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HomeMy WebLinkAboutCC Res 6456 2014-04-28 • RESOLUTION NUMBER 6456 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE EXECUTION AND DELIVERY OF AN ENERGY EFFICIENCY PROGRAM INSTALLATION • AGREEMENT, APPROVING THE EXECUTION AND DELIVERY OF RELATED FINANCING DOCUMENTS, AND MAKING FINDINGS IN SUPPORT THEREOF PURSUANT TO GOVERNMENT CODE 4217.10 ET SEQ. THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. On April 28, 2014, the City Council held a duly noticed public hearing during its regularly scheduled meeting to consider an Installment Agreement (the "Installment Agreement") by and between the City and KX2 Holdings Building Technologies Group LP, dba Climatec Building Technologies Group ("Climatec"), and a related Lease with Option to Purchase (the "Lease"), by and between the City and Municipal Finance Corporation, for the purpose of financing the acquisition of the Energy Conservation Equipment (defined below). Based on the record of the hearing, the City Council finds the following facts to be true and correct. A. Pursuant to the Installation Agreement, Climatec will provide installation and other services pertaining to certain equipment to be installed in City facilities to reduce energy use or to make for a more efficient use of energy (the "Energy Conservation Equipment"). The installation of the Energy Conservation Equipment is expected to provide the City with an estimated total savings of $2,897,205 over the useful life of the Energy Conservation Equipment, which is greater than the estimated $2,023,833 cost of the project. B. There has been presented to the City Council a proposal for the City to enter into a lease financing arrangement (the "Financing") to finance the acquisition and installation of the Energy Conservation Equipment. The Financing will be implemented primarily through the Lease. C. To implement certain terms of the Lease, the City will also enter into an Acquisition Fund Agreement (the "Acquisition Fund Agreement"), by and among the City, Municipal Finance Corporation and Deutsche Bank National Trust Company. D. Sections 4217.10 through 4217.18 of the California Government Code (the "Act") provide that, notwithstanding any other provisions of law, the City may enter into an energy service contract, such as the Installment Agreement, if the City Council makes certain findings after a duly noticed public hearing. Section 2. Based on the record of the public hearing, including but not limited to those facts recited in Section 1 of this Resolution, the City Council hereby finds as follows: A. The installment of the Energy Conservation Equipment will improve the energy efficiency at City facilities. It is in the best interests of the City to enter into the Installment Agreement and the Lease. B. The anticipated cost to the City for electrical energy and conservation services for the Energy Conservation Equipment is less than the anticipated marginal cost to the City of energy that would have been consumed by the City in the absence of the acquisition and installation of the Energy Conservation Equipment. Resolution Number 6456 • C. The difference, if any, between the fair rental value for the property subject to the Lease and the agreed rent is anticipated to be offset by below- market energy purchases or other benefits provided under the Installment Agreement. D. The repayment of the Financing and the cost of design, construction, and operation of the Energy Conservation Equipment, as required by the Installment Agreement and the Lease are projected to be available from 111 funding that otherwise would have been used for purchase of electrical, thermal, or other energy required by City in the absence of the Energy Conservation Equipment. Section 3. Based on the findings in Section 2 of this Resolution, the City Council hereby approves the Installment Agreement in the form on file in the office of the City Clerk. The Mayor (or in the Mayor's absence, the Mayor Pro Tern or the City Manager) is hereby authorized, for and in the name and on behalf of the City, to execute and deliver the Installment Agreement in substantially the same form as approved, with such changes therein as the Mayor (or the Mayor Pro Tem or City Manager, as the case may be) may approve (such approval to be conclusively evidenced by the execution and delivery thereof). Section 4. Based on the findings in Section 2 of this Resolution, the City Council hereby approves the Lease, in the form on file in the office of the City Clerk. The Mayor (or in the Mayor's absence, the Mayor Pro Tem or the City Manager) is hereby authorized, for and in the name and on behalf of the City, to execute and deliver the Lease in substantially the same form as approved, with such changes therein as the Mayor (or the Mayor Pro Tem or City Manager, as the case may be) may approve (such approval to be conclusively evidenced by the execution and delivery thereof). Section 5. The Acquisition Fund Agreement, in the form on file in the office of the City Clerk, is hereby approved. The Mayor (or in the Mayor's absence, the Mayor Pro Tem or City Manager) is hereby authorized, for and in the name and on behalf of the City, to execute and deliver the Acquisition Fund Agreement in substantially said form, with such changes therein as the Mayor (or the Mayor Pro Tem, as the case may be) may approve (such approval to be conclusively evidenced by the execution and delivery thereof). Section 6. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things, to execute and deliver any and all documents that they may deem necessary or advisable in order to complete the transactions contemplated under the Installment Agreement, the Lease and the Acquisition Fund Agreement and effectuate the purposes of this Resolution, Installment Agreement, the Lease and the Acquisition Fund Agreement and any such actions previously taken by such officers are hereby ratified and confirmed. (Intentionally Left Blank) • Resolution Number 6456 PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 28th day of April , 2014 by the following vote: . AYES: Council Members ,.l.;/,1/� /�•/S A/.iii �-0 I,Z, NOES: Council Members Q 973(6-1-( ABSENT: Council Members ABSTAIN: Council Members %V SEAL Mayor ATTEST: ; .\�`�pPOxAif� '* al h..' A :AA y,•CpUNS�Cp- :c Cit Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS • CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6456 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 28th day of April , 2014. / . Odd ! Ci Clerk • 1