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Resolution Related to 800 MHz System Partnership Costs <br />June 6, 2017 <br />Page 3 <br />TABLE A <br />Fiscal Year <br />Principal <br />Interest <br />Total (P&I) <br />FY 2017-18 Partnership Costs <br />1,411,978 <br />183,513.72 <br />1,595,491.72 <br />Contingencies <br />45,022 <br />5,851.48 <br />50,873.48 <br />HCC Documentation Fee <br />5,000 <br />649.84 <br />5,649.84 <br />1,462,000 <br />190, 015.04 <br />1, 652, 015.04 <br />Proposals related to the costs were requested from Holman and the County of Orange. The <br />County advised it was unable to provide the City an option to fund non -equipment components of <br />the project. Analysis of Holman's proposal disclosed a flexible and cost-effective option, <br />specifically the first debt service payment would not be due until August 2017 and quarterly <br />payments will become due thereafter. The eight-year proposal will be in line with projected payoff <br />of the previous financing agreement with Holman for the FY 2015-16 and FY 2016-17 costs. <br />Holman Capital Corporation (HCC) specializes in originating, underwriting, documenting and <br />funding tax-exempt and taxable debt solutions issued by the state & local governments, <br />universities, and health systems. They specialize in funding essential purpose equipment, real <br />property, infrastructure, and technology needs. <br />HCC manages the process from inception to close to provide public agencies with ideas and <br />capital to fund their acquisitions quickly and efficiently. HCC partners with local community banks <br />to create jobs, enhance economic stability and develop financial solutions for municipalities. <br />As part of its due diligence, HCC solicits local community banks (based in the State of California) <br />to determine the best possible financing solution for the City. HCC discusses the proposed <br />project with various financial institutions allowing HCC to obtain the most favorable terms, <br />specifically interest rate, borrowing term and flexibility in meeting the City's payment schedule. <br />As a result of the due diligence effort from HCC, the City was presented with the financing plan <br />denoted in Exhibit X. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #1, Community Safety; Objective #2 <br />(Broaden communications, information sharing and community awareness of public safety <br />activities). <br />55C-3 <br />