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HomeMy WebLinkAboutResolution 2003-135 N.C.S. 07/14/2003Resolution No. 2003-135N.C.S. of the City of Petaluma, California RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS WHEREAS, the City Council of the City of Petaluma (the "Issuer") desires to finance the costs of acquiring, installing, constructing and/or equipping certain capital improvements consisting of certain airport hangers, as provided in Exhibit A attached hereto and incorporated herein (the "Project"); and, WHEREAS, the Issuer intends to finance the acquisition, installation, construction and/or equipping of the Project or portions of the Project with the proceeds of the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"); and, WHEREAS, prior to the issuance of the Obligations the Issuer desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the Issuer; and, WHEREAS, the City Council of the Issuer has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Issuer for the Expenditures from the proceeds of the Obligations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PETALUMA DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. The Issuer hereby states its intention and reasonably expects to reimburse Project costs incurred prior to the issuance of the Obligations with proceeds of the Obligations. Exhibit A describes either the general character, type, purpose, and function of the Project, or the fund or account from which Project costs are to be paid and the general functional purpose of the fund or account. SECTION 2. The reasonably expected maximum principal amount of the Obligations is $3,500,000. SECTION 3. This resolution is being adopted no later than 60 days after the date on which the Issuer will expend .moneys for the portion of the Project costs to be reimbursed from proceeds of the Obligations. Resolution No. 2003-135 N.C.S. SECTION 4. 'The Issuer will make a reimbursement allocation, which is a written allocation that evidences the Issuer's use of proceeds of the Obligations to reimburse an Expenditure, no later than 18 months after the later of the date on which the Expenditure is paid or the Project is placed in service or abandoned, but in no event more than three years after the date on which the Expenditure is paid. SECTION 5. The limitations described in Section 3 and Section 4 do not apply to (a) costs of issuance of the Obligations, (b) an amount not in excess of the lesser of $100,000 or five percent (5%) of the proceeds of the Obligations, or (c) any preliminary expenditures, such as architectural, engineering, surveying, soil testing, and similar costs other than .land acquisition, site preparation, and similar costs incident to commencement of construction, not in excess of twenty percent (20%) of the aggregate issue price of the Obligations that finances the Project for which the preliminary expenditures were incurred. SECTION 6. Each Expenditure will be either (a) of a type properly chargeable to a capital account under general federal income tax principles (determined in each case as of the date of the Expenditure), (b) a cost of issuance with respect to the Obligations, (c) a nonrecurring item that is not customarily payable from current revenues, or (d) a grant to a party that is not related to or an agent of the Issuer so long as such grant does not impose any obligation or condition (directly or indirectly) to repay any amount to or for the benefit of the Issuer. SECTION 7. This resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No moneys from sources other than the Obligations are, or are reasonably expected to be reserved, a llocated on a long-term basis, or otherwise set aside by the Issuer (or any related party) pursuant to their budget or financial policies with respect to the Project costs. To the best of our knowledge, this City Council is not aware of the previous adoption of official intents by the Issuer that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued. SECTION 8. Proceeds of the Obligations to be used to reimburse for Project costs are not expected to be used, within one year of reimbursement, directly or indirectly to pay debt service with respect to any obligation (other than to pay current debt service coming due within the next. succeeding one year period on any tax-exempt obligation of the Issuer (other than the Obligations)) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any manner to the Issuer, or to reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner. SECTION 9. This resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation Section 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Issuer expenditures incurred prior to the date of issue of the Obligations. Resolution No. 2003-135 N.C.S. Page 2 SECTION 10. All the recitals in this Resolution are true and correct and this City Council so finds, determines and represents. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to Council of the ~'ity of Petaluma at a (Regular) (Adjourned) (Special) meeting on the .........14 ............. day of ........Jul.X......................................., 20.03, by the following vote: ..............~.. 1................... City Attorney AYES: Canevaro, Mayor Glass, Harris, Moynihan, Vice Mayor O'Brien, Torliatt NOES: None ABSENT: H ly ATTEST: ........... ..... ....~.................. ~ ..... Cit Clerk ayor Council File ................................... Res. No.......?003-1,35,,.,,,,.N.C.S. STATE OF CALIFORNIA ) -COUNTY OF SONOlVLA-- - - ----- )---- - -- - ----__ _...---- -. - ---- -- - ------- ------- ------ ----- -- - - -- CITY OF PETALUMA ~ ) • - I, Gayle Petersen, do hereby certify that the foregoing is a true and correct copy of Resolution No. 2003-1.35 N.C.S., which was duly adopted by the City C ouncil of the City of Petaluma at a meeting thereof held on the 14th day of July, 2003, and that it was so adopted by the following vote: AYES': Canevaro, Glass, Harris, Moynihan, O'Brien, Torliatt NOES: None ABSENT: Healy ABSTENTIONS: None ~' g y 1 F ~QITY CLERK r/ Resolution No. 2003-135 N.C.S. ~ Page 4 EXHIBIT A DESCRIPTION OF PROJECT The project to be financed consists of the acquisition, installation, construction and/or equipping of certain capital improvements consisting of certain airport hangers to be located within the City of Petaluma (including but not limited to all necessary legal, financial, architectural, environmental, engineering and contingent costs incurred in connection therewith). Resolution No. 2003-135 N.C.S. Page 5