HomeMy WebLinkAbout2018-022 - Holman Capital Corproationjmf 3/26/18
RESOLUTION NO. 2018-022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
ANA AUTHORIZING THE CITY MANAGER OR EXECUTIVE
DIRECTOR OF FINANCE TO ENTER INTO AN ELEVEN YEAR
FINANCING AGREEMENT WITH HOLMAN CAPITAL
CORPORATION FOR FUNDING OF THE CITY'S ACQUISITION
AND UPGRADES OF THE STREETLIGHTS SYSTEM FROM
SOUTHERN CALIFORNIA EDISON PURSUANT TO THE
PURCHASE AND SALE AGREEMENT BETWEEN THE CITY AND
SCE AS APPROVED BY THE CITY COUNCIL ON APRIL 4, 2017
AND SUBSEQUENTLY APPROVED BY THE CALIFORNIA PUBLIC
UTILITIES COMMISSION
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. Southern California Edison ("SCE") recently altered its longstanding corporate
policy with respect to the streetlight system by making SCE -owned streetlights
available for purchase by local governments.
B. SCE currently owns approximately 11,373 high pressure sodium streetlights
throughout the City of Santa Ana, of which approximately 7,800 have been made
available for purchase by the City ("Streetlights System").
C. The energy and maintenance costs will be substantially reduced by
approximately $900,000 per year, the savings of which will be leveraged to finance
the acquisition and system upgrade.
D. Operation and ownership of the streetlights by the City will result in many
benefits including:
o Conversion to energy efficient Light -Emitting Diode (LED) fixtures
o Improving the environment
o Providing faster street lighting service calls
o Improving lighting levels and safety
o Red:,'c,ng energy cost to the rity
o Providing greater street lighting system reliability
o Reducing maintenance costs
E. On April 4, 2017, the City Council approved the Purchase and Sale Agreement
to purchase the SCE -owned streetlights, subject to approval by the California
Public Utilities Commission (CPUC) and subject to financing approved by the City
Council.
Resolution No. 2018-022
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F. The CPUC approved the Purchase and Sale Agreement in November 2017.
G. To provide funding for the purchase of the Streetlights System, it is proposed
that the City enter into an eleven -year financing agreement with Holman Capital
Corporation in an amount not to exceed $8,608,053, which sum includes principal
and interest costs.
H. In addition to providing funding for the Streetlights System, the proposed
financing agreement with Holman Capital Corporation will provide funding for: the
purchase and installation of energy efficient LED lighting for the streetlights by
Siemens, Inc.; the installation of lighting in under -lit areas; a reserve contingency;
a master plan for fiber optics; the installation of metering and controls; and the
documentation fee for the financing agreement. Agreements for these additional
components will be approved and entered into separately.
I. City staff issued a Request for Qualifications on March 1, 2018 from several
financial firms to provide the necessary funding for the Streetlights System.
Holman Capital Corporation was selected on the basis of the lowest Interest rate.
Holman Capital specializes in financing the equipment, infrastructure, and facilities
of state and local governments, educational institutions, and healthcare providers
nationwide.
Section 2. The City Council of the City of Santa Ana hereby authorizes the City
Manager or Executive Director of Finance to enter into an eleven year financing
agreement with Holman Capital Corporation, in an amount not to exceed $8,608,053
(including principal and interest), to provide funding for the City's purchase of the
Streetlights System from Southern California Edison pursuant to the Purchase and Sale
Agreement previously approved by the City Council on April 4, 2017, which funding shall
include the purchase and installation of LED lighting and the related projects described
above. The City Manager or Executive Director of Finance is also authorized to execute
any documents or make any assurances that are necessary as part of the financing
agreement.
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 April, 2018.
Resolution No. 2018-022
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APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
J M. Funk
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
Benavides, Martinez, Pulido, Sarmiento,
Solorio, Tinaiero, Villegas (7)
None (0)
None (0)
NOT PRESENT: Councilmembers None (0)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify that the attached
Resolution No. 2018-022 to be the original resolution adopted by the City Council of the
City of Santa Ana on April 3, 2018.
Date: � 11 kx74
9
Marla D. Huizar
Clerk of the Council
City of Santa Ana
Resolution No. 2018-022
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