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Home My WebLink AboutRES 83-45RESOLUTION NO.83-45 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,AUTHORIZING THE EXECUTION AND DELIVERY OF A LEASE -PURCHASE AGREEMENT,ESCROW AGREEMENT,AGENCY AGREEMENT,ASSIGNMENT OF CONSTRUCTION CONTRACTS AGREEMENT,AND AGREEMENT;PROVIDING FOR THE TRANSFER OF CERTAIN MONEYS FOR THE PAYMENT OF LEASE PAYMENTS PURSUANT TO THE LEASE -PURCHASE AGREEMENT AND MAKING CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT THERETO;AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THIS RESOLUTION;AND DECLARING AN EMERGENCY. WHEREAS,the City of Apache Junction,Arizona (the "City")i s authorized and empowered to make contracts and to incur obligations appropriate to enable i t to accomplish any of its purposes;and WHEREAS,the City i s authorized to provide for the construction, development,maintenance and operation of a community swimming pool;and WHEREAS,the City i s authorized to enter into leasehold agreements for the purpose of acquiring,constructing and equiping property for governmental purposes;and WHEREAS,the City has determined that i n order to accomplish this purpose at the lowest reasonable cost,i t i s necessary and desirable to acquire,construct and equip a community swimming pool (the "Project")by leasing i t pursuant to a Lease -Purchase Agreement;and WHEREAS,Young,Smith &Peacock,Inc.will cause to be provided moneys for the acquisition,construction and equipping of the Project and will lease the Project to the City pursuant to the provisions of a Lease- Purchase Agreement,dated as of June 1,1983 (the "Lease -Purchase Agreement"), a form of which i s attached hereto as Exhibit A,by and between the City and Young,Smith &Peacock,Inc.;and WHEREAS,the Clerk of the City has presented to the Mayor and Council of the City at this meeting (i)a proposed form of Lease -Purchase Agreement which i s attached hereto as Exhibit A,(ii)a proposed form of Escrow Agreement, dated as of June 1,1983 (the "Escrow Agreement"),by and among the Escrow Agent named therein,Young,Smith &Peacock,Inc.,and the City,a form of which i s attached hereto as Exhibit B;(iii)a proposed form of Agency Agreement,dated as of June 1,1983 (the "Agency Agreement') ,by and among the Escrow Agent named therein,Young,Smith &Peacock,Inc.,and the City, a form of which i s attached hereto as Exhibit C;(iv)a proposed form of an Assignment of Construction Contracts Agreement,dated as of June 1,1983 (the "Assignment"),by and between Young,Smith &Peacock,Inc.and the City,a proposed form of which i s attached hereto as Exhibit D;and (v)a proposed form of Agreement (the "Agreement"),by and between the City and the Contractor named therein,a form of which i s attached hereto as Exhibit E; NOW,THEREFORE,BE IT RESOLVED by the Mayor and City Council of the City of Apache Junction,Arizona,that: Section I The Mayor and City Council of the City of Apache Junction,Arizona, hereby find and determine that the financing of the cost of acquisition, construction and equipping of the Project,pursuant to the terms of the Lease -Purchase Agreement,the Escrow Agreement and the Agency Agreement,is, i n the furtherance of the purposes of the City and i n the public interest and that the acquisition,construction and equipping of the Project and the financing thereof by leasing it,pursuant to the Lease -Purchase Agreement, will enhance the standard of living within the City and within the State of Arizona (the "State"). Resolution No.83-45 Page One of Three Section I I The form,terms and provisions of the Lease -Purchase Agreement,the Escrow Agreement,the Agency Agreement,the Assignment,and the Agreement,i n the form of such documents (including exhibits thereto)presented to this meeting,are hereby approved,with such insertions,omissions,and changes as shall be approved by the Mayor of the City,the execution of such documents being conclusive evidence of such approval;and the Mayor and Clerk of the City are hereby authorized and directed to sign the Lease -Purchase Agreement, the Escrow Agreement,the Agency Agreement,the Assignment,and the Agreement. Section III For the payment of the Lease Payments (as defined in the Lease- Purchase Agreement),the City hereby agrees to pay and transfer to Young, Smith &Peacock,Inc.,as the lessor under the Lease -Purchase Agreement,and to its successors or assigns under the Lease -Purchase Agreement,the Lease Payments and all other amounts required to be paid by the City pursuant to the provisions of the Lease -Purchase Agreement. Section IV To secure payment of the Lease Payments and all other amount required to be paid by the City pursuant to the provisions of the Lease -Purchase Agreement,the City hereby pledges only those revenues supplied by voluntary contributions by the State to the City derived from fees,penalties or excise taxes,except the City's share of any excise or franchise taxes,which,by State law,rule or regulation,must be expended for any other purposes,such as highway user revenue bonds (the "Pledged Revenues").The City warrants that this pledge shall be a first pledge of such Pledged Revenues and the City agrees and covenants to make said payments from such Pledged Revenues, except to the extent i t chooses to make such payments from other funds,as provided i n the Lease -Purchase Agreement.All such Pledged Revenues shall be segregated by the City i n a separate account from its other funds.The City further covenants that i t will not further encumber the Pledged Revenues on a basis equal to this first pledge,unless the aforesaid Pledged Revenues received by the City i n the next succeeding fiscal year shall have amounted to at least 1.0 times the highest combined requirements for any succeeding twelve-month period for Lease Payments under the Lease -Purchase Agreement, debt service for rent or any other obligations or leases proposed to be secured by a pledge of the Pledged Revenues (collectively,"Secured Obligations"). Section V The obligation of the City to make Lease Payments and to make all other payments due under the Lease -Purchase Agreement i s limited to payments due under the Lease -Purchase Agreement i s limited to payments from Pledged Revenues and the obligation of the City under the Lease -Purchase Agreement shall not constitute or give rise to a general obligation of the City or a claim against its ad valorem taxing powers,or constitute an indebtedness within the meaning of any statutory or constitutional debt limit applicable to the City. Section VI The City further covenants with Young,Smith &Peacock,Inc.,and to its successors or assigns under the Lease -Purchase Agreement,that except as otherwise provided in the Lease -Purchase Agreement,it will not create or suffer to be created any pledge,lien or charge which would be prior to,or on a parity with,the use of the Pledge Revenues. Section VII After the execution and delivery of the Lease -Purchase Agreement to Young,Smith &Peacock,Inc.,this Resolution shall be and shall remain irrepealable until the Lease Payments,the interest thereon and all other amount required to be paid by the City pursuant to the provisions of the Lease -Purchase Agreement shall have been fully paid,cancelled and discharged. Resolution No.83-45 Page Two of Three Section VIII I f any section,paragraph,clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable,the validity or enforceability of such section,paragraph,clause or provision shall not affect any remaining provisions of this Resolution. Section IX All ordinances and resolutions or parts thereof,inconsistent herewith, are hereby waived to the extent only of such inconsistency.This waiver shall not be construed as reviving any ordinance or resolution or any part thereof. Section X The immediate operation of this Resolution i s necessary for the preservation of the public health and welfare and an emergency i s hereby declared to exist,and this resolution shall be in full force and effect from and after its passage and approval by the Mayor and City Council of the City of Apache Junction,Arizona,as required by law,and i t i s hereby exempt from the referendum provisions of the constitution and laws of the State. APPROVED AND ADOPTED THIS 7TH DAY OF JUNE ,1983,BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA. ATTEST: Kathleen Connelly City Clerk APPROVED AS TO FORM: .• •I -A .... - DAvikf.Al xander — ritv Attorney- • -, Resolution No.83-45 Page Three of Three Mayor