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0 <br />• <br />RESOLUTION <br />AUTHORIZING A REVOLVING LINE OF CREDIT <br />OF $1,500,000 FROM SUN TRUST BANK <br />AND APPROVING A LEASE -PURCHASE AGREEMENT FOR $818,000 <br />WITH SUN TRUST BANK. <br />WHEREAS, the City's Director of Finance solicited and received bids for a revolving <br />line of credit in the amount of $1,500,000 to finance the purchase of a fire fighting truck; and <br />WHEREAS, Sun Trust Bank was the successful low bidder, and the Director of <br />Finance recommends accepting the bid proposal from Sun Trust Bank; now, therefore <br />BE IT RESOLVED by the Council of the City of Charlottesville, that: <br />1. The Letter Agreement dated August 30, 2000 between Sun Trust Bank <br />and the City of Charlottesville for a revolving line of credit in the <br />amount of One Million Five Hundred Thousand Dollars ($1,500,000), <br />and the terms, conditions and provisions thereof, are hereby approved. <br />Loans made pursuant to this line of credit shall be repayable in a term <br />or terms up to a maximum period of seven (7) years at interest rates <br />which will float and be tied to the term of the lease and set as a <br />percentage of the current prime rate. <br />2. The Equipment Lease Purchase Agreement dated October 2, 2000 <br />between Sun Trust Bank and the City of Charlottesville, and the terms, <br />conditions and provisions thereof, are hereby approved. Such <br />agreement shall be for a term not to exceed seven (7) years to finance <br />firefighting equipment in an aggregate principal amount not to exceed <br />$818,000 at an interest rate not to exceed 63% of the current prime <br />rate. <br />3. In the event that funds are not appropriated in any additional fiscal <br />year to cover regular payments required by loans made pursuant to this <br />line of credit, the loan agreement affected shall terminate on the last <br />day of the fiscal period for which appropriations were received and the <br />property shall be surrendered to the financing institution. <br />4. The loan and line of credit loan are hereby designated as"qualified tax- <br />exempt obligations" for purposes of Section 265 of the Internal <br />Revenue Code. <br />BE IT FURTHER RESOLVED that the City Manager, or his express designee, is <br />hereby authorized and directed to execute and deliver any and all documents necessary to <br />close the above-described loans, and any future loans made to the City under this line of <br />credit, including but not limited to, notes, security instruments, UCC financing statements, <br />and corporate resolutions, in form approved by the City Attorney. <br />Approved by Council <br />October 2, 2000 rk of City Council <br />