RES 1478 11/14/2013 S-1 OF
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Resolution Number 1 /�7R
RESOLUTION BY THE CITY COUNCIL OF THE CITY OF CIBOLO
TEXAS APPROVING A FINANCING AGREEMENT WITH WELLS
FARGO BANK N.A. FOR THE PURCHASE OF CITY EQUIPMENT
WHEREAS, the City of Cibolo, Texas (the "City") desires to purchase a roller, a
sewer truck, and a sweeper (the "Project") for an aggregate purchase price of
approximately $466,000; and
WHEREAS, the City desires to finance such purchase with a loan from Wells
Fargo Bank, N.A., with such loan to be evidenced by a "Financing Agreement";
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CIBOLO, TEXAS:
1. That the above recitals are true and correct.
2. That the City hereby approves the financing of the purchase of the Project
through a loan to be obtained from Wells Fargo Bank, N.A., at an interest rate of 2.30%
per annum.
3. That the City Manager be and is hereby authorized to execute the
Financing Agreement with Wells Fargo Bank, N.A., and such other documents as are
necessary to evidence the loan.
4. That it is officially found and determined that this meeting was open to the
public as required by law, and that notice of the time, place and subject matter of this
meeting has been posted in the manner required by law.
Adopted this 14th day of November, 2013.
CITY OF CIBOLO, TEXAS
By:
ATTEST: Mayor.
By: L/L�
City Secretary
102581792.DOCX/3} 3 RESOLUTION OF CITY
Summary of proposed Terms and Conditions
FINANCE AGREEMENT
BORROWER: City of Cibolo,Texas(the"City")
LENDER: Wells Fargo Bank,National Association("Wells"or"the Bank").
CREDIT FACILITY: Finance Agreement(the"Agreement").
PURPOSE: Purchase various equipment consisting of:
• 2013 Vibratory Roller, 8.5 Ton
• 2013 Sewer Combo Truck, 10 Cy
• 2013 Sweeper
FINANCE AMOUNT: $466,000
AMORTIZATION: 4 years.
PAYMENT: $123,274.90 paid annually beginning 11/15/2014
*Payments will be drafted automatically from a designated account in the
name of the City to be opened at Wells Fargo Bank,N.A..
CLOSING DATE: On or before December 1,2013.
MATURITY: 4 years from Closing Date.
RATE: *2.30%Fixed(Tax-Exempt)
*Rate includes a 0.25%discount for automatic payments from a Wells Fargo
Bank.
SECURITY: 1"lien on all equipment purchased with proceeds from the Agreement.
PREPAYMENT(Choice): Borrower may prepay in full or in part,without penalty,on any date..
CLOSING FEES: None to the City.
CONDITIONS PRECEDENT
TO CLOSING: Usual and customary for transactions of this nature including but not limited
to:
1) Approval of Bank's senior credit management
2) No material adverse change in the business, assets, operations,
condition(financial or otherwise)or prospects of the Obligor,nor in
the facts and information regarding such entities as represented to
date prior to Closing.
3) This borrowing is subject to the City being qualified as a
governmental entity or "political subdivision" within the meaning
of Section 103(a) of the Internal Revenue Code. It is assumed that
City of Cibolo
Page 1 Wells Fargo Business Banking
the transaction will be "Bank Qualified" under the $10 million
small issuer exemption as defined in the Tax Reform Act of 1986.
4) Insurance with Wells Fargo Bank,N.A.named as loss payee.
5) Automatic draft of Principal and Interest payments.
6) Other conditions deemed appropriate.
BANK DOCUMENTS: Subject to the negotiation, execution and delivery of a Finance Agreement
and other documents, which will contain conditions to borrowings,
representations and warranties, covenants, events of default, indemnification
and other provisions that are customary for similar financing by Wells,
including without limitation those indicated below.
REPRESENTATIONS AND
WARRANTIES: Usual and customary for transactions of this type, to include without
limitation: (i) no declaration of bankruptcy within the past 7 years; a loan
documents not violating laws or existing agreements or requiring
governmental, regulatory or other approvals; (iii) no material litigation; (iv)
compliance with other laws and regulations; (v) no adverse agreements,
existing defaults or non-permitted liens; (vi) financial statements true and
correct.
COVENANTS: None.
EVENTS OF DEFAULT: Usual and customary for transactions of this type, to include without
limitation: (i)nonpayment of principal, interest, fees or other amounts when
due under any of the loan documents; (ii) non-compliance with any
representation or warranty; (iii)violation of any covenant continuing beyond
any agreed cure period; (iv) default under any other indebtedness; (v)
bankruptcy or insolvency event; (vi)unpaid judgment;(vii) material adverse
change;(viii)invalidity of any of the loan documents.
Sincerely,
Steve Stearns Kip Cofield
Vice President Principal Relationship Manager
Wells Fargo Bank,N.A. Wells Fargo Bank,N.A.
City of Cibolo
Page 2 Wells Fargo Business Banking
CERTIFICATE FOR RESOLUTION
STATE OF TEXAS §
COUNTY OF GUADALUPE §
We, the undersigned officers of the City Council of the City of Cibolo, Texas,
hereby certify as follows:
1. That the City Council of the City of Cibolo, Texas (the "City"), convened in
regular session on the 14th day of November, 2013, at the regular meeting place
thereof, within the City Hall, and the roll was called of the duly constituted officers and
members of the City Council, and all of said persons were present, except the following
absentee(s): To1�eAc)e thus constituting a quorum.
Whereupon, among other business, the following was transacted at said meeting: a
written
RESOLUTION BY THE CITY COUNCIL OF THE CITY OF CIBOLO,
TEXAS APPROVING A FINANCING AGREEMENT WITH WELLS
FARGO BANK, N.A. FOR THE PURCHASE OF CITY EQUIPMENT
was duly introduced for the consideration of the City Council and read in full. It was
then duly moved and seconded that said Resolution be adopted; and, after due
discussion, said motion, carrying with it the adoption of the City Council, prevailed and
carried by the following vote:
AYES:
NOES:
2. A true, full and correct copy of the aforesaid Resolution adopted at the
meeting described in the above and foregoing paragraph is attached to and follows this
certificate; that the Resolution has been duly recorded in the official minutes of said
meeting; that the above and foregoing paragraph is a true, full and correct excerpt from
the official minutes of said meeting pertaining to the adoption of the Resolution; that the
persons named in the above and foregoing paragraph are the duly chosen, qualified
and acting officers and members of the City Council as indicated therein; that each of
the officers and members of the City Council was duly and sufficiently notified officially
and personally, in advance, of the date, hour, place and purpose of the aforesaid
meeting, and that the Resolution would be introduced and considered for adoption at
said meeting, and each of said officers and members consented, in advance, to the
holding of said meeting for such purpose; that said meeting was open to the public as
required by law; and that public notice of the date, hour, place and subject of said
meeting was given as required by Chapter 551 of the Texas Government Code, as
amended.
f02581792.DOCX/31 1 RESOLUTION OF CITY
SIGNED on the 14th day of November, 2013.
llllll �J�/
City Secretary Mayor
{02581792.DOCX/31 2 RESOLUTION OF CITY
ACKNOWLEDGMENT BY THE CITY:
The undersigned hereby confirms its interest in pursuing further discussion of the above
preliminary credit proposal.
City of Cibolo,Texas
By: �
(signature)
Name:
Title:
Date:
PAYMENT
SCHEDULE
Borrower CITY OF CIBOLO
Finance Amount $466,bkoo
Rate 2.30%
No.Payments 4 Amort Years 4
Frequency/year 1 Maturity Years 4
Accrual Method 360'
Payment
Note Date 11/14/2013 Maturity Date 11/15/2017
First Payment 11/15/2014 Avg Life
DRAW PERIOD(To February 1,2014)
ESTIMATE IPBA
DATE DRAW EQUMENT AMOUNT LANCE
Invoice due $0.00
ADVANCE
Invoice due $0'00
ADVANCE $0.00
Invoice due 11/15/2014 ADVANCE $145,000.00
$145,000.0o
Invoice due 2/1/2014 ADVANCE $321,000.00
$466,000.00
ACCRUED INTEREST THROUGH DRAW PERIOD $5,885.89
PMT# DATE PAYMENT INTEREST PRINCIPAL BALANCE
1 11/15/2014 $123,274.90 $5,885.89 $117,389.01 $348,610.99
2 11/15/2015 $123,274.90 $8,129.41 $115,145.49 $233,465.50
3 11/15/2016 $123,274.90 $5,459.20 $117,815.70 $115,649.80
4 11/15/2017 $118,346.69 $2,696.89 $115,649.80 $0.00
TOTAL $488,171.40 $22,171.40
$466,000.00
City of Cibolo
Page 3 Wells Fargo Business Banking