ADOPTED - SUBSTITUTE - AUGUST 24, 2004

Agenda Item No.  20

 

Introduced by the County Services and Finance Committees of the:

 

INGHAM COUNTY BOARD OF COMMISSIONERS

 

RESOLUTION AUTHORIZING INSTALLMENT PURCHASE AGREEMENT

(ENERGY CONSERVATION IMPROVEMENTS)

 

RESOLUTION #04-246

 

            At a regular meeting of  the Board of Commissioners of the County of Ingham, Michigan (the “Board”), held on the 24th day of August, 2004, at ______ __.m., Eastern Daylight Savings Time,

 

PRESENT:       __________________________________________________________________

 

                        __________________________________________________________________

 

ABSENT:        ___None_______________________________________________________________

 

            The following resolution was made by Commissioner Swope and seconded by Commissioner Schafer:

 

            WHEREAS, pursuant to resolution #04-006 adopted by the Board on February 2, 2004 (the “Preliminary Resolution”), the Board determined that it was in the best interest of the County of Ingham, Michigan (the “County”) to negotiate with Trane, a Division of American Standard Inc. (“Trane”), for a proposal for the acquisition and installation of energy conservation improvements to be made in various facilities of the County designed to provide the County with energy and operational cost savings; and

 

            WHEREAS, Trane has provided the County with a proposal (the “Energy Proposal”) to make such improvements (the “Improvements”) in the 55th District Court Building, the Youth Center, the Human Services Building, the Ingham County Jail, the Courthouse and Hilliard Building, the Grady Porter Building, the Veteran’s Memorial Building and the Animal Control Building (the “Facilities”); and

 

            WHEREAS, in the Preliminary Resolution the Board authorized the County Controller to negotiate financing arrangements to finance the Improvements; and

 

            WHEREAS, the County Controller, with the assistance of the County Treasurer, solicited and received financing proposals from Fifth Third Securities, Comerica Bank, National City Bank of the Midwest and Banc One Leasing Corporation; and

 

            WHEREAS, the County Controller and the County Treasurer have determined that the proposal (the “Financing Proposal”) of Banc One Leasing Corporation (“Banc One”) provides the most advantageous terms to the County; and

 

            WHEREAS, a form of Installment Purchase Agreement (the “Contract”), together with a related form of Assignment, have been presented to the Board for approval in order to provide for the financing of the Improvements pursuant to the terms of the Financing Proposal;

 

 

 

 

ADOPTED- SUBSTITUTE – AUGUST 24, 2004

Agenda Item No. 20

 

RESOLUTION #04-246

 

            NOW, THEREFORE, BE IT RESOLVED THAT:

 

            1.         It is found to be necessary and desirable for the County to finance the acquisition and installation of the Improvements pursuant to the terms of the Contract.

 

            2.         The County pledges its limited tax full faith and credit for the payment of its obligations under the Contract.  The Board shall include in its budget and pay the sum or sums necessary each year to meet the payments due pursuant to the provisions of the Contract.

                       

            3.         The assignment of the Agreement by Trane to Banc One pursuant to the form of Assignment submitted to the Board, with such additions to, deletions from or changes to such form not materially adverse to the County as the County Controller may approve, is approved.  The County Controller, at any time after the successful negotiation of the final contract with Trane entered into in order to memorialize the terms of the Energy Proposal, is authorized to execute and deliver the Contract in substantially the form submitted to the Board with such additions to, deletions from or changes to such form not materially adverse to the County as the County Controller may approve.  The Agreement shall be in an aggregate purchase price of not to exceed $1,700,000 and shall be payable as to principal and interest as approved by the County Controller, consistent with the terms of the Financing Proposal.  The Agreement, when signed and delivered by the County Controller on behalf of the County, shall constitute the binding and valid contract of the County and shall be fully enforceable in accordance with its terms and conditions.  The approvals of the County Controller required in this Section 3 shall be evidenced by his execution and delivery of the Contract and the Assignment. 

 

            4.         The Board designates the Contract as a “qualified tax exempt obligation” for the purpose of deduction of interest expense by financial institutions under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”).  The County covenants to comply with all provisions of the Code (together with regulations promulgated under the Code) necessary to maintain the exclusion of interest on the Contract from gross income for federal income tax purposes.

 

            5.         The Chairman of the Board, the County Clerk, the County Treasurer, the County Controller and other County officials or employees as may be necessary are severally authorized to execute and deliver such documents, instruments and certificates as are necessary or desirable to consummate the transactions described in the Contract and the Assignment and to maintain the exclusion of interest on the Contract from gross income for federal income tax purposes.

 

            6.         The aggregate useful lives of the Improvements are determined to be at least ten years.

 

YEAS: _______________________________________________________________________

 

NAYS: Commissioner Nevin                                                                                                               

ABSTAIN: None________________________________________________________         

 

RESOLUTION DECLARED ADOPTED

 

 

STATE OF MICHIGAN         )

                                                )ss

COUNTY OF INGHAM       

ADOPTED – SUBSTITUTE – AUGUST 24, 2004

Agenda Item No. 20

 

RESOLUTION #04-246

 

            I certify that I am the fully qualified and acting Clerk of the County of Ingham, Michigan, and that the attached resolution is a true and complete copy of a resolution adopted at a regular meeting of the Board of Commissioners of the County of Ingham, Michigan, held on the 24th day of August, 2004, the original which is on file in my office and is available to the public.  Public notice of such meeting was given in compliance with Act 267, Public Acts of Michigan, 1976, as amended.

 

 

August 24, 2004                                               __________________________________________

                                                                        Ingham County Clerk

 

 

 

 

 

COUNTY SERVICES:  County Services will meet 8/24/04.

 

FINANCE:   Yeas:  Lynch, Grebner, Dedden, De Leon, Thomas

          Nays:  None                Absent:  Minter             Approved 8/18/04