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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO RESOLUTION NO. 2006-096 (11 72) RESOLUTION DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE CITY AND DIRECTING CERTAIN ACTIONS FOR THE PURCHASE OF A FIRE ENGINE VEHICLE AND THE EQUIPMENT REQUIRED TO PLACE THE VEHICLE INTO OPERATION WHEREAS, the City intends to prepay the purchase of a new fire engine prior to July 31, 2006 in an effort to secure discounted pricing and avoid paying interest on a lease purchase prior to the vehicles arrival; and WHEREAS, the City also proposes to enter into a lease purchase obligation that will include the new fire engine and the cost of equipnlent required to place the vehicle into operation, which will be ordered after the vehicle has been delivered. WHEREAS, the City will use the proceeds of such debt to reill1burse expenditures 111ade by the City for the new fire engine vehicle and equipll1ent prior to the issuance of the debt; and WHEREAS, United States IncOll1e Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deenled to be expended when such proceeds are used for reinlbursement of expenditures made prior to the date of issuance of such debt unless celiain procedures are followed, one of which is a requirenlent that (with certain exceptions), prior to the paytl1ent of any such expenditure, the issuer declares an intention to reimburse such expenditures; and WHEREAS, it is in the public interest and for the public benefit that the City declares its official intent to reinlburse the expenditures referenced herein; NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE as follows: 1. That the City intends to enter into a lease purchase agreenlent in the approxinlate anlount of $520,000, the interest on which will be exenlpt from federal inconle taxation, for the purpose of paying the costs for acquisition of a ne\v fire engine vehicle and equipnlent. 2. That the City hereby declares that it reasonably expects: i. To pay the cost of the new engine vehicle and equiplnent prior to the date of the debt issuance, and 11. To use the lease purchase proceed in the maxilnum all10unt of $520,000 for reinlbursement of expenditures made by the City for costs incurred and paid before the date of lease purchase agreement.