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File Number: 20-593 <br />creativity. <br />Jones Hall, A Professional Law Corporation (APLC), has been the City’s bond or special <br />counsel dating back to 1979. Jones Hall ranks among the top three bond counsel in the number of <br />State and local bond issues in California during each of the past ten years, and has worked with <br />the City as Special Counsel/Bond Counsel with respect to the 2016 energy-efficiency financing <br />as well as numerous other financings over the years. <br />Bank of America, NA will serve as the lease escrow agent. The Bank is one of the top municipal <br />financing providers in the country. The Bank also serves the City with three local branches. <br />All fees of the Bank and its special counsel are included within the financing rate quoted above <br />and are not separately payable by the City. Jones Hall’s fees associated with entrance into the <br />Equipment Lease/Purchase Agreement will be paid from WPCP Enterprise Fund monies (not <br />financing proceeds). <br />Lease Documents <br />The City Council must approve the following documents to complete the 2020 Equipment <br />Lease/Purchase transaction with the Bank: <br />·Equipment Lease/Purchase Agreement - This agreement establishes the lease between <br />the City and the Bank, and all key representations, warranties and covenants of the City <br />related thereto. This agreement also specifies the term of the agreement (15 years) and <br />the amount of payments (estimated at $592,925.08 annually). <br />·Escrow and Account Control Agreement - This trust agreement is between the City and the <br />Escrow Agent. It sets forth the guidelines for the administration, investment and treatment <br />of the proceeds of the Agreement, which will be used by the City to pay Climatec. <br />·Memorandum of Understanding - The purpose of this Memorandum is to set forth the <br />understanding of Climatec, the City and the Bank with respect to the rights of the parties <br />relating to the Equipment being financed. Because the Bank’s security for repayment <br />under the Agreement is tied to its interest in the Equipment, the Bank wants to ensure that <br />title to the Equipment passes free and clear to the City once the Equipment is installed by <br />Climatec and paid for by the City. <br />Current City Council Policy <br />The City Council must approve municipal debt issues that impact the City’s financial position. <br />Previous City Council Action(s) <br />On September 28, 2020, the City Council approved Resolution No. 2020-121 to approve an <br />Installation Agreement with Climatec, LLC for implementation/construction of energy-efficiency <br />and resiliency projects for a total cost of $8,045,781 (includes SGIP grant monies) over 15 years. <br />Fiscal Impact <br />The acquisition and installment of the energy-efficiency equipment at the WPCP is expected to <br />more than pay for itself over its expected useful life. Fifteen-year lifecycle savings/revenue are <br />projected at $14,322,177 with an estimated net positive fiscal impact of $6,276,396 over the <br />Page 3 City of San Leandro Printed on 12/30/2020 <br />277