Title
Staff Report for a Resolution Authorizing the Execution and Delivery of an Equipment Lease/Purchase Agreement with Respect to the Acquisition, Purchase, Financing and Leasing of Certain Equipment for the Public Benefit; Authorizing the Execution and Delivery of Documents Required in Connection Therewith; and Authorizing the Taking of All Other Actions Necessary to the Consummation of the Transactions Contemplated by this Resolution
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve the resolution and documents required to execute and deliver an equipment lease/purchase agreement (Agreement) with Bank of America, National Association (Bank), as lessor, to finance energy and water conservation equipment (Equipment) to be installed at City facilities pursuant to the Energy Services Agreement to be entered into with Climatec plus costs related to the installation and financing of the Equipment, up to an amount of $5,500,000. Annual lease payments on the 16 year Agreement are not expected to exceed $450,000. The Agreement is an appropriation lease, which means that the City will need to budget and appropriate lease payments in each year. In the event the City elects not to so budget and appropriate lease payments in a given year, Bank of America, as lessor, will have the right to remove the leased equipment.
DISCUSSION
On May 16, 2016, the City Council approved an Installation Agreement and other contracts to be financed with a tax-exempt lease selected through a competitive bid process. Climatec, chosen through a competitive bid process, will install upon, onto, or within City facilities up to $5,270,455 of energy and water saving equipment. Climatec has further guaranteed sufficient annual savings to pay the financing costs related to the equipment acquisition and installation. Total energy and water savings are projected to be $8.0 million over 16 years. Whereas, total debt costs are projected to equal $6.5 mill...
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