20050111 R-05-02RESOLUTION NO. R-05-02
RESOLUTION TO APPROVE THE DETAILS OF LEASE PURCHASE FINANCING
FOR THE INSTALLATION OF SYNTHETIC TURF AT FAIRFAX HIGH SCHOOL
STADIUM AND TO AUTHORIZE THE EXECUTION, AND DELIVERY OF
RELATED DOCUMENTS AND AWARD THE LEASE PURCHASE FINANCING TO
THE ASHFORD CAPITAL CORPORATION.
WHEREAS, the City of Fairfax, Virginia (the "City") desires to finance the
installation of synthetic turf (the "Turf") at Fairfax High School Stadium through a lease-
purchase and to authorize the execution and delivery of related documents;
WHEREAS, the City Council (the "Council") has received bids pursuant to
advertisement in the manner prescribed by law, from bidders to act as financing lessor
("Financing Lessor") under a lease purchase financing agreement;
WHEREAS, the Council has, after having followed procedures required by general
law, conducted a full analysis and consideration of the technical ability, financial condition,
legal qualification and general character of said bidders; and
WHEREAS, the Council, after such consideration, analysis and deliberation, has
approved and found sufficient the technical ability, financial condition, legal qualification and
general character of the hereinafter named bidder as the bidder which provides the lowest
overall cost to the City to effect the lease purchase financing; and
WHEREAS, the Financing Lessor will lease the Turf to the City on the terms
specified herein, and at the end of the term, Financing Lessor will convey Turf to the City;
NOW, THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY
OF FAIRFAX, VIRGINIA:
1. The Council approves the lease by the City of the Turf from the Financing Lessor
on the following terms: (a) the aggregate total of principal components of basic rent (the
"Basic Rent") payable under the Lease Agreement shall not exceed $711,430, (b) the term of
the Lease Agreement shall not exceed eight (8) years from the date of the final Schedule of
Advances under the Lease Agreement, (c) the interest component of Basic Rent payable under
the Lease Agreement shall have an interest coupon rate not to exceed 5.0% per year
(exclusive of any interest penalties and subject to adjustment as provided in the bid of the
Financing Lessor), and (d) payments of Basic Rent (constituting both principal and interest
components) shall be payable in the amounts and on the dates as shall be determined by the
City Manager.
2. The City hereby awards to Ashford Capital Corporation the lease purchase
financing of the Turf in accordance with the Request For Proposal, all in accordance with the
terms herein, for a period not to exceed eight (8) years.
3. The Mayor, and the City Manager, either of whom may act, are authorized and
directed to execute the Lease Agreement in accordance with the terms herein, provided that
the Lease Agreement and amendments are reviewed and approved by the City Attorney.
4. The City Manager or his designees are authorized and directed to execute and
deliver all certificates and instruments and to take all actions necessary or desirable in
connection with the execution and delivery of the Lease Agreement and the completion of the
financing, according to the terms herein.
5. The obligations of the City under the Lease Agreement shall be limited obligations
payable solely from funds to be appropriated by the Council for such purpose and shall not
constitute a debt of the City within the meaning of any constitutional or statutory limitation or
a pledge of the faith and credit of the City beyond any fiscal year for which the Council has
lawfully appropriated funds.
6. The Council believes that funds sufficient to make payment of all amounts due and
payable under the Lease Agreement can be obtained. While recognizing that it is not
empowered to make any binding commitment to make such payments beyond the current
fiscal year, the Council hereby states its intent to make annual appropriations for future fiscal
years in amounts sufficient to make all such payments and hereby recommends that future
Councils do likewise during the term of the Lease Agreement. The Council directs the City's
Director of Finance, or such other officer who may be charged with the responsibility for
preparing the City's annual budget, to include in the budget request for each fiscal year during
the term of the Lease Agreement an amount sufficient to pay all amounts expected to come
due under the Lease Agreement during such fiscal year. As soon as practicable after the
adoption of the City's annual budget, each year during the term of the Lease Agreement, the
City Manager is authorized and directed to deliver to the Financing Lessor evidence
indicating whether the annual budget contains an appropriation sufficient to pay all amounts
expected to come due under the Lease Agreement for such fiscal year. If at any time during a
particular fiscal year of the City, the amount appropriated in the City's annual budget for such
fiscal year is insufficient to pay when due the amounts then payable under the Lease
Agreement, the Council agrees to direct the City's Director of Finance, or such other officer
who may be charged with the responsibility for preparing the City's annual budget, to submit
to the Council at the next scheduled meeting, or as promptly as practicable thereafter, but in
any event within 45 days, a request for a supplemental appropriation sufficient to cover the
deficit.
7. Any authorization herein to execute a document shall include authorization to
deliver it to the other parties thereto and to record such document where appropriate.
8. All acts of the Mayor, City Manager or their designees that are in conformity with
the purposes and intent of this Resolution and in furtherance of this financing are approved
and ratified.
ADOPTED January 11, 2005
ATTEST
Date
Cit5
VOTE:
Councilwoman Cross aye
Councilman Greenfield aye
Councilwoman Lyon aye
Councilman Rasmussen aye
Councilman Silverthome aye
Councilmember Winter aye