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File Number: 16-368 <br />Sources of Funds <br />Par Amount of Lease…………………………………..... $ 5,414,455 <br />Total Sources of Funds $ 5,414,455 <br />Uses of Funds <br />Lease Escrow Deposit ………………………………. $ 5,270,455 <br />Capitalized Interest (12 months)………………………. 119,000 <br />Costs of Issuance……………………………………….. 25,000 <br />Total Uses of Funds $ 5,414,455 <br />Sources of funds include the par amount of the Lease. The Lease proceeds will be deposited <br />with the Escrow Agent. The capitalized interest represents the first 12 months interest <br />expense to allow the City to pay the debt service while the Project is under construction. The <br />Costs of Issuance pay for legal and other issuance costs. <br />Lease Documents <br />The City Council must approve the following documents to complete the 2016 Equipment <br />Lease/Purchase transaction. <br />Equipment Lease/Purchase Agreement - This agreement establishes the lease between the <br />City and the Bank. This agreement specifies the term of the agreement (16 years) and the <br />amount of payments. <br />Escrow and Account Control Agreement - The trust agreement is between the City and the <br />Escrow Agent. The Escrow and Account Control Agreement sets forth the guidelines for the <br />administration, investment and treatment of the proceeds of the issue. <br />Current City Council Policy <br />The City Council must approve municipal debt issues that impact their financial position. <br />Previous City Council Action(s) <br />On May 16, 2016, the city council approved resolution 2016-054 to approve an installation <br />agreement and measurement and verification agreement with Climatec, LLC for <br />implementation/construction of citywide energy/water-efficiency projects for a total cost of <br />$5,270,455 and $206,986 over 15 years, respectively. <br />Summary of Public Outreach Efforts <br />The meeting was properly noticed in accordance with California law. <br />Fiscal Impact <br />The par value of the Lease will not exceed $5.5 million and will mature in 2032. The Lease <br />will have an interest cost of less than 3% and annual debt service on the Lease will not <br />exceed $450,000. Total energy and water savings are projected to be $8.0 million over 16 <br />years. Total debt costs are projected to equal $6.5 million over 16 years. This results in a net <br />present value savings of $1.5 million over 16 years. <br />Budget Authority <br />Page 3 City of San Leandro Printed on 7/13/2016 <br />154