For City Council Meeting [November 14, 2017]
TO: Honorable Mayor and City Council
APPROVAL: Michael Story, City Administrator
FROM: Misty Cheng, Contract Financial Officer
Title
Request City Council Adopt Resolution No. 7219 Approving Financing Contracts related to the Solar CREB Lease Financing, in the amount of $6,854,652.88, with Holman Capital and Mega Bank and the Service Contract with Alliance Building Solutions, Inc., supplementing Resolution No. 7122 adopted on May 9, 2017 and Adopt Budget Resolution No. 7220.
(ACTION)
Body
BACKGROUND:
California Government Code Section 4217 authorizes California municipalities to repair and replace aging and dilapidated equipment by entering into energy contracts on terms that are found to be "in the best interests" of the agency "notwithstanding any other provision of law." In essence, this law allows a city to single source an energy contract so long as the energy cost savings to be derived from those services exceed the anticipated cost for the energy project. Energy Service Companies (ESCO's) that pursue single source contracts with local government agencies commonly cite Government Code Section 4217. On May 9, 2017, the City adopted Resolution No. 7122 and approved a contract with Alliance Building Systems, Inc. (Alliance) for the installation of certain solar equipment on City facilities, among other equipment (the "Installation Agreement"), and authorized the City to execute agreements with Holman Capital Corporation and other parties related to the financings. Certain circumstances have changed since the May 9, 2017 approval and Staff desires to bring the item back to the Council for a supplemental approval of the documentation. On October 24, 2017, the City Council reviewed the revised transaction and asked for more information.
ANALYSIS/DISCUSSION:
The May 9, 2017 City Council action contemplated two separate financings: (1) a Clean Renewable Energy Bond financing for the $6,854,653 solar improv...
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