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Refunding of the 1999 Certificates Page 3 of 5 fund, then the amount of COPs issued will be reduced to $23,640,000 and the annual savings will increase to approximately $260,000. The City will review this option if the bond insurance company offers the City the opportunity to purchase a surety bond in lieu of providing a cash reserve fund. Bond Documents In order to proceed with the financing, it is necessary that the City Council approve the execution of certain legal documents including a Lease Agreement, a Site and Facility Lease, a Trust Agreement, and an Escrow Agreement; authorizing the competitive sale of the certificates and directing the Director of Finance to accept the lowest bid; approving the Official Statement in substantially final form; and authorizing other related actions in connection with the financing. It is also necessary for the San Leandro Public Financing Authority (the "Authority") to adopt a resolution directing the execution of certain legal documents. The following is a brief description of each document'that the City Council and the Authority are being asked to approve by resolution. A complete copy of the documents are on file with the City Clerk and members of the City Council. Site and Facility Lease. The Site and Facility Lease is between the City, as Lessor, and the Authority, as lessee. This is the agreement that leases the Leased Premises (i.e., Library) to the Authority. This agreement specifies the terms and agreements of the lease of the Leased Premises. Lease Agreement. This agreement is between the Authority, as Sublessor and the City, as Sublessee. This agreement specifies the terms and agreements of the sublease of the Leased Premises (the library), term of payments, amount of payments, responsibility for the maintenance of the Leased Premises, etc. during the term (twenty-two years) ofthe agreement. Trust Agreement. The Trust agreement (the "Agreement") is among the Authority, the City and U.S. Bank National Association, the Trustee (the "Trustee"). Pursuant to the Agreement, the Trustee is given the authority to receive, hold, invest and disburse the monies paid to it for credit to the various funds and accounts established under the Agreement; to execute and deliver the Refunding Certificates; and to apply and disburse the payments to the owners of the Refunding Certificates. It sets forth the guidelines for the administration, investment and treatment of investment earnings generated by each fund and account. The Agreement obligates the City to pay compensation to the Trustee for services rendered under the Agreement. Assignment Agreement. This agreement is between the Authority and the Trustee. In this agreement the Authority assigns all its rights under the Lease Agreement to the Trustee. For example, rather than the City making semi-annual payments to the Authority and the Authority paying the Refunding Certificate holders, the City will make its payments directly to the Trustee and the Trustee will pay the Refunding Certificate holders. Escrow Agreements. These documents are between the City and U.S. Bank National Association as the Escrow Agent for the 1999 Certificates. The Escrow Agreement provides for the receipt and investment of the monies to defease the 1999 Certificates on their first call date of November 1,2009.