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Home My WebLink About2003-013 - Financing of Certain Energy Facility Improvement MeasuresRESOLUTION NO. 2003-013 MJV 01/272003 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO FOR THE FINANCING OF CERTAIN ENERGY FACILITY IMPROVEMENT MEASURES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: SECTION 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City proposes to finance certain facility energy improvement equipment (the "Project"). The City has solicited proposals from commercial leasing firms in connection therewith and the City has received proposals several firms. The proposal of Suntrust Leasing Corporation (the "Lessor"), a copy of which is attached hereto (the "Proposal"), is the best proposal, providing the lowest cost to the City for financing the Project. It is in the public interest and for the public benefit that the City authorize and direct execution of a lease agreement with the Lessor and certain other financing documents in connection therewith. The documents below specified have been filed with the City and the members of the Council, with the aid of its staff, shall review said documents. SECTION 2. The City Council of the City of Santa Ana hereby: Approves the Proposal by Sun Trust Leasing Corporation. Directs the City Attorney to prepare and authorizes the City Manager and Clerk of the Council, to execute the following agreements, with such non-substantive changes, insertions and omissions as may be approved by the City Attorney: (a) a lease agreement, by and between Sun Trust Leasing Corporation, as lessor, and the City, as lessee (the "Lease Resolution No. 2003-013 Page 1 of 6 Agreement"), so long as the basic financial terms thereof are consistent with the Proposal; (b) if required, an escrow agreement, by and between the City and a trustee bank to be selected, relating to the receipt, investment and disbursement of moneys paid by the Lessor to the City under the Lease Agreement. C. Appoints the City Manager or the Executive Director of the Finance and Management Services Agency, or designee, as agent for the City of Santa Aha to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, amendments, payment requests which may be necessary for the completion of the aforementioned Project. SECTION 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 3rd day of February, 2003. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney Michael Vigliott~ ~ Deputy City Attorney AYES: NOES: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: Councilmembers: Alvarez, Bist, Christy, Franklin, Garcia, Solorio (6) Councilmembers: None (0) None (0) Pulido (1) Resolution No. 2003-013 Page 2 of 6 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2003-013 to be the original resolution adopted by the City Council of the City of Santa Ana on February 3, 2003. Clerk of the Council City of Santa Ana Resolution No. 2003-013 Page 3 of 6 $ UST 28202 CABOT ROAD SUITE 300 LAGUNA NIGUEL, CA 92677 Tuesday, November 05, 2002 Rod Coloma Executive Director of Finance City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92702 VIA E-MAIL RE: Proposal for Lease-Purchase Financing Dear Rod: SunTrust Leasing Corporation ("SLC") is pleased to present to the City of Santa Ana its proposal for equipment financing. The terms and conditions of our proposal are outlined as below: LESSEE: City of Santa Ana. Lessee is a state or political subdivision within the meaning of Section 103(c) of the Internal Revenue Code of 1986, as amended (the "Code"). LESSOR: SunTrust Leasing Corporation, or its Assignee TYPE OF FINANCING: Master Lease Agreement. Said Agreement shall be a net lease arrangement whereby Lessee is responsible for all costs of operation, maintenance, insurance, and taxes. The Agreement shall be based on the annual appropriation of funds during each year of the lease term and shall be substantially the same as the sample document attached. BANK QUALTFZCATZON: Lessee reasonably anticipates the total amount of tax-exempt obligations (other than private activity bonds) to be issued by Lessee during calendar year 2002 will not exceed ten million ($10,000,000.00) dollars. EQUIPMENT: Energy Management Project OPT A EQUIPMENT COST $3e300~000.00 RATE 3.42520/0 TERM 10 YEARS STRCTURE SEMI-ANNUAL ARREARS FIRST PAY DUE 12-30-03 PAYMENT $199,354.09 Resolution No. 2003-013 Page 4 of 6 SUNTRUST LEASTNG CORPORATZON LEASE PURCHASE FI'NANCZNG PROPOSAL PAGE 2 OF 3 FUNDZNG: SLC will disburse the funds into a Proceeds Account for the benefit of the lessee at the State of California's Local Agency Investment Fund. The funds will be disbursed from the fund to complete the energy management project according the terms and conditions outlined in the current lease agreement between the lessee and lessor. REZMBURSEMENT: If Lessee intends to be reimbursed for any equipment cost associated with this Agreement, intent for reimbursement from the proceeds of this Agreement must be evidenced, and must qualify under the Treasury Regulation Section 1.150.2. ZNSURANCE: The Lessee shall furnish confirmation of all risk physical damage insurance coverage for the full cost of the proper~y plus one million ($1,000,000.00) dollars combined single limit property damage and bodily injury insurance covering the property. SLC shall be named as loss payee and additional insured on such coverage. AUTHORt'ZED STGNORS: The Lessee's governing board shall provide SLC with its resolution or ordinance authorizing this Agreement and shall designate the individual(s) to execute all necessary documents used therein. LEGAL OPINTON: The Lessee's counsel shall furnish SLC with an opinion covering this transaction and the documents used herein. This opinion shall be in a form and substance satisfactory to SLC. LEGAL TZTLE: Title to the equipment will be in the name of Lessee. Lessor will be granted a security interest or lien on all collateral being financed. DOCUMENTATZON: Lessor understands that Lessee desires to utilize its own form of lease documentation. Lessor will agree to utilize said documentation subject to final review and approval of Lessor's legal counsel and at the sole discretion of SunTrust Leasing Corporation. Such approval will be sought upon the award of the Lease to Lessor. The lessee will be responsible for a $100.00 documentation fee. RATE LOCK EXPZRATZON: This proposal must be accepted, nendina City Council aouroval by November 8, 2002. If acceptance is received by this date, the quoted Lease Rate of choice will remain fixed if funding takes place by December 30, 2002. Resolution No. 2003-013 Page 5 of 6 SUNTRUST LEASTNG CORPORATI'ON LEASE PURCHASE FZNANCZNG PROPOSAL PAGE 3 OF 3 acceptance is not received by November 8, 2002, or funding does not take place by December 30, 2002, the Lease Rate and Lease Payment Amounts will be adjusted to market conditions three (3) days prior to funding. Once set, the Lease Rate will remain fixed for the Lease Term. FTNANCTAL STATEMENTS: Lessee shall provide to Lessor three (3) years of current financial statements, budgets, demographics, and proof of appropriation for the ensuing Fiscal Year and such other financial information relating to the ability of Lessee to continue this Agreement as may be reasonably requested by Lessor. This proposal is subject to final credit approval by the Credit/Investment Committee of SunTrust Bank and approval of the lease documents in SunTrust Leasing Corporation's sole discretion. To render a credit decision, Lessee shall provide SLC with the information requested above. Upon receipt of the signed proposal, we will endeavor to provide you with a timely commitment. It is a pleasure to offer this proposal to you and we look forward to your favorable acknowledgment. Sincerely, Lance $. 91olman Lance S. Holman Vice President AGREED TO AND ACCEPTED BY: Name: Title: Date: Resolution No. 2003-013 Page 6 of 6