244.2013 Agreement Municipal Leasing for Generator RESOLUTION AUTHORIZING LEASE PURCHASE AGREEMENT WITH
MUNICIPAL LEASING CONSULTANTS FOR GENERATOR
IN TOWN WASTEWATER DEPARTMENT
RESOLUTION NO.: 244,2013
INTRODUCED BY: Mr. Ronald Montesi
WHO MOVED FOR ITS ADOPTION
SECONDED BY: Mr.Tim Brewer
WHEREAS, the Queensbury Town Board determined that a need exists for acquisition
and installation of a new generator and ancillary equipment (the "Equipment") for the Wastewater
Department, and
WHEREAS, the Town Board has authorized the purchase of the Equipment under New
York State Contract, and
WHEREAS, the Town of Queensbury's Civil Engineer/Acting Wastewater Director
("Director") has negotiated lease/purchase terms for the Equipment and wishes to enter into a
tax-exempt Lease Purchase Agreement with Municipal Leasing Consultants ("MLC") for the
Equipment at a cost not to exceed $29,000, and
WHEREAS, the Director has advised the Town Board that he wishes to enter into such
Lease Purchase Agreement because although the associated interest rate is higher than it would be
with a purchase, the Lease Purchase Agreement's issuance costs are lower, and
WHEREAS, a copy of the proposal from MLC for a lease purchase agreement (the
"Proposal") has been presented at this meeting, and
WHEREAS, the Town is authorized to enter into lease purchase agreements for financing
equipment,machinery or apparatus under General Municipal Law §109-b, and
WHEREAS, the Town Board has prepared an evaluation of financing alternatives as
required by 2 NYCRR Part 39,
NOW, THEREFORE, BE IT RESOLVED BY THE QUEENSBURY TOWN
BOARD AS FOLLOWS:
RESOLVED, that after taking into account the evaluation of financing alternatives, the
Town Board hereby determines that it is in the best interests of the Town to finance the capital
improvements with MLC pursuant to the Proposal for the following specific reasons: In light of
the uncertainty of appropriations for various Town purposes, the flexibility afforded by
termination of a lease purchase agreement if the Town cannot appropriate funds to pay the
amounts due thereunder could be significant at some time over the next 5 years, and
BE IT FURTHER,
RESOLVED, that the acquisition of the Equipment under the terms and conditions
provided for in the Proposal is necessary, convenient, in furtherance of, and the Equipment will at
all times be used in connection with, the Town's governmental and proprietary purposes and
functions and is in the best interests of the Town, and no portion of the Equipment will be used,
directly or indirectly, in any trade or business carried on by any person other than a governmental
unit of the State on a basis different from the general public, and
BE IT FURTHER,
RESOLVED, that the Town Board hereby authorizes financing the purchase of the
Equipment pursuant to the provisions of a lease purchase agreement consistent with the Proposal
and in form satisfactory to the Town Supervisor and Town Counsel (the "Lease Purchase
Agreement"), and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town Supervisor to
execute and deliver the Lease Purchase Agreement and to execute and deliver such other
agreements, instruments and other writings, and to take such further actions as he, in his sole
discretion, deems necessary or desirable to carry out the intent of this Resolution and the Lease
Purchase Agreement, and
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BE IT FURTHER,
RESOLVED, that the Town Board hereby certifies that the Town has not issued or
effected the issuance of, and reasonably anticipates that it will not issue or effect the issuance of,
more than $10,000,000 of tax-exempt obligations during the 2013 calendar year and, to the extent
that it is permitted to do so under the Internal Revenue Code of 1986, as amended (the "Code"),
hereby designates the lease of the Equipment to which the Lease Purchase Agreement pertains as
a"qualified tax-exempt obligation" as defined by Section 265(b)(3) of the Code, and
BE IT FURTHER,
RESOLVED, that the Town Board hereby covenants that it will perform all acts within its
power which are or may be necessary to ensure the maintenance of the Town's legal status as
being a duly organized and existing entity under the Laws of the State, which status is the basis
for the interest portion of the rental payments coming due under the Lease Purchase Agreement
to at all times remain exempt from federal income taxation under the laws and regulations of the
United States of America as presently enacted and construed or as hereafter amended , and
BE IT FURTHER,
RESOLVED, that the payments due under the Lease Purchase Agreement shall be paid
from Installment Purchase Debt Account No.: 035-9725-6040, and
BE IT FURTHER,
RESOLVED, that the Town Board authorizes and directs the Town Budget Officer to
transfer $2,900 from Account No.: 036-8130-4131 to Account No.: 035-9725-6040 and amend
the Town Budget accordingly, and
BE IT FURTHER,
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RESOLVED, that the Town Board authorizes and directs the Town Supervisor, Civil
Engineer/Acting Wastewater Director and/or Town Budget Officer to take such other and further
action as may be necessary to effectuate the terms of this Resolution, and
BE IT FURTHER,
RESOLVED, that this Resolution shall take effect immediately_
The question of the adoption of this Resolution was duly put to a vote on roll call which resulted
as follows:
AYES: Mr. Metivier, Mr. Clements, Mr. Strough, Mr. Brewer, Mr. Montesi
NAYS: None
ABSENT: None
ROLL CALL
AYES: 5 NAYS: 0 ABSENT: 0
The Resolution was declared duly adopted by a vote of not less than two-thirds (2/3) of the full
membership of the Town Board.
Date: May 20 ',2013
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