CITY COUNCIL AGENDA ITEM
Meeting Date: October 10, 2000
Subject/Title: A Resolution authorizing the Execution and
Delivery of an Amendment to the Municipal Finance Corporation Equipment
Submitted by: Anita Jones, Finance Department
Approved by: Jon Elam, City Manager
Passage of a resolution authorizing the execution and delivery of an amendment
to the Municipal Finance Corporation Lease assignment of rights, the payment
schedule and interest rate.
August 24, 1999, Resolution 99-191 was passed authorizing an equipment lease/purchase
agreement with Municipal Finance Corporation.
August 22, 2000, Resolution 2132 was passed authorizing an amendment to the
Municipal Finance Corporation equipment lease/purchase agreement for additional
The lease was approved as a “bank qualified” financing which means that the
city did not anticipate issuing tax-exempt obligations in the face amount of
more than $10,000,000 in the current calendar year. The issuance of the CIFP-2000-1
bonds this year exceeds the $10,000,000 limit. Amendment to the lease/purchase
agreement will reassign the lease to an individual investor, therefore changing
the “bank qualified” status.
The financial impact of reassigning the lease is .25% on $466,000 which is
approximately $5,100, spread over the five years remaining on the lease.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE EXECUTION
AND DELIVERY OF AN AMENDMENT TO MUNICIPAL FINANCE CORPORATION EQUIPMENT LEASE
PAYMENT SCHEDULE #99-102-AF
WHEREAS, the City of Brentwood finds it desirable to amend the
rental payment schedule of Lease with Option to Purchase #99-102-AF dated
as of August 24, 1999 (the “Lease”) at a 5.63% annual percentage rate
in order to facilitate the refinancing and reassignment of the Lease;
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF BRENTWOOD, DOES
HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS;
Section 1. The City Manager is hereby authorized to enter into all agreements,
documents, and certificates to amend the rental payment schedule of the Lease
including, but not limited to, an amendment to Lease Schedule #99-102-AF and
signature and incumbency certificate.
Section 2. The City Manager is hereby authorized to take all other actions
required to consummate the transaction contemplated hereby.
Section 3. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood
at a regular meeting held October 10, 2000 by the following vote: