Document elcerrito_gov_doc_00e0cfa836

AGENDA BILL Agenda Item No. 5(0) Date: July 17, 2012 To: El Cerrito City Council From: Subject: Mary Dodge, Administrative Services Director/City Treasurer Revision to Equipment Lease Refinancing Resolution ACTION REQUESTED Adopt a revised Resolution authorizing the City Manager to enter into an agreement with JP Morgan Chase Bank (Chase) for the refinancing of six equipment leases and amending Resolution No. 2012-40 to add the lease with option to purchase agreement dated June 15, 2007. BACKGROUND On June 11, 2012 the City Council approved resolutions to refinance Six Equipment Leases, the Recycling Center Lease and the Storm Drain Revenue Bond. The refinancings take advantage of the decline in interest rates and save money on future interest payments. Each issue is being done separately as the legal documents and funding requirements are completed. While finalizing Resolution No. 2012-40, approved on June 11, 2012 and associated documents for the Equipment Lease Refinancing, an omission of a lease was identified. Revising the resolution does not change the costs or savings of the bond issue as presented in the financial analysis, but is required to complete the transaction. A revised resolution is presented to the City Council this evening with the change shown in strike- out format. The Recycling Center Refinancing is still in the works, and the Storm Drain Refunding has been completed. ANALYSIS The six capital leases discussed at the June 11, 2012 Council meeting have various maturity dates ranging from August 1, 2015 to November 30, 2019 with interest rates ranging from 3.9% to 4.85%. Some are Master Leases, and some are subleases to the original Master Leases. Two Master Lease dates were referenced on the original resolution, but there is a third Master Lease date that was inadvertently omitted from the original resolution. As previously mentioned this revision does not change any other component of the refinancing but is necessary to complete the transaction as proposed. Without referencing the third Master Lease date in the resolution, two of the six leases would not be able to be refinanced. FINANCIAL CONSIDERATIONS As reported at the June 11, 2012 City Council meeting, the projected savings on refinancing all of these capital leases is $86,251 ($71,667 on a net present value basis) ---PAGE BREAK--- Agenda Item No. 5(0) and provides an added benefit of simplifying lease maintenance by consolidating the six individual leases into one. RECOMMENDATION Adopt the revised Resolution in order to proceed with the refinancing. Attachments: 1. Equipment Lease Refinancing Resolution 2. Equipment Lease Proposal 3. Equipment Lease Financial Analysis Page2 ---PAGE BREAK--- RESOLUTION 2012-XX Agenda Item No. 5(D) Equipment Lease Attachment 1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AUTHORIZING THE REFINANCING OF EXISTING EQUIPMENT LEASES WITH AN OPTION TO PURCHASE, AUTHORIZING AND DIRECTING RELATED ACTIONS AND AMENDING RESOLUTION NO. 2012-40 TO ADD THE LEASE WITH OPTION TO PURCHASE AGREEMENT DATED JUNE 15, 2007 WHEREAS, the City of El Cerrito (the "City") has previously entered into the following agreements, in each instance between the City, as Lessee, and First Municipal Leasing Corporation, as Lessor (hereafter, collectively, the "Existing Obligations"): Lease with Option to Purchase Agreement, dated as of August 12, 2005; and Lease with Option to Purchase Agreement, dated as of December 21, 2007; and Lease with Option to Purchase Agree1nent, dated as of June 15, 2007: and WHEREAS, the City has received a proposal from JPMorgan Chase Bank, NA, (the "Bank"), dated May 23,2012 (the "Proposal"), to enter into a tax-exempt lease-purchase agreement (the "Proposed Refunding") of the equipment which is the subject of the Existing Obligations, namely specified fire trucks, recycling trucks and associated equipment items; and WHEREAS, this City Council of the City (this "City Council") hereby finds and determines that the Proposed Refunding of the Existing Obligations in accordance with and upon terms and conditions which are substantially the same as those specified in the Proposal provides material benefits to the City, including savings on the interest payable by virtue of a reduced interest rate applicable to the Proposed Refunding, which warrant the implementation of the Proposed Refunding; and WHEREAS, the Proposed Refunding would be implemented through use of a standard form of lease-purchase agreement to be provided by the Bank upon acceptance of the Proposal by the City as evidenced by execution of a copy of the Final Proposal (as said term is defined below), which shall provide for terms and conditions substantially the same as those specified in the Proposal, a copy of which is attached to this resolution as Exhibit A and by this reference incorporated herein; WHEREAS, the City wishes by this resolution to approve the Proposal and to authorize execution on behalf of the City of the Final Proposal and the lease-purchase agreement by which the Final Proposal would be implemented. NOW THEREFORE, BE IT RESOLVED by the City Council ofthe City ofEl Cerrito as follows: Section 1. Recitals. This City Council hereby finds and determines that the foregoing recitals are true and correct. Section 2. Acceptance of Proposal; Approval of Documents. The City hereby accepts the Proposal in the aggregate principal amount of not to exceed $1,628,172. 1 ---PAGE BREAK--- Agenda Item No. 5(D) Equipment Lease Attachment 1 Section 3. City Manager Authorized to Execute Final Proposal and Lease-Purchase Agreement. Subject to the approval of the Final Proposal by the City Manager, the City Manager is hereby authorized and directed to execute the Final Proposal on behalf of the City; provided that the City Manager shall not be obligated to approve any proposed modifications of the Proposal requested by the Bank which the City Manager, in the City Manager's sole discretion, deems not to be in the best interest of the City, and in the event that the City Manager and the Bank are unable to agree on modifications of the Proposal to establish the Final Proposal, the City shall have no obligation to proceed with the Proposed Refunding; and provided further that the interest rate specified by the Final Proposal shall not exceed the interest rate in the Proposal by more than 35 basis points. Assuming execution of the Final Proposal by the City Manager, and upon receipt of a lease- purchase agreement from the Bank in the standard form utilized by the Bank for transactions of this nature, the City Manager is authorized and directed to execute the lease-purchase agreement on behalf of the City, subject to confirmation by the City Attorney that the terms and conditions set forth in the lease-purchase agreement are consistent with the terms and conditions set forth in the Final Proposal and that the City may lawfully enter into and perform its obligations as set forth therein. Section 4. Official Actions. The City Manager, the Administrative Services Director, the City Clerk and all other officers of the City are each authorized and directed in the name and on behalf of the City to make any and all assignments, financing statements, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the documents approved pursuant to this resolution. Whenever in this resolution any officer of the City is authorized to, execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. Section 5. Effective Date. This resolution shall take effect immediately upon its passage. I, Cheryl Morse, City Clerk of the City of El Cerrito, Contra Costa County, State of California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 2012- :XX, which was duly and regularly adopted by the City Council of the City ofEl Cerrito at a regular meeting of said City Council held on July 17, 2012, after notice thereof was provided in compliance with all applicable law, by the following vote of the five City Council members: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: I further certify today, as I affix the corporate seal, that since it was adopted on July 17, 2012, Resolution No. 2012-XX has not been amended, revised, rescinded or altered in any way other than to assign an official resolution number and that the same remains in full force and effect as of the date hereof. 2 ---PAGE BREAK--- Agenda Item No. 5(D) Equipment Lease Attachment 1 IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of the City ofEl Cerrito on July XX, 2012. Cheryl Morse, City Clerk APPROVED: William C. Jones, III Mayor 3 ---PAGE BREAK--- JPMorgan Chase Bank, N.A. 1111 Polaris Parkway Columbus, Ohio, 43240 Tel: [PHONE REDACTED] Fax: [PHONE REDACTED] Email: laura.j.jones®chase.com June 4, 2012 Mary Dodge C:HASEO Agenda Item No. 5(0) Attachment 2 Laura Jones Vice President Sr. Relationship Manager Administrative Services Director/City Treasurer City of El Cerrito 10890 San Pablo Avenue El Cerrito, CA, 94530 Dear MS. Dodge JPMorgan Chase Bank, N.A. ("Lessor") is pleased to submit the following financing proposal for your review and consideration. This letter is a proposal only and is contingent upon your compliance with the requirements of the Internal Revenue Code of 1986, as amended, and all applicable state laws related to Lessee's ability to enter into a tax-exempt lease-purchase financing for the intended purposes. This proposal is for discussion purposes only and the terms and provisions of this financing are subject, among other things, to credit and business approval in accordance with Chase's internal procedures, as well as certain conditions as herein set forth. The pricing and terms included in this proposal letter are based on market conditions on the date hereof and are subject to change. LESSOR: LESSEE: TRANSACTION: EQUIPMENT: EQUIPMENT COST: LOCATION OF EQUIPMENT: ©20012 JPMorgan Chase & Co All rights reserved City of El Cerrito 3 final lease june 4.docx JPMorgan Chase Bank, N City of El Cerrito Fixed-rate, fully amortizing, privately placed tax-exempt lease-purchase agreement ("Agreement"). 3 Fire trucks, 3 Recycling trucks and Recycling carts. Lessee shall grant Lessor a first priority security interest in the Equipment. Anticipated not to exceed $1,628,172 as per the following: One transaction of $1,628,172 El Cerrito, CA ---PAGE BREAK--- June 4, 2012 Page 2 BANK QUALIFIED: APPROPRIATION: LEASE TERM: LEASE RATE: AS OFMAY 21sT, 2012 LEASE PAYMENT AMOUNT BASED ON RATE FOR MAY 21sT, 2012: ADJUSTMENTS TO PAYMENT AMOUNT AND LEASE RATE: PREPAYMENT/OPTION TO PURCHASE: ©20012 JPMorgan Chase ft Co All rights reserved This proposal assumes that the Lessee will not issue more than $10 million in tax-exempt obligations this calendar year and that the Lessee will designate this lease as a "qualified" tax-exempt obligation ("QTEO") This Agreement shall be subject to annual appropriation. 7 Years 1. 98% per annum. Payments may be made semi -annually as follows: $125,117.38 Semi-annually The Payment Amount and Interest Rate will be determined based upon a spread over the Treasury Securities Rate of Interest in effect from time to time (the "Index"). "Treasury Securities Rate" shall mean the weekly average yield on United States Treasury Securities Constant Maturity Series issued by the United States Government for a term of 7 years, 1.18% as most recently published by the Federal Reserve Board in Federal Reserve Statistical Release H.15(519), immediately prior to the date of the note. The interest rate will be fixed for the remaining term and equal the sum of the Index plus 0.80% The Lessee shall have the right to prepay, in whole, on any payment date. If Lessee chooses to prepay, a penalty will be assessed based on the following schedule: Month 0-12 5% of outstanding principal balance Month 13-24 4% of outstanding principal balance Month 25-36 3% of outstanding principal balance Month 37-48 2% of outstanding principal balance Month 49-60 1% of outstanding principal balance CHASEO ---PAGE BREAK--- June 4, 2012 Page 3 DOCUMENTATION: DISBURSEMENT OF PROCEEDS: PROPOSAL ONLY: All documentation shall be prepared by and acceptable to Chase or its counsel. Lessor will fund directly to vendor. This proposal is not a commitment to undertake this financing. A commitment can be issued only after full credit and economic review and subsequent approval by the appropriate officers of Lessor. A commitment shall not be binding on Lessor unless it is in writing and signed by Lessor. If a commitment is issued by Lessor, it may modify the terms of this proposal and may add such additional requirements (including, but not limited to, financial covenants, requirements of guaranties or other credit support, and/or special equipment maintenance and return conditions) as Lessor may deem advisable. Please feel free to contact me at [PHONE REDACTED] if you have any questions, or would like to discuss this proposal in greater detail. Thank you again for considering Chase! Sincerely, JPMorgan Chase Bank, N.A. By: Laura Jones ©20012 JPMorgan Chase & Co All rights reserved CHASEO ---PAGE BREAK--- June 4, 2012 Page4 ACCEPTED BY: The City of El Cerrito By: Name: Title: _ Date: IRS Circular 230 Disclosure: Lessor and its affiliates (collectively, "Chase") do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with Chase of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. ©20012 JPMorgan Chase a Co All rights reserved CHASEO ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase Munlcl al Lease Refunding Program Sources and Uses of Funds (Fed Rates 5-21-12) Percentage Allocation 12.93% 11.78% 27.04% August 2005 June 2007 November 2009 Fire Truck Fire Truck Fire Truck Sources of Funds Lease Amount 208,204.09 196,155.21 438,216.45 Accrued Interest 7,143.68 89.74 12,138.32 Total Sources 215,347.77 196,244.94 450,354.77 Uses of Funds Cost to Payoff Prior Lease (Cash) 212,115.85 193,299.72 Cost of Escrow Securities (SLGS) 443,595.00 Beginning Escrow Cash 0.89 Costs of Issuance 3,231.92 2,945.23 6,758.88 Total Uses 215,347.77 196,244.94 450,354.77 Adjustment Escrow Re ulrements Calculation Outstanding Lease Amount 204,153.85 193,209.98 423,429.76 Interest Due on Call Date 7,962.00 89.74 20,324.63 Total Escrow Requirement 212,115.85 193,299.72 443,754.39 Assumptions Prior Issue Accrued Interest from Last interest Payment Date to the Closing Date of 7/5/2012 Allocated Pro-Rata Based on Cost to Payoff or Call Prior Lease Prior Issue Remaining Principal (All Prior Leases Callable at100%) Run Date Run Time June 1, 2012 4:30PM Fire Truck Totals 842,575.74 19,371.74 861,947.48 405,415.57 443,595.00 0.89 12,936.02 861,947.48 820,793.59 28,376.37 849,169.96 Paga 1 of21 Attachment 3 23.17% 17.65% 7.43% 100.00% December 2007 December 2008 October 2009 Recycling Equip Recycling Trucks Recycling Toters Recycling Truck Totals Totals 374,470.17 288,833.63 122,292.67 785,596.47 1,628,172.21 11,575.62 5,211.22 1,458.18 18,245.01 37,616.75 386,045.79 294,044.84 123,750.85 803,841.48 1,665,788.96 380,252.05 289,631.85 669,883.90 1,075,299.46 121,893.00 121,893.00 565,488.00 0.61 0.61 1.50 5,793.74 4,413.00 1,857.24 12,063.98 25,000.00 386,045.79 294,044.84 123,750.85 803,841.48 1,665,788.96 368,676.43 284,420.63 116,382.70 769,479.7611,590,273.35 11,575.62 5,211.22 5,644.56 22,431.40 50,807.76 380,252.05 289,631.85 122,027.26 791,911.16 if! 1,641,081.11 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Summary Statistics Arbitrage Yield True Interest Cost (TIC) "AII-In" True Interest Cost (AI C) Average Coupon Net Interest Cost (NIC) Average Life 1.98021 % 1.98021 % 2.41882 % 1.98000% 1.98000% 3.729 Years Page 2 of21 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Lease Amortization Schedule and Savings Calculation (All Leases) Beginning Principal Date Balance Principal Rate Interest 7/5/2012 1,628,172.21 12/1/2012 1,628,172.21 111,811.50 1.980 13,074.22 61112013 1 ,516,360. 71 109,873.75 1.980 15,011.97 1211/2013 1 ,406,486.96 110,961.50 1.980 13,924.22 6/1/2014 1 ,295,525.46 112,060.02 1.980 12,825.70 12/1/2014 1 '183,465.44 113,169.41 1.980 11,716.31 6/1/2015 1 ,070,296.03 114,289.79 1.980 10,595.93 12/1/2015 956,006.24 115,421.26 1.980 9,464.46 6/1/2016 840,584.98 116,563.93 1.980 8,321.79 12/1/2016 724,021.05 117,717.91 1.980 7,167.81 6/1/2017 606,303.14 118,883.32 1.980 6,002.40 12/1/2017 487,419.82 120,060.26 1.980 4,825.46 6/1/2018 367,359.56 121,248.86 1.980 3,636.86 12/1/2018 246,110.70 122,449.22 1.980 2,436.50 6/1/2019 123,661.47 123,661.47 1.980 1,224.25 12/1/2019 6/1/2020 Totals 1 ,628,172.21 120,227.88 Prior Issue Ending Periodic Fiscal Year Fiscal Year Fiscal Year Principal Debt Service Debt Service Debt Service (Savings) I Cost Balance 1,628,172.21 124,885.72 1 ,516,360. 71 124,885.72 249,771.44 347,651.12 (97,879.68) 1 ,406,486.96 124,885.72 1,295,525.46 124,885.72 249,771.44 347,651.12 (97,879.68) 1 '183,465.44 124,885.72 1,070,296.03 124,885.72 249,771.44 347,651.12 (97,879.68) 956,006.24 124,885.72 840,584.98 124,885.72 249,771.44 347,651.12 (97,879.68) 724,021.05 124,885.72 606,303.14 124,885.72 249,771.44 178,903.54 70,867.90 487,419.82 124,885.72 367,359.56 124,885.72 249,771.44 135,283.64 114,487.80 246,110.70 124,885.72 123,661.47 124,885.72 249,771.44 65,000.00 184,771.44 64,859.44 (64,859.44) 1,748,400.09 1,748,400.09 1 ,834,651.1 0 (86,251.01) Present Value (New Lease) 1 ,628,172.21 Plus: Accrued Interest 37,616.75 Net Present Value (New Lease) 1,665,788.96 Present Value (Prior Lease) 1,737,456.25 Net Present Value (Savings) I Cost (71 ,667 .29) %New Lease 4.40% % Prior Leases 4.51% Page3 of21 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Lease Amortization Schedule and Savings Calculation (Fire Trucks) Beginning Principal Date Balance Principal Rate Interest 71512012 842,575.74 12/1/2012 842,575.74 57,862.22 1.980 6,765.88 6/1/2013 784,713.52 56,859.44 1.980 7,768.66 12/1/2013 727,854.09 57,422.35 1.980 7,205.76 6/1/2014 670,431.74 57,990.83 1.980 6,637.27 12/1/2014 612,440.91 58,564.94 1.980 6,063.17 6/1/2015 553,875.98 59,144.73 1.980 5,483.37 12/1/2015 494,731.25 59,730.26 1.980 4,897.84 6/1/2016 435,000.98 60,321.59 1.980 4,306.51 12/1/2016 374,679.39 60,918.78 1.980 3,709.33 6/1/2017 313,760.62 61,521.87 1.980 3,106.23 12/1/2017 252,238.75 62,130.94 1.980 2,497.16 6/1/2018 190,107.81 62,746.03 1.980 1,882.07 12/1/2018 127,361.77 63,367.22 1.980 1,260.88 6/1/2019 63,994.56 63,994.56 1.980 633.55 12/1/2019 6/1/2020 Totals 842,575.74 62,217.68 Prior Issue Ending Periodic Fiscal Year Fiscal Year Fiscal Year Principal Debt Service Debt Service Debt Service (Savings) I Cost Balance 842,575.74 64,628.10 784,713.52 64,628.10 129,256.20 164,729.77 (35,473.57) 727,854.09 64,628.10 670,431.74 64,628.10 129,256.20 164,729.77 (35,473.57) 612,440.91 64,628.10 553,875.98 64,628.10 129,256.20 164,729.77 (35,473.57) 494,731.25 64,628.10 435,000.98 64,628.10 129,256.20 164,729.77 (35,473.57) 374,679.39 64,628.10 313,760.62 64,628.10 129,256.20 108,619.90 20,636.30 252,238.75 64,628.10 190,107.81 64,628.10 129,256.20 65,000.00 64,256.20 127,361.77 64,628.10 63,994.56 64,628.10 129,256.20 65,000.00 64,256.20 64,859.44 (64,859.44) 904,793.42 904,793.42 962,398.42 (57,605.00) Present Value (New Lease) 842,575.74 Plus: Accrued Interest 19,371.74 Net Present Value (New Lease) 861,947.48 Present Value (Prior Lease) 905,366.12 Net Present Value (Savings) I Cost (43,418.64) %New Lease 5.15% % Prior Leases 5.29% Page4 of21 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Lease Amortization Schedule and Savings Calculation (Recycling Trucks) Beginning Principal Date Balance Principal Rate Interest 7/5/2012 785,596.47 12/1/2012 785,596.47 53,949.28 1.980 6,308.34 6/1/2013 731,647.19 53,014.31 1.980 7,243.31 12/1/2013 678,632.88 53,539.15 1.980 6,718.47 6/1/2014 625,093.72 54,069.19 1.980 6,188.43 12/1/2014 571,024.53 54,604.48 1.980 5,653.14 6/1/2015 516,420.05 55,145.06 1.980 5,112.56 12/1/2015 461,274.99 55,691.00 1.980 4,566.62 6/1/2016 405,584.00 56,242.34 1.980 4,015.28 12/1/2016 349,341.66 56,799.14 1.980 3,458.48 6/1/2017 292,542.52 57,361.45 1.980 2,896.17 12/1/2017 235,181.07 57,929.33 1.980 2,328.29 6/1/2018 177,251.75 58,502.83 1.980 1,754.79 12/1/2018 118,748.92 59,082.00 1.980 1,175.61 6/1/2019 59,666.92 59,666.92 1.980 590.70 12/1/2019 6/1/2020 Totals 785,596.47 58,010.20 Prior Issue Ending Periodic Fiscal Year Fiscal Year Fiscal Year Principal Debt Service Debt Service Debt Service (Savings) I Cost Balance 785,596.47 60,257.62 731,647.19 60,257.62 120,515.24 182,921.35 (62,406.11) 678,632.88 60,257.62 625,093.72 60,257.62 120,515.24 182,921.35 (62,406.11) 571,024.53 60,257.62 516,420.05 60,257.62 120,515.24 182,921.35 (62,406.11) 461,274.99 60,257.62 405,584.00 60,257.62 120,515.24 182,921.35 (62,406.11) 349,341.66 60,257.62 292,542.52 60,257.62 120,515.24 70,283.64 50,231.60 235,181.07 60,257.62 177,251.75 60,257.62 120,515.24 70,283.64 50,231.60 118,748.92 60,257.62 59,666.92 60,257.62 120,515.24 120,515.24 843,606.67 843,606.67 872,252.68 (28,646.01) Present Value (New Lease) 785,596.47 Plus: Accrued Interest 18,245.01 Net Present Value (New Lease) 803,841.48 Present Value (Prior Lease) 832,090.13 Net Present Value (Savings) I Cost (28,248.65) %New Lease 3.60% % Prior Leases 3.67% Page 5 of21 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Lease Amortization Schedule and Savings Calculation (2005 Fire Truck Purchase) Beginning Principal Periodic Date Balance Principal Rate Interest Debt Service 7/5/2012 208,204.09 12/1/2012 208,204.09 14,298.00 1.980 1,671.88 15,969.88 6/1/2013 193,906.08 14,050.21 1.980 1,919.67 15,969.88 12/1/2013 179,855.87 14,189.31 1.980 1,780.57 15,969.88 611/2014 165,666.56 14,329.78 1.980 1,640.10 15,969.88 12/1/2014 151,336.78 14,471.65 1.980 1,498.23 15,969.88 6/1/2015 136,865.13 14,614.92 1.980 1,354.96 15,969.88 12/1/2015 122,250.22 14,759.60 1.980 1,210.28 15,969.88 6/1/2016 107,490.61 14,905.72 1.980 1,064.16 15,969.88 12/1/2016 92,584.89 15,053.29 1.980 916.59 15,969.88 6/1/2017 77,531.60 15,202.32 1.980 767.56 15,969.88 12/1/2017 62,329.28 15,352.82 1.980 617.06 15,969.88 6/1/2018 46,976.46 15,504.81 1.980 465.07 15,969.88 12/1/2018 31,471.64 15,658.31 1.980 311.57 15,969.88 6/1/2019 15,813.33 15,813.33 1.980 156.55 15,969.88 12/1/2019 6/1/2020 Totals 208,204.09 15,374.26 223,578.34 Page6 of21 Prior Issue Ending Fiscal Year Fiscal Year Fiscal Year Principal Debt Service Debt Service (Savings) I Cost Balance 208,204.09 193,906.08 31,939.76 56,109.87 (24, 170.11) 179,855.87 165,666.56 31,939.76 56,109.87 (24, 170.11) 151,336.78 136,865.13 31,939.76 56,109.87 (24, 170.11) 122,250.22 107,490.61 31,939.76 56,109.87 (24,170.11) 92,584.89 77,531.60 31,939.76 31,939.76 62,329.28 46,976.46 31,939.76 31,939.76 31,471.64 15,813.33 31,939.76 31,939.76 223,578.34 224,439.48 (861.14) Present Value (New Lease) 208,204.09 Plus: Accrued Interest 7,143.68 Net Present Value (New Lease) 215,347.77 Net Present Value (Prior Lease) 217,547.71 Net Present Value (Savings) I Cost (2,199.94) %New Lease 1.06% % Prior Lease 1.08% ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Prior Lease Amortization Schedule and Redemption Provisions (2005 Fire Truck Purchase) Call Premium Beginning Principal Fiscal Year Principal Date Balance Principal Rate Interest Debt Service Called 8/12/2011 204,153.85 7/5/2012 204,153.85 8/12/2012 204,153.85 48,147.87 3.900 7,962.00 56,109.87 48,147.87 8/12/2013 156,005.98 50,025.64 3.900 6,084.23 56,109.87 50,025.64 8/12/2014 105,980.34 51,976.64 3.900 4,133.23 56,109.87 51,976.64 8/12/2015 54,003.70 54,003.70 3.900 2,106.17 56,109.87 54,003.70 Totals 204,153.85 20,285.63 224,439.48 204,153.85 Page 7of21 0.00% Ending Call Defeasance Principal Premium Interest Due Amount Balance 204,153.85 204,153.85 7,962.00 212,115.85 156,005.98 105,980.34 54,003.70 7,962.00 212,115.85 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Lease Amortization Schedule and Savings Calculation (2007 Fire Truck Purchase) Beginning Principal Periodic Date Balance Principal Rate Interest Debt Service 7/5/2012 196,155.21 12/1/2012 196,155.21 13,470.57 1.980 1,575.13 15,045.70 6/1/2013 182,684.64 13,237.12 1.980 1,808.58 15,045.70 12/1/2013 169,447.52 13,368.17 1.980 1,677.53 15,045.70 6/1/2014 156,079.35 13,500.51 1.980 1,545.19 15,045.70 12/1/2014 142,578.84 13,634.17 1.980 1,411.53 15,045.70 6/1/2015 128,944.68 13,769.14 1.980 1,276.55 15,045.70 12/1/2015 115,175.53 13,905.46 1.980 1,140.24 15,045.70 6/1/2016 101,270.07 14,043.12 1.980 1,002.57 15,045.70 12/1/2016 87,226.95 14,182.15 1.980 863.55 15,045.70 6/1/2017 73,044.80 14,322.55 1.980 723.14 15,045.70 12/1/2017 58,722.25 14,464.35 1.980 581.35 15,045.70 6/1/2018 44,257.90 14,607.54 1.980 438.15 15,045.70 12/1/2018 29,650.36 14,752.16 1.980 293.54 15,045.70 6/1/2019 14,898.20 14,898.20 1.980 147.49 15,045.70 12/1/2019 6/1/2020 Totals 196,155.21 14,484.54 210,639.74 Page 8 of21 Prior Issue Ending Fiscal Year Fiscal Year Fiscal Year Principal Debt Service Debt Service (Savings) I Cost Balance 196,155.21 182,684.64 30,091.39 43,619.90 (13,528.51) 169,447.52 156,079.35 30,091.39 43,619.90 (13,528.51) 142,578.84 128,944.68 30,091.39 43,619.90 (13,528.51) 115,175.53 101,270.07 30,091.39 43,619.90 (13,528.51) 87,226.95 73,044.80 30,091.39 43,619.90 (13,528.51) 58,722.25 44,257.90 30,091.39 30,091.39 29,650.36 14,898.20 30,091.39 30,091.39 210,639.74 218,099.50 (7,459.76) Present Value (New Lease) 196,155.21 Plus: Accrued Interest 89.74 Net Present Value (New Lease) 196,244.94 Present Value (Prior Lease) 205,763.61 Net Present Value (Savings) I Cost (9,518.67) %New Lease 4.85% % Prior Lease 4.93% ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Prior Lease Amortization Schedule and Redemption Provisions (2007 Fire Truck Purchase) Call Premium Beginning Principal Fiscal Year Principal Date Balance Principal Rate Interest Debt Service Called 7/1/2012 193,209.98 7/5/2012 193,209.98 7/1/2013 193,209.98 35,543.72 4.180 8,076.18 43,619.90 35,543.72 7/1/2014 157,666.26 37,029.45 4.180 6,590.45 43,619.90 37,029.45 7/1/2015 120,636.81 38,577.28 4.180 5,042.62 43,619.90 38,577.28 7/1/2016 82,059.53 40,189.81 4.180 3,430.09 43,619.90 40,189.81 7/1/2017 41,869.72 41,869.72 4.180 1,750.18 43,619.90 41,869.72 Totals 193,209.98 24,889.52 218,099.50 193,209.98 PageS of21 0.00% Ending Call Accrued Defeasance Principal Premium Interest Amount Balance 193,209.98 89.74 193,299.72 193,209.98 157,666.26 120,636.81 82,059.53 41,869.72 89.74 193,299.72 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Lease Amortization Schedule and Savings Calculation (2009 Fire Truck Purchase) Beginning Principal Periodic Date Balance Principal Rate Interest Debt Service 7/5/2012 438,216.45 12/1/2012 438,216.45 30,093.65 1.980 3,518.88 33,612.52 6/1/2013 408,122.80 29,572.11 1.980 4,040.42 33,612.52 12/1/2013 378,550.70 29,864.87 1.980 3,747.65 33,612.52 6/1/2014 348,685.82 30,160.53 1.980 3,451.99 33,612.52 12/1/2014 318,525.29 30,459.12 1.980 3,153.40 33,612.52 6/1/2015 288,066.17 30,760.67 1.980 2,851.86 33,612.52 12/1/2015 257,305.50 31,065.20 1.980 2,547.32 33,612.52 6/1/2016 226,240.30 31,372.74 1.980 2,239.78 33,612.52 12/1/2016 194,867.55 31,683.34 1.980 1,929.19 33,612.52 6/1/2017 163,184.22 31,997.00 1.980 1,615.52 33,612.52 12/1/2017 131,187.22 32,313.77 1.980 1,298.75 33,612.52 6/1/2018 98,873.45 32,633.68 1.980 978.85 33,612.52 12/1/2018 66,239.77 32,956.75 1.980 655.77 33,612.52 6/1/2019 33,283.02 33,283.02 1.980 329.50 33,612.52 12/1/2019 6/1/2020 Totals 438,216.45 32,358.88 470,575.33 Page 10of21 Prior Issue Ending Fiscal Year Fiscal Year Fiscal Year Principal Debt Service Debt Service (Savings) I Cost Balance 438,216.45 408,122.80 67,225.05 65,000.00 2,225.05 378,550.70 348,685.82 67,225.05 65,000.00 2,225.05 318,525.29 288,066.17 67,225.05 65,000.00 2,225.05 257,305.50 226,240.30 67,225.05 65,000.00 2,225.05 194,867.55 163,184.22 67,225.05 65,000.00 2,225.05 131,187.22 98,873.45 67,225.05 65,000.00 2,225.05 66,239.77 33,283.02 67,225.05 65,000.00 2,225.05 64,859.44 (64,859.44) 470,575.33 519,859.44 (49,284.11) Present Value (New Lease) 438,216.45 Plus: Accrued Interest 12,138.32 Net Present Value (New Lease) 450,354.77 Present Value (Prior Lease) 482,054.80 Net Present Value (Savings) I Cost (31,700.03) %New Lease 7.23% % Prior Lease 7.49% ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Prior Lease Amortization Schedule and Redemption Provisions (2009 Fire Truck Purchase) Call Premium Beginning Principal Fiscal Year Principal Date Balance Principal Rate Interest Debt Service Called 11/30/2011 423,429.76 7/5/2012 423,429.76 11/30/2012 423,429.76 44,675.37 4.800 20,324.63 65,000.00 44,675.37 11/30/2013 378,754.39 46,819.79 4.800 18,180.21 65,000.00 46,819.79 11/30/2014 331,934.60 49,067.14 4.800 15,932.86 65,000.00 49,067.14 11/30/2015 282,867.46 51,422.36 4.800 13,577.64 65,000.00 51,422.36 11/30/2016 231,445.10 53,890.64 4.800 11,109.36 65,000.00 53,890.64 11/30/2017 177,554.46 56,477.39 4.800 8,522.61 65,000.00 56,477.39 11/30/2018 121,077.07 59,188.30 4.800 5,811.70 65,000.00 59,188.30 11/30/2019 61,888.77 61,888.77 4.800 2,970.67 64,859.44 61,888.77 Totals 423,429.76 96,429.68 519,859.44 423,429.76 Page 11 of21 0.00% Ending Call Defeasance Principal Premium Interest Due Amount Balance 423,429.76 423,429.76 20,324.63 443,754.39 378,754.39 331,934.60 282,867.46 231,445.10 177,554.46 121,077.07 61,888.77 20,324.63 443,754.39 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) SLGS Purchase Escrow Cash Flow Schedule (2009 Fire Truck Purchase) Delivery Date Type Date Cert 11/30/2012 Totals 7/5/2012 Escrow Requirement 443,754.39 443,754.39 Principal 443,595.00 443,595.00 Rate 0.09 Page 12 of 21 0.89 Total Periodic Cash Interest Receipt Difference Balance 158.60 443,753.60 (0.79) 0.10 158.60 443,753.60 (0.79) 0.10 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Escrow Yield Calculation (2009 Fire Truck Purchase) Purchase Price of Securities Yield Date 7/5/2012 11/30/2012 Totals Future Value (443,595.00) 443,753.60 158.60 443,595.00 0.08877 Present Value (443,595.00) 443,595.00 0.00 Page 13 of 21 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Lease Amortization Schedule and Savings Calculation (2007 Recycling Trucks Purchase) Beginning Principal Periodic Date Balance Principal Rate Interest Debt Service 7/5/2012 374,470.17 12/1/2012 374,470.17 25,716.00 1.980 3,007.00 28,722.99 6/1/2013 348,754.17 25,270.33 1.980 3,452.67 28,722.99 12/1/2013 323,483.85 25,520.50 1.980 3,202.49 28,722.99 6/1/2014 297,963.34 25,773.15 1.980 2,949.84 28,722.99 12/1/2014 272,190.19 26,028.31 1.980 2,694.68 28,722.99 6/1/2015 246,161.88 26,285.99 1.980 2,437.00 28,722.99 12/1/2015 219,875.89 26,546.22 1.980 2,176.77 28,722.99 6/1/2016 193,329.67 26,809.03 1.980 1,913.96 28,722.99 12/1/2016 166,520.64 27,074.44 1.980 1,648.55 28,722.99 6/1/2017 139,446.21 27,342.47 1.980 1,380.52 28,722.99 12/1/2017 112,103.73 27,613.16 1.980 1,109.83 28,722.99 6/1/2018 84,490.57 27,886.54 1.980 836.46 28,722.99 12/1/2018 56,604.03 28,162.61 1.980 560.38 28,722.99 6/1/2019 28,441.42 28,441.42 1.980 281.57 28,722.99 12/1/2019 6/1/2020 Totals 374,470.17 27,651.71 402,121.88 Page 14 of21 Prior Issue Ending Fiscal Year Fiscal Year Fiscal Year Principal Debt Service Debt Service (Savings) I Cost Balance 374,470.17 348,754.17 57,445.98 70,283.64 (12,837.66) 323,483.85 297,963.34 57,445.98 70,283.64 (12,837.66) 272,190.19 246,161.88 57,445.98 70,283.64 (12,837.66) 219,875.89 193,329.67 57,445.98 70,283.64 (12,837.66) 166,520.64 139,446.21 57,445.98 70,283.64 (12,837.66) 112,103.73 84,490.57 57,445.98 70,283.64 (12,837.66) 56,604.03 28,441.42 57,445.98 57,445.98 402,121.88 421,701.84 (19,579.96) Present Value (New Lease) 374,470.17 Plus: Accrued Interest 11,575.62 Net Present Value (New Lease) 386,045.79 Present Value (Prior Lease) 400,093.44 Net Present Value (Savings) I Cost (14,047.66) %New Lease 3.75% % Prior Lease 3.81% ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Prior Lea~e Amortization Schedule and Redemption Provisions (2007 Recycling Trucks Purchase) Call Premium Beginning Principal Fiscal Year Principal Date Balance Principal Rate Interest Debt Service Called 9/21/2011 368,676.43 7/5/2012 368,676.43 9/21/2012 368,676.43 55,610.32 3.980 14,673.32 70,283.64 55,610.32 9/21/2013 313,066.11 57,823.61 3.980 12,460.03 70,283.64 57,823.61 9/21/2014 255,242.50 60,124.99 3.980 10,158.65 70,283.64 60,124.99 9/21/2015 195,117.51 62,517.96 3.980 7,765.68 70,283.64 62,517.96 9/21/2016 132,599.55 65,006.18 3.980 5,277.46 70,283.64 65,006.18 9/21/2017 67,593.37 67,593.37 3.980 2,690.27 70,283.64 67,593.37 Totals 368,676.43 53,025.41 421,701.84 368,676.43 Page 15of21 0.00% Ending Call Accrued Defeasance Principal Premium Interest Amount Balance 368,676.43 11,575.62 380,252.05 368,676.43 313,066.11 255,242.50 195,117.51 132,599.55 67,593.37 11,575.62 380,252.05 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Lease Amortization Schedule and Savings Calculation (2008 Recycling Truck Purchase) Beginning Principal Periodic Date Balance Principal Rate Interest Debt Service 715/2012 288,833.63 12/1/2012 288,833.63 19,835.08 1.980 2,319.33 22,154.41 6/1/2013 268,998.55 19,491.32 1.980 2,663.09 22,154.41 12/1/2013 249,507.23 19,684.29 1.980 2,470.12 22,154.41 6/1/2014 229,822.94 19,879.16 1.980 2,275.25 22,154.41 12/1/2014 209,943.77 20,075.97 1.980 2,078.44 22,154.41 6/1/2015 189,867.81 20,274.72 1.980 1,879.69 22,154.41 12/1/2015 169,593.09 20,475.44 1.980 1,678.97 22,154.41 6/1/2016 149,117.65 20,678.15 1.980 1,476.26 22,154.41 12/1/2016 128,439.50 20,882.86 1.980 1,271.55 22,154.41 6/1/2017 107,556.64 21,089.60 1.980 1,064.81 22,154.41 12/1/2017 86,467.04 21,298.39 1.980 856.02 22,154.41 6/1/2018 65,168.66 21,509.24 1.980 645.17 22,154.41 12/1/2018 43,659.41 21,722.18 1.980 432.23 22,154.41 6/1/2019 21,937.23 21,937.23 1.980 217.18 22,154.41 12/1/2019 6/1/2020 Totals 288,833.63 21,328.12 310,161.75 Page 16 of21 Prior Issue Ending Fiscal Year Fiscal Year Fiscal Year Principal Debt Service Debt Service (Savings) I Cost Balance 288,833.63 268,998.55 44,308.82 79,930.69 (35,621.87) 249,507.23 229,822.94 44,308.82 79,930.69 (35,621.87) 209,943.77 189,867.81 44,308.82 79,930.69 (35,621.87) 169,593.09 149,117.65 44,308.82 79,930.69 (35,621.87) 128,439.50 107,556.64 44,308.82 44,308.82 86,467.04 65,168.66 44,308.82 44,308.82 43,659.41 21,937.23 44,308.82 44,308.82 310,161.75 319,722.76 (9,561.01) Present Value (New Lease) 288,833.63 Plus: Accrued Interest 5,211.22 Net Present Value (New Lease) 294,044.84 Present Value (Prior Lease) 306,764.63 Net Present Value (Savings) I Cost (12, 719. 78) %New Lease 4.40% % Prior Lease 4.47% ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Prior Lease Amortization Schedule and Redemption Provisions (2008 Recycling Toters Purchase) Call Premium Beginning Principal Fiscal Year Principal Date Balance Principal Rate Interest Debt Service Called 2/19/2012 284,420.63 7/5/2012 284,420.63 2/19/2013 284,420.63 66,136.29 4.850 13,794.40 79,930.69 66,136.29 2/19/2014 218,284.34 69,343.90 4.850 10,586.79 79,930.69 69,343.90 2/19/2015 148,940.44 72,707.08 4.850 7,223.61 79,930.69 72,707.08 2/19/2016 76,233.36 76,233.36 4.850 3,697.33 79,930.69 76,233.36 Totals 284,420.63 35,302.13 319,722.76 284,420.63 Page 17of21 0.00% Ending Call Accrued Defeasance Principal Premium Interest Amount Balance 284,420.63 5,211.22 289,631.85 284,420.63 218,284.34 148,940.44 76,233.36 5,211.22 289,631.85 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Lease Amortization Schedule and Savings Calculation (2009 Recycling Truck Purchase) Beginning Principal Periodic Date Balance Principal Rate Interest Debt Service 7/5/2012 122,292.67 12/1/2012 122,292.67 8,398.21 1.980 982.01 9,380.22 6/1/2013 113,894.47 8,252.66 1.980 1,127.56 9,380.22 12/1/2013 105,641.80 8,334.36 1.980 1,045.85 9,380.22 611/2014 97,307.44 8,416.87 1.980 963.34 9,380.22 12/1/2014 88,890.57 8,500.20 1.980 880.02 9,380.22 6/1/2015 80,390.37 8,584.35 1.980 795.86 9,380.22 12/1/2015 71,806.02 8,669.34 1.980 710.88 9,380.22 611/2016 63,136.68 8,755.16 1.980 625.05 9,380.22 12/1/2016 54,381.51 8,841.84 1.980 538.38 9,380.22 6/1/2017 45,539.67 8,929.37 1.980 450.84 9,380.22 12/1/2017 36,610.30 9,017.77 1.980 362.44 9,380.22 6/1/2018 27,592.52 9,107.05 1.980 273.17 9,380.22 12/1/2018 18,485.47 9,197.21 1.980 183.01 9,380.22 6/1/2019 9,288.26 9,288.26 1.980 91.95 9,380.22 12/1/2019 6/1/2020 Totals 122,292.67 9,030.36 131,323.04 Page 18 of21 Prior Issue Ending Fiscal Year Fiscal Year Fiscal Year Principal Debt Service Debt Service (Savings) I Cost Balance 122,292.67 113,894.47 18,760.43 32,707.02 (13,946.59) 105,641.80 97,307.44 18,760.43 32,707.02 (13,946.59) 88,890.57 80,390.37 18,760.43 32,707.02 (13,946.59) 71,806.02 63,136.68 18,760.43 32,707.02 (13,946.59) 54,381.51 45,539.67 18,760.43 18,760.43 36,610.30 27,592.52 18,760.43 18,760.43 18,485.47 9,288.26 18,760.43 18,760.43 131,323.04 130,828.08 494.96 Present Value (New Lease) 122,292.67 Plus: Accrued Interest 1,458.18 Net Present Value (New Lease) 123,750.85 Present Value (Prior Lease) 125,232.06 Net Present Value (Savings) I Cost (1,481.21) %New Lease 1.21% % Prior Lease 1.27% ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Pro ram) Prior Lease Amortization Schedule and Redemption Provisions (2009 Recycling Truck Purchase) Call Premium Beginning Principal Fiscal Year Principal Date Balance Principal Rate Interest Debt Service Called 4/2/2012 116,382.70 7/5/2012 116,382.70 4/2/2013 116,382.70 27,062.46 4.850 5,644.56 32,707.02 27,062.46 4/2/2014 89,320.24 28,374.99 4.850 4,332.03 32,707.02 28,374.99 4/2/2015 60,945.25 29,751.18 4.850 2,955.84 32,707.02 29,751.18 4/2/2016 31,194.07 31,194.07 4.850 1,512.95 32,707.02 31,194.07 Totals 116,382.70 14,445.38 130,828.08 116,382.70 Page 19 of21 0.00% Ending Call Defeasance Principal Premium Interest Due Amount Balance 116,382.70 116,382.70 5,644.56 122,027.26 89,320.24 60,945.25 31,194.07 5,644.56 122,027.26 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) SLGS Purchase Escrow Cash Flow Schedule {2009 Recycling Truck Purchase) Delivery Date 7/5/2012 Escrow Type Date Requirement Principal Rate Cert 4/2/2013 122,027.26 121,893.00 0.15 Totals 122,027.26 121,893.00 Page 20 of 21 0.61 Total Periodic Cash Interest Receipt Difference Balance 133.75 122,026.75 (0.51) 0.10 133.75 122,026.75 (0.51) 0.10 ---PAGE BREAK--- City of El Cerrito Lease With Option To Purchase (Municipal Lease Refunding Program) Escrow Yield Calculation (2009 Recycling Truck Purchase) Purchase Price of Securities Yield Date 7/5/2012 4/2/2013 Totals Future Value (121 ,893.00) 122,026.75 133.75 121,893.00 0.14792 Present Value (121 ,893.00) 121,893.00 0.00 Page 21 of 21