55A - RESO SCE STREET LIGHTS - Laserfiche WebLink

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Resolution Related to Streetlight Acquisition and Upgrades Project April 3, 2018 Page 4 Reserve Contingency — The Finance and Management Services Agency has recommended $100,000 to remain with the fiscal agent as a contingency for future debt service obligations. Documentation Fee — Financing costs related to the proposed financing agreement, payable to HCC at the close of escrow. Financing of Project Proposals related to the costs were requested from five financial firms, via a Request for Qualifications (RFQ) dated March 1, 2018. The RFQ requested firms to provide the following: 1. Interest rate on project 2. Amortization Schedule (Total Payments = Principal + Interest) 3. Beginning and ending date of financing 4. Deferral of payment 5. Costs associated with entering into the loan The financial institutions from which a proposal was received are as follows: Holman Capital Corporation (Holman); GE Capital; First Security Finance; Urban Futures; Siemans Public; and TCF Equipment Finance. After review of the proposals Holman was selected because Holman provided the lowest interest rate, total payments (principal and interest) to be financed over eleven (11) years along and the lowest costs associated with financing ($5,000). Holman specializes in originating, underwriting, documenting and funding tax-exempt and taxable debt solutions issued by the state & local governments, universities, and health systems. They specialize in funding essential purpose equipment, real property, infrastructure, and technology needs. Holman manages the process from inception to close to provide public agencies with ideas and capital to fund their acquisitions quickly and efficiently. Holman partners with local community banks to create jobs, enhance economic stability and develop financial solutions for municipalities. As part of its due diligence, Holman solicits local community banks (based in the State of California) to determine the best possible financing solution for the City. Holman discusses the proposed project with various financial institutions allowing Holman to obtain the most favorable terms, specifically interest rate, borrowing term and flexibility in meeting the City s payment schedule. As a result of the due diligence effort from Holman, the City was presented with the financing plan denoted in Exhibit 5. Below is a break-out of the proposed financing plan offered by Holman. Please note the first debt service payment is due on July 3, 2019 and thus no payment will be made during fiscal year 2018-19. The debt service payment is deferred upon the recommendation of PWA to ensure the retrofit project is completed and SCE accurately reflects the reduced electricity charges (e.g. 55A-4