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R-02-39 A RESOLUTION OF THE CITY COUNCILOF THE CITY OF PORTSMOUTH, VIRGINIA AUTHORIZLNG THE LEASE FINANCING OF CERTAIN FIRE APPARATUS IN THE MAXIMUM PRINCIPAL AMOUNT OF $1,800,000. WHEREAS, the Council of the City of Portsmouth, Virginia ("City") has determined that it is necessary and advisable to acquire certain fire apparatus ("Apparatus") for the City as part of a fifteen-year replacement plan for fire apparatus and to obtain financing for the Apparatus through a financing lease providing financing for the Apparatus in the maximum principal amount of $1,800,000 ("Lease"); and WHEREAS, the City entered into a $8,800,000 Equipment Lease Purchase Agreement (the "Financing Lease") with Banc of America Leasing and Capital. LLC (the "Lessor") on December 8, 2002; and WHEREAS, the Lessor is willing to amend this Financing Lease to include the financing of the Apparatus. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: 1. Terms of Financing. The City Manager and the City's Chief Financial Officer, or either of them, is authorized and directed to negotiate an amendment to the Lease (the "Amendment") with the Lessor that such officers, or either of them, determine to be in the best interest of the City, provided that the maximum principal amount of the financing shall not exceed $1,800,000, the interest rate used to calculate the interest component of rental payments under the Lease shall not exceed 8% and the term of the Amendment to the Lease shall not be longer than five years. 2. Authorization and Execution of Documents. The City Council authorizes and directs the City Manager and the Chief Financial Officer of the City, or either of them, to execute on behalf of the City, the Amendment, and, if required, the Clerk or any Deputy Clerk of the City Council is authorized and directed to affix or to cause to be affixed the seal of the City to the Amendment and to attest such seal. Such officers or their designees are authorized to execute and deliver on behalf of the City such instruments, documents or certificates, and to do and perform such things and acts, as they shall deem necessary or appropriate to carry out the transactions authorized by this Resolution or contemplated by the Lease and the Amendment; and all of the foregoing, previously done or performed by such officers or agents of the City, are in all respects approved, ratified and confirmed. 3. Nature of Obligations. The obligation of the City to make payments under the Lease is subject to appropriation each year by the City Council. Nothing in this Resolution or the Lease shall constitute a debt or a pledge of the faith and credit of the City.