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RESOLUTION • AUTHORIZING A MASTER LINE OF CREDIT LOAN OF $1,000,000 AND A LOAN AGREEMENT FOR $274,950 FROM CRESTAR BANK WHEREAS, City Council appropriated certain funds in the 1992-93 Capital Improvements Program and in the 1994-95 Equipment Replacement Fund for the purchase of a fire truck, and co - collection refuse trucks and equipment, respectively, and has agreed to finance the fire truck through a loan, and the co - collection vehicles through a line of credit loan; and WHEREAS, the City's Director of Finance solicited and received bids for such financing and recommends accepting the bid proposals from Crestar Bank; now, therefore BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, that: 1. The 1994 fire truck financing agreement between Crestar Bank and the City of Charlottesville, and the terms, conditions and provisions thereof are hereby approved. Such agreement shall be for a term not to exceed seven (7) years and to finance firefighting equipment in an aggregate principal amount not to exceed $274,950 at a "true" interest cost to the City not to exceed 5.014%. • 2. The 1994 One Million Dollar ($1,000,000) "master" line of credit financing agreement between Crestar and the City for the purchase and retrofitting of certain co -collection refuse trucks and related equipment, and the terms, conditions and provisions of said line of credit are hereby approved. Loans made pursuant to this line of credit shall be repayable in a term or terms up to a maximum period of seven (7) years at interest rates which will float and be tied to rates for comparable term treasury notes (currently in the range of 5.1% per annum). 3. In the event that funds are not appropriated in any additional fiscal year to cover regular payments required by these two loans, or either of them, the loan agreements affected shall terminate on the last day of the fiscal period for which appropriations were received, and the property shall be surrendered to the financing institution. 4. The loan and line of credit loan are hereby designated as "qualified tax-exempt obligations" for purposes of Section 265 of the Internal Revenue Code. BE IT FURTHER RESOLVED that the City Manager, or his express designee, is hereby authorized and directed to execute and deliver any and all documents necessary to close the above described loans, including but not limited to, notes, security instruments, UCC • financing statements, and corporate resolutions, in form approved by the City Attorney. Approved by Council May 16, 1994 rk of City Council