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HomeMy WebLinkAboutResolutions - 1993.10.21 - 23776October 21, 1993 MISCELLANEOUS RESOLUTION #93228 BY: FINANCE COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON IN RE: COMPUTER SERVICES - APPROVAL OF LOAN FROM DELINQUENT TAX REVOLVING FUND TO EXERCISE MOBILE DATA TERMINAL PURCHASE OPTION To the Oakland County Board of Commissioners Chairperson, Ladies, and Gentlemen: WHEREAS the County of Oakland entered into a lease/purchase agreement with US Leasing International on behalf of the Computer Services In-Car Terminal Fund at an annual interest rate of 8.30% for the period November 1, 1988 through November 1, 1995; and WHEREAS the purchase option on November 1, 1993, will be $519,793 or $61,241 less than the remaining lease payments over the next two years which total $581,034; and WHEREAS the County desires to exercise its purchase option in the Mobile Data Terminal lease/purchase agreement by borrowing funds from the Delinquent Tax Revolving Fund (DTRF) and repaying those funds over two (2) years at the average monthly interest rate paid by the DTRF, which will fluctuate over the term of the agreement; and WHEREAS the County Treasurer as agent for the DTRF has determined that funds are available and is willing to loan funds, thereby saving the County approximately $33,085 over the term of this agreement. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the Chairperson of the Board to execute the attached Borrowing Agreement with the County Treasurer as agent of the DTRF to exercise the purchase option in US Leasing International Agreement No. 10008163 in the amount of $519,793. BE IT FURTHER RESOLVED that principal and interest payments made to the DTRF in repayment of this agreement will be accounted for in the In-Car Terminal Fund, fund #63700. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE REVOLVING FUND BORROWING AGREEMENT WHEREAS the County of Oakland is desirous of borrowing monies from the Oakland County Delinquent Tax Revolving Fund, and WHEREAS the Delinquent Tax Revolving Fund Agent has determined sufficient monies are available to loan to the County, THEREFORE, in consideration of agreements setforth below it is hereby agreed by and between the parties as follows: The County will borrow the principal sum of $519,793 from the Delinquent Tax Revolving Fund to be paid back in annual principal and interest payments not to exceed two (2) years. Said payments shall be deducted from the annual Revolving Fund distribution made to the County on or about June 1st of each year. Interest on each payment will be based on the average monthly rate paid during the term of this agreement by the agent of the Delinquent Tax Revolving Fund for that year's outstanding borrowing. The schedule of principal payments will be: Year Principal 1 $259,897 2 259,896 Total $519,793 It is further agreed that the County may pay off the loan at any time plus accrued interest without penalty. Agent for Revolving Fund Chairperson Board of Commissioners Resolution #93228 October 21, 1993 Moved by McCulloch supported by Huntoon the resolution be adopted. AYES: Dingeldey, Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson, Kaczmar, Kingzett, McCulloch, McPherson, Miltner, Moffitt, Oaks, Obrecht, Palmer, Pernick, Powers, Price, Schmid, Taub, Wolf, Aaron, Crake. (24) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on October 21, 1993 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and ;f fixed the seal of the County of Oakland at Pontiac, Michigan this 21st day cf Octohcr 1993. Lyir. D. Allen, Count Clerk