HomeMy WebLinkAbout05-83 - Intention to Reimburse Certain Expenditures (Police Facility Expansion/Renovation Project)RESOLUTION NO. 05-63
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, DECLARING ITS
INTENTION TO REIMBURSE CERTAIN EXPENDITURES
FROM THE PROCEEDS OF OBLIGATIONS TO BE
ISSUED BY THE CITY FOR THE POLICE FACILITY
EXPANSION/RENOVATION PROJECT AND DIRECTING
CERTAIN ACTIONS WITH RESPECT THERETO AS
REQUIRED BY UNITED STATES DEPARTMENT OF
TREASURY REGULATIONS SECTION 1.150-2.
WHEREAS, the City of Costa Mesa (the "City") has determined it is necessary
for the health, safety and welfare of the residents of the City, and in their best interests,
that the City provide for the acquisition, construction, delivery, design, installation,
furnishing and equipping of certain capital facilities on certain real property located
within, the City, consisting of construction and renovation of appurtenant structures and
facilities now known as the "Police department' (together, the "Improvements"); and
WHEREAS, the City has determined that in order to finance the Improvements it
is necessary and desirable for the City to issue its tax-exempt revenue bonds (the
"Bonds") and to use the proceeds thereof for the purchase or lease of the
Improvements; and
WHEREAS, the City proposes to undertake the design, acquisition, construction,
delivery and installation of the Improvements, a portion of the cost of which will be
expended prior to the issuance of the Bonds by the City; and
WHEREAS, the City has incurred, or may incur, certain expenses with respect to
the Improvements which, pursuant to Section 1.150-2 of the regulations (the 'Treasury
Regulations") promulgated under the Internal Revenue Code of 1986, as amended (the
"Tax Code") may be reimbursed out of proceeds of the Bonds (the "Reimbursable
Expenses"); and
WHEREAS, Section 1.150-2 of the Treasury Regulations promulgated under the
Tax Code requires the City to declare its reasonable official intent to reimburse the
Reimbursable Expenses from the proceeds of the Bonds which the City reasonably
expects will be issued to finance the costs of the Improvements incurred prior to the
date of issuance thereof and that a portion of such proceeds shall be used to reimburse
the City for the Reimbursable Expenses.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa
as follows:
Section 1. The City reasonably expects to reimburse itself for the
Reimbursable Expenses made by the City in anticipation of the issuance of the Bonds
with proceeds from the sale of the Bonds. The reimbursement of the expenditure is
consistent with the City's budgetary and financial circumstances. There are no funds or
other sources of money of the City, or any related person or controlled entity, that have
been, or are reasonably expected to be reserved, allocated on a long term basis or
otherwise set aside to pay the costs of the Improvements to be paid or reimbursed out
of the proceeds of the Bonds.
Section 2. The maximum principal amount of the Bonds from which
Reimbursable Expenses are to be made is reasonably expected to be $24,500,000.
The obligation to be represented by the Bonds may instead be incurred by the City by
means of the execution and delivery of certificates of participation, or, in the alternative,
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the Bonds may be issued by joint exercise of powers authority which will make the
Bond proceeds available to the City through a loan, lease, or installment purchase
arrangement.
Section 3. The proceeds from the Bonds are to be used for the financing,
acquisition, design and/or construction of the Improvements, funding a reserve fund, a
capitalized interest fund, and paying certain costs of issuance related thereto.
Section 4. This Resolution is adopted solely for purposes of establishing
compliance with the requirements of section 1.150-2 of the Treasury Regulations. This
Resolution does not bind the City to make any expenditure, incur any indebtedness or
proceed with the financing, acquisition or construction of the Improvements. All of the
Reimbursable Expenses covered by this Resolution were made not earlier than 60 days
prior to the date of adoption hereof.
Section 5. All actions heretofore taken by the officers, or their respective
designees, employees and agents of the City Council of the City in connection with the
financing of the Improvements are hereby ratified and confirmed.
Section 6. This Resolution shall take effect immediately upon its adoption.
Section 7. The City Clerk shall certify to the adoption of this Resolution.
PASSED AND ADOPTED this 6m day of December, 2005.
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ATTEST:
01L..)
Deputy G y Clerk of the City of Costa Mesa
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
Mayor of the City of Costa Mesa
APPROVED AS TO FORM
'j )1.,q
City Attorney
I, JULIE FOLCIK, Deputy City Clerk and ex -officio Clerk of the City Council of the
City of Costa Mesa, hereby certify that the above and foregoing Resolution No. o5 -e3
was duly and regularly passed and adopted by the said City Council at a regular
meeting thereof held on the 6" day of December, 2005, by the following roll call vote:
AYES: Mansoor, Bever, Dixon, Foley, Monahan
NOES: None
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the City of Costa Mesa this 7"' day of December, 2005.
t
DeputV City Clerk and ex -officio Clerk of
the City Council of the City of Costa Mesa