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297 <br /> <br /> December 13, 1988 <br /> <br /> 4. In approving this Resolution, the City of Portsmouth, <br />including its elected representatives, officers, employees, and <br />agents, shall not be liable, and hereby disclaim-all liability <br />for, any damages to any person, direct or consequential, resultin¢ <br />from (1) ~he Authority's failure to issue the Refunding Bonds <br />any reason, or (2) the failure for any reason for the Refunding <br />Bonds to be allocated any portion 'of Virginia's, volume cap, if <br />applicable. <br /> <br /> This Resolution shall take effect immediately upon its <br />adoption." <br /> <br />Ayes: Barnes, Corpre~, Gray, Hawks, Lucas, Simpson, Webb <br />Nays: None <br /> <br /> 88~497- Letter from the City Manager Recommending adoption <br />of a resolution designating a lease purchase in connecction with <br />the acquisition of additional radio communication equipment as <br />qualified~tax-exempt obligation for the purposes of Section 265 <br />(b) (3) of the Internal Revenue~Code of 1986~ <br /> <br /> '"During the preparation and addoption of the F¥89 Operating <br />Budget amounts to defray the lease purchase costs associated with <br />the phase II of our new 800MHz "Smartnet" Radio systems were <br />approved. The lease purchase'will permit the acquisition of the <br />generaI government portion of the radio system. Previously the <br />police, fire and ambulance have been furnished with the new <br />radios. <br /> <br /> The~Tax Reform Act of 1986 adopted by the Federal government <br />has several tiers of municipal debt issuance. Since the City has <br />not issued debt in excess of $5 million during the calendar year <br />1988, we fall into the lowest tier which permits a broader rat <br />of financial institutions to participate in the bidding proc, <br />our debto ~This increased ccompetitiveness allows the City <br />capture the lowest possible cost on the lease purchase payments. <br />~s a part of the requirements by the Federal government, the City <br />uouncil must designate the lease purchase as a "qualified tax <br />exempt obligation" for ~he purposes of satisfying section 265 (b) <br />(3) of-the Internal Revenue Service Code. <br /> <br /> I have had the attached ~esolution prepared for your <br />consideration amd recommend its adoption so that we may enjoy the <br />lowest interest rate on the .l~ase purchase." <br /> <br /> Motion of Mr. Simpson and seconded by Mr. Barnes, the <br />following resolution was adopted, and by the following vote: <br /> <br />"A RESOLUTION DESIGNATING A LEASE PURCHASE IN CONNECTION WIT£ <br />THE ACQHISITION OF ADDITIONAL RADIO COMMUNICATION EQUIPMENT <br />AS A QUALIFIED TAX EXEMPT OBLIGATION FO~ THE PURPOSES OF <br />SECTION 265 (b) (3) OF THE INTERNAL REVENUE CODE OF 198~. <br /> <br /> WHEREAS, the City desires to acquire additional radio <br />communication equipment designated as Motorola 800 MHZ Smartnet <br />Communications System; and <br /> <br /> WHEREAS, the Council of the City of Portsmouth, Virginia, <br />hereby determines that it is in the best interest of the-City to <br />enter into an equipment l~ase purchase a~reement for the <br />acquisition of said radio communication equipment; and <br /> <br /> <br />