CRIME / PUBLIC EMPLOYEE DISHONESTY ST PAUL FIRE & MARINE INSURANCE COMPANY THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND • CONDITIONS OF SUCH POLICIES LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF:INSURANCE POLICY; NUMBER POLICY EFFECTIVE: POLICYEX . PIRATION ;LIMITS.::,;: GENERALLIAB(LITY.. . COMMERCIAL GENERAL LIABILITY GP06301990 9/1/2007 9/1/2008 GENERAL AGGREGATE $25,000,000 OCCURRENCE FORM PERSONAL & ADV INJURY $15,000,000 INCLUDES STOP GAP EACH OCCURRENCE $15,000,000 ANNUAL POOL AGGREGATE 545,000,000 (LIABILITY IS SUBJECT TO A $100,000 S.I.R. PAYABLE FROM POOL FUNDS) AUTOMOBILE LIABILITY ANY AUTO GP060301990 9/1/2007 9/1/2008 COMBINED SINGLE LIMIT $15,000,000 (LIABILITY IS SUBJECT TO A $100,000. S.I.R. PAYABLE FROfv1 P001 FUNDS) PROPERTY :.- : ...: ::.... :......._:...:.,>: .. _. CRIME•I RUBLIC. EMPLOYEE UISHONES`iY' ....: - `:..: :. .. .....: GP06301990 9/1/2007 9/1/2008 51,000,000 EACH OCCURRENCE :::.: ....:` .. F . ICLES 1 SPECIAL ITEMS,.:<`. . . .. DESCRIPTION Or OPERATIONS 4 LOCATIONS:? VEH WITH REGARDS TO THE' FINANCING OF 3 FORD TRUCKS; KEY GOVERNMENT FINANCE, INC., THEIR SUCCESSORS AND ASSIGNS ARE NAMED ADDITIONAL INSURED, WITH RESPECT TO THE FINANCE OF THE ABOVE 3 VEHICLES ONLY, SUBJECT TO POLICY TERMS, CONDITIONS AND EXCLUSIONS. ADDITIONAL INSURED ENDORSEMENT ATTACHED. CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL MAIL30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED BELOW, BUT FAILURE TO MAIL SUCH NOTICE 01 IALL IMPOSE NO LIABILITY Oft OBLIGATION OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTITIVES CERTIFICATE-H2OCDER, KEY GOVERNMENT FINANCE, INC. 1000 S. MCCASLIN BOULEVARD SUPERIOR, CO 8002.7 ATTN: MYRA DAWSON AUJJ,ORIZED REPRESENTATIVE (1.1 t( Patti A. Ferguson PUBLIC ENTITY LIABILITY PROTECTION POOLING GROUPS ADDITIONAL PROTECTED PERSONS ENDORSEMENT — PERSONS OR ORGANIZATIONS REQUIRED BY WRITTEN CONTRACT FOR INSURANCE. This endorsement changes your Public Entity Liability Protection Pooling Groups — Excess of Self -Insured Retention. heft Pau! How Coverage is Changed The following is added to the Who Is Protected Under This Agreement section. • This change adds certain protected persons and limits their protection. Additional protected person when required by a written contract for insurance. Any person or organization that you agree in a written contract for insurance to add as an additional protected person under this agreement is a protected person. But only for covered injury or damage arising out of: ® premises you own, lease or borrow; or @ your work for that person or organization. Any person or organization that you agree in a written contract of insurance to add as an additional protected person under this agreement is also a protected person for covered injury or damage arising out of your completed work for that person or organization. But only if the written contract for insurance specifically requires such completed work coverage for that person or organization and only for the period of time such completed work is required in the written contract for insurance However, no person or organization that you agree in a written contract for insurance to add as an additional protected person under this agreement is a protected person for injury or damage arising out of its sole negligence. In addition, any person or organization that you agree in a written contract for insurance to add as an additional protected person under this agreement is a protected person only for the lessor of: • the limits of coverage required by the written contract for insurance; or O the limits of coverage available for this agreement. Written contract for insurance means that part of any written contract or agreement in which you agree to add a person or organization as an additional protected person under this agreement that: O was made before; and ® is in effect when; NAME OF INSURED Cities Insurance Association of Washington Policy Number Processing Date Effective Date 0906301990 9/14107 09/01/07 40502 Ed. 1-80 Printed in U.S.A. ©St Paul Fire and Marine Insurance Co. 1980 Customized Form Page 1 of 2 PUBLIC ENTITY LIABILITY PROTECTION POOLING GROUPS ADDITIONAL PROTECTED PERSONS ENDORSEMENT — PERSONS OR ORGANIZATIONS REQUIRED BY WRITTEN CONTRACT FOR INSURANCE. This endorsement changes your Public Entity Liability Protection Pooling Groups — Excess of Self -Insured Retention T'St Paul the bodily injury or property damage happens, or the personal injury or advertising injury offense in committed. Additional protected person may also be called an additional insured in the written contract for insurance. We explain the term your work and your completed work in the Products and completed work total limit section. Other Terms All other terms of your policy remain the same. Cities Insurance Association of Washington Policy Nurnber Processing Date GP06301990 9/14/07 Expiration Date 09/01/08 40502 Ed 1-80 Printed in U.S.A. ©St. Paul Fire and Marine Insurance Co. 1980 Page 2 of 2 Customized Form Notification of Tax Treatment Key Government Finance, Inc. is required to collect and remit sales/use tax in the taxing jurisdiction where your equipment will be located. In the event we do not receive a valid sales tax exemption certificate prior to the date your financing commences, you will be charged sales/use tax. Personal property tax returns will be filed as required by local law. In the event that any tax abatements or special exemptions are available on the equipment you will be leasing from us, please notify us as soon as possible and forward the related documentation to us. This will ensure that your financed equipment will be reported correctly. Please indicate below if you feel that your purchase is subject to tax or whether a valid exemption exists. X I agree that my purchase is subject to sales/use tax. I am exempt from sales/use tax and I have attached a completed exemption certificate to Key Government Finance, Inc. I have previously provided a completed exemption certificate to Key Government Finance, Inc. which is valid for this transaction. I am exempt from state tax but subject to local tax. I have attached a completed exemption certificate. I have a valid abatement or property tax exemption (documentation attached). If applicable to the tax rates in your state, are you outside the city limits or in an unincorporated area? Additional comments: Purchaser: City of Yakima Name: 4. 24__Yr. Title' 679 M4 Lr :; corm 8038—GC (Rev. November 2000) Deparinva11 ul Ihr lmdsury Intern[il Revenue Service Information Return for Small Tax -Exempt Governmental Bond Issues, Leases, and Installment Sales ® Under Internal Revenue Code section 149(e) Caution: If the issue price of the issue IS .s 100,000 or more, use Form 8038-G. OMB No 1545-0720 Reporting Authorit Check hox if Amended Return ® ❑ 1 Issuer's name City of Yakima, Washington 2 Issuer's employer identification number 91 : 6001296 3 Number and street (or P.O box il mail Is not delivered to street address) 129 North Second Street Room/suite 4 City, town, or post office. state, and 715 code, Yakima, Washington 98901 5 Report number 5 03 6 Name and title of officer or legal representative whom the IRS may call for more information Tim Jensen, Treasury Services Officer 7 Telephone number of olOcer or legal Iepresentaove ( 509 ) 576-6639 Orifitir Description of Obligations Check if reporting: a single issue V] or on a consolidated basis ❑ 8a Issue price of obligation(s) (see Instructions) . b Issue date (single issue) or calendar year (consolidated) (see instructions) 9 Amount of the reported obligation(s) on line 8a: a Used to refund prior issue(s) . . . . . . . . b Representing a loan from the proceeds of another tax-exempt obligation (e.g., bond bank) 10 0 the issuer has designated any issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check this box . . . 11 0 any obligation is In the form'of a lease or installment sale, check this box . . . . . . . . . . . . . . . ® 0 12 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check this hox . . . . . . . . - E] Under penalties of perjury, I declare that 1 have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. 09/04/2007 8a 38,293 9a 9b Sign Here ed representative General Instructions Section references are to the Internal —Revenue Code unless otherwise noted. Purpose of Form Form 8038 -GC is used by the issuers of tax-exempt governmental obligations to provide the IRS with the information required by section 149(e) and to monitor the requirements of sections 141 through 150 Who Must File Issuers of tax-exempt governmental obligation:, with issue prices of less than 1100,000 must Ole Form 8038 -GC. Issuers of a tax-exempt governmental obligation with an issue price of 1100,000 or more must Ole Form 8038-G, Information Return for Tax -Exempt Governmental Obligations. Filing a separate return. Issuers have the option to Ole a separate Form 8038 -GC for any tax-exempt governmental obligation with an issue price of less than 1100,000. Art issuer of a lax -exempt bond used to finance construction expenditures must file a separate Form 8038 -GC for each issue to give notice to the IRS that an electron was made to pay a penalty in lieu of arbitrage rebate (see the line 12 Instructions). Filing a consolidated return. For all tax-exempt governmental obligations with issue prices of less than 1100,000 that are not repot ted on a separate Form 8038 -GC, an issuer must Ole a consolidated information return including all such issues issued within the calendar year. Thus, an issuer may file a separate Form 8038 -GC for each of a number of small issues and report the remainder of small issues issued during the calendar year on one consolidated Form 8038 -GC. However, a separate Form 8038 -GC must be filed to give the IRS notice of the election to pay a penalty In lieu of arbitrage rebate. When To File To file a separate return, file Form 8038 -GC on or before the 1 Sth day of the second calendar month after the close of the calendar quarter In which the issue is issued To Ole a consolidated return, file Form 8038 -GC on or before February 15th of the calendar year following the year in which the issue is issued Late filing. An issuer may be granted an extension of time to file Form 8038 -GC under Section 3 of Rev. Proc 88-10, 1988-1 C.B. 635, if it is determined that the failure to Ole 011 time is not due to willful neglect. Type or print at the top of the form, "This Statement Is Submitted in Accordance with Rev. Proc. 88-10 " Attach to the Form 8038 -GC a letter briefly stating why the form was not submitted to the IRS on time. Also indicate whether the obligation In question Is under examination by the IRS. Do not submit copies of any bond documents, leases, or installment sale documents. See Where To File below. Where To File File Form 8038 -GC, and any attachments, with the Internal Revenue Service Center, Ogden, )JT 84201. Tim Jensen, Treasury Serv. Officer Type or print name and Otle Other Forms That May Be Required For rebating arbitrage (or paying a penalty in lieu of arbitrage rebate) to the Federal government, use Form 8038-T, Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate. For private activity bonds, use Form 8038, Information Return for Tax -Exempt. Private Activity Bond Issues. Rounding to Whole Dollars . You may show the money items on this return as whole -dollar amounts. To do so, drop any amount less than 50 cents and increase any amount from 50 to 99 cents to the next higher dollar. Definitions Obligations. This refers to a single tax-exempt governmental obligation if Form 8038 -GC is used for separate reporting or to multiple tax-exempt governmental obligations if the form is used for consolidated reporting. Tax-exempt obligation. This is a bond, installment purchase agreement, or financial lease, on which the interest is excluded from income under section 103. Tax-exempt governmental obligation. A tax-exempt obligation that is not a private activity bond (see below) is a tax-exempt governmental obligation. This includes a bond issued by a qualified volunteer Ore department under section 150(e). Private activity bond. This includes an obligation issued as part of an issue in which: a More than 10% of the proceeds are to he used for any private activity business use, and Cat No. 641088 roan 8038—GC (Rev. 11-2000) PURCHASER INVOICE INSTRUCTIONS (The information you provide enables us to invoice you correctly) BILL TO ADDRESS: 61 BILLING CONTACT: First, M.I. apd Last Name:ft Title: co cif ,; ow ; 'f 6 e Phone Number: Fax Number: - ,a iftocer PAS i° PURCHASE ORDER NUMBER: Invoices require purchase order numbers: YES Purchase Order Number: NO FEDERAL TAX ID NUMBER: /C„ EQUIPMENT LOCATION (If different from Billing Address): 5697 , ;) t.dr ADDITIONAL INFORMATION NEEDED ON INVOICE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. t II For Meeting Of 9-4-2007 ITEM TITLE: Resolution authorizing use of the City's Master Lease/Purchase agreement to acquire 3 vehicles needed for the Codes Division in an amount not to exceed $39,000 SUBMITTED BY: Finance Department CONTACT PERSON/TELEPHONE: Tim Jensen, Treasury Services Officer 575 - SUMMARY EXPLANATION: In the 2007 budget preparation, vehicle needs were identified in the Codes Division because of outdated equipment, which has become expensive to maintain, staff additions related to recent annexations and the rapid expansion of building within the City. The Codes Division has no replacement reserves left in the Equipment Rental Fund; so leasing new equipment has been identified as the next best option. The attached Resolution and leasing documents (in draft form) will allow the Codes Division to obtain the necessary equipment and payfor it over the next three years. Since debt service was budgeted for an entire year in 2007, and only one payment will actually be made, the remaining appropriation will be used to reduce the capital cost of the three trucks by $13,000 — from $51,293 to $ 38,293. The interest cost on the new equipment is a three-year lease at 4.49%, at the end of which the City will own the equipment. Quarterly payments will be $3,429 for three years, or $13,716 annually. Internal rate of return on City investments is currently 5.17%, making the lease option preferable to inter -fund borrowing. Staff recommends the lease option as the most cost effective way of replacing/expanding the Codes Division fleet at this time. Resolution X Ordinance Other (Specify) Lease Agreements Contract Mail to (name and address): Phone Funding Source General Fund Revenues generated by the Codes Division APPROVED FOR SUBMITTAL: r'/,',/, City Manager • STAFF RECOMMENDATION: Adopt Resolution BOARD/COMMISSION RECOMMENDATION: N/A COUNCIL ACTION: Legal/BD rev. effective 7/21/92