HomeMy WebLinkAbout1073 - AUTHORIZING the execution of a taxable Qualified Energy Conservation bond allocation of $1,500,000 for energy efficiency improvementsRESOLUTION NO. 1073
A RESOLUTION AUTHORIZING THE EXECUTION
AND DELIVERY OF A TAXABLE QECB EQUIPMENT
LEASE/PURCHASE AGREEMENT (DIRECT
SUBSIDY) WITH RESPECT TO THE ACQUISITION,
PURCHASE, FINANCING AND LEASING OF
CERTAIN ENERGY CONSERVATION EQUIPMENT
FOR THE PUBLIC BENEFIT; AUTHORIZING THE
EXECUTION AND DELIVERY OF A PURCHASE
CONTRACT, ACQUISITION FUND AGREEMENT
AND OTHER DOCUMENTS REQUIRED IN
CONNECTION THEREWITH; AND AUTHORIZING
THE TAKING OF ALL OTHER ACTIONS
NECESSARY TO THE CONSUMMATION OF THE
TRANSACTIONS CONTEMPLATED BY THIS
RESOLUTION.
WHEREAS, the City of Boulder supports the Governor's Energy Office
allocation of $1,500,000 in Qualified Energy Conservation Bonds for the city's energy
performance contract; and
WHEREAS, the Qualified Energy Conservation Bonds will be used by a lease -
purchase agreement to finance an energy savings performance contract; and
WHEREAS, § 29- 12.5 -103, C.R.S., provides that municipalities may enter into
utility cost - saving measures or energy saving contracts in which utility cost savings are to
pay for services or equipment or otherwise incur indebtedness to finance utility cost -
savings measures or energy saving measures; and
WHEREAS, § 29- 12.5 -103, C.R.S., further provides that no such contract or
indebtedness incurred pursuant to this section shall constitute or give rise to an
indebtedness within the meaning of any constitutional, statutory, or home rule debt
limitation and that such contracts do not require the approval of the qualified electors of
the Political Subdivision.
WHEREAS, in connection with the financing of acquisition and installation of the
Energy Conservation Equipment, Banc of America Leasing & Capital, LLC (in such
capacity, the "Offeror ") has submitted to the City of Boulder its written offer that, upon
acceptance by the City of Boulder, will constitute a binding written contract (the
"Purchase Contract ") to enter into that certain Taxable QECB Equipment
Lease /Purchase Agreement (Direct Subsidy) (the "Agreement") between the City of
Boulder and Banc of America Leasing & Capital, LLC (or one of its affiliates) (in such
capacity, the "Lessor ") and that certain Acquisition Fund and Account Control
Agreement (the "Acquisition Fund Agreement ") among the City of Boulder, the Lessor
and the Acquisition Fund Custodian therein identified, and the Purchase Contract
executed by the Offeror and the forms of the Agreement and the Acquisition Fund
Agreement have been presented to the governing body of the City of Boulder at this
meeting; and
WHEREAS, the City of Boulder desires to designate the aggregate principal
component of Rental Payments under the Agreement for purposes Section 54D(a)(3) of
the Code as a "qualified energy conservation bond" within the meaning of
Section 54D(a) of the Code; and
WHEREAS, the Lessee desires to receive direct cash subsidy payments from the
United States Department of Treasury as provided by Section 6431 of the Code with
respect to the Agreement and, in that connection, to irrevocably elect to have
Section 6431(f) of the Code apply to the Agreement; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE
CITY COUNCIL OF THE CITY OF BOULDER THAT:
Section 1 . The Mayor and the City Council of the City of Boulder hereby
approves the city's use of the Qualified Energy Conservation Bonds.
Section 2 . The Mayor and the City Council of the City of Boulder have approved
the expenditure of funds necessary to finance the terms and conditions of these bonds
through adoption of the City of Boulder's 2010 budget.
Section 3. The City of Boulder hereby designates the Agreement for purposes
Section 54D(a)(3) of the Internal Revenue Code of 1986 as a "qualified energy
conservation bond" within the meaning of Section 54D(a) of the Code. The City of
Boulder hereby further irrevocably elects to have Section 6431(f) of the Code apply to
the Agreement.
Section 4. The officers and employees of the City of Boulder shall take all
actions necessary or reasonably required by the parties to the financing agreements to
carry out, give effect to and consummate the transactions contemplated thereby
(including the execution and delivery of acceptance certificates and any tax certificate
and agreement, as contemplated in the agreement) and to take all actions necessary in
conformity therewith, including, without limitation, the execution and delivery of any
closing and other documents required to be delivered in connection with any of the
financing agreements.
Section 5 . This resolution to be in full force and effect from and after its passage and
approval.
APPROVED this 20 day of July ' 2010.
ATTEST:
q - f
City C erk on behalf of t
Director of Finance and Record
U �� I
Susan Osborne, Mayor