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HomeMy WebLinkAboutResolution No. 20-7974 - Approving a Master Equip Lease Purchase Agrmt & Schedule of Equip No. 1 w-Community Leasing - Fire Training Mod Building0:6fel"fler,11LIT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DO,UAET APPROVING A MASTER EQUIPMENT LEASE PURCHASE AGREEMENT AND SCHEDULE OF EQUIPMENT NO. 1 WITH COMMUNITY FIRST NATIONAL BANK IN CONNECTION WITH THE ACQUISITION OF A FIRE TRAINING MODULAR BUILDING WHEREAS, the City Council, as the governing body of the City of Downey, has determined that a true and very real need exists A Fire Training Modular Building ("Equipment") described in the Master Equipment Lease Purchase Agreement and Schedule of Equipment No. 1 presented to the City Council this meeting and that it is appropriate to finance the acquisition of the Equipment in this manner; and WHEREAS, the City of Downey has taken the necessary steps under applicable law to arrange for the acquisition and financing of such Equipment. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF DOWNEY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the Master Equipment Lease Purchase Agreement and Schedule of Equipment No. 1 ("Agreement") attached hereto as Attachment "A" is hereby approved as the best means for the City of Downey, as Lessee in the Agreement, to finance the acquisition of such Equipment, and the City Council designates and confirms that either individual listed below is authorized to execute and deliver on behalf of the City the Master Equipment Lease Purchase Agreement and any related documents, including the Schedule of Equipment No. 1 ("Schedule"), deemed by such person necessary to the consummation of the transactions contemplated by the Agreement: BLANCA PACHECO, MAYOR OR GILBERT A. LIVAS, CITY MANAGER CITY OF DOWNEY CITY OF DOWNEY SECTION 2. The above -named representatives of the City held their position of Mayor and City Manager at the time of such authorization, and at the present time hold their respective offices as set forth above. SECTION 3. The meeting of the Downey City Council at which the Agreement and the Schedule were approved and authorized to be executed was duly called, regularly convened and attended throughout by the requisite majority of the members thereof and that the action approving the Agreement and the Schedule and authorizing the execution thereof has not been altered or rescinded. SECTION 4. No event or condition that constitutes, or with the giving of notice or the lapse of time or both would constitute, an Event of Default (as such term is defined in ths Agreement), exists as of the date of this Resolution adoption. SECTION 5. All insurance required in accordance with the Agreement is currently maintained by the City of Downey. SECTION 6. The City of Downey has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current budget year to make the lease payments scheduled to come due during the Original Term (as defined in the Agreement) and to meet its other obligations for the Original Term and such funds have not been expended for other purposes. Rill! MEMO rX ip�iri�ppgi�%�111 APPROVED AND ADOPTED this 1 oth day of Nov m er _,1201220,_ _mom MCAPACHECO, Mayor LALI�CIA DU&T City Clerk I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council o"l, the City of Downey at a Regular meeting held on the 1 oth day of November, 2020, by the following vote, to wit: AYES: Council Member& Ashton, Saab, Rodriguez Frometa, Mayor Pacheco NOES: Council Member: None. ABSENT: Council Member: None. ABSTAIN: Council Mem #ALIC�IADU�A� ,CMC� City Clerk ATTACHMENT A VT4 3�# ['. i M Wrowl5w . I # A 1 6 IS= Wif HOU041MI RIM 010-M-een QoMPI Firlst Seth Child Rd, Manhattan, KS 66502 ("Lessor'), and City of Downey, 11111 Brookshire Ave, Downey, CA 90241 a municipal corporation and charter city duly organized and existing under the laws of the State of California ("Lessee"); RECITALS WHEREAS, Lessee desires to lease from Lessor certain equipment described in the schedules to this Agreement, substantially in the form of Exhibit A W.4* as the "Schedules", and the items of equipment leased to Lessee hereunder, together with all substitutions, proceeds, replacement parts, repairs, additions, attachments, accessories and replacements thereto, thereof or therefore, are hereinafter collectively referred to as the "Equipment") subject to the terms 2nd conditions of and for the purposes set forth in this Agreement. 11•1! 1111111 111 iiiii ill !1111 111 11111 !1 1! !!111 1 111 111 # # 1, In I I I I LRA 01MAKWAI I I Lail MIN11.0 114 Lail K 1 ID -will Mr-14 LN IiI IN r�l or.] I I r4m or.] PA (M-11116M Mal is rZ1 V111 MRA M Len III IRA 0 K174 llill,IL7At.. 94111 1 - i 1 -1 1 WHEREAS, Lessee is authorized under the constitution and laws of the State to enter into this Agreement for the purposes set forth herein. NOW, THEREFORE, for and in consideration of the premises hereinafter contained, the parties hereby agree as follows: E I 7aw-a-VaTITC] Cul UJ (I I In Pd I LICZ5 fie I etif, TTI I eme I UU I I el I fly III UA 1 41 He I Carte I VXUU1I dZi .1 It bdf I It I I lay Ut SUPPIt I I Itil I Lea 0 1 d I I It I luet time in accordance with the terms hereof "Code" means the Internal Revenue Code of 1986, as amended, and the United States Treasury Regulations in effect thereunder. purchase the Equipment listed on that Schedule are deposited by Lessor for that purpose with an escrow agent. "Equipment" means the property described in the Schedules and all replacements, substitutions, repairs, restorations, modifications, attachments, accessions, additions and improvements thereof or thereto. Whenever reference is made in this Agreement to Equipment listed in a Schedule, that reference shall be deemed to include all replacements, repairs, restorations, modifications and improvements of or to that Equipment. "Event of Default" means, with respect to any Lease, an Event of Default described in Section 10.01. "Escrow Aoreement" means with resoect to a agiven Schedule an escrow ai.reement in form and substance satisfactor_y to LessQ[ between Lessee Lessor and an escrow agent relating to the acquisition fund created thereunder. "Lease" means, at any time, (i) if none of Lessor's interest in, to and under any Schedule has been assigned pursuant to Section 9.01, or if all of Lessor's interest in, to and under this Agreement and all Schedules have been assigned to the same assignee without any reassignment, this Agreement, or (ii) if Lessor's interest in to and under an Schedule or Schedules has been assigned or reassi ned ursuan to Section 9.01, all Schedules that have the same toandunderthatSc dulehasbeenassi gned p rsuant to Section 9.01, the assignee thereof or its successor. afforneys'fees) incurred in the collection of such claim or award. "Original Term" means, with respect to any Lease, the period from the first Commencement Date for any Schedule under that Lease until the end of the fiscal year of Lessee in effect at that Commencement Date. "Purchase Price" means, with respect to the Equipment listed on any Schedule, the amount set forth in that Schedule as the Purchase Price for that Equipment. "Renewal Terms" means, with res ect to an Lease the automatic renewal terms of that Lease as irovided for in Article I I I of this Apreement each ha -Wi-KQ"M%-W Is F *f the last Rental Payment set forth in the Schedule. "Rental Payments" means the basic rental payments payable by Lessee pursuant to Section 4.02. "State" means the state in which Lessee is located. -quipment. ARTICLE Ill. LEASE TERM ,8 Lessor hereby demises, leases and lets to Lessee, and Lessee rents, leases and hires from Lessor, the Equipment listed in each Schedule in accordance with this Agreement and that Schedule for the Lease Term for the Lease of which that Schedule is a part. The Lease Term for each Lease may be continued at the end of the Original Term or any Renewal Term for an additional Renewal Term; provided, however, that at MIAMI ON 1-00-3 extent necessary in each proposed annual budget submitted for approval in accordance with applicable procedures of Lessee and to exhaust all available VON of Lessee and other matters related to Lessee. ARTICLE IV. RENTAL PAYMENTS ftflon en migin s tD onst Lessor and Lessee understand and intend that the obliqation of ill W-' NUNN- W, lwiiililwliliwlmm 1111100.11101191", 1 M-1511111111 - 11W IN 11 iii 11 1 I i I It I I I I I � I I I I I I I � I I ��� I I p I I I I I I I � I �� I I I p��gjjgjiji i lip I up 2 -MuniStd - LC9,, auctioneer's or attorney's fees) shall be applied as follows: (a) If such remedy is exercised solely with respect to a single Schedule, Equipment listed in that Schedule or rights under the Agreement related to that Schedule, then to amounts due pursuant to that Schedule and other amounts related to that Schedule or that Equipment, (b) If such remedy is exercised with respect to more than one Schedule, Equipment listed in more than one Schedule or rights under the Agreement related to more than one Schedule, then to amounts due pursuant to those Schedules pro rata. ARTICLE XI. MISCELLANEOUS �adon 11, All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when defivere-4, or mailed by registered mail, postage prepaid, to the parties at their respective places of business. Section 'I J .02. Binding Efttt,� Enti re, I I 1! 1: 1 , iments and Modiftatibm This Agreement shall inure to the benefit of and shall be binding upon Lessor and Lessee and their respective successors and assigns. The terms of this Agreement shall not be waived, altered, modified, supplemented oi inks ?Enj holding shall not invalidate or render unenforceable any other provision hereof. $kOgn I IM� , Arrind This Agreement may be amended, added to, changed or modified by written agreement duly executed by Lessor and Lessee. §�ecfion 1 Ekdiutjon jn'Counjerbgft-��hA�11 OAU�j� This Agreement, including in writing each Schedule, may be executed in several counterparts, 004 .4. NO 0 @-1 ft, - ON NOW -1 ~16 01100. 16, fe.I counterpart of that Schedule marked "Counterpart No. I," which Counterpart No. 1 shall constitute chattel paper for purposes of the Uniform Commercial Code. ���Qn 11 Al, QjgW The parties hereto agree that the charges in this Agreement and any Lease shall not be a violation of usury or other law, Any such excess charge shall be applied in such order as to conform this Agreement and such Lease to such applicable law. To the extent permitted by law, lessee agrees to waive its right to a trial by jury, Lessee agrees that a facsimile coRf of this Aoreement or any, Lease with -facsimile sionatures ma be treated as an original and will be admissible as evidence of this Agreement or such Lease, The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement. LESSEE: City of D32 M. ayIV Blanca ac o, Mayor F-ITITZ=- OEHTWDMI� LESSOR: Signature Name and Title Approved as to for Ity omey —TFe M. —Abicl Garcia — 6 —MuniStd - LCR EXHIBIT A SCHEDULE OF EQUIPMENT NO. 01, to 10/15/2020 lzm�i 10401"' 4-1011MM U-009151"91 INNER&= we 011 =1 ilLq Mr A1j0fMNV1jZjq; - Lessee. 1 Defined Terms. All terms used herein have the meanings ascribed to them in the above referenced Master Equipment Lease Purchast Agreement (the "Master Equipment Lease"). 2. Equipment. The Equipment included under the Schedules of Equipment is comprised of the items described in the Equipment Description attached hereto as Attachment 1, together with all replacements, substitutions, repairs, restorations, modifications, attachments, accessions, additions and improvements thereof or thereto, 3. Payment Schedule. The Rental Payments and Purchase Option Prices under the Schedules of Equipment are set forth in the Payment Schedule attached as Attachment 2 hereto. Representations, Warranties and Covenants. Lessee hereby represents, warrants, and covenants that its representations, warranties and covenants set forth in the Agreement are true and correct as though made on the date of commencement of Rental Payments on this Schedule. 5. The Master Equipment Lease. This Schedule is hereby made as part of the Master Equipment Lease and Lessor and Lessee hereby ratify and confirm the Master Equipment Lease. The terms and provisions of the Master Equipment Lease (other than to the extent that they relate solely to other Schedules or Equipment listed on other Schedules) are hereby incorporated by reference and made a part hereof. LESSEE: City of Downey Blanca Piicheao-,Va—y6io Duarte, C C F, LESSOR: ........ ........ Signature Name and Title Approved as to form -City Attorney _iveite M. _AbichGarcia — 7 —MuniStd - LCR ATTACHMENT I EQUIPMENT DESCRIPTION ITINSfei Equipment Lease rurcnase Agreement and Trie Equipment is locafea on ine premise oi frie Lessee Unless L 1U1,1419 City of Dowq� Blanca P Mayor �MAflc�iaDuarAeC YAWe-NE-A ich Gahrcia' —n—Munum Lcx ATTACHMENT 2 PAYMENT SCHEDULE AMORTIZATION SCHEDULE Purchase Payment , Payment Payment Interest Principal Option Number Date Amount Portion Portion Price 1 11/11/2020 $12,959.00 $102.42 $12,856.58 Not Available 2 11/1/2021 $12,959.00 $1,706.91 $11,252.09 $37,068.58 3 1111/2022 $12,959.00 $1,302.51 $11,656.49 $25,006.64 4 11/1/2023 $12,959.00 $883.58 $12,075.42 $12,652.80 5 11/1/2024 $12,959.00 $449.58 $12,509.42 $0.00 Grand Totals $64,795.00 $4,445.00 $60,350.00 LESSEE, City of Dow Blanca Pacheco, Mayor WHM��M c rte, CMC Ap� form -City Attorney eve M. Abich Garcia — 9 —MuniStd - LCR EXHIBIT B i- i S • Isiol ORIMMINWIlilo- •-- 0 • �i r r i` -•- 10—MuniStd - LCR Citnv,p o f D o �u FUTURE UNLIMITED YVETrE M. ABICH GARCIA City Attorney November 2, 2020 Community First National Bar's 215 S. Seth Child Road Manhattan, KS 66502 1 As legal counsel to City of Downey (the "Lessee"), I have examined (a) an executed counterpart of a certain Master Equipment Lease Purchase Agreement, dated as of 10/15/2020, and Exhibits thereto by and between Community First National Bank (the "Lessor") and Lessee, Schedule of Equipment No. 01 , dated 10/15/2020, (collectively, the "Agreement") by and between Lessor and Lessee, which among other things, provides for the lease with option to purchase by the Lessee of certain property listed in the Schedule of Equipment No. 1 (the "Equipment"),- (b) an executed counterpart of the ordinances or resolutions of Lessee which, among other things, authorizes Lessee to execute the Agreement and (c) such other opinions, documents and matters of law as I have deemed necessary in connection with the following opinions, Based on the foregoing, I am of the following opinions� (1) Lessee's true and correct name is City of Downey-, (2) Lessee is a municipal corporation and charter city, duly organized and existing under the laws of the State of California, and has a substantial amount of the following sovereign powers: (a) the power to tax, (b) the power of eminent domain, and (c) police power-, (3) Lessee has the requisite power and authority to lease the Equipment with an option to purchase and to execute and deliver the Agreement and to perform its obligations under the Agreement; .(4) The Agreement and the other documents either attached thereto or required therein have been duly authorized, approved and executed by and on behalf of Lessee and the Agreement and other documents either attached thereto or required therein are the valid and binding obligations of Lessee enforceable in, accordance with their terms DFIC,'E OF 7-41E 017I A 770RN Y III "I PROOKSHHFAVENUE P,C), 30X 7013 DC)YINEY, CA 90241-I''D 13 (562" 904-7288 FAX "562) 923-4-3388 (5) The authorization, approval and execution of the Agreement and a other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all open meeting laws, and all other applicable state or federal laws,' (6) To the best of my knowledge, and as of the date of this opinion, here is no proceeding pending or threatened in any court or beforE any governmental authority or arbitration board or tribunal that, if adversely determined, would adversely affect the transactions contemplated by the Agreement or the security interest of Lessor its assigns, as the case may be, in the Equipment; (7) The signatures of the officers which appear on the Agreement hol( the offices set forth below their names-, (8) No further approval, consent or withholding of objection is requirec from any federal, state or local governmental authority with respec to the entering into or performance by the Lessee of the Lease aniis the transaction contemplated thereby; (9) The Equipment leased pursuant to the Agreement constitutes personal property and when subjected to use by Lessee will not b( or become fixtures under applicable law; (10) The Lessee is a political subdivision within the meaning of Section 103 of the Internal Revenue Code of 1986 as amended and the related regulations and rulings. All capitalized terms herein shall have the same meanings as in the foregoing Agreement unless otherwise provided herein. The above opinion is for the of benefit of the Lessor and can only be relied upon by the Lessor or any permitted assignee or sub -assignee of Lessor under the Agreement. This opinion letter speaks only as of the date set forth above. In rendering this opinion letter, I undertake no obligation to supplement or update this letter in the future. This opinion letter is limited to the matters on which the Lessor has requested my opinion, and this opinion letter should not be read as expressing any opinion except on the matters expressly set forth herein. CITY OF DOWNEY fl Yvette M. Abich Garcia City Attorney EXHIBIT D In accordance with the Master Equipment Lease Purchase Agreement (the "Agreement"), the undersigned Lessee hereby certifies and represents to, and agrees with Lessor as follows: (1) All of the Equipment (as such term is defined in the Agreement) listed in the above referenced Schedule of Equipment (the "Schedule") has been delivered, installed and accepted on the date hereof. (2) Lessee has conducted such inspection and/or testing of the Equipment listed in the Schedule as it deems necessary and appropriate and hereby acknowledges that it accepts the Equipment for all purposes. (3) Lessee is currently maintaining the insurance coverage required by Section 6.05 of the Agreement. (4) No event or condition that constitutes, orwith notice or lapse of time, or both, would constitute, an Event of Default (as defined in the Agreement) exists at the date hereof. (5) Lessee has appropriated and/ortaken other lawful actions necessary to provide moneys sufficient to pay all Rental Payments required to be paid under the Agreement during the current Budget Year of Lessee, and such moneys will be applied in payment of all Rental Payments due and payable during such current Budget Year. (6) The governing body of Lessee has approved the authorization, execution and delivery of this Agreement on its behalf by the authorized representative of Lessee who signed the Agreement. (7) The Lessee will in a timely fashion submit the appropriate paperwork to the State to have a title to the Equipment issued in their name as owner and Lessor listed as first lienholder. Such verification of perfected ownership and security interest will be provided to Lessor no later than 90 days from delivery of the Equipment. City of Blanca PaCffe—&6,�ayor Attested byCity Clerk �ari �ficia Dua �eCM�C� Approved as t ity Attorney -o-mmn/md Lon BANK QUALIFIED CERTIFICATE 4 . . 0 • . . . . I I . . . 0 . , 0 , a - 0 , i 61tafluAns as 0, 1 - - . .. M It W 0,111111116111 -0 W11 1011.01, W_111r�1141 I r-41 a R F I Designation as Qualified Tax -Exempt Obligation. Pursuant to Section 265(b)(3)(13)(i) of the Internal Revenue Codt of 1986 as amended (the "Codethe Lessee hereby specifically designates the above referenced Agreement as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Code. In compliance with Section 265(b)(3)(D) of the Code the Lessee her b e sent that the Lessee will not desi•natemorethan 10000000 TrICUITr I en les T ne Lessee i the Code) reasonably anticipates not to issue in the calendar year during which the above referenced Agreement is LESSEE: City of Dow ,x Blanca Pa6heco, Mayor Attested by City Clerk 4ariaAfida �Dua Duarte, Approved as to form-0 ttorne - I I �Abich Garcia -- 13 —MuniStd - LCR INSURANCE COVERAGE REQUIREMENTS Lessee: City of Downey Please mark one of the following: ( ) Pursuant to Section 6.05 of the Agreement, you have agreed to provide us evidence of insurance covering the property in the Agreement. A Certificate of Insurance naming all insured parties and coverage must be provided to us as soon as possible, but no later than the date on which delivery of equipment occurs. ( ) Pursuant to Section 6.05 of the Agreement, we are self -insured for all risk, physical damage, and public liability and will provide proof of such self-insurance in letter form, together with a copy of the statute authorizing this form of insurance. Coverage must be provided to us as soon as possible, but no later than the date on which delivery of equipment occurs. Equipment to be insured: One (1) New 24 X 40 Fire Training Modular Building Policy should be issued and mailed to: Community First National Bank and/or Its Assigns 215 S. Seth Child Road Manhattan, KS 66502 INSURANCE REQUIREMENTS: 1. --LIABILITY V $1,000,000.00 Aggregate Bodily Injury V $1,000, 000.00 Combined Single Limit per Occurrence V Community First National Bank andlor Its Assigns MUS be listed as additional insured and loss payee. 2. PHYSICAL DAMAGE All risk coverage to guarantee proceeds sufficient to cover the replacement cost of the equipment. Community First National Bank andlor Its Assigns MUS be listed as additional insured and loss payee. 3. ENDORSEMENT V Lessor will receive at least thirty (30) days written notice from Insurer prior to alteration, cancellation or reduction of insurance coverage. Deductibles should be listed on the Certificate of Coverage LESSEE: City of Co Blanca Pacheco, Mayor Attested by City Clerk aria Icia )Ua e, C THE CERTIFICATESHOULD BE EMAILED TO MqidAnongotbkqIqu§_anet OR FAXED TO: 888.777.7875 1 Approved as to form-C'ty Attorney ette M. Abich Garcia - 14 -MuniStd - LCR RE: Schedule of Equipment No. 01, dated 10/15/2020, to Master Equipment Lease Purchase Agreement, dated as of 10/15/2020, between Community First National Bank, as Lessor, and City of Downey, as Lessee. Lease Number: DOWCA2020-10 Equipment Description: One (1) New 24 X 40 Fire Training Modular Building =- P.O. Box/Street: City, State, Zip Email Address: — iS —MuniStd - LCR NOTICE OF ASSIGNMENT City of Downey 11111 Brookshire Ave Downey, CA 90241 Please be advised that Community First National Bank has assigned all its right, title and interest in, to a under the above referenced Master Equipment Lease Purchase Agreement (the "Agreement"), t Equipment leased thereunder and the right to receive Rental Payments thereunder to the followi Community First National Bank will be the servicing this lease and all Rental Payments and payment of the Purchase Option Price due under the Agreement will be made to: 215 S. Seth Child Road Manhattan, KS 66502 Signature LESSEE: City of Downs 121 Blanca P46heco, Mayor Attested by City Clerkproved as to for C 4.6114a 'Ilua�IeCM�C���� _Ve_tt4__M.­Ab7i6h Garcia *Lessor may eta future date desire toassign this lease agreement. Atthis time, ospecific Assignee isundetermined. /tsuch time Lessor determines a need to assign this lease-, Lessee will be provided with a completed copy of this page for their records and be made aware of any changes inwhere 10send the rental payments going forward. This assignment option ieoutlined inArticle |Xofthe Master Equipment Lease Purchase Agreement. -z6 -mumStu LCn F.,,18038-GC Information Return for Small Tax -Exempt (Rev. January 2012) Governmental Bond Issues, Leases, and Installment Sales OMB No. 1545-0720 Department of the Treasury No- Under Internal Revenue Code section 149(e) Internal Revenue Service Caution: If the issue price of the issue is $100, 000 or more, use Form 8038-G. eporting Authforit Check box if Amended Return El 1 issuer's name r2l_ssuer's employer identification number (EIN) — City of Downey 95 11918226 3 Number and street (or P.O. box if mail is not delivered to street address) Room/suite 11111 Brookshire Avenue 1 City, town, or post office, state, and ZIP code 5 Report number (For IRS Use Only) Downey, CA 90241 F I Name and title of officer or other employee of issuer or designated contact person wt-vorn the JR- Smay-call for more information 7 Telephone number of officer or legal representative [MM Desciription of Obli2ations Check one:'a single issue [W or a consolidated return 8a Issue price of obligation(s) (see instructions) . . . . . . . . . . . . . . . . . . Ea 60,350 :00 b Issue date (single issue) or calendar date (consolidated). Enter date in mm/dd/yyyy format (for example, 01 /01 /2009) (see instructions) 10/15/2020 9 Amount of the reported obligation(s) on line 8a that is: a For leases for vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . 9a b For leases for office equipment . . . . . . . . . . . . . . . . . . . . . , 9b c For leases for real property . . . . . . . . . . . . . . . . . . . . . . 9c, d For leases for other (see instructions) Modular Building . . . . . . . . . . . Sid 60350 e For bank loans for vehicles . . . . . . . . . . . . . . . . . . 9e f For bank loans for office equipment . . . . . . . . . . . . . . . 9f g For bank loans for real property. . . . . . . . . . . . . . . . . —29 h For bank loans for other (see instructions) . . . . . . . . 9h i Used to refund prior issue(s) . . . . . . . . . . . . . . . . . . . . . 9i i Representing a loan from the proceeds of another tax-exempt obligation (for example, bond bank) 9i k Other . . . . . . . . . . . . . . . . Ak 10 If the issuer has designated any issue under section 265(b)(3)(6)(i)(111) (small issuer exception), check this box No El 11 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check this box (see instructions) El 12 Vendor's or bank's name: Community First National Bank -- -- --- ------ ------ ---------------------- ------------------- * --------------------------------------- 13 VRnrinr'-, nr hnnk',, omnlovor Purnber, Z= nalfies Of perjury, I declare that I have examined this return and accorripanying:schedulas and statements, and to the best of my knowledge and belief, they are act, and zomplerle. I further - th*t=MmHe4lwQS ,'s disclosu of 1he Issuurn er's tvtinformation, as necessary to process this return, to the person(s) 9 autho Print/Type preparer's name ------------------------------------------- name Do. I Firms address 11- General Instructions Section references are to the Internal Revenue Code unless otherwise noted. The IRS has created a page on IRS.gov for information about the Form 8038 series and its instructions, at www.irs.gov/form8038. Information about any future developments affecting the Form 8038 series (such as legislation enacted after we release it) will be posted on that page. Purpose of Form Form 8038-GC is used by the issuers of tax- exempt governmental obligations to provide the IRS with the information required by section 149(e) and to monitor the requirements of sections 141 through 150. Blanca Pacheco, Mayor tat ce Date Type or print name and title Preparer's signature Date PTIN Who Must File Issuers of tax-exempt governmental #bligations with issue prices of less thar. $100,000 must file Form 8038-GC. NOW 01 more must file Form 8038-G, Information Return for Tax -Exempt Governmental Obligations. ED Kv_a_qapq_r_7t;,-_xP_ti Issuers have the option to file a separate Form 8038-GC for any tax-exempt a i uni AW 111111 WINES =11 M-• Check Lj if self -employe Firm's EIN ► pay a penalty in lieu of arbitrage rebate (see the line 11 instructions). Filing a consolidated return for multiple issues. For all tax-exempt governmental obligations with issue prices of less than $100,000 that are not reported on a separate Form 8038-GC, an issuer must file a consolidated information return including all such issues issued within the calendar year. Thus, an issuer may file a separate Form 8038-GC for each of a number of small issues and report the remainder of small issues issued during the calendar year on one consolidated Form 8038-GC. However, if the issue is a construction issue, a separate Form 8038-GC must be filed to give the IRS notice of the election to pay a penalty in lieu of arbitrage rebate. Cat. No, 64108B Form 8038-GC (Rev, 1-2012)