HomeMy WebLinkAboutCC RESO 2010-42RESOLUTION NO. 2010 — 42
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A 15 YEAR LEASE OPTION
AND RELATED FINANCING AGREEMENTS WITH MUNICIPAL FINANCE
CORPORATION TOTALING $2,150,000 TO PROVIDE FINANCING FOR
THE HONEYWELL BUILDING SOLUTIONS SELF -FUNDED COMPREHENSIVE
ENERGY RETROFIT PROGRAM, SPECIFICALLY: LEASE WITH OPTION
AGREEMENT TOTALING $2,150,000, THE ACQUISITION FUND AGREEMENT,
ASSIGNMENT OF LEASE/ACKNOWLEDGEMENT OF LEASE,
ARBITRAGE AND TAX CERTIFICATE, AND CERTIFICATE OF LESSEE;
AND AUTHORIZING THE MAYOR TO SIGN DISBURSEMENT REQUESTS
TO TRANSFER FUNDS FROM THE ACQUISITION FUND FOR
PAYMENTS AS SET FORTH IN THE ACQUISITION FUND AGREEMENT
WHEREAS, the City Council of the City of National City desires to enter into
energy conservation contracts pursuant to which the City may acquire and finance equipment
and services to reduce energy use or to make for a more efficient use of energy; and
WHEREAS, the City proposes to enter into an agreement with Honeywell
Building Solutions (the "Honeywell Contract") for the acquisition and installation of a mechanical
retrofit and energy management project (the "Project") for a total amount not to exceed
$2,150,000.00; and
WHEREAS, Municipal Finance Corporation (the "Corporation") has offered to
enter into a Lease With Option to Purchase (the "Lease") with the City in order to provide fifteen
year lease financing for the Project at a 4.95% annual percentage rate; and
WHEREAS, financing for the Project requires additional documents to be
concurrently executed to effectuate the financing, including the Acquisition Fund Agreement,
Assignment of Lease/Acknowledgement of Assignment of Lease, Arbitrage and Tax Certificate,
and Certificate of Lessee; and
WHEREAS, this financing allows the City to lease the equipment and required
support services from the Corporation, and to make the lease payments from realized energy
savings.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City as follows:
SECTION 1. Lease with Option to Purchase. The Mayor is hereby authorized to
execute a Lease with Option to Purchase (the "Lease") with the Corporation to finance the
Project, subject to approval as to form by the City's legal counsel.
SECTION 2. Additional Financing Documents. The Mayor is hereby authorized to
execute the following documents related to the financing of the Project: Acquisition Fund
Agreement, Assignment of Lease/Acknowledgement of Assignment of Lease, Arbitrage and Tax
Certificate, and Certificate of Lessee. The Mayor is also authorized to execute disbursement
requests to release funds from the Acquisition Fund, as needed, pursuant to the Acquisition
Fund Agreement.
Resolution No. 2010 — 42
Page 2
SECTION 3. Attestations. The City Clerk or other appropriate City officer is hereby
authorized and directed to attest the signature of the Mayor or City Manager or of such other
person or persons as may have been designated by the Mayor or City Manager, and to affix and
attest the seal of the City, as may be required or appropriate in connection with the execution
and delivery of the Lease and the Escrow Agreement.
SECTION 4. Other Actions. The Mayor, City Manager and other officers of the City are
each hereby authorized and directed, jointly and severally, to take any and all actions and to
execute and deliver any and all agreements, documents and certificates which they may deem
necessary or advisable in order to carry out, give effect to and comply with the terms of this
Resolution and the Lease.
SECTION 5. Qualified Tax -Exempt Obligations. The Lease is hereby designated as
"qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended (the "Code"). The City, together with all subordinate
entities of the City, do not reasonably expect to issue during the calendar year in which the
Lease is issued more than $30,000,000 of obligations which it could designate as "qualified tax-
exempt obligations" under Section 265(b) of the Code.
SECTION 6. Effect. This Resolution shall take effect immediately upon its passage.
Said Agreements are on file in the office of the City Clerk.
PASSED and ADOPTED this 16th day of March, 201
Ron Morrison, Mayor
ATTEST:
Michael R. Della, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
Passed and adopted by the Council of the City of National City, California, on March 16,
2010 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
C erk of the City of N
City ational City, Califomia
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2010-42 of the City of National City, California, passed and adopted
by the Council of said City on March 16, 2010.
City Clerk of the City of National City, California
By:
Deputy