Number
241509
Version
SUBSTITUTE 1
Reference
231872, 241332
Sponsor
ALD. DIMITRIJEVIC
Title
Substitute resolution authorizing a tax-exempt lease purchase agreement to finance energy efficiency and solar energy projects at various City facilities.
Analysis
This resolution authorizes the City to enter into a tax-exempt lease purchase agreement with a purchaser to be determined by competitive bid in an amount not to exceed $1,800,000 for energy conservation and facility improvement measures at the Department of Public Works Field Headquarters, Central Repair Garage or a similar City building, and Milwaukee Police Department District Station 3.
Body
Whereas, Under Common Council File Number 231872, adopted April 9, 2024, and consistent with s. 66.0133, Wis. Stats. (“the Statute”), Johnson Controls, Inc. (“Johnson”) has completed an investment grade energy report of building systems and equipment (“the Report”) at the Department of Public Works Field Headquarters, Central Repair Garage or a similar City building, and Milwaukee Police Department District Station 3; and
Whereas, Common Council File Number 241332 describes the Report and, to address the recommendations from the Report, the proposed guaranteed energy savings performance contract (the “Contract”) with Johnson; and
Whereas, Energy savings was guaranteed by Johnson for the entire term of the Contract and Johnson was awarded the Contract; and
Whereas, Common Council File Number 241332 also provides that financing of the Contract shall not exceed $2,605,746, of which an amount not to exceed $805,746 shall come from previously appropriated capital accounts and grants and an amount not to exceed $1,800,000 shall come from the tax-exempt lease purchase agreement (“the Lease Agreement”); and
Whereas, Execution and delivery of the Contract, in turn, depends on execution and delivery of the Lease Agreement between the City and the purchaser to be determined by competitive bid, under which:
1) The City shall agree to pay lease payments on the dates and in the amounts set forth therein.
2) The City shall acquire certain equipment as described therein, consistent with the Statute.
; and
Whereas, The City further desires to enter into an escrow agreement for the disbursement of funds under the Contract (the “Escrow Agreement”); and
Whereas, The Comptroller will solicit competitive bids for the sale of the Lease Agreement and escrow agent services; and
Whereas, This resolution is consistent with the Statute, and the City has complied with the Statute’s notice requirements pertaining to the solicitation of bids; and
Whereas, The Public Debt Commission (PDC) oversees the execution, issuance, and use of all bonds issued or to be issued by the City; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the execution, delivery, and performance of the Lease Agreement and the Escrow Agreement, in substantially the forms presented to the Commissioners of the Public Debt Commission (PDC), are hereby approved, provided that:
a. The maximum principal amount of the Lease Agreement shall not exceed $1,800,000.
b. The interest rate per annum under the Lease Agreement shall not exceed 7.00%.
c. The term of the Lease Agreement shall not exceed 20 years from the date of its execution.
d. The Commissioners of the PDC determine that debt service payments under the Lease Agreement are reasonable, establish the terms of the Lease Agreement subject to the foregoing parameters, and establish the terms of the Escrow Agreement consistent with the Lease Agreement.
e. The execution, delivery, and performance of the Contract is ratified and approved by the Commissioners of the PDC under Common Council File Number 241332, with a total City contribution not to exceed $2,605,746.
; and, be it
Further Resolved, That it is hereby determined that, consistent with the Statute, the amount that the City will spend through the Contract is unlikely to exceed, over the remaining useful life of the energy conservation and facility improvement measures, either:
a. The amount that the City will save in energy and operation costs; or
b. The benefits that the City will obtain through energy conservation and facility improvement measures.
; and, be it
Further Resolved, That the City hereby allocates sufficient funds in each fiscal year to make lease payments under the Lease Agreement for the term of the Lease Agreement, with such amounts to be determined by the Commissioners of the PDC; and, be it
Further Resolved, That The Mayor, City Clerk, or City Comptroller, or any other officer or employee of the City authorized to perform specific acts or duties hereunder, hereby is an authorized officer to:
a. Execute and deliver, in the name and on behalf of the City, the Lease Agreement, the Escrow Agreement, and any other agreements, documents, certificates, and instruments associated with the Contract, including, but not limited to, a tax compliance agreement.
b. Do, and cause to be done, any acts and procedures that the authorized officer deems necessary or advisable in order to carry out the transactions contemplated by this resolution within the limitations established herein, and with such changes as the Office of the City Attorney may recommend in consultation with the Office of the Comptroller, and approved by the Commissioners of the PDC.
Requestor
Department of Administration - Environmental Collaboration Office
Drafter
Ned Littlefield
LRB180505-2
02/04/2024