HomeMy WebLinkAboutR-11130 authorizing the execution and delivery of an Installment Sale Agreement, between the City and California Infrastructure and Economic Development BankRESOLUTION NO. 11130 (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE EXECUTION AND
DELIVERY OF AN INSTALLMENT SALE AGREEMENT, BETWEEN
THE CITY AND CALIFORNIA INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT BANK, FOR FINANCING THE WATER ENERGY
EFFICIENCY PROJECT AND TAKING RELATED ACTIONS
WHEREAS, the California Infrastructure and Economic Development Bank (“IBank”)
administers a financing program to assist local governments with the financing of certain public
development facilities; and
WHEREAS, the City Council adopted Resolution No. 11011 (2019 Series) on May 21,
2019, approving the City’s submission of an application to IBank for assistance to finance the
City’s Water Energy Efficiency Project (the “Project”), in the principal amount not to exceed
$14,300,000; and
WHEREAS, IBank has accepted the City’s application and is willing to provide financing
for the Project (the “IBank Financing”) pursuant to the terms of an Installment Sale Agreement
(the “Installment Sale Agreement”), substantially in the form attached as Exhibit A; and
WHEREAS, pursuant to Government Code Section 5352.1, the following are good faith
estimates with respect to the IBank Financing: (i) the true interest cost will be three percent; (ii) the
finance charge of the transaction (including an origination fee and annual fees to i-Bank) will be
$628,529.46; (iii) the amount of proceeds to be received by the City less the finance charge will
be $13,671,470.54; and (iv) the total payment amount to be paid by the City (including principal
and interest components plus finance charge) under the Installment Sale Agreement will be
$18,956,733.28.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows that:
SECTION 1. The above recitals are true and correct and are a substantive part of this
Resolution.
SECTION 2. The Installment Sale Agreement, in the form attached as Exhibit A, is
hereby approved. Each of the Mayor (or in the Mayor’s absence, the Vice Mayor), and the City
Manager (each, an “Authorized Officer”), acting individually, is hereby authorized and directed,
for and in the name and on behalf of the City, to execute and deliver the Installment Sale
Agreement in substantially said form, with such additions or changes as the Authorized Officer
executing the same may approve (such approval to be conclusively evidenced by such Authorized
Officer’s execution and delivery thereof).
Resolution No. 11130 (2020 Series) Page 2
R 11130
SECTION 3. Reference is hereby made to the City’s debt management policy (the “Debt
Policy”) set forth in the City’s 2019-21 Financial Plan (as approved pursuant to Resolution No.
11026 (2019 Series) and supplemented by Resolution No. 11027 (2019 Series)), under the caption
“Capital Financing and Debt Management” in the section entitled “Fiscal Policies.” The City
Council hereby finds that the IBank Financing is consistent with the Debt Policy.
SECTION 4. The Authorized Officers, the City Manager, the Finance Director, the
Utilities Director and all other officers of the City are hereby authorized, jointly and severally, to
execute and deliver any and all necessary documents and instruments and to do all things which
they may deem necessary or proper to effectuate the purposes of this Resolution and the
Installment Sale Agreement. Any actions previously taken by officers of the City consistent with
the purposes of this Resolution and such agreements are hereby ratified and confirmed.
Upon motion of Council Member Christianson, seconded by Council Member Pease, and on the
following roll call vote:
AYES: Council Member Christianson, Pease, Stewart, Vice Mayor Gomez and
Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 16th day of June 2020.
__________________________________
Mayor Heidi Harmon
ATTEST:
________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ____________________.
____________________________________
Teresa Purrington
City Clerk