Title
Staff Report for a City of San Leandro City Council Resolution Authorizing the Execution and Delivery of an Equipment Lease/Purchase Agreement with Respect to the Acquisition, 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 (approval to finance energy conservation and resiliency equipment to be installed at the City's Water Pollution Control Plant for $8,893,876.20)
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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 Banc of America Public Capital Corp. (Bank), as lessor, to finance energy conservation and resiliency equipment (Equipment) to be installed at the City's Water Pollution Control Plant (WPCP) pursuant to the executed Installation Agreement between the City and Climatec. The principal amount to be financed under the Agreement is estimated at $7,624,924 (which is equal to the total estimated project cost of $8,045,781 minus a PG&E grant of $420,857). Annual lease payments on the 15-year Agreement are expected to equal $592,925.08, with total principal plus interest paid anticipated to equal $8,893,876.20.
The Agreement is an appropriation lease, which means that the City will need to budget and appropriate lease payments (to come from the WPCP Enterprise Fund or any other legally available funds of the City) in each year. In the event the City elects not to budget and appropriate lease payments in a given year, the Bank, as lessor, will have the right to remove the leased equipment. The General Fund is not obligated to pay for any amounts due under the Agreement.
DISCUSSION
On September 28, 2020, the City Council approved an Installation Agreement for a proposed energy e...
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