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File #: 2020-799    Version: 1 Name:
Type: Discussion Status: Agenda Ready
File created: 11/16/2020 In control: City Council
On agenda: 12/1/2020 Final action:
Title: CONSIDERATION OF RESOLUTION NO. 20-180 OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE GENERAL FUND AND SPECIAL REVENUE FISCAL YEAR 2020-21 BUDGET IN THE AMOUNT OF $6,546,676.00 AND CONSIDER DIRECTING STAFF TO PURSUE TAX EXEMPT LEASE PURCHASE OPTION FOR FINANCING INCLUDING LOCKING IN CURRENT FINANCING RATES (CITY COUNCIL)
Attachments: 1. Exhibit No. 1 - Resolution No. 20-180.pdf, 2. Exhibit No. 2 - 10 yr. Amortization Schedule.pdf
Report to Mayor and City Council
Tuesday, December 01, 2020
Discussion


SUBJECT:
Title
CONSIDERATION OF RESOLUTION NO. 20-180 OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE GENERAL FUND AND SPECIAL REVENUE FISCAL YEAR 2020-21 BUDGET IN THE AMOUNT OF $6,546,676.00 AND CONSIDER DIRECTING STAFF TO PURSUE TAX EXEMPT LEASE PURCHASE OPTION FOR FINANCING INCLUDING LOCKING IN CURRENT FINANCING RATES (CITY COUNCIL)

Body
I. SUMMARY

At the November 17, 2020 City Council meeting, a Design-Build Agreement was awarded to Trane U.S., Inc. in the amount of $5,822,925.00 to address the air filtration, heating, ventilation, and air conditioning (HVAC) systems and roof at City Hall and the Community Center buildings. The City Council also approved a six percent contingency budget, and Council directed staff to review the financing proposals that were received pursuant to the City's Request for Proposals (RFP) no. 20-033.
The financing proposals were reviewed by the City's Finance Department and the City Treasurer's Office and the preliminary analysis indicates that the top ranked proposal to be from JP Morgan Chase. Their proposal is offering a 10-year term at 1.57% with semiannual payments of $325,339.53. Loan repayment would begin in July 2021. The principal amount is $6 Million and over the 10-year period interest would be approximately $506,790.69 for a total debt service of $6,506,790.69.
As part of this staff report, staff is seeking approval of Resolution No. 20-180 to appropriate funds for the entire project cost of $6,546,676.00. The total project cost includes the Trane contract amount and other associated project costs such as the six percent contingency budget, six percent construction support services, and budget for network cable installation. Staff is also seeking direction to continue to work on the financing package with JP Morgan Chase, which includes negotiate the terms of the financing, preparing a legal opinion, reviewing the finan...

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