HomeMy WebLinkAbout2010 CON Municiapl Finance Corporation - Energry Retrofit ProgramMunicipal Finance Corporation
2945 Townsgate Road, Suite 200
Westlake Village, CA 91361
805-267.7140
www.munitinance.com
bmorton@munifinanc.com
Table of Contents
1. Lease with Option to Purchase AND Lease Schedule
2. Assignment of Lease/Acknowledgement of Assignment
3. Acquisition Fund Agreement
4. Arbitrage and Tax Certificate
5. Certificate of Lessee
6. Incumbency and signature Certificate
7. Property/Rental Interruption and Liability Insurance
Certificate
8. opinion of Lessee's Counsel
9. Resolution of Governing Body
10. 8038-6 (to follow)
City of National City
Lease with Option to Purchase #10-005
Baled March 16, 2010
Energy Retrofit
Assignee: City National Bank
Lessor: Municipal Finance Corporation
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LEASE WITH OPTION TO PURCHASE #10-005
This LEASE WITH OPTION TO PURCHASE dated March 16, 2010 (this
"Lease") is by and between MUNICIPAL FINANCE CORPORATION,
("Corporation") a corporation duly organized and existing under the
laws of the State of California as lessor and CITY OF NATIONAL CITY, a
municipal corporation duly organized and existing under the laws of
the State of California ("Lessee") as lessee.
RECITALS:
WHEREAS, Lessee deems it essential for Lessee to acquire the
property described herein for its own public purposes; and
WHEREAS, it is intended that this Lease be treated as a tax-
exempt obligation of Lessee for federal income tax purposes; and
WHEREAS, Lessee and Corporation agree to mutually cooperate now
and hereafter, to the extent possible, in order to sustain the intent
of this Lease and the bargain of both parties hereto.
WITNESSETH:
NOW, THEREFORE, in consideration of the mutual covenants
hereinafter set forth, the parties hereto agree as follows:
SECTION 1. Lease. Corporation hereby leases to Lessee, and
Lessee hereby leases
"Property") described
"Schedule") executed
hereafter and made
and hires from Corporation all property (the
in the schedule or schedules (collectively, the
by
the
a part
Corporation means Corporation
parties
concurrently herewith and
hereof. Hereinafter, reference to
and Corporation's assigns for those
rights, interests and obligations that may be assigned by Corporation.
SECTION 2. Term. The terms and conditions of this Lease shall
become effective upon the authorized execution of this Lease by the
parties hereto. The rental term of the Property leased hereunder
commences and terminates on the dates specified in the Schedule unless
the term of this Lease is extended as provided in this Section. If on
the scheduled date of termination of this Lease the Rental Payments
shall not be fully paid, or provision therefor made, or if such Rental
Payments shall have been abated at any time and for any reason, then
the term of this Lease shall be extended until the date upon which all
such Rental Payments shall be fully paid, except that the term of this
Lease shall in no event extend beyond the date that corresponds to the
end of the useful life of the Property.
SECTION 3A. Representations, Covenants and Warranties of
Lessee. The Lessee represents, covenants and warrants to Corporation
that:
(a) Lessee is a municipal corporation and political subdivision,
duly organized and existing under the Constitution and laws of the
State of California with authority to enter into this Lease and to
perform all of its obligations hereunder.
(b) Lessee's governing body has duly authorized the execution
and delivery of this Lease and further represents and warrants that
all requirements have been met and procedures followed to ensure its
enforceability.
(c) The execution, delivery and performance of this Lease do not
and will not result in any breach of or constitute a default under any
indenture, mortgage, contract, agreement or instrument to which Lessee
is a party by which it or its property is bound.
(d) There is no pending or, to the knowledge of Lessee,
threatened action or proceeding before any court or administrative
agency which will materially adversely affect the ability of Lessee to
perform its obligations under this Lease.
(e) Lessee has complied all public bidding laws applicable to
the acquisition of the Property leased hereunder.
(f) The Property being leased is essential to Lessee in the
performance of its governmental functions and its estimated useful
life to Lessee exceeds the term of this Lease.
(g) Within one hundred eighty (180) days of the end of each
fiscal year of Lessee during the term hereof, Lessee shall provide
Corporation with a copy of its audited financial statements for such
fiscal year.
SECTION 3B. Budget and Appropriation. Lessee shall take such
action as may be necessary to include all rental payments in its
annual budget and annually to appropriate an amount necessary to make
such rental payments. During the term of this Lease, Lessee will
furnish to Corporation, if so requested, copies of each proposed
budget of Lessee within thirty (30) days after it is filed and of each
final budget of the Lessee within thirty (30) days after it is
printed. The covenants on the part of Lessee shall be deemed and
construed to be duties imposed by law and it shall be the duty of each
and every public official of Lessee to take such action and do such
things as are required by law in the performance of the official duty
of such officials to enable Lessee to carry out and perform the
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covenants and agreements in this Lease agreed to be carried out and
performed by Lessee.
SECTION 4. Representations and Warranties of Corporation.
Corporation represents and warrants to Lessee that:
(a) Corporation is duly organized, validly existing and in good
standing under the laws of the State of California, with full
corporate power and authority to lease and own real and personal
property.
(b) Corporation has full power, authority and legal right to
enter into and perform its obligations under this Lease, and the
execution, delivery and performance of this Lease have been duly
authorized by all necessary corporate actions on the part of
Corporation and do not require any further approvals or consents.
(c) The execution, delivery and performance of this Lease do not
and will not result in any breach of or constitute a default under any
indenture, mortgage, contract, agreement or instrument to which
Corporation is a party by which it or its property is bound.
(d) There is no pending or, to the knowledge of Corporation,
threatened action or proceeding before any court or administrative
agency which will materially adversely affect the ability of
Corporation to perform its obligations under this Lease.
SECTION 5. Property Acquisition. Corporation hereby appoints
Lessee as its purchasing agent to acquire the Property leased
hereunder and Lessee hereby accepts said appointment (hereinafter, the
"Agency"). The Agency is limited to i) negotiation of terms,
conditions and acquisition cost of acquiring the Property from
suppliers and contractors (collectively, the "Supplier") selected by
Lessee; ii) to the inspection and acceptance of the Property upon its
delivery and installation; and iii) to the exercise of any rights or
remedies with respect to Property warranties or guarantees. All
warranties and guarantees, either express or implied, that inure to
Corporation by virtue of the Agency are hereby passed through to
Lessee to prosecute at Lessee's sole discretion.
SECTION 6. Deposit of Moneys. Corporation shall cause the
deposit of the sum of $1,755,160.33 (the "Lease Proceeds") in an
acquisition fund (the "Acquisition Fund") with Deutsche Bank National
Trust Company ("Custodian") pursuant to an Acquisition Fund Agreement
by and among Corporation, City and Custodian, the date of such deposit
to be the commencement date of this Lease (the "Closing Date"). The
Lease Proceeds shall be invested and disbursed pursuant to the terms
and conditions of the Acquisition Fund Agreement. Any moneys that
remain in the Acquisition Fund after completing the disbursements for
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Property cots and Rental Payments shall be applied towards the payment
or prepayment of future Rental Payments.
SECTION 7. Rental Payments. LESSEE SHALL PAY CORPORATION
RENTAL PAYMENTS (the "Rental Payments") IN THE AMOUNTS AND AT THE
TIMES SET FORTH IN THE SCHEDULE, AT THE OFFICE OF CORPORATION OR TO
SUCH OTHER PERSON OR AT SUCH OTHER PLACE AS CORPORATION MAY FROM TIME
TO TIME DESIGNATE IN WRITING. Lessee hereby authorizes Corporation to
withdraw from the Acquisition Fund on the first three Rental Payment
dates, the amounts necessary to make Rental Payments as sete forth in
the Schedule. Should Lessee fail to pay any part of the Rental
Payments herein within fifteen (15) days from the due date thereof,
Lessee shall upon Corporation's written request, pay interest on such
delinquent Rental Payment from the date said Rental Payment was due
until paid at the rate of twelve percent (12%) per annum or the
maximum legal rate, whatever is less. Lessee shall pay Rental Payments
exclusively from legally available funds, in lawful money of the
United States of America, to Corporation. The obligation of Lessee to
pay Rental Payments hereunder shall constitute a current expense of
Lessee and shall not in any way be construed to be a debt of Lessee in
contravention of any applicable constitutional or statutory
limitations or requirements concerning the creation of indebtedness by
Lessee, nor shall anything contained herein constitute a pledge of the
general tax revenues of Lessee. Except as specifically provided in
Section 8, the obligation of Lessee to pay the Rental Payments will be
absolute and unconditional in all events, and will not be subject to
set-off, defense, abatement, reduction, counterclaim, or recoupment
for any reason whatsoever. The periodic Rental Payments paid by Lessee
shall be conclusive as to its fair value for the possession, use
and/or occupancy of the Property.
SECTION 8. Rental Abatement. Rental Payments due hereunder
with respect to the Property, other than the Advance Rental Payments,
shall be subject to abatement during any period in which, by reason of
material damage to or destruction of the Property there is substantial
interference with the use and right of possession by Lessee of the
Property or any substantial portion thereof. For each potential
incident of substantial interference, decisions to be made on i)
whether or not abatement shall apply; ii) the date upon which
abatement shall commence; iii) the applicable portion of Rental
Payments to be abated and; iv) the concluding date of the particular
abatement shall all be subject to determinations by Lessee in concert
with the provider of the insurance issued pursuant to Section 20
herein. The amount of rental abatement shall be such that the Rental
Payments paid by Lessee during the period of Property restoration do
not exceed the fair rental value of the usable portions of the
Property. The actual amount of Rental Payments paid by Lessee shall be
conclusive as to its fair value. In the event of any damage or
destruction to the Property, this Lease shall continue in full force
and effect.
SECTION 9. Security Interest. As security for the payment of
all of Lessee's obligations hereunder, Lessee hereby grants
Corporation, its successors and assigns, a security interest in the
Property, its accessions and attachments thereto and replacements
thereof and substitutions therefor and all proceeds of the Acquisition
Fund and all proceeds of any of the foregoing. Lessee agrees to
execute such additional documents, including financing statements, and
authorizes Corporation to file such financing statements, which
Corporation deems necessary or appropriate to establish, perfect and
maintain Corporation's security interest.
SECTION 10. Use. Lessee shall use the Property in a careful
and proper manner and shall comply with and conform to all national,
state, municipal, police, and other laws, ordinances, and regulations
in anyway relating to the possession, use, or maintenance of the
Property.
SECTION 11. Acceptance. Lessee shall acknowledge receipt,
inspection and acceptance of the Property by executing a "Certificate
of Acceptance".
SECTION 12. Corporation's Inspection. Upon forty-eight (48)
hours prior notice, the Corporation shall at any and all times during
normal business hours have the right to enter into and upon Lessee's
premises where the Property is located for the purpose of inspecting
the same or observing its use. Lessee shall give Corporation immediate
notice of any attachment or other judicial process affecting the
Property.
SECTION 13. Property Selection and Ordering. Lessee has
selected or will select the type and quantity of the Property leased
hereunder. Lessee shall ensure that all Property is properly invoiced
to Corporation. Corporation shall not be liable for, nor shall the
validity, enforeceability or effectiveness of this Lease be affected
by, any delay in or failure of delivery of the Property. Lessee
acknowledges that it is solely responsible for determining the
suitability of the Property for its intended use. Corporation shall
have no duty to inspect the Property. If the Property is not properly
installed, does not operate as represented or warranted by the
Supplier, or is unsatisfactory for any reason, Lessee shall make any
claim on account thereof solely against the Supplier. Lessee hereby
assumes the risks, burdens and obligations to the Supplier on account
of nonacceptance of the Property and/or cancellation of this Lease and
upon the occurrence of any such event, Corporation will assign to
Lessee, without recourse or warranty, its rights and title to the
Property and any documents related thereto.
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SECTION 14. Disclaimer of Warranty. CORPORATION NOT BEING THE
MANUFACTURER OR SUPPLIER OF THE PROPERTY NOR A DEALER IN SIMILAR
PROPERTY, HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATION, WARRANTY,
OR COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE DESIGN,
DURABILITY, FITNESS FOR USE, SUITABILITY, OR MERCHANTABILITY OF THE
PROPERTY IN ANY RESPECT, AND AS BETWEEN CORPORATION AND LESSEE, ALL
PROPERTY SHALL BE ACCEPTED AND LEASED BY LESSEE "WHERE IS," "AS IS,"
AND "WITH ALL FAULTS," AND CORPORATION SHALL NOT BE RESPONSIBLE FOR
ANY PATENT OR LATENT DEFECTS THEREIN. LESSEE AGREES TO SETTLE DIRECTLY
SUCH CLAIMS WITH THE SUPPLIER AND WILL NOT ASSERT ANY SUCH CLAIMS
AGAINST CORPORATION.
SECTION 15. Alterations and Attachments. All additions and
improvements that are made to the Property shall belong to and become
the property of the Corporation except that separately identifiable
attachments added to the Property by Lessee may remain the property of
Lessee as long as (i) the attachment is paid for in full by Lessee and
(ii) Lessee agrees to remove the attachment and restore the Property
to substantially as good condition as when received, normal wear and
tear excepted, if and when the Property may be returned to
Corporation.
SECTION 16. Relocation. Lessee shall provide Corporation prior
written notice of its intent to relocate the Property. Lessee assumes
all risks of loss to the Property attendant to its movement and
relocation. The Property location shall be under Lessee's full control
for its own governmental purpose.
SECTION 17. Maintenance and Repairs. Lessee, at its own cost
and expense, shall furnish necessary labor and materials to maintain
the Property in good repair, condition, and working order. Lessee's
obligations to maintain the Property does not relieve the Supplier of
its responsibility to fully perform with respect to all applicable
Property warranties and guarantees.
SECTION 18. Risk of Loss; Damage; Destruction. With the
exception of acts resulting from intentional misconduct or gross
negligence by Corporation, its agents and representatives, Lessee
hereby assumes and shall bear the entire risk of loss and damage to
the Property from any and every cause whatsoever. No loss or damage to
the Property or any part thereof shall impair any obligation of Lessee
under this Lease which shall continue in full force and effect,
subject to Section 8 of this Lease. Lessee waives the benefit of Civil
Code Sections 1932(2) and 1933(4) and any and all other rights to
terminate this Lease by virtue of any damage or destruction to the
Property.
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SECTION 19. Physical Damage/Public Liability Insurance. Lessee
shall keep the Property insured, as nearly as practicable, against
risk of loss or damage from any peril covered under an "all-risk"
insurance policy for not less than the replacement value thereof, and
Lessee shall carry public liability and property damage insurance
covering the Property. All said insurance shall be in form and amount
and with reputable companies and shall name Corporation as an
additional insured and loss payee. Lessee shall pay the premiums
therefore and deliver certification of said policies to Corporation.
Each insurer shall agree, by endorsement upon the policy or policies
issued by it or by independent instrument furnished to Corporation,
that it will give Corporation thirty (30) days' written notice before
the policy or policies shall be altered or canceled. The proceeds of
such insurance, at the option of Lessee, shall be applied: (a) toward
the replacement, restoration, or repair of the Property, or (b) toward
payment of the total remaining obligations of Lessee hereunder;
provided, however, that Lessee shall be responsible for the amount by
which such insurance proceeds are insufficient to satisfy the cost of
option (a) or option (b) above, as applicable. Should Lessee replace,
restore, or repair the Property as set out in option (a) above, this
Lease shall continue in full force and effect. Lessee may self -insure
up to specified limits as evidenced by a certificate of self insurance
to be attached hereto in form and amount acceptable to Corporation.
Any self-insurance program in which Lessee is a participant shall
comply with the provisions under this Lease respecting cancellation
and modification and payment of losses to the Corporation as its
respective interests may appear. Such self-insurance shall be
maintained on a basis which is actuarially sound as established by
Lessee's risk manager or an independent insurance consultant which
determination shall be made annually. Any deficiency shall be
corrected within sixty (60) days of Lessee becoming aware of such
deficiency.
SECTION 20. Rental Interruption Insurance. Lessee shall
maintain or cause to be maintained at its expense and throughout the
term of this Lease, insurance covering the loss of use of the Property
or portions thereof for an amount not less than Rental Payments
payable by Lessee consecutively for a twelve (12) month period. This
coverage shall insure against abatement of Rental Payments payable by
Lessee that come due hereunder resulting from Lessee's loss of use of
the Property or any substantial portion thereof and caused by any
peril covered under Lessee's physical damage insurance policy or self-
insurance program, as applicable. Such insurance may be maintained in
conjunction with or separate from any other similar insurance
maintained by Lessee. The insurance proceeds shall be payable to
Corporation in amounts proportionate to the loss of use of the
Property and shall supplement Lessee's applicable Rental Payments, if
any, during the restoration period in sufficient amount to make
Corporation whole during the period of abatement.
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SECTION 21. Liens and Taxes. Lessee shall keep the Property
free and clear of all levies, liens, and encumbrances and shall
promptly pay all fees, assessments, charges, and taxes (municipal,
state and federal), including personal property taxes, which may now
or hereafter be imposed upon the ownership, leasing, renting, sale,
possession, or use of the Property, excluding, however, all taxes on
or measured by Corporation's income.
SECTION 22. Indemnity. Subject to California law concerning
contribution and enforceability of indemnifications, Lessee shall
indemnify Corporation against and hold Corporation harmless from any
and all claims, actions, suits, proceedings, costs, expenses, damages,
and liabilities, including attorneys' fees, arising out of, connected
with or resulting from the selection, possession, use, operation, or
return of the Property excepting that Lessee shall not be required to
indemnify Corporation in the event that such liability or damages are
caused by the gross negligence or intentional misconduct of
Corporation, its agents or representatives.
SECTION 23. Events of Default. The term "Event of Default", as
used in this Lease, means the occurrence of any one or more of the
following events: (a) Lessee fails to make any Rental Payment (or any
other payment) within fifteen (15) days after the due date thereof or
Lessee fails to perform or observe any other covenant, condition or
agreement to be performed or observed by it hereunder and such failure
to either make the payment or perform the covenant, condition or
agreement is not cured within ten (10) days after written notice
thereof by Corporation; (b) Corporation discovers that any statement,
representation or warranty made by Lessee in this Lease, the Schedule
or in any document ever delivered by Lessee pursuant hereto or in
connection herewith is false, misleading or erroneous in any material
respect; (c) Lessee becomes insolvent, is unable to pay its debts as
they become due, makes an assignment for the benefit of creditors,
applies or consents to the appointment of a receiver, trustee,
conservator or liquidator of Lessee or of all or a substantial part of
its assets, or a petition for relief is filed by or against Lessee
under federal bankruptcy, insolvency or similar laws.
SECTION 24. Remedies. Upon the occurrence of an Event of
Default, Corporation may, at its option, exercise any one or more of
the following remedies: (a) by written notice to Lessee, request
Lessee to (and Lessee agrees that it shall), at Lessee's expense,
promptly return the Property to Corporation freight prepaid and
insured to any location in the State of California as designated by
Corporation, or Corporation, at its option, may enter upon the
premises where the Property is located and take immediate possession
of and remove the same without liability to Corporation or its agents
for such entry or for damage to property or otherwise; (b) sell or
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lease the Property or sublease it for the account of the Lessee,
holding Lessee liable for all Rental Payments and other payments due
to the effective date of such selling, leasing or subleasing plus any
accrued interest to the date of termination; and (c) exercise any
other right, remedy or privilege which may be available to it under
applicable law, including the right to (i) proceed by appropriate
court action to enforce the terms of this Lease, (ii) recover damages
for the breach of this Lease, and (iii) rescind this Lease as to any
portion of or all of the Property. No right or remedy herein conferred
upon or reserved to Corporation is exclusive of any other right or
remedy herein, but each shall be cumulative of every other right or
remedy given hereunder or now or hereafter existing at law or in
equity or by statute or otherwise, and may be enforced concurrently
therewith or from time to time; provided, however, that
notwithstanding any provisions to the contrary herein, Corporation
shall not under any circumstances have the right to accelerate the
Rental Payments that fall due in future rental periods or otherwise
declare any Rental Payments not then in default to be immediately due
and payable.
SECTION 25. Non -Waiver. No covenant or condition to be
performed by Lessee under this Lease can be waived except by the
written consent of Corporation. Forbearance or indulgence by
Corporation in any regard whatsoever shall not constitute a waiver of
the covenant or condition in question. Until performance by Lessee of
said covenant or condition is complete, Corporation shall be entitled
to invoke any remedy available to Corporation under this Lease or by
law or in equity despite said forbearance or indulgence.
SECTION 26. Assignment and Subleasing. Lessee shall not (a)
assign, transfer, pledge, or hypothecate this Lease, the Property, or
any part thereof, or any interest therein, or (b) sublet or lend the
Property or any part thereof except with the prior written consent of
Corporation which, in the case of subletting, shall not be
unreasonably withheld; provided such subletting shall not affect the
tax-exempt status of the interest components of the Rental Payments
payable by Lessee hereunder. No such pledge, assignment, sublease or
any other transfer shall in any event affect or reduce the obligation
of Lessee to make the Rental Payments due hereunder. Consent to any of
the foregoing acts applies only in the given instance and is not a
consent to any subsequent like act by Lessee or any other person.
Corporation shall not assign its obligations under this Lease with the
exception of its obligation to issue default notices and its
obligations pursuant to Section 30. Corporation may assign its right,
title and interest in this Lease, the Rental Payments and other
amounts due hereunder and the Property in whole or in part to one or
more assignees or subassignees at any time, without the consent of
Lessee. Any such assignment by Corporation or its assigns shall comply
with the requirements of Sections 5950-5955 of the California
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Government Code. No such assignment shall be effective as against
Lessee unless and until Corporation shall have filed with Lessee a
copy of such assignment or written notice thereof. Lessee shall pay
all Rental Payments hereunder pursuant to the direction of Corporation
or the assignee named in the most recent assignment or notice of
assignment filed with Lessee. During this Lease term, Lessee shall
keep a complete and accurate record of all such assignments or notices
of assignment. Subject to the foregoing, this Lease inures to the
benefit of, and is binding upon, the successors and assigns of the
parties hereto.
SECTION 27. Ownership. The Property is and shall at all times
be and remain the sole and exclusive property of Corporation, and
Lessee shall have no right, title, or interest therein or thereto
except as expressly set forth in Sections 29 and 30. Lessee shall take
all actions necessary to insure that legal title to the Property being
acquired by Lessee hereunder, whether by Lessee or by a third party
acting on behalf of Lessee, is vested in Corporation.
SECTION 28. Personal Property. The Property is and shall at
all times be and remain personal property notwithstanding that the
Property or any part thereof may now be or hereafter become in any
manner affixed or attached to or imbedded in, or permanently resting
upon, real property or any building thereon, or attached in any manner
to what is permanent by means of cement, plaster, nails, bolts, screws
or otherwise.
SECTION 29. Purchase Option. If Lessee is not in default of
any term, condition or payment specified hereunder, Lessee may
exercise options to prepay this Lease and purchase not less than all
of the Property in "as -is" and "where -is" condition on the specified
dates and for the specified amounts set forth in the Schedule. The
purchase option price specified for a particular date is in addition
to the Rental Payment due on the same date.
SECTION 30. Release of Liens. Upon Lessee either making all of
the Rental Payments scheduled herein or making a purchase option
payment, Corporation, its successors or assigns shall cause i) legal
title to the Property to be transferred to Lessee and ii) the release
of all liens, encumbrances or security interests on the Property
created pursuant to Corporation's rights under this Lease.
SECTION 31. Tax Covenants.
(a) Generally. Lessee shall not take any action or permit to be
taken any action within its control which would cause or which, with
the passage of time if not cured would cause, the interest components
of the Rental Payments to become includable in gross income for
federal income tax purposes.
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(b) Private Activity Bond Limitation. Lessee shall assure that
the Lease Proceeds are not so used as to cause this Lease to satisfy
the private business tests of Section 141(b) of the Internal Revenue
Code of 1986, as amended (the "Code"), or the private loan financing
test of Section 141(c) of the Code.
(c) No Arbitrage. Lessee will not take any action or omit to take
any action which action or omission, if reasonably expected on the
date of this Lease, would have caused this Lease to be an "arbitrage
bond" within the meaning of Section 148(a) of the Code.
(d) Federal Guarantee Prohibition. The Rental Payments are not
directly guaranteed or indirectly guaranteed in whole or in part by
the United States or any agency or instrumentality of the United
States so as to cause the Rental Payments to be "federally guaranteed"
within the meaning of Section 149(b) of the Code.
(e) Reimbursement Regulations. The Lease Proceeds used for
reimbursement of prior expenditures will be made pursuant to and in
compliance with Income Tax Regulations Section 1.150-2.
(f) Bank Qualified. Lessee hereby designates this Lease for
purposes of paragraph (3) of Section 265(b) of the Code and represents
that not more than $10,000,000 aggregate principal amount of
obligations the interest on which is excludable (under Section 103(a)
of the Code) from gross income for federal income tax purposes
(excluding (i) private activity bonds, as defined in Section 141 of
the Code, except qualified 501(c)(3) bonds as defined in Section 145
of the Code and (ii) current refunding obligations to the extent the
amount of the refunding obligation does not exceed the outstanding
amount of the refunded obligation), including this Lease, has been or
will be issued by Lessee, including all subordinate entities of
Lessee, during calendar year 2010.
(g) Arbitrage Rebate. Lessee shall take any and all actions
necessary to assure compliance with Section 148(f) of the Code,
relating to the rebate of excess investment earnings, if any, to the
federal government, to the extent that such section is applicable to
this Lease.
SECTION 32. Extraordinary Costs. In the case of litigation,
the prevailing party shall be entitled to recover from the opposing
party all costs and expenses, including attorneys' fees (which may be
the allocable cost of in-house counsel), incurred by the prevailing
party in exercising any of its rights or remedies hereunder or
enforcing any of the terms, conditions or provisions hereof.
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SECTION 33. Severability. If any provision of this Lease shall
be held invalid or unenforceable by a court of competent jurisdiction,
such holdings shall not invalidate or render unenforceable any other
provision of this Lease, unless elimination of such provision
materially alters the rights and obligations embodied in this Lease.
SECTION 34. Entire Agreement. This Lease, the Schedule, and
any agreements that specifically refer to this Lease that are duly
executed by authorized agents of the parties hereto constitute the
entire agreement between Corporation and Lessee, and it shall not be
further amended, altered, or changed except by a written agreement
that is properly authorized and executed by the parties hereto.
SECTION 35. Notices. Service of all notices under this Lease
shall be sufficient if given personally or mailed to the party
involved at its respective address hereinafter set forth or at such
address as such party may provide in writing from time to time. Any
such notice mailed to such address shall be effective when deposited
in the United States mail, duly addressed and with postage prepaid.
SECTION 36. Titles. The titles to the Sections of this Lease
are solely for the convenience of the parties and are not an aid in
the interpretation thereof.
SECTION 37. Further Assurances and Corrective Instruments.
Corporation and Lessee agree that they will, from time to time,
execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, such supplements hereto and such further
instruments as may be reasonably required for correcting any
inadequate or incorrect description of the Property hereby leased or
intended so to be or for carrying out the expressed intention of this
Lease.
SECTION 38. Execution in Counterparts. This Lease may be
executed in several counterparts, each of which shall be original and
all of which shall constitute but one and the same instrument.
SECTION 39. Time. Time is of the essence in this Lease and
each and all of its provisions.
SECTION 40. Lease Interpretation. This Lease and the rights of
the parties hereunder shall be determined in accordance with the laws
of the State of California.
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IN WITNESS WHEREOF, the parties hereto have caused their authorized
agents to execute this Lease on the dates specified below.
MUNICIPAL FINANCE CORPORATION CITY OF NATIONAL CITY
23945 Calabasas Road, Suite 103 1243 National City Blvd.
Calaba - , Ce • 302 Nation City, CA 91950
By
Title
Date
MUNICIPAL FINANCCOR RATION
By Ww u'-fitti-k„
Title � r e'
Date 3 3b —1 O
By
Title
Date
13
MAYOR
March 25, 2010
LEASE SCHEDULE #10-005
This Schedule is issued pursuant to the Lease with Option to Purchase
dated as of March 16, 2010 by and between the undersigned.
A. Property Location: See Property Description/Location List
B. Property Description: See Property Description/Location List
C. Name and Address of Supplier:
Honeywell Building Solutions
D. Lease Proceeds Summary:
Property Cost
Capitalized Interest:
Lease Proceeds:
$1,690,000.00
65,160.33
$1,755,160.33
E. Lease Term. The term of this Schedule is for a period commencing
on the Lease Issuance Date and concluding fifteen (15) years
thereafter. Upon closing, the Closing Date shall be inserted in the
following blank (-{/2/7).
F. Rental Payments. The Rental Payments for this Schedule are due in
sixty (60) consecutive quarterly payments in accordance with the
Payment Schedule herein. The first three Rental Payments are paid
from capitalized interest. Each payment includes interest at the rate
of 4.95% per annum on the unpaid principal balance based upon an
initial principal equal to the Lease Proceeds shown in Section D.
G. Payment Schedule: Payable quarterly in arrears
#10-005
PMT Due Date (1) Rental
Payment
1 7/2/10 $21,720.11
2 10/2/10 21,720.11
3 1/2/11 21,720.11
4 4/2/11 43,101.10
5 7/2/11 43,101.10
6 10/2/11 43,101.10
7 1/2/12 43,101.10
8 4/2/12 43,101.10
9 7/2/12 43,101.10
10 10/2/12 43,101.10
11 1/2/13 43,101.10
12 4/2/13 43,101.10
13 7/2/13 43,101.10
14 10/2/13 43,101.10
15 1/2/14 43,101.10
16 7/2/14 43,101.10
17 7/2/14 43,101.10
18 10/2/14 43,101.10
19 1/2/15 43, 101.10
20 4/2/15 43,101.10
21 7/2/15 43,101.10
22 10/2/15 43,101.10
23 1/2/16 43,101.10
24 4/2/16 43,101.10
25 7/2/16 43,101.10
26 10/2/16 43,101.10
27 1/2/17 43, 101. 10
28 4/2/17 43,101.10
29 7/2/17 43,101.10
30 10/2/17 43,101.10
31 1/2/18 43,101.10
32 4/2/18 43,101.10
33 7/2/18 43,101.10
34 102/18 43,101.10
35 1/2/19 43,101.10
36 4/2/19 43,101.10
37 7/2/19 43,101.10
38 10/2/19 43,101.10
39 1/2/20 43,101.10
40 4/2/20 43,101.10
41 7/2/20 43,101.10
42 10/2/20 43,101.10
1/2/21
To
Principal
$0.00
0.00
0.00
21,380.99
21,645.58
21,913.44
22,184.62
22,459.16
22,737.09
23,018.46
23,303.32
23,591.69
23,883.64
24,179.20
24,478.42
24,781.34
25,088.01
25,398.47
25,712.78
26,030.97
26,353.11
26,679.23
27,009.38
27,343.62
27,682.00
28,024.57
28,371.37
28,722.47
29,077.91
29,437.75
29,802.04
30,170.84
30,544.20
30,922.19
31,304.85
31,692.25
32,084.44
32,481.48
32,883.44
33,290.37
33,702.34
34,119.41
To
Interest
21,720.11
21,720.11
21,720.11
21,720.11
21,455.52
21,187.66
20,916.48
20,641.94
20,364.01
20,082.64
19,797.78
19,509.41
19,217.46
18,921.90
18,622.68
18,319.76
18,013.09
17,702.63
17,388.32
17,070.13
16,747.99
16,421.87
16,091.72
15,757.48
15,419.10
15,076.53
14,729.73
14,378.63
14,023.19
13,663.35
13,299.06
12,930.26
12,556.90
12,178.91
11,796.25
11,408.85
11,016.66
10,619.62
10,217.66
9,810.73
9,398.76
8,981.69
(2) Purchase
Option
1,732,475.83
1,709,736.59
1,686,715.95
1,663,410.44
1,639,616.51
1,615,930.61
1,591,749.13
1,567,268.40
1,542,484.72
1,517,394.34
1,491,993.46
1,466,278.25
1,440,244.82
1,413,889.22
1,387,207.48
1,360,195.54
1,332,849.33
1,305,164.72
1,277,137.51
1,248,763.46
1,220,038.27
1,190,957.62
1,161,517.09
1,131,712.23
1,101,538.53
1,070,991.44
1,040,066.33
1,008,758.53
977,063.28
944,975.81
912,491.25
879,604.70
846,311.19
812,605.66
778,483.03
743,938.13
708,965.74
By:
Title:
Date:
43 1/2/21
44 4/2/21
45 7/2/21
46 10/2/21
47 1/2/22
48 4/2/22
49 7/2/22
50 10/2/22
51 1/2/23
52 4/2/23
53 7/2/23
54 10/2/23
55 1/2/24
56 4/2/24
57 7/2/24
58 10/2/24
59 1/2/25
60 4/2/25
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
43,101.10
34,541.64 8,559.46 673,560.56
34,969.09 8,132.01 637,717.24
35,401.83 7,699.27 601,430.36
35,839.93 7,261.17 564,694.44
36,283.45 6,817.65 527,503.90
36,732.46 6,368.64 489,853.13
37,187.02 5,914.08 451,736.43
37,647.21 5,453.89 413,148.04
38,113.09 4,988.01 374,082.12
38,584.74 4,516.36 334,532.77
39,062.23 4,038.87 294,493.98
39,545.62 3,555.48 253,959.72
40,035.00 3,066.10 212,923.84
40,530.43 2,570.67 171,380.15
41,032.00 2,069.10 129,322.35
41,539.77 1,561.33 86,744.09
42,053.82 1,047.28 43,638.92
42,574.56 526.84 0.00
TOTALS: $2,521,923.03 $1,755,160.33 $766,763.00
Refer to the paragraph in the Lease entitled "Release of Liens"
Refer to the paragraph in the Lease entitled "Purchase Option and
"Release of Liens." Purchase options are in addition to the
rental payment due on the same day.
Approved and agreed to:
MUNICIPAL FINANCE CORPORATION
ss.r)
By:
Title:
Date:
MUNICIPAL FINANCE CORPORATE/;
2
CITY OF NATIONAL CITY
By:
Title: MAYOR
Date: March 25, 2010
Lease with Option to Purchase #10-005 dated March 16, 2010
PROPERTY DESCRIPTION/LOCATION/SUPPLIER LIST
This document defines the general scope of the design, supply and installation of the Energy Retrofit Project to be located at the City
of National City, National City, CA.
A. GENERAL SCOPE OF WORK
1. Supply the Mechanical Scope of Work described in Section B of this
document.
2. Supply the Controls Scope of Work described in Section C of this
document
3. Supply the Lighting Scope of Work described in Section D of this
document.
4. Supply the Solar Thermal Scope of Work described in Section E of this
document.
5. Supply the Street Lighting Scope of Work described in Section F of
this document.
6. Obtain necessary permits and provide inspection coordination.
7. Issue Record Drawings and O&M Manuals
8. Provide training in the operation and maintenance of the scope of
work.
9. Complete all Commissioning activities prior to Customer Acceptance.
B. MECHANICAL SCOPE OF WORK: ECM 2.2, 3.0, 3.1, 5.0, 6.0 and 6.1
This document defines the general scope of the supply and installation of the mechanical equipment at the Public Works Building,
Civic Center, Police Station and MLK Community Center in National City, CA. The objective of this project is to provide National
City with an Energy Savings Performance Contract to upgrade and improve the building's reliability and decrease energy
consumption.
ECM 2.2: New Cooling Tower with Variable Speed Fans - Civic Center
ECM 3.0: Boiler Replacement - Civic Center
ECM 3.1: Boiler Replacement - Police Station
ECM 5.0: Install VFD to replace VIV - Police Station
ECM 6.0: Rooftop Package Unit Replacement - Public Works, Police Station
and MLK Community Center
ECM 2.2: Cooling Tower with Variable Speed Fans - Civic Center
Replace existing Baltimore Air Coil cooling tower
• Isolate cooling tower water supply and return lines, Dismantle and
remove existing cooling tower, fan motors and all related accessories
• Furnish and Install new cooling tower on existing pad. Refer to
table 2.2.1 for design specifications and model number.
• Connect supply and return lines to new cooling tower inlet and
outlets and eliminate all obstructions to provide proper air flow
through new cooling tower
• Install temperature sensor on tower outlet water and test and balance
system to maintain a maximum outlet water temperature of 85 degrees
• Include system start-up and commissioning and training as required
fi t
� ;y
eD fi ak>lO
2 2 , ,
1 i
Fii� , �
f�NI IIIII
yli I
Nhj µ rvr�
�1.
iO17C39d
11 try 41�#'
Baltimore
Baltimore Air
Make:
Make:
Air coil
coil
Model:
VTO-88-LDR
Model: PT2-0412A-1G1
USGPM:
330
USGPM: 330
WB:
74°F
WB: 74°F
EWT:
95°F
EWT: 95°F
LWT:
85°F
LWT: 85°F
# of Fans:
1
# of Fans: 2
HP:
15
HP: 3
RPM:
1800
RPM: 1200
Voltage:
208
Voltage: 208
Amps:
41
Amps: 10.6
Efficiency:
90
Efficiency: 89.5
ECM 3.0: Boiler Replacement - Civic Center
Replace existing boilers with high efficiency condensing boilers
• Dismantle and remove (2) existing boilers and install (2) new
condensing boilers and tie into existing exhaust system.
• Provide and install (2) DeDietrich Model # ECO 230 condensing boilers
with design specifications in Table 3.0.1 and will meet code
requirements for condensate drainage. Units are compatible with
Honeywell controls system using the LON protocol.
• Proposed boilers are prepackaged with controls to reset supply water
temperature based on outdoor air temperature.
• Include system start-up and commissioning and training as required.
2
Make
Model
Quantity
Total Boiler Btuh (input)
Total Boiler
(output)
Btuh
Ajax
WGBE850
2
B50,000
680,000
De Dietrich
EC0 230
2
714,000
658,000
ECM 3.1: Boiler Replacement — Police Station
Replace existing boilers with high efficiency condensing boilers
• Dismantle and remove (1) existing boiler and install (1) new boiler
and tie into existing exhaust system.
• Provide and install (1) new Raytherm boiler H-624. Unit will be
compatible with Honeywell controls system using the LON protocol.
• Install a storage tank to provide minimum GPM for the new boiler
• Boiler will have controls that reset supply temperature based on
outdoor air temperature.
• Include system start-up and commissioning and training as required.
ECM 5.0 Install VFD to Replace VIV —Police Station
Install VFD's on the two RTU supply fans (RTU-1 and RTU-2) in the police station. The existing fans are forward curved with
Variable Inlet Vanes (VIV) that are not operating. Table 5.0.1 provides the details of the existing equipment.
Unit Name
RTU1 2nd FL Supply Fan
RTU2 1st FL Supply
Fan
Make:
Model #:
Unit Voltage:
HP:
Amps:
RPM:
PF:
Efficiency:
Measured Amps:
Magnetek
Century Ephs 3 -6-
36602-01
460
10
12.5
1745
80
91.7
10.9
Magnetek
Century Et 3
460
30
37
1760
82.8
93.6
30.6
3
• Disengage inlet vanes on supply fans for RTU-land RTU-2
• Provide and install VFD's with built-in disconnects for the RTU-1 and
RTU-2 supply fans with design specifications as specified below.
Building
Unit Name/#
Unit
Voltage
HP
VFD Model Number
Police
Department
RTU1 2nd FL
Supply Fan
460
10
Honeywell
NXS0100A1003
Police
Department
RTU2 1st FL
Supply Fan
460
30
Honeywell
NSX0300A1001
• Units will be compatible with Honeywell controls system using the LON
protocol.
• VFD's are specified with NEMA rated enclosures suitable for outdoor
installations
• Install new static pressure sensors in RTU-1 and RTU-2 supply duct
work for VFD control
• Test and balance system and ensure proper air side balancing at the
RTU and VAV zone level
• Include system start-up and commissioning.
ECM 6.0: Roof Top Package Unit Replacement - Civic Center, Police Station and MLK Community Center
Replace the roof top package units in the MLK Community Center, Police
Station, and Public Works. Replace two heat pumps in MLK Community Center
- one 5 ton and one 7.5 ton. Replace two heat pumps in Police Station -
one 4 ton and one 7.5 ton unit. Replace three DX/Gas units in Public Works
- two 3 ton and one 7.5 ton units.
Table 6.1.1 and Table 6.1.2 outline the details of the existing and
proposed rooftop heat pumps at MLK Community Center (140 E. 12th Street,
National City, California).
Table 6.2.1 and 6.2.2 outline the details of the existing and proposed
rooftop heat pumps at the police station.
4
Table 6.3.1 and 6.3.2 outline the details of the existing and proposed
rooftop DX/Gas units for the Public Works Building (2100 Hoover Ave,
National City, California).
Make
Model No.
Tonnage
Service Area
Temp Set Points
kl
I III I.
Capacity (Btu/hr)
COP
Input kW
lu;
Capacity (Btu/hr)
EER (Btu/(W*hr))
Input kW
Equipment 41
Carrier
5LJQ008511
7.5
Open Cubicle
73``
Ar«44,vlh�:lal0. ..��.k:..
96,000
3.0
9.4
it.�
!I III IVI III v�h" �p 11 t1G�Ip�f Iv 11""h"' frr+:
w'1!�'��4UIUIl�"p�nVlIVI�IQI. u1ti�IIYVuI,ilV ul llu lu a'hR ii;
92,000
9.1
10.1
Equipment 42
Carrier
5LJQ0065
5
Hallway
72
uv.
62,000
3.2
5.7
((
59,000
9.3
6.4
Make
Model No.
Tonnage
IiG
Capacity
COP
Input kW
Capacity (Btu/hr)
EER (Btu/(W*hr))
Input kW
Equipment 41
Carrier
50TCQD08
7.5
MIlUlhA
ypI III p'
II�I�III IJi III
Equipment 42
Carrier
50TCQA06
5
IIIJIII�i'I I�I'.Il irl7b II VN"I tw,,w F ;.
I IIu V�I,�I II uIIP IIo hI IIW Iti �f1 ....:3
86000
3.3
7.6
88000
11.2
7.9
YIYw
58000
3.3
5.1
rt IY Nil�i!n'�vafld�e7
� IIIdiIPr ?"'
61500
5.5
Make
Model No.
Tonnage
Service Area
Temp Set Points
Capacity (Btu/hr)
COP
Input kW
Equipment 41
Trane
WDC090C400AA
7.5
Computer Room
70
.01
I1
I�Y1lIl1 �,a 4 E l
u
Equipment 42
Trane
WCC048F400AB
4
Dispatch
72
Il�lila{I Ild II, ,
lym I✓', ws III 41 ..
86,000
3.0
8.4
1�4�u61�!In'irl(
ul
ilk
ill Ili;jl
,;'III dl�6r,
48,000
3.1
4.5
Val
I I I li° � rky f
I I IIIIIII6 brl,Bm', J!;
5
Capacity (Btu/hr)
87,000
48,000
EER (Btu/(W*hr))
8.9
9.5
Input kW
9.8
5.1
Make
Model No.
Tonnage
ml:
Capacity
COP
Input kW
li
4��III�'�n:ulk
Capacity (Btu/hr)
EER (Btu/(W*hr))
Input kW
Equipment #1
Trane
WSC090A4R0
7.5
III
Equipment #2
Trane
WSC048E4ER0
4
a lGpll I. sl d�a.� 11"i, 1 11,114111Ill aYl�l ���u�ilil i'IY1 tlh)I'���
79,000
3.2
7.2
ai
f II'
44,400
3.4
3.8
ifi "w� Itw.lwlti'"'I
87,000
10.1
8.6
48,800
11.1
4.4
Make
Model No.
Tonnage
Service Area
Temp Set Points
Input (Btuh)
Output
(Btuh)
Capacity
Efficiency
Equipment #1
BDP
588APW036080ACBF
3
Hall
lr
F :I IL 1.1111
Equipment #2
BDP
588APW036080ACBF
3
Front Desk
pp t
W dI'114111I�i�lu'u�,��il'I�(ulli4VI +nGxl
80,000
64,800
81%
80,000
64,800
81%
Equipment #3*
No Name Plate
7.5
Conference Room
JI•.II1A1
V
111
80,000
64,800
81%
Cooling
Capacity (Btu/hr)
EER (Btu/(W*hr))
Input kW
36,000
8.75
4.1
36,000
8.75
4.1
57,800
8.57
6.7
• Equipment #3 does not have a name plate. Tonnage, cooling capacity and cooling
efficiency was calculated using logger data. KW/ton is assumed to be 1.4. Heating
efficiency is based on a 5 ton version of equipment #1 & #2.
6
Input (Btuh)
Output Capacity
(Btuh)
Efficiency
Capacity (Btu/hr)
EER (Btu/(W*hr))
Input kW
72,000
59,000
34,600
Icrd
72,000
59,000
34,600
72,000
59,000
59,000
• Dismantle and remove existing HVAC units. Refer to Tables 6.1.1,
6.2.1 and 6.3.1 for the list of existing units to be replaced
• Prepare curb to accept new units in all the three buildings and
Install new units. Refer to Tables 6.1.2, 6.2.2 and 6.3.2 for the
list of proposed new units for design specifications
• Replace existing ductwork, conduit, condensate and gas piping for
public works building
• Include system start-up and commissioning and training as required.
C. CONTROLS SCOPE OF WORK: ECM 6.1 and 8.1
ECM 8.1: Furnish and Install new DDC control points and integrate those
points into the Honeywell EBI system for the following.
Civic Center
• (1) Cooling Tower - add command, CW supply temp, CW return temp, fan
status and alarm points to the control system
• (2) Boilers - add command supply, temperature reset HW, supply temp
HW, by pass valve and return temp points to the control system
• (2) Cooling tower CHW pumps, (2) condenser water pumps and (2) HW
pumps - add command and status points to the control system.
• Chillers - add supply temperature reset CHW, supply temperature CHW
return, temperature isolation valve, command isolation valve, feed
back outside air and temperature points to the control system
7
Police Station
• (2) Package Rooftop Units with VFD - add supply air temp, return air
temp, supply air reset, VFD command, VFD speed, VFD feedback, VFD
alarm, duct DPT and filter status points to the control system
• (2) Package Rooftop Heat Pump Units - add supply air temperature,
supply air reset, zone sensor, and filter status to the control
system
• (1) Boiler - add command supply, temperature reset HW, supply temp
HW, by pass valve and return temp points to the control system
• (1)Boiler Pump - add command and status points to the control system
• Provide new Operator workstation computer hardware and Internet
interface with three (3) concurrent user licenses
• Provide and install conduit, wiring and terminations
• Product Data Submittal Package
• Operation & Maintenance Manuals
• As -Built Drawings
• Programming (software and graphics)
• Honeywell standard test and checkout
• Standard Honeywell Commissioning program
• Project Graphics
• On -site Training - Total 4 hours
• DDC system
• One-year warranty on Honeywell supplied parts and Honeywell labor
ECM 6.1: Public Works and MLK Community Center
• The rooftop packaged units at the MLK Community Center and public
works runs during Monday through Friday, from 6:00 am until 6:00 pm.
However, the building is unoccupied during Fridays. This ECM proposes
to adjust the equipment schedule such that all the units turn off
8
during Fridays. This would reduce the run hours and generate kWh
savings without added cost to National City.
D. LIGHTING SCOPE OF WORK: ECM 1.0
This document defines the general scope of the supply and installation of
the lighting equipment at the City of National City, National City,
California. The objective of this project is to provide the National City
with an Energy Performance Contract to upgrade and improve the lighting
quality and to decrease energy consumption. The objective of this measure
is to retrofit fluorescent, incandescent, and other lighting fixtures in
buildings owned by National City with new lamp and ballast combinations as
appropriate. In some cases, fixtures may be replaced entirely. In other
cases, lighting controls, including occupancy sensors and photocells, may
be installed to switch lighting fixtures off when not needed This measure
will result in decreased electric energy consumption and demand and
enhanced lighting quality.
Casa De Salud
Retrofit
Senior Center
Retrofit
Civic Center
Retrofit
Fire Station #15
Retrofit
Camacho Gym
Retrofit
Municipal Pool
Retrofit
ECM 1.0 Lighting Fixture & Control
ECM 1.0 Lighting Fixture & Control
ECM 1.0 Lighting Fixture & Control
ECM 1.0 Lighting Fixture & Control
ECM 1.0 Lighting Fixture & Control
ECM 1.0 Lighting Fixture & Control
MLK Community Center ECM 1.0 Lighting Fixture & Control Retrofit
Police Station
Retrofit
Public Works
Retrofit
El Toyon
ECM 1.0 Lighting Fixture & Control
ECM 1.0 Lighting Fixture & Control
ECM 1.0 Lighting Fixture & Control Retrofit
9
Kimball Rec Center
Kimball Exterior
Retrofit
ALL LOCATIONS
ECM 1.0 Lighting Fixture & Control Retrofit
ECM 1.0 Lighting Fixture & Control
• Refer to Exhibit A-1 - National
for recommended lighting fixture
application of occupancy sensors and photocells. Note that
buildings included in this project are as follow:
o Casa De Salud
o Senior Center
o Civic Center
CA
o Fire Station #15
o Camacho Gym
o Municipal Pool
o MLK Community Center
o Police Station
CA
o Public Works
o El Toyon
o Kimball Rec Center
o Kimball Exterior
City, CA
City Lighting for selected buildings
retrofits, replacements, and
the
1408 E. Harding Ave, National City, CA
1221 D Avenue, National City, CA
1243 National City Blvd, National City,
2333 E Euclid Ave, National City, CA
1810 E 22nd Street, National City, CA
1800 E 22nd Street, National City, CA
140 E 12th Street, National City, CA
1200 National City Blvd, National City,
2100 Hoover Ave, National City, CA
2005 E 4th Street, National City, CA
148 E 12th Street, National City, CA
E 14th Street WD Avenue D, National
• Take light level readings for representative fixtures prior to
initiating retrofit.
• Remove lamps and ballasts from fixtures to be retrofitted.
• In compliance with federal regulations Honeywell will recycle
lamps and PCB laden ballasts. A manifest will be provided to
customer at the end of the job stating the number of lamps
all
the
and
ballasts that were recycled. Any PCB ballasts removed as part of this
project will be incinerated in an approved manner by Honeywell or its
subcontractors. Honeywell will provide: drums, pickup,
transportation, waste reduction/recycling and proper disposal of all
PCB containing ballasts and the disposal of lamps. Lamp ballasts
must be packed in DOT 17C or 17H shipping containers. The container
tops of all loaded drums shall be secured to the drums. Material
classification B.90 labels and designated drum number labels to be
applied to all containers prior to pickup. Item(s) containing PCB's
shall be incinerated by a U.S. EPA permitted facility in strict
accordance with EPA regulations set forth in 40 CFR 761.60. Title to
10
all waste shall pass from Customer to Honeywell once Honeywell or its
subcontractor takes possession of the waste.
• Demolish any fixtures to be replaced entirely.
• Provide and install new lamps, ballasts, fixtures, occupancy sensors,
photocells, and other equipment as necessary to complete the
retrofit. Lamps and ballasts must UL listed and labeled.
• Lenses will be dry wiped on retrofitted fixtures to remove dust and
debris at time of installation.
• Provide number and locations of cracked or damaged lenses or damaged
fixtures.
• Provide final fixture retrofit and replacement count, occupancy
sensor count, photocell count, and before and after light level
readings for representative areas.
• Installation labor and material in this project will be warranted as
follows:
o Labor: - 1 year
o Fluorescent lamps - 1 year (20,000 hours life expectancy)
o Ballasts - 5 years (20 year life expectancy)
• During the warranty period the Customer's staff shall replace all
defective lamps and ballasts under warranty. An adequate supply of
replacement lamps and ballasts shall be maintained at the Customer's
site throughout the manufacturer's warranty period. The Customer
shall work directly with the manufacturer on all warranty issues.
E. SOLAR THERMAL SYSTEM INSTALLATION: ECM 10.0
Install a ground -mounted active loop solar thermal system at the Municipal Pool (located at 1800 E 22"d Street, National City, CA).
• Provide and install 126 Heliocol (model no: HC-40, size: 4' x 10.5') solar collectors at a 4°optimum tilt on the ground mount
structure next to the pool parking lot.
• Provide and install one (1) new 7.5 HP booster pump to circulate water from the pool to solar thermal collectors
• Provide and install solar system controls, sensors, system charging and purging valves, and all required appurtenances.
• Install electrical circuit to booster pump and to solar controller.
• Include system start-up and commissioning.
➢ Note: The new solar collectors will be installed on the existing ground structure and it has been assumed that the existing
piping to the pool can be reused.
11
F. STRRET LIGHTING SCOPE OF WORK: ECM 11.0
This document defines the general scope of the supply and installation of
the street lighting equipment at the City of National City, National City,
California. The objective of this project is to retrofit/replace existing
high pressure sodium (HPS), low pressure sodium (LPS), and metal halides
(MH) street lighting fixtures throughout the National City with induction
lighting. This measure will result in decreased electric consumption and
enhanced lighting quality.
• Refer to Exhibit A-2 - National City Street Lighting for selected
fixtures recommended for street lighting fixture
retrofits/replacements
• A detailed audit will be performed, listing fixtures pole by pole and
make amendments to exhibit A-2 as necessary.
• Take light level readings for representative fixtures prior to
initiating retrofit.
• Prepare Traffic Control Plans according CA MUTCD standards, as
required.
• Remove lamps and ballasts from fixtures to be retrofitted.
• In compliance with federal regulations Honeywell will recycle all
lamps and PCB laden ballasts. A manifest will be provided to the
customer at the end of the job stating the number of lamps and
ballasts that were recycled. Any PCB ballasts removed as part of this
project will be incinerated in an approved manner by Honeywell or its
subcontractors. Honeywell will provide: drums, pickup,
transportation, waste reduction/recycling and proper disposal of all
PCB containing ballasts and the disposal of lamps. Lamp ballasts
must be packed in DOT 17C or 17H shipping containers. The container
tops of all loaded drums shall be secured to the drums. Material
classification B.90 labels and designated drum number labels to be
applied to all containers prior to pickup. Item(s) containing PCB's
shall be incinerated by a U.S. EPA permitted facility in strict
accordance with EPA regulations set forth in 40 CFR 761.60. Title to
all waste shall pass from Customer to Honeywell once Honeywell or its
subcontractor takes possession of the waste.
• Demolish any fixtures to be replaced entirely.
12
• Provide and install new lamps, field generator, power coupler and
other equipment as necessary to complete the retrofit/replacement.
Lamps will be UL listed and labeled.
• Lenses will be dry wiped on retrofitted fixtures to remove dust and
debris at time of installation.
• Provide before and after light level readings for representative
areas. Light levels after the retrofit will be based on scotopic
levels.
• Provide a list which will identify what the existing lamp and ballast
were and what induction retrofit system was installed for each pole.
• Installation labor and material in this project will be warranted as
follows:
o Labor: 1 year
o All components of induction lighting - 10 years
• During the warranty period the Customer's staff shall replace all
defective lamps and ballasts under warranty. An adequate supply of
replacement lamps and ballasts shall be maintained at the Customer's
site throughout the manufacturer's warranty period. The Customer
shall work directly with the manufacturer on all warranty issues.
PART 2 — GENERAL
GENERAL CONDITIONS
1.The National City shall provide a staging area for equipment and
construction trailers as needed before installation begins.
2.Honeywell is not responsible for bringing existing lighting/electrical
systems up to code.
3. If Honeywell encounters any materials or substances classified as toxic
or hazardous in performance of the Work associated with the systems,
including asbestos, Honeywell will notify Customer and will stop work in
that area until such area has been made safe by the Customer, or
Customer's Representative, at Customer's expense. In the event such
conditions cause a delay in Honeywell's performance, Honeywell shall be
entitled to recovery of all costs associated with such delay, as well as
an extension of time of performance.
13
4.Where demolition of certain areas of a building are required for removal
and installation of equipment and that demolition is included in the
scope of work defined herein, Honeywell will make every effort to
replace such areas with similar materials as available. If such
materials are not available, materials of similar quality will be
supplied and installed.
5. Electrical: Should a problem with the existing wiring system occur,
Honeywell will be limited to electrical wiring modifications (repairs)
to three feet (36 inches) of the device or the nearest wall or coiling
penetrating, whichever is smaller.
6. Piping: Should a problem with the existing piping system occur,
Honeywell will be limited to piping modifications (repairs) to two feet
(24 inches) of the device installed or the nearest wall or ceiling
penetration, whichever is smaller.
7.Code Impact - A Design Review of the code requirements from federal,
state and local jurisdictions for upgrading of existing facilities which
may be required during work on associated equipment will be performed on
the facilities as required by the scope. Any changes to these existing
facilities determined by this review are the responsibility of the
Customer.
8.The following areas are specifically excluded from this proposal.
Correction of problems in these areas, if required by Federal, State or
local law or ordinance, will be considered additional work and will be
chargeable (with approval) to the Owner.
a. Any work not specifically stated and outlined in this scope of
work.
b. Painting and patching of areas beyond those areas directly related to
work.
c.Existing non -code conditions (examples: existing electrical wiring
which requires correction or approval by appropriate inspectors, existing
penetrations in need of fire stopping, etc.).
14
G. Payment Schedule: Payable quarterly in arrears
#10-005
PMT Due Date
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
(1) Rental To
Payment Principal
$21,720.11 $0.00
21,720.11 0.00
21,720.11 0.00
43,101.10 21,380.99
43,101.10 21,645.58
43,101.10 21,913.44
43,101.10 22,184.62
43,101.10 22,459.16
43,101.10 22,737.09
43,101.10 23,018.46
43,101.10 23,303.32
43,101.10 23,591.69
43,101.10 23,883.64
43,101.10 24,179.20
43,101.10 24,478.42
43,101.10 24,781.34
43,101.10 25,088.01
43,101.10 25,398.47
43,101.10 25,712.78
43,101.10 26,030.97
43,101.10 26,353.11
43,101.10 26,679.23
43,101.10 27,009.38
43,101.10 27,343.62
43,101.10 27,682.00
43,101.10 28,024.57
43,101.10 28,371.37
43,101.10 28,722.47
43,101.10 29,077.91
43,101.10 29,437.75
43,101.10 29,802.04
43,101.10 30,170.84
43,101.10 30,544.20
43,101.10 30,922.19
43,101.10 31,304.85
43,101.10 31,692.25
43,101.10 32,084.44
43,101.10 32,481.48
43,101.10 32,883.44
43,101.10 33,290.37
43,101.10 33,702.34
43,101.10 34,119.41
To
Interest
21,720.11
21,720.11
21,720.11
21,720.11
21,455.52
21,187.66
20,916.48
20,641.94
20,364.01
20,082.64
19,797.78
19,509.41
19,217.46
18,921.90
18,622.68
18,319.76
18,013.09
17,702.63
17,388.32
17,070.13
16,747.99
16,421.87
16,091.72
15,757.48
15,419.10
15,076.53
14,729.73
14,378.63
14,023.19
13,663.35
13,299.06
12,930.26
12,556.90
12,178.91
11,796.25
11,408.85
11,016.66
10,619.62
10,217.66
9,810.73
9,398.76
8,981.69
(2) Purchase
Option
1,732,475.83
1,709,736.59
1,686,715.95
1,663,410.44
1,639,816.51
1,615,930.61
1,591,749.13
1,567,268.40
1,542,484.72
1,517,394.34
1,491,993.46
1,466,278.25
1,440,244.82
1,413,889.22
1,387,207.48
1,360,195.54
1,332,849.33
1,305,164.72
1,277,137.51
1,248,763.46
1,220,038.27
1,190,957.62
1,161,517.09
1,131,712.23
1,101,538.53
1,070,991.44
1,040,066.33
1,008,758.53
977,063.28
944,975.81
912,491.25
879,604.70
846,311.19
812,605.66
778,483.03
743,938.13
708,965.74
43 43,101.10 34,541.64 8,559.46 673,560.56
44 43,101.10 34,969.09 8,132.01 637,717.24
45 43,101.10 35,401.83 7,699.27 601,430.36
46 43,101.10 35,839.93 7,261.17 564,694.44
47 43,101.10 36,283.45 6,817.65 527,503.90
48 43,101.10 36,732.46 6,368.64 489,853.13
49 43,101.10 37,187.02 5,914.08 451,736.43
50 43,101.10 37,647.21 5,453.89 413,148.04
51 43,101.10 38,113.09 4,988.01 374,082.12
52 43,101.10 38,584.74 4,516.36 334,532.77
53 43,101.10 39,062.23 4,038.87 294,493.98
54 43,101.10 39,545.62 3,555.48 253,959.72
55 43,101.10 40,035.00 3,066.10 212,923.84
56 43,101.10 40,530.43 2,570.67 171,380.15
57 43,101.10 41,032.00 2,069.10 129,322.35
58 43,101.10 41,539.77 1,561.33 86,744.09
59 43,101.10 42,053.82 1,047.28 43,638.92
60 43,101.10 42,574.56 526.84 0.00
TOTALS: $2,521,923.03 $1,755,160.33 $766,763.00
Refer to the paragraph in the Lease entitled "Release of Liens"
Refer to the paragraph in the Lease entitled "Purchase Option and
"Release of Liens." Purchase options are in addition to the
rental payment due on the same day.
Approved and agreed to:
MUNICIPAL FINANCE CORPORATION
By:
Title:
Date:
MUNICIPAL FI
By:
Date: - 3 0 - [u
2
CITY OF NATIONAL CITY
By:
Title: MAYOR
Date: March 25, 2010
2
ASSIGNMENT OF LEASE #10-005
FOR VALUE RECEIVED, MUNICIPAL FINANCE CORPORATION
as assignor without recourse does hereby sell, assign,
CITY NATIONAL BANK ("Assignee") as assignee and its
assigns (i) all of its right, title and interest
attached Lease with Option to Purchase #10-005 dated
between Corporation as lessor and CITY OF NATIONAL CITY ("Lessee") as
Lessee (hereinafter said lease and any supplements, amendments,
additions thereof and any extension or renewals thereof is referred to
as the "Lease") and (ii) all moneys, sums and amounts now due or
hereinafter to become due under the Lease. Corporation represents that
the Lease and Lease Schedule(s) delivered to Assignee are the only
duly executed duplicate originals and comprise the entire writing,
obligation and agreement between Corporation and Lessee.
prior
Lease
("Corporation")
and transfer to
successors and
in and to the
March 16, 2010
Corporation further represents and warrants that it has made no
sale or assignment of any interest covered hereby; that the
is genuine and in all respects is what it purports to be; that
Assignee shall not be
for the performance
liable for and does not assume responsibility
of any of the
covenants, agreements,
obligations specified in the Lease to be kept, paid
Corporation with exception of Assignee's obligation
upon Lessee's default of
Property upon Lessee's
Property in conformance
or
performed
to issue
or
by
notices
the Lease and to convey title to the leased
exercise of its option to purchase said
with the terms of the Lease. Corporation
further represents and warrants that as of the date this assignment is
made, the Lease is in full force and effect, has not been amended
except as set forth in instrument delivered to Assignee and Lessee is
not in default of any terms thereunder.
Corporation hereby constitutes and irrevocably appoints Assignee
the true and lawful attorney of Corporation to demand, receive and
endorse payments and to give receipts, releases and satisfactions
either in the name of Assignee or in the name of Corporation in the
same manner and with the same effect as Corporation could do if this
Assignment of Lease had not been made. Within fifteen (15) days after
receiving its full bargain with respect to each Schedule covered
hereby, Assignee shall cause to be released to Lessee its vested
interest in the Property thereto.
This Assignment of Lease shall be construed and governed in
accordance with the laws of the State of California. Any provision of
this Assignment of Lease found to be prohibited by law shall be
ineffective only to the extent of such prohibition, and shall not
invalidate the remainder of this Assignment of Lease.
This Assignment shall be binding upon and inure to the benefit of
the parties and their respective successors and assigns and is made in
accordance with the Municipal Lease Placement Agreement dated as of
January 1, 1999, as amended, entered into between Corporation and
Assignee. In the case of litigation, the prevailing party shall be
entitled to recover from the opposing party all costs and expenses,
including attorneys' fees which may be the allocable cost of in-house
counsel, incurred by the prevailing party in exercising any of its
rights or remedies hereunder or enforcing any of the terms,
conditions, or provisions hereof.
IN WITNESS WHEREOF, Corporation has caused this Assignment of
Lease to be executed by its duly authorized agent on the date
specified below.
MUNICI E CORPORATION MUNICIPAL FINANCE CORPORATION
By By, r
Title_ Title /�
Date �///� Date 3-JO-- 7,0
ACKNOWLEDGEMENT OF ASSIGNMENT
The undersigned hereby acknowledges the assignment by MUNICIPAL
FINANCE CORPORATION over to CITY NATIONAL BANK of that certain Lease
with Option to Purchase #10-005 dated as of March 16, 2010 (the
"Lease"), entered into between MUNICIPAL FINANCE CORPORATION as lessor
and the undersigned as lessee.
With respect to the Lease, the undersigned agrees to pay,
commencing with the first scheduled Rental Payment, all rentals and
moneys due or to become due under said Lease to CITY NATIONAL BANK,
2100 Park Place, Suite 150, El Segundo, CA 90245, Attn: Loan Servicing
#354, and further agrees it shall have no counterclaim or offset
against rentals due thereunder as to said Assignee and expressly
further agrees that said Assignee shall not (except for the
obligations specifically set forth in the foregoing Assignment of
Lease) be liable for any of the obligations or burdens of the lessor
under said Lease.
IN WITNESS WHEREOF, the lessee has caused this Acknowledgment of
Assignment to be executed by its authorized agent on the date
specified below.
CITY O TIONAL CITY
By
Title MAYOR
Date March 25, 2010
2
3
ACQUISITION FUND AGREEMENT
This Acquisition Fund Agreement (this "Agreement"), dated as of
March 16, 2010, is among Municipal Finance Corporation, a California
corporation (the "Corporation"), City of National City, a political
subdivision of the State of California (the "City") and Deutsche Bank
National Trust Company, a national trust company (the "Custodian").
Reference is made to that certain Lease Agreement dated as of
March 16, 2010 between Corporation and City (the "Lease"), covering
the financing of a certain property described therein (the
"Property"). It is a requirement of the Lease that the funds for the
Acquisition of the Property be deposited with the Custodian hereunder
for the purpose of providing a mechanism for the application of such
amounts to the payment of Property costs. Capitalized terms used in
this Agreement and not otherwise defined shall have the respective
meanings given such terms in the Lease.
The parties agree as follows:
1. Creation of Acquisition Fund.
(a) There is hereby created a special trust fund to
be known as the "City of National City Acquisition Fund" (the
"Acquisition Fund") to be held in trust by the Custodian for the
purposes stated herein, for the benefit of Corporation and City, to be
held, disbursed and returned in accordance with the terms hereof. On
the Closing Date, the City has caused the amount of $1,755,160.33 to
be transferred to the Custodian for deposit into the Acquisition Fund.
(b)
on deposit in
accordance with
The Custodian shall invest and reinvest moneys
the Acquisition Fund in Qualified Investments in
written instructions received from City. City shall
be solely responsible for ascertaining that all proposed investments
and reinvestments are Qualified Investments and that they comply with
federal, state and local laws, regulations and ordinances governing
investment of such funds and for providing appropriate notice to the
Custodian for the reinvestment of any maturing investment.
Accordingly,
neither the Custodian
responsible for
kind, directly
investment
any liability,
nor
Corporation shall
cost, expense, loss or claim of
or indirectly arising out of or
related to
or reinvestment of all or any portion of the moneys
be
any
the
on
deposit in the Acquisition Fund, and City agrees to and does hereby
release the Custodian and Corporation from any such liability, cost,
expenses, loss or claim. Interest on the Acquisition Fund shall
become part of the Acquisition Fund, and gains and losses on the
investment of the moneys on deposit in the Acquisition Fund shall be
borne by the Acquisition Fund. For purposes of this agreement,
"Qualified Investments" means any investments which meet the
requirements of Section 53601 of the California Government Code. IN
THE ABSENCE OF WRITTEN INSTRUCTIONS, THE CUSTODIAN IS HEREBY
AUTHORIZED AND DIRECTED TO INVEST AND RE -INVEST ALL FUNDS ON HAND IN
THE DB CASH RESERVE.
(c) Unless the Acquisition Fund is earlier
terminated in accordance with the provisions of paragraph (d) below,
amounts in the Acquisition Fund shall be disbursed by the Custodian in
payment of amounts described in Section 2 hereof upon receipt of
written authorization(s) from Corporation, as is more fully described
in Section 2 hereof. If the amounts in the Acquisition Fund are
insufficient to pay such amounts, City shall be solely responsible for
the balance of the funds needed to complete the Acquisition of the
Property. Any moneys remaining in the Acquisition Fund after March 2,
2011 (the "Acquisition Period") shall be applied as provided in
Section 4 hereof.
(d) The Acquisition Fund shall be terminated at the
earliest of (i) the final distribution of amounts in the Acquisition
Fund or (ii) written notice given by Corporation of the occurrence of
a default or termination of the Lease.
(e) The Custodian may act in reliance upon any
writing or instrument or signature which it, in good faith, believes
to be genuine and may assume the validity and accuracy of any
statement or assertion contained in such a writing or instrument. The
Custodian shall not be liable in any manner for the sufficiency or
correctness as to form, manner of execution, or validity of any
instrument nor as to the identity, authority, or right of any person
executing the same; and its duties hereunder shall be limited to the
receipt of such moneys, instruments or other documents received by it
as the Custodian, and for the disposition of the same in accordance
herewith.
(f) Unless the Custodian is guilty of gross
negligence or willful misconduct with regard to its duties hereunder,
City agrees to and does hereby release and indemnify the Custodian and
hold it harmless from any and all claims, liabilities, losses,
actions, suits or proceedings at law or in equity, or any other
expense, fees or charges of any character or nature, which it may
incur or with which it may be threatened by reason of its acting as
Custodian under this agreement; and in connection therewith, does to
the extent permitted by law indemnify the Custodian against any and
all expenses; including reasonable attorneys' fees and the cost of
defending any action, suit or proceeding or resisting any claim.
(g) If City and Corporation shall be in
disagreement about the interpretation of the Lease, or about the
rights and obligations, or the propriety of any action contemplated by
the Custodian hereunder, the Custodian may, but shall not be required
to, file an appropriate civil action to resolve the disagreement. The
Custodian shall be reimbursed by City for all costs, including
2
reasonable attorneys' fees, in connection with such civil action, and
shall be fully protected in suspending all or part of its activities
under the Lease until a final judgment in such action is received.
(h)
own choice and
protection
otherwise
The Custodian may consult with counsel of its
shall have full and complete authorization and
with the opinion of such counsel. The Custodian shall
not be liable for any mistakes of fact or errors of
judgment, or for any acts or omissions of any kind unless caused by
its willful misconduct.
(i) City shall reimburse the Custodian for all
reasonable costs and expenses, including those of the Custodian's
attorneys, agents and employees incurred for extraordinary
administration of the Acquisition Fund and the performance of the
Custodian's powers and duties hereunder in connection with any Event
of Default under the Lease, or in connection with any dispute between
Corporation and City concerning the Acquisition Fund.
2. Acquisition of Property.
(a)
supervise and provide
the Acquisition of
Acquisition Fund.
are within the
Corporation makes
Corporation shall
construction contr
approvals, if any,
installation of t
thereof.
Acquisition Contracts. City will arrange for,
for, or cause to be supervised and provided for,
the Property, with moneys available in the
City represents the estimated costs of the Property
funds estimated to be available therefor, and
no warranty or representation with respect thereto.
have no liability under any of the acquisition or
acts. City shall obtain all necessary permits and
for the acquisition, construction, equipping and
he Property, and the operation and maintenance
(b) Authorized Acquisition Fund Disbursements.
Disbursements from the Acquisition Fund shall be made for the purpose
of paying (including the reimbursement to City for advances from its
own funds to accomplish the purposes hereinafter described) the cost
of acquiring and constructing the Property.
(c) Requisition Procedure. No disbursement from the
Acquisition Fund shall be made unless and until Corporation has
approved such requisition. Prior to disbursement from the Acquisition
Fund there shall be filed with the Custodian a requisition for such
payment in the form of Disbursement Request attached hereto as
Schedule 1, stating each amount to be paid and the name of the person,
firm or corporation to whom payment thereof is due. Each such
requisition shall be signed by an authorized representative of City
(an "Authorized Representative") and by Corporation. City shall
provide to Corporation a Certificate of Completion along with the
final Disbursement Request.
3
3. Deposit to Acquisition Fund. Upon satisfaction of the
conditions specified in the Lease, Corporation will cause the Lease
Proceeds to be deposited in the Acquisition Fund. City agrees to pay
any costs with respect to the Property in excess of amounts available
therefor in the Acquisition Fund.
4. Excessive Moneys in the Acquisition Fund. Following the
final disbursement from the Acquisition Fund at the end of the
Acquisition Period, or termination of the Acquisition Fund as
otherwise provided herein, the Custodian shall transfer any remainder
from the Acquisition Fund to Corporation (or to City at Corporation's
written direction) for application to amounts owed under the Lease in
accordance with Section 6 of the Lease.
5. Security Interest. The Custodian and City acknowledge and
agree that the Acquisition Fund and all proceeds thereof are being
held by Custodian for disbursement or return as set forth herein.
City hereby grants to Corporation a first priority perfected security
interest in the Acquisition Fund, and all proceeds thereof, and all
investments made with any amounts in the Acquisition Fund. If the
Acquisition Fund, or any part thereof, is converted to investments as
set forth in this agreement, such investments shall be made in the
name of Custodian and the Custodian hereby agrees to hold such
investments as bailee for Corporation so that Corporation is deemed to
have possession of such investments for the purpose of perfecting its
security interest.
6. Control of Acquisition Fund. In order to perfect
Corporation's security interest by means of control in (i) the
Acquisition Fund established hereunder, (ii) all securities
entitlements, investment property and other financial assets now or
hereafter credited to the Acquisition Fund, (iii) all of City's rights
in respect of the Acquisition Fund, such securities entitlements,
investment property and other financial assets, and (iv) all products,
proceeds and revenues of and from any of the foregoing personal
property (collectively, the "Collateral"), Corporation, City and
Custodian further agree as follows:
(a) All terms used in this Section 6 which are
defined in the Commercial Code of the State of California (the
"Commercial Code") but are not otherwise defined herein shall have the
meanings assigned to such terms in the Commercial Code, as in effect
on the date of this Agreement.
(b) Custodian will comply with all entitlement
orders originated by Corporation with respect to the Collateral, or
any portion of the Collateral, without further consent by City.
(c) Custodian hereby represents and warrants (a)
that the records of Custodian show that City is the sole owner of the
Collateral, (b) that Custodian has not been served with any notice of
4
levy or received any notice of any security interest in or other claim
to the Collateral, or any portion of the Collateral, other than
Corporation's claim pursuant to this Agreement, and (c) that Custodian
is not presently obligated to accept any entitlement order from any
person with respect to the Collateral, except for entitlement orders
that Custodian is obligated to accept from Corporation under this
Agreement and entitlement orders that Custodian, subject to the
provisions of paragraph (e) below, is obligated to accept from City.
(d) Without the prior written consent of
Corporation, Custodian will not enter into any agreement by which
Custodian agrees to comply with any entitlement order of any person
other than Corporation or, subject to the provisions of paragraph (e)
below, City, with respect to any portion or all of the Collateral.
Custodian shall promptly notify Corporation if any person requests
Custodian to enter into any such agreement or otherwise asserts or
seeks to assert a lien, encumbrance or adverse claim against any
portion or all of the Collateral.
(e) Except as otherwise provided in this
paragraph (e) and subject to Section 1(b) hereof, Custodian may allow
City to effect sales, trades, transfers and exchanges of Collateral
within the Acquisition Fund, but will not, without the prior written
consent of Corporation, allow City to withdraw any Collateral from the
Acquisition Fund. Custodian acknowledges that Corporation reserves
the right, by delivery of written notice to Custodian, to prohibit
City from effecting any withdrawals (including withdrawals of ordinary
cash dividends and interest income), sales, trades, transfers or
exchanges of any Collateral held in the Acquisition Fund. Further,
Custodian hereby agrees to comply with any and all written
instructions delivered by Corporation to Custodian (once it has had a
reasonable opportunity to comply therewith) and has no obligation to,
and will not, investigate the reason for any action taken by
Corporation, the amount of any obligations of City to Corporation, the
validity of any of Corporation's claims against or agreements with
City, the existence of any defaults under such agreements, or any
other matter.
(f) City hereby irrevocably authorizes Custodian to
comply with all instructions and entitlement orders delivered by
Corporation to Custodian.
(g) Custodian will not attempt to assert control,
and does not claim and will not accept any security or other interest
in, any part of the Collateral, and Custodian will not exercise,
enforce or attempt to enforce any right of setoff against the
Collateral, or otherwise charge or deduct from the Collateral any
amount whatsoever.1
5
(h) Custodian and City hereby agree that any
property held in the Acquisition Fund shall be treated as a financial
asset under such section of the Commercial Code as corresponds with
Section 8-102 of the Uniform Commercial Code, notwithstanding any
contrary provision of any other agreement to which Custodian may be a
party.
(i) Custodian is hereby authorized and instructed,
and hereby agrees, to send to Corporation at its address set forth in
Section 7 below, concurrently with the sending thereof to City,
duplicate copies of any and all monthly Acquisition Fund statements or
reports issued or sent to City with respect to the Acquisition Fund.
7. Miscellaneous. This Agreement may not be amended except in
writing signed by all parties hereto. This Agreement may be executed
in one or more counterparts, each of which shall be deemed to be an
original instrument and each shall have the force and effect of an
original and all of which together constitute, and shall be deemed to
constitute, one and the same instrument. Notices hereunder shall be
made in writing and shall be deemed to have been duly given when
personally delivered or when deposited in the mail, first class
postage prepaid, or delivered to an express carrier, charges prepaid,
or sent by facsimile with electronic confirmation, addressed to each
party at its address below:
If to Corporation:
If to City:
If to Custodian:
Municipal Finance Corporation
23945 Calabasas Road, Suite 103
Calabasas, CA 91302
Attn: William Morton
Phone: 818-224-4787
Fax: 818-224-4789
City of National City
1243 National City Blvd.
National City, CA 91950
Attn: Finance Director
Phone:
Fax:
Deutsche Bank National Trust Company
101 California Street, 46th Floor
San Francisco, CA 94111
Attn: Raafat Albert Sarkis
Phone: 415-617-2801
Fax: 415-617-4270
6
In Witness Whereof, the parties have executed this Acquisition
Fund Agreement as of the date first above written.
Municipal Finance Corporation
Municipal Finance Corporation
City of National City
By:
Title: MAYOR
Deutsche Bank National Trust Company
By:
Title:
Deutsche Bank National Trust Company
By:
Title:
7
dr
In Witness Whereof, the parties have executed this Acquisition
Fund Agreement as of the date first above written.
Municipal Finance Corporation City of National City
By:
Title:
Municipal Finance Corporation
By:
Title:
Ceutsche
By:
Title:
By:
Title:
k National Trust Company
Raafat A. Sarkis
Vice President
Deutsche Bank National Trust Company
By:
Title:
Sonia N. Flores
Vice President
4
ARBITRAGE AND TAX CERTIFICATE #10-005
The undersigned hereby certifies that he/she is a duly appointed
authorized agent, of the CITY OF NATIONAL CITY (the "Lessee"), for the
purpose of executing and delivering, on behalf of the Lessee, the
Lease with Option to Purchase dated March 16, 2010 (the "Lease"), by
and between MUNICIPAL FINANCE CORPORATION (the "Corporation") as
lessor and the Lessee as lessee. This Certificate is being issued
pursuant to Section 148 of the Internal Revenue Code of 1986 (the
"Code"), and Treasury Regulations, Sections 1.148-1 through 1.148-11
promulgated thereunder (the "Regulations"). The following facts,
estimates and circumstances are either in existence on the date of
this Arbitrage and Tax Certificate or are reasonably expected to occur
hereafter.
1. Under the Lease, the Corporation is required to acquire the
property described in the schedule attached to the Lease (the
"Property"), and to lease and sell the Property to the Lessee; and the
Lessee is required to lease and purchase the Property from Corporation
by making Rental Payments with respect thereto, comprising principal
and interest, on the dates and in the amounts set forth in the Lease.
2. On the date of Lease issuance, the Lessee will receive not
less than $1,755,160.33 from the Corporation. Such moneys will be
deposited with the Lessee and used, together with interest earnings
thereon, to pay the Property costs and the first three Rental
Payments.
3. The Lessee on behalf of the Corporation, will proceed to
acquire and install the Property with due diligence and, based upon
the provisions of the purchase contracts, delivery and acceptance of
the Property is scheduled to occur on or before six months after the
date hereof but in no case later than three years from the date
hereof, and it is expected that all Lease proceeds will be spent by
such date.
4. The original proceeds of the Lease plus the interest earned
thereon, will not exceed by more than 5% the amount necessary for the
governmental purpose for which the Lease is issued.
5. The yield of the Lease, without taking into account costs of
issuance thereon, and on the basis of the initial reoffering price of
the Lease to the Assignee, is not less than 4.950000%.
6. No sinking fund will be maintained for the payment of the
Rental Payments due under the Lease.
7. The term of the Lease is not longer than is reasonably
necessary for the governmental purpose of the Lease, and the weighted
average maturity of the Lease does not exceed 120 percent of the
average reasonably expected economic life of the leased Property.
8. The Property has not been, and is not expected during the
term of the Lease, to be sold or otherwise disposed of by the Lessee.
9. The Lessee and its subordinate entities (as defined in the
Code) will not, in the aggregate, issue more than $5,000,000 of tax-
exempt obligations during calendar year 2010 and, thus, qualifies for
the arbitrage rebate exemption provided for in Section 148(f)(4)(D) of
the Code.
10. To the best of the knowledge and belief of the undersigned,
the expectations of the Lessee, as set forth above, are reasonable,
and there are no present facts, estimates and circumstances which
would change the foregoing expectations.
IN WITNESS WHEREOF, the party hereto has caused its authorized
agent to execute this Arbitrage and Tax Certificate on the date
specified below.
CITY OF TIONAL CITY
By
Title MAYOR
2
5
CERTIFICATE OF LESSEE #10-005
The undersigned, duly authorized representative of City of National City
("Lessee") as lessee under that Lease with Option to Purchase #10-005 dated
as of March 16, 2010 ("Lease") with Municipal Finance Corporation as lessor,
hereby certifies as follows:
1. I have been duly authorized to execute and deliver, on behalf of Lessee,
the Lease and related documents pursuant to a resolution adopted by
Lessee's governing body, which resolution is in full force and effect and
has not been amended, modified, supplemented or rescinded as of the date
hereof.
2. Lessee has complied with all agreements and covenants and satisfied all
conditions contemplated by the Lease on its part to be performed or
satisfied on or before the date hereof.
3. The representations, warranties and covenants of Lessee contained in the
Lease are true and correct in all material respects as of the date hereof,
as if made on this date.
4. No litigation is pending or, to the best of my knowledge, threatened
(either in state or federal courts) (a) to restrain or enjoin the issuance
and delivery of the Lease or the collection of revenues to be used to meet
Lessee's obligations under the Lease; (b) in any way contesting or
affecting the authority for the execution or delivery of the Lease, or the
validity of the Lease; (c) in any way contesting the existence or powers
of Lessee, as such existence or powers in any way relate to the issuance
of the Lease or Lessee's obligations under the Lease, or (d) could
materially adversely affect the financial position of Lessee.
5. The Property being leased pursuant to the Lease is essential to the
function of Lessee and is immediately needed by Lessee. Such need is
neither temporary nor expected to diminish during the Lease term. The
Property is expected to be used by Lessee for a period in excess of the
Lease term.
6. The scheduled Rental Payments for the Property do not exceed the fair
rental value of the Property. 7. Lessee's federal tax identification number is 9 2 r �3Z/ .
8. That for calendar year 2010 and including the Information Return for Tax -
Exempt Governmental Obligations Form 8038-G filed with the Internal
Revenue Service for the Lease, Lessee has filed one Information Return
Form 8038-G with the Internal Revenue Service.
The meani g of the capitalized terms in this Certificate are the same as
those p fide. 'n the Lease.
By:
Date: March 25, 2010
6
INCUMBENCY AND SIGNATURE CERTIFICATE
I do hereby certify that I am the duly appointed and acting City
Clerk of the City of National City, a municipal corporation validly
existing under the Constitution and laws of the State of California
("Lessee"), and that, as of the date hereof, the individual named
below is the duly appointed officer of Lessee holding the office set
forth opposite his/her respective name. I further certify that (i) the
signature set forth opposite his/her respective name and title is true
and authentic and (ii) such officer has the authority on behalf of
Lessee to enter into that certain Lease with Option to Purchase #10-
005 dated March 16, 2010, between Lessee and Municipal Finance
Corporation, and all documents relating thereto.
Name Title
iA a tie")
Signature
IN WITNESS WHEREOF, I have duly executed this certificate hereto
this 2S 7b day of MA/LCii , 2010.
7
04/06/201C, TUE 11:17 FAX 619 336 4349 Finance Department
IQ,luut/uur
MEMORANDUM OF INSURANCE
IISSUE DATE 3/4/2010
P.O. BOX 6450
NEWPORT BEACH, CA 92658-6450
Ph (949) 756-D271 / Fax (949) 756-2713
License No. 0C36861
* INSURED
SAN DIEGO POOLED II
PROGRAM AUTHORIT
MEMBER AGENCY OF:
CIT1243 OF NCITY
1243 NATIONAL CITY BLVD.
NATIONAL CITY, CA 91950 _
Novi & t�ycL/9-33L �l' ; O _ 00 6
(o(9- —137o '
I'
COVERAGE PER CA. GOVERNMENT CODE
THIS IS TO CERTIFY THAT A MEMORAND
NAMED ABOVE AS AUTHORIZED BY CAL
THE PERIOD INDICATED NOTWITHST
CONTRACT OR OTHER DOCUMENT Wil
MAY PERTAIN. THE COVERAGE AFFORD
TERMS, EXCLUSIONS, AND CONDITIONS
LTR
TYPE OF COVERAGE
MEMORANDI
NUMBER
A
GENERAL AND
AUTOMOBILE LIABILITY
INCLUDING:
ALL OWNED, HIRED AND
NON -OWNED AUTOS
SELFINSUR
D
EXCESS LIABILITY` *
SDC 0024
* * THE ABOVE NOTED MEMORANDUM
DESCRIPTION OF OPERATIONS / LOCK
CERTIFICATE HOLDER IS INCLUDED AS ADDITIO
PURCHASE NSURANCE/IS PRIM10-005DARY ATED INSUARANCE INSOFAR /
SUBJECT TO P
MEMORANDUM HOLDER
CITY NATIONAL BANK
CIO MUNICIPAL FINANCE CORPORATION
23945 CALABASAS RD. #103
CALABASAS, CA 91302
THIS MEMORANDUM I5 ISSUED AS A MATTER OF
INFORMATION ONLY AND CONFERS NO RIGHTS UPON
THE MEMORANDUM HOLDER. THIS MEMORANDUM
DOES NOT AMEND, EXTEND, OR ALTER THE
COVERAGE SHOWN BELOW.
SURANCE
AND
COVERAGE AFFORDED BY
LETTER A: INDIVIDUAL CITY'S SELF -INSURED RETENTION
LETTER B: "San Diego Pooled Insurance Program Authority, A Public
Agency."
• MEMBER AGENCY OF THE SAN DIEGO POOLED INSURANCE
PROGRAM AUTHORITY
SECTION 990.4(a), 990.8(c)
UM OF INSURANCE BELOW HAS BEEN ENTERED INTO BY INSURED
IFORNIA GOVERNMENT CODE SECTION 990.4(a) AND 990.8(c) FOR
ANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY
H RESPECT TO WHICH THIS MEMORANDUM MAY BE ISSUED OR
ED BY THE CONTRACT DESCRIBED HERE IS SUBJECT TO ALL THE
OF THE. SUCH CONTRACT.
D
MEMORANDUM
EFFECTIVE
DATE
07/01/09
MEMORANDUM
EXPIRATION
DATE
LIABILITY LIMITS
EACH
OCCURRENCE
AGGREGATE
07/01/10
BI & PD
COMBINED
250,000
NIA
PERSONAL INJURY
INCL.
07/01/09
07/01/10
BI & PD
COMBINED
1,750,000
OF INSURANCE IS A CLAIMS -MADE CONTRACT
IONS / VEHICLES / SPECIAL ITEMS
NAL INSURED BUT ONLY WITH RESPECTS TO LEASE WITH OPTION TO
AND AGREED THAT THIS
3 IT RELATES OTO ANY AND LL UNDERSTEQUIPMELUTIONS. ITNT LEASED FROM ASSIGNEE.
LICY TERMS, CONDITIONS AND EXCLUSIONS. Al
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED CONTRACTS SE CANCELLED BEFORE TIC
EXPIRATION DATE THEREOF. THE AUTHORITY WILL ENDEAVOR TO MAIL 30 DAYS'
WRITTEN NOTICE TO THE HOLDER NAMED FIEREON BUT FAILURE TO MAIL SUCH
NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE
AUTHORITY. OR ITS REPRESENTATIVES. EXCEPT 10 DAYS FOR NON-PAYMENT OF
PREMIUM.
AUTHORIZED SIGNATURE
G.0 PUnll\Sandpipa\Sd-LiabilltylSd-Llab-cerl Sd Pool Llab Cert-Pddoc
04/06/201:0 TUE 11:17 FAX 619 336 4349 Finance Department
IQJ003/007
Endorsement Per Contract
Effective 7/1/09
Contract Number SDC 0024
ADDITIONAL INSURED ENDORSEMENT
In consideration. of the payment of premium, it is agreed for claims occurring and reported after
7/1/98, that the following amendments / additions apply:
1. Section III — Persons and/or Entities Covered, is amended to include any person(s) or
organization(s) when required in a written contract or agreement to provide coverage but
only for Personal Injury or Property Damage liability which:
a. is covered by this Memorandum of Insurance; and
b. arises out of:
1. the normal course of the Named Covered Party's operations; or
2. ownership, maintenance or use of that part of the premises or land rented
to or leased to and occupied by, the Named Covered Party; or
3. work performed for that Covered Party by the Named Covered Party;
or
4. that Covered Party's financial control of the Named Covered Party; or
5. the maintenance, operation or Use by the Named Covered Party of any
equipment or Automobile leased to you by such person(s) or Organization(s).
2. The limits of coverage afforded to suchperson(s) or organization(s) will be:
a. the minimum limits of coverage which the Named Covered Party agreed to
provide; or
b. the limits of coverage of this Memorandum of Insurance, whichever is less.
3. Coverage provided under this Endorsement may be primary over any applicable
insurance, and the Authority may provide a notice of cancellation if requested.
4 Coverage provided under this Endorsement expires:
a. when the written contract or agreement ceases; or
b. when the Named Covered Party ceases to be a tenant in the premises.
Attached to and forming part of Contract number SDC 0024 of the San Diego Pooled
Insurance Program Authority Memorandum of Insurance.
Dated at:
Newport Beach this 4 day of
Marsh
, 2010.
By: thorized Representative
QVPIDIMSANDPIPAISD•LIADILITYISD-LIAD-CERIU'l-!II SD-POOL-AI-END.DDC
04,'06/2010 TUE 11:18 FAX 619 336 4349 Finance Department
fdloo5/007
ISSUE M/DD YY)
ID
NCE CIF
PRQP`ERT
t INS
JRANCE
:,.
/10
s�oa
THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN FORCE, AND
CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY.
PRODUCER
ALLIANT INSURANCE SERVICES, INC.
P.O. BOX 6450
NEWPORT BEACH, CA 92658-6450
PH (949) 756-0271 / FAX (949) 756-2713
LICENSE NO. 0C36861 •
CODE SUS -CODE
COMPANY
VARIOUS PER ATTACHED SCHEDULE 3
r�
/ O '- 0 O 2
INSURED
PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP):
SAN DIEGO POOLED INSURANCE PROGRAM
AUTHORITY (SANDPIPA) AND MEMBER AGENCY:
CITY OF NATIONAL CITY
1243 NATIONAL CITY BLVD,
NATIONAL CITY, CA 91950
LOAN NUMBER
POLICY NUMBER
SEE ATTACHED
EFFECT/YE D E (MM/DOrc1/2..„..V...,
D�(E RATION DATE {MM/DO/YY) I CONT. UNTIL I
07/01 /09 I 07/0111 D 'TERMINATED IK I
THIS REPLACES PRIOR EVIDENCE DATED:
-. .
?iPROR.ER-Tk;INFORMATION :: -:.: <. ...
LOCATION / DESCRIPTION
AS RESPECTS TO LEASE WITH OPTION TO PURCHASE #10-005 DATED MARCH 2, 2010 FOR HONEYWELUSOLUTIONS. IT IS UNDERSTOOD
AND AGREED THAT THIS INSURANCE 15 PRIMARY INSURANCE INSOFAR AS IT RELATES TO ANY AND ALL EQUIPMENT LEASED FROM
ASSIGNEE. INCLUDES RENTAL INTERRUPTION IN THE AMOUNT OF $173,424.56.
'COVERAGElNFO-RMATION':;` = .:.._.-_. .':....-
COVERAGE/PERILS/FORMS
AMOUNT OF INSURANCE
;I'-.
DEDUCTIBLE
ALL RISK OF DIRECT PHYSICAL LOSS OR DAMAGE EXCLUDING EARTHQUAKE INCLUDING FLOOD AT
LOCATIONS PER SCHEDULE ON FILE WITH COMPANY. COVERAGE INCLUDES REAL AND
PERSONAL PROPERTY, RENTAL INCOME INCLUDING BOND REVENUE REQUIREMENTS, BUSINESS
INTERRUPTION, EXTRA EXPENSE AND ALL EXTENSIONS AND SUBUMITS OF COVERAGE AS SHOWN
ON MANUSCRIPT POLICY FORM.
REPAIR OR REPLACEMENT COST VALUATION
NOTE: FLOOD LIMIT IS SHARED BY ALL MEMBERS
SUBJECT TO POLICY TERMS, CONDITIONS AND EXCLUSIONS.
$1,000
LIMIT PER
LOSSSPECIFIED
OCCURRENCE
• gg3FLOOD
60 000
PER OCCURRENCE AND
ANNUAL AGGREGATE
BOILER & MACHINERY
S100.000,000
SEE
BELOW
REMARKS'1INCLUDING 'SPECIALCONDITIONS) " -
DEDUCTIBLES:
ALL RISK: $5,000
FLOOD: $250,000 FLOOD ZONES A & V
8100,000 ALL OTHER FLOOD ZONES
"
VEHICLES:
$5,000 COMPREHENSIVE AND COLLISION
OTHER:
$5,000 CONTRACTOR EQUIPMENT
BOILER & MACHINERY:
$10,000 — HIGHER DED APPLY BASED ON SPECIFIC
OBJECT/SIZE/PERIL
CANCELLATION._..::'. ...._.
THE POLICY IS SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY PERIOD. SHOULD THE POLICY BE
TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW DAYS WRITTEN NOTICE, AND WILL SEND
NOTIFICATION OF ANY CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN A 0 DANCE WI rH THE POLICY PROVISIONS
OR AS REQUIRED BY LAW. SUBJECT TO 10 DAYS NOTICE OF CANCELLATION FOR NON-PAYMENT OF PREMIUM.
'A D D I T I O N AL I NTE R EST :.
NAME AND ADDRESS NATURE OF INTEREST
1 MORTGAGEE 1
, I
ADDITIONAL INSURED
CITY NATIONAL BANK
C/O MUNICIPAL FINANCE CORPORATION = X
LOSS PAYEE
LOSU
(OTHER)
23945 CALABASAS RD. #103 CALABASAS, CA 91302 SIGNATURE OF AU O ZEb AGENT OF COMPANY
G:WPUniDSandpipal5d-ProperIOSD-Propceb_Sd-Prop-PHdoc
04./06/20,10 TUE 11:18 FAX 619 336 4349 Finance Department
2007/007
S.F. FORM Form 438BFU NS
_ (Rev. May 1, 1942) X
LENDER'S LOSS PAYABLE ENDORSEMENT
Loss or damage, if any, under this policy, shall be paid to the Payee named on the first page of this policy, its successors and assigns,
hereinafter referred to as "the Lender", in whatever form or capacity its interests may appear and whether said interest be vested in said
Lender in its individual or in its disclosed or undisclosed fiduciary or representative capacity, or otherwise, or vested in a nornince or trustee
of said Lender.
2. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of the Lender, its successors and
assigns, shall not be invalidated nor suspended: (a) by any error, omission, or change respecting the ownership, description, possession, or
location of the subject of the insurance or thc interest therein, or the title thereto; (b) by the commencement of foreclosure proceedings or
the giving of notice of sale of any of the property covered by this policy by virtue of any mortgage or trust deed; (c) by any breach of
warranty, act, omission, neglect, or non-compliance with any of the provisions of this policy, including any and all riders now or hereafter
attached thereto, by the named insured, the borrower, mortgagor, trustor, vendee, owner, tenant, warehouseman, custodian, occupant, or by
the agents of either or any of them or by the happening of any event pemtitted by them or either of them, or their agents, or which they
failed to prevent, whether occurring before or after the attachment of this endorsement, or whether before or after a loss, which under the
provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate or suspend the insurance as to the
named insured, excluding herefrom, however, any acts or omissions of the Lender while exercising active control and management of the
property
3. in the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of this policy
or on account of any change in occupancy or increase in hazard not permitted by This policy, this Company agrees to give written notice to
the Lender of such non-payment of premium after sixty (60) days from and within one hundred and twenty (120) days after due date of such
premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when so notified in writing by this
Company of the failure of the insured to pay such premium shall pay or cause to be paid the premium due within ten (10) days following
receipt of the Company's demand in writing therefor. If the Lender shall decline to pay said premium or additional premium, the rights of
the Lender under this Lender's Loss Payable Endorsement shall not be terminated before ten (10) days after receipt of said written notice by
the Lender.
4, Whenever this Company shall pay to the Lender any sum for loss or damage under this policy and shall claim that as to the insured no
liability therefor exists, this Company, at its option, may pay to the Lender the whole principal sum and interest and other indebtedness due
or to become due from the insured, whether secured or unsecured, (with refund of all interest not accrued), and this Company, to the extent
of such payment, shall thereupon receive a full assignment and transfer, without recourse, of the debt and all rights and securities held as
collateral thereto.
5. If there be any other insurance upon the within described property, this Company shall he liable under this policy as to the Lender for the
proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similar character on said property under
policies held by, payable to and expressly consented to by the Lender. Any Contribution Clause included in any Fallen Building Clause
Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified, and also any Contribution Clause
in any other endorsement or rider attached to this cunttact of insurance is hereby nullified except Contribution Clauses for the compliance
with which the insured has received reduction in the rate charged or has received extension of the coverage to include hazards other than fire
and compliance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the
payment to it of the full amount of its claim, will subrogate this Company (pro rata with all other insurers contributing to said payment) to
all of the Lender's rights of contribution under said other insurance.
6. This Company reserves the right to cancel this policy at any time, as provided by its terms, but in such case this policy shall continue in
force for the benefit of the Lender for ten (10) days after written notice of such cancellation is received by thc Lender and shall then cease.
7. This policy shall remain in full force and effect as to the interest of the Lender for a period often (10) days after its expiration unless an
-acceptable policy in renewal thereof with loss thereunder payable to the Lender in accordance with the terms of this Lender's Loss Payable
Endorsement, shall have been issued by some insurance company and accepted by the Lender.
8. Should legal title to and beneficial ownership of any of the property covered under this policy become vested in the Lender or its agents,
insurance under this policy shall continue for the tern thereof for the benefit of the Lender but, in such event, any privileges granted by this
Lender's Loss Payable Endorsement which are not also granted the insured under the terms and conditions of this policy and/or under other
riders or endorsements attached thereto shall not apply to the insurance hereunder as respects such property.
9. All notices herein provided to be give by the Company to the Lender in connection with this policy and this Lender's Loss Payable
Endorsement shall be mailed to or delivered to the Lender at its office or branch described on the first page of the policy.
•Approved:
Board of Fire Underwriters of the Pacific,
Califomia Bankers' Association
Committee on Insurance.
• H11.1\SHAREIWORU\FORM5t433BFU.DOC
04/06/2010 TUE 11:18 FAX 619 336 4349 Finance Department
0004/007
r
SELF-INSURANCE CERTIFICATE #10-005
This self insurance certificate is Issued pursuant to that certain Lease with Option to Purchase dated March 2, 2010
("Lease') by and between Municipal Finance Corporation ("Corporation"), a corporation duly organized and
operating under the laws of the State of California as lessor and the City of National City, a municipal corporation
duly organized and existing under the laws of the State of California ("Lessee") as Lessee. The undersigned
Lessee provides this Certificate as a description of its self-insurance program.
1. Property Insurance
Lessee is self -insured for damage or destruction to the Property. YES circle one)
If yes, the dollar amount limit for property damage to the Property under Lessee's self-insurance program is
$
• Lessee maintains an umbrella insurance policy for s in excess of Lessee's self-insurance limits for
property damage to the Property as indicated above. NO (circle on
If yes, the umbrella policy provides coverage for all risk property damage NO (circle one)
If ye$, ) t0,,e4ollarli �l for property damage to the Property under such umbrella policy is
2. Liability Insurance
• Lessee Is self -insured for liability or ¢ th of any person or damage or loss arising out of or relating to the
condition or operation of the Property. E NO (circle one)
If yes, the dollar amount limit fqr property damage to the Property under Lessee's self-insurance program is
$-10004D00,/)
• Lessee maintains an umbrella insurance policy for claims in excess of Lessee's self-insur dye limits for
liability including injury or death of persons or damage to property as indicated above. YES„circle one)
If yes, the umbrella policy provides coverage for liabilities for injury and death to persons as well as damage or
loss of property arising out of or relating to the condition of the Property. YES NO (circle one)
If yes, the dollar amount of the umbrella policy's limits for such liability coverage is
3A. Lessee maintains a self-insurance fund. 0 (circle one)
If yes, please complete the following:
Moneys in the self-insurance fund are subject to annual a
_ t tat arne * * �nP� in the self-insurance fund to
• Amoun $ 00 ^ ^ re sub ect to Ilmit do s r each claim
If yes, the dollar amount of limit per claim is $ 0� 5 O, ®Q �' C
3B. If Lessee does not maintain a self-insurance fund, please complete the following:
Lessee obtains funds to pay claims for which it has self-insurance from the following sources:
ppropriation. 0 (circle one) d
cover Lesseef-insurance liabilities is
0 (circle one)
• The limitations on the amounts payable from the sources for claims are as follows:
4.- The following entity or officer has authority to mithorize pa mentto claim'
C�`�r (R/1 eat1►,- el-Kcip r `� (,c �p l4-‘4,
• In the event the entity or offs er in the prior response denies •., s ent of a claim, does the claimant have
recourse to another administrative officer, agency or the courts?alD t'9 (circle o e)c Uri/S
If yes, to whom does the claimant have recourse? Cl e el t I
IN WITNESS WHEREOF, Lessee has caused this Certificate to be executed and delivered by its duly authorized
officer as of the date below written.
CITY OF NATIONAL CITY
99c-ks-o,,-/
TITLE A-6 C�•-5 - / {��3 `t �'� Na�\v �,/
BY:
DATE:
3 _ iCC'7
8
Mayor
Ron Morrison
Council Members
Frank Parra
Alejandra Sotelo-Solis
Jess Van Deventer
Rosalie Zarate
March 26, 2010
*-* CALIFORNIA
NATIONAL Clint,
c c J INCORPORATED
Office of the City Attorney
MUNICIPAL FINANCE CORPORATION
23945 Calabasas Road
Suite 103
Calabasas, CA 91302-1500
City Attorney
George H. Eiser, III
Senior Assistant City Attorney
Claudia Gacitua Silva
Senior Assistant City Attorney
Jodi L. Doucette
RE: Lease with Option to Purchase #10-05 dated as of March 16,2010, by and
between MUNICIPAL FINANCE CORPORATION ("Corporation") as Lessor,
and CITY OF NATIONAL CITY ("Lessee") as Lessee
Ladies and Gentlemen:
I have acted as counsel to Lessee with respect to the Lease with Option to Purchase
described above (the "Lease"), and in this capacity have reviewed a copy of the executed
Lease and related documents or exhibits attached thereto. Based upon the examination of
these and such other documents as I deem relevant, it is my opinion that:
1. Lessee is a municipal corporation and political subdivision of the
State of California (the "State") , duly organized, existing, and operating under the
Constitution and laws of the State.
2. Lessee is authorized and has the power under applicable law to enter
into the Lease, and to carry out its obligations thereunder and the transactions
contemplated thereby.
3. The Lease has been duly authorized, approved, executed, and
delivered by and on behalf of Lessee, and is a legal, valid, and binding contract of Lessee
enforceable in accordance with its terms, except to the extent limited by State and federal
laws affecting remedies, and by bankruptcy, reorganization, or other laws of general
application relating to or affecting the enforcement of creditor's rights.
4. A resolution duly authorizing the execution and delivery of the
Lease and related documents was duly adopted by the governing body of Lessee on
March 16, 2010, and such resolution has not been amended or repealed and remains in
full force and effect.
1243 National City Boulevard; National City, California 91950-4301
Tel.: (619) 336.4220 Fax: (619) 336.4327
Municipal Finance Corporation
March 26, 2010
Page Two
5. There is no litigation, action, suit, or proceeding pending or, to the
best of my knowledge after due inquiry, threatened before any court, administrative
agency, arbitrator, or governmental body that challenges the authority of Lessee to enter
into the Lease or the ability of Lessee to perform its obligations under the Lease and the
transactions contemplated thereby.
This opinion nay be relied upon by Municipal Finance Corporation, its successors and
assigns.
Very truly yours,
GEORGE H. EISER, III
City Attorney
9
03/30/2010 TUE 11:52 FAX 619 336 4349 Finance Department UO 02/004
RESOLUTION 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:
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
MICHAEL R. DALLA
City Clerk of the City of National City, California
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.
e
City Clerk of the Cit of National City, California
By:
Deputy
10
01,8 M &_� �� k -(2_ /
�o
Form 8038-G
(Rev. November 2000)
Department er the Service
Internal Revenue Scrvlee
Information Return for Tax -Exempt Governmental Obligations
► Under Internal Revenue Code section 149(e)
► See separate Instructions.
Caution: If the issue price is under $ 1Oc 000, use Form8038-GC.
OMB No. 1545-0720
Part I Reporting Authority If Amended Return, check here ►
1 Issuer's name
City of National City
2
Issuer's employer identification number
95 2558328
3
Number and street (or P.O. box if mail is not delivered to street address)
1243 National City Blvd.
Room/suite
4 Report number
3 2010.01
5
City, town, or post office, state, and ZIP code
National City, CA 91950
6 Date of issue
412110
7
Name of issue
Lease with Option to Purchase #10-005
8 CUSIP number
NIA
9 Name and title of officer or legal representative whom the IRS may call for more information 10 Telephone number of officer
Jeanette Ladrido ( ( 619 )336-4331
sue price) See instructions and attach schedule
.�.,.—.. .ate.., ............. i.....,......r.r-"---•----`---i ---- ----- ----
11
11 ■ Education
12
12 ❑Health and hospital
13
13 • Transportation . . . . . . . . . . . . . . . . . . . . . . . • . •
14
14 • Public safety
15 ❑ Environment (including sewage bonds) ...............-
16
16 • Housing
17
17 ■ Utilities
Energy conservation equipment
18
18 WI Other. Describe ►
19 If obligations are TANs or RANs, check box I. ■ If obligations are BANs, check box ► ❑jll
20 If obligations are in the form of a lease or installment sale, check box . . . . . . ► y
/f/'l///�11,,755,160.33
ff
�%'if Z4
•
Descri tion of Obligations. Complete for the entire issue for which this form is being filed.
(a) Final maturitydate
(b) Issue nee
P
(c) Stated redemption
price at maturity
(d) Weighted
average maturity
(e) yield
21
4/2/25
$ 1,755,160.33
$ 1,755,160,33
15 years
4.95 %
Uses of Proceeds of Bond Issue (including underwriters
22 Proceeds used for accrued interest . . . . . . . . . . . . . . .
23 Issue price of entire issue (enter amount from line 21, column (b))
24 Proceeds used for bond issuance costs (including underwriters' discount) 24
25 Proceeds used for credit enhancement 25
26 Proceeds allocated to reasonably required reserve or replacement fund . 26
27 Proceeds used to currently refund prior issues 27
28 Proceeds used to advance refund prior issues . . . . . . , 28
29 Total (add lines 24 through 28) ........ • . • • • • -
30 Nonrefundlnts proceeds of the issue (subtract line 29 from line 23 and enter amount here).. ..
Description of Refunded Bonds (Complete this part only for refunding bonds.)
31 Enter the remaining weighted average maturity of the bonds to be currently refunded , . . ►
32 Enter the remaining weighted average maturity of the bonds to be advance refunded . ►
33 Enter the last date on which the refunded bonds will be called ►
34 Enter the date(s) the refunded bonds were issued P.
22
0
Part V
Part VI
Miscellaneous
•
0
0
0
0
23
29
30
1,755,160.33
0
1,755,160.33
years
years
35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5)
36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions)
b Enter the final maturity date of the guaranteed investment contract ►
37 Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental units
b If this issue is a loan made from the proceeds of another tax-exempt issue. check box ► 0 and en er the name of the
issuer ► and the date of the issue ►
38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box ► m
39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box ► 0
40 If the issuer has identified a hedge, check box . . . . . . . . _ • • • - • - • • • -
Under penalties of perjury I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge
and +�; r, they are true,-I„rect. and complete.
35
36a
37a
Sign
Here
of (ss .Y s authadzed representative Date
For Paperwork Reduction Act Notice, see page 2 of the Instructions.
Jeanette Ladrido
Type or print name and title
Cat. No. 63773S Form 8038-G Ray. 11-2000)
c.•
RESOLUTION 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. Dalla, 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
City C erk of the City of ational City, California
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
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
C -
a00(N-y�
MEETING DATE: March 16, 2010
AGENDA ITEM NO. 15
.TEM TITLE:
Resolution of the City Council of the City of National City approving and authorizing the Mayor to execute the 15
year lease option and related financing agreements 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.
PREPARED BY: Jeanette Ladrido,
PHONE: 619-336-4331
EXPLANATION:
See attached explanation.
FINANCIAL STATEMENT:
ACCOUNT NO.
DEPARTMENT: Finance
APPROVED BY:
APPROVED:
APPROVED:
Finance
MIS
The amounts in lease payment schedule and cost of the rental interruption insurance will be appropriated annually
in the Facilities Maintenance fund (fund 626) budget. The sum of the two items will be a direct reduction in the
gas and electricity line item (account 234) so that the impact will remain budget neutral.
ENVIRONMENTAL REVIEW:
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Approve the 15 year lease agreement and related financing documents.
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
esolution
Lease with option to Purchase
Lease schedule and related financing documents
2,€`Cisl)Sill� ' o a0 o ti