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HomeMy WebLinkAbout93-3-4911ORDINANCE #93- 11 AN ORDINANCE AUTHORIZING THE MAYOR PRO TEM OF THE CITY OF PADUCAH TO EXECUTE A PURCHASE AND LEASE AGREEMENT WITH THE CITY OF PADUCAH PUBLIC IMPROVEMENT CORPORATION AND CITIZENS BANK & TRUST COMPANY WHEREAS, the City of Paducah has contracted with McBride Mack, Inc., (McBride) to acquire two front loading trucks and with Stringfellow, Inc., (Stringfellow) to acquire 9,000 roll out carts, all of which is vital to the sanitation pick up system of the City; and WHEREAS, the City desires to consummate purchase in the manner as provided in KRS 58.180, which statute authorizes the City to acquire the aforesaid two front loading refuse trucks and 9,000 roll out carts through a qualified non-profit corporation, which corporation would acquire financing for said purchase; and WHEREAS, The City of Paducah Public Improvement Corporation is a Kentucky non-profit corporation in good standing which would qualify as a corporation through which financing could be obtained as permitted by KRS 58.180; and WHEREAS, the Corporation has applied for a loan with Citizens Bank & 0Trust Company (Citizens Bank) to the extent of $650,000.00 to enable the Corporation to finance the acquisition of the aforesaid two front loading refuse trucks and the 9,000 roll out carts and to pay various costs and expenses relating thereto; and WHEREAS, to enable the Corporation to procure such financing through Citizens Bank, it is necessary for the City of Paducah to assign and transfer unto the Corporation any and all of its contract rights with McBride and Stringfellow, and any and all of its rights, title and interest of ownership as to the two front loading refuse trucks and the 9,000 roll out carts, all of which the Corporation shall then pledge as collateral for the loan. NOW, THEREFORE, be it ordained by the Board of Commissioners of the City of Paducah, as follows: " T\ SECTION 1. That the Mayor Pro Tem of the City of Paducah is hereby authorized and instructed to execute the purchase and lease agreement which is to be entered into by and between the City of Paducah, the Corporation and Citizens Bank. Pursuant to this purchase and lease agreement, the City shall assign and transfer unto the Corporation any and all of its contract rights and obligations with McBride and Stringfellow, and any and all of its rights, title and interest of ownership in and to the I 1 111 11 v 1111 111 1 62 two front loading refuse trucks and 9,000 roll out carts. In return, the Corporation shall lease same back to the City for rentals which shall be commensurate with the loan payments to be made by the Corporation to Citizens Bank. SECTION 2. The Board of Commissioners does hereby authorize and direct that the Corporation execute to Citizens Bank a promissory note in the amount C' of $650,000.00, and additionally, that the Corporation be authorized to assign to Citizens Bank a security interest in and to the two front loading refuse trucks and 9,000 roll out carts and all equipment and accessories relating thereto, and that the Corporation be authorized to accord to Citizens Bank a security interest in and to the lease to be executed by and between the Corporation and the City of Paducah, specifically including a security interest in and to rentals to be paid thereunder. However, the foregoing authorization shall in no manner be construed as any acceptance of liability by the City of the aforesaid loan indebtedness to Citizens Bank, which loan indebtedness shall be deemed the exclusive liability of the Corporation. SECTION 3. The Board of Commissioners does also hereby authorize and direct that from the loan proceeds received from the Citizens Bank loan, the 17 Corporation shall first reimburse the City for all partial payments heretofore made by the C' to McBride and Stringfellow on the purchase agreements and for all costs and �/ g p g expenses incurred by the City regarding these purchase agreements and the loan with Citizens Bank, including but not limited to consultant fees, legal fees, and loan closing costs and expenses, all of which are to be capitalized as part of the cost of the acquisition of the above-described two front loading trucks and 9,000 roll out carts. The Corporation shall thereafter pay the balance of the loan proceeds to McBride and Stringfellow on the remaining purchase price to be paid under said agreements. This is a declaration of official intent under Treasury Regulation Section 1.103-18(f). SECTION 4. The Mayor Pro Tem and City Clerk are hereby authorized to execute any and all other necessary documents for finalizing the aforesaid transaction. SECTION 5. This ordinance shall be read on two separate days and will become effective upon publication of title and a certified summary thereof. EARL FEEZOR, MAYOR PR M .. -,: �ii^�� FTM ^omni — -- ,. .. —, 111 Introduced by the Board of Commissioners February 23, 1993 Adopted by the Board of Commissioners March 2, 1993 Recorded by Lenita Smith, City Clerk March 2. 1993 Published by The Paducah Sun March 8. 1993 ORD\5356 63