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60 RESOLUTION 1997- ~ R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, APPROVING A LOAN GUARANTEE AGREEMENT BETWEEN THE CITY AND THE TEXAS DEPARTMENT OF TRANSPORTATION FOR CONTINUATION OF THE TEXAS EAGLE PASSENGER TRAIN SERVICE I BY AMTRAK; AND DECLARING AN EFFECTIVE DATE. ! RECITALS: 1. The National Railroad Passenger Corporation (hereinafter "Amtrak") operates the "Texas Eagle," an intercity passenger rail train, between Chicago, Illinois, and San Antonio, Texas, via Missouri and ArKansas. 2. Amtrak by letter dated January 24, 1997, notified the Governor of the State of Texas that Amtrak would discontinue the operation of the Texas Eagle, effective May 10, 1997, if necessary financial resources were not provided to Amtrak to continue the service. 3. On June 3,1997, the Texas Department of TransportatiolÌ ("TxDOT') , acting pursuant to Senate Bill 1706 and Senate Bill 886, 75th Texas Legislature, Regular Session, executed a $5.6 million loan to Amtrak, allowing Amtrak to continue operation of the Texas Eagle through September 30, 1997. 4. The loan agreement requires Amtrak to repay the $5.6 million plus interest, with interest to be accrued at the rate of interest earned by the State of Texas on funds invested pursuant to Section 404.024(b), Texas Government Code, and requires the loan ! to be paid in full by July 31, 1999. 5. As collateral against the loan Amtrak has granted to TxDOT, through a security agreement recorded with the U.S. Surface Transportation Board pursuant to 49 U.S.C. 11301, a security interest in forty-seven (47) passenger rail cars having a total estimated value of $6,345,000. 6. Although the loan is fully-collateral against the loan Amtrak has granted to TXDOT, through a security agreement recorded with the U.S. Surface Transportation Board pursuant to 49 U.S.C. 11301, a security interest in forty-seven (47) passenger rail cars having a total estimated value of $6,345,000. 7. On April 30, 1997, the City of San Marcos, as a city served by the Texas Eagle, agreed to guarantee the loan along with TxDOT and the other municipalities served by the Texas Eagle to assure the $5.6 million loan is repaid to the State of Texas. 8. Pursuant to Senate Bill 1706, it is necessary for TxDOT and the City to formalize the City's commitment through execution of this loan guarantee agreement. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: PART 1. The terms and conditions of the attached Loan Agreement between the State of Texas and the City for continuation of the Texas Eagle Passenger Train Service by Amtrak through September 30, 1997, are approved. PART 2. The City Manager, Larry D. Gilley, is authorized to execute the attached Agreement on behalf of the City. PART 3. This Resolution is in full force and effect immediately upon its passage.