Resolution Number CVWD 02-10-01-02I
RESOLUTION NO. CVWD 02-10-01-02
RESOLUTION OF THE BOARD OF DIRECTORS OF THE CAPISTRANO
VALLEY WATER DISTRICT REGARDING ITS INTENTION TO ISSUE
TAX-EXEMPT OBLIGATIONS
WHEREAS, the Board of Directors of the Capistrano Valley Water District (the
"Issuer") desires to finance the costs of acquiring certain public facilities and
improvements, as provided in Exhibit A attached hereto and incorporated herein (the
"Project'); and
WHEREAS, the Issuer intends to finance the acquisition 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 expenditures with respect to the Project from available monies of the Issuer
' which expenditures are desired to be reimbursed by the Issuer from a portion of the
proceeds of the sale of the Obligations;
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the
Capistrano Valley Water District does hereby 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 $31,000,000.
SECTION 3. This resolution is being adopted on or prior to the date (the
"Expenditures Date or Dates") that the Issuer will expend monies for a portion of the
Project costs to be reimbursed from proceeds of the Obligations.
SECTION 4. Except as described below, the expected date of issue of the
Obligations will be within eighteen months of the later of the Expenditure Date or Dates
and the date the Project is placed in service; provided, the reimbursement may not be
' made more than three years after the original expenditure is paid. For Obligations
subject to the small issuer exception of Section 1 48(f)(4)(D) of the Internal Revenue
Code, the "eighteen -month limit" of the previous sentence is changed to "three years"
and the limitation of the previous sentence beginning with "; provided, ...." is not
applicable.
10-01-02
SECTION 5. 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 6. This resolution is consistent with the budgetary and financial
circumstances of the Issuer, as of the date hereof. No monies from sources other than
the Obligation issue are, or are reasonably expected to be reserved, allocated 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 Board of Directors 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 7. 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 8. This resolution is adopted as official action of the Issuer in order to
comply with Treasury Regulation §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, is part of the Issuer's official
proceedings, and will be available for inspection by the general public at the main
administrative office of the Issuer.
SECTION 9. All the recitals in this Resolution are true and correct and this Board
of Directors so finds, determines and represents.
2 10-01-02
I I
L�
Attest:
PASSED, APPROVED and ADOPTED this 1 ST day of October 2002.
DIANE BATHGATE, CNAIIRMAN
R. MONAHAN, SECRETARY
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARGARET R. MONAHAN, appointed Clerk of the Board of the Capistrano Valley
Water District, do hereby certify that the foregoing Resolution No. CVWD 02-10-01-02
was duly adopted by the Board of Directors of the Capistrano Valley Water District at a
regular meeting thereof, held the 1 st day of October 2002, by the following vote:
AYES: DIRECTORS
NOES DIRECTORS
ABSENT: DIRECTORS
I ` v
Hart, Gelff and Chairman Bathgate
Swerdlin
Campbell
R. MONAHAN, Clerk of the Boa
10-01-02
r
EXHIBIT A
DESCRIPTION OF PROJECT
Construction of the San Juan Basin Authority Phase I Ground Water Recovery Plant,
including all pipelines, well and other facilities relating to the Plant. These costs
included but are not limited to:
Project development fees and expenses of the District, estimated administrative, legal,
engineering and other professional fees and expenses of the District, the Issuer and the
Trustee relating to the Project and the Bonds during the Construction Period, acquisition
of property and/or access rights, demolition of any existing facilities, relocation of any
existing operations on the Plant site, construction of the Plant and installation of all
necessary equipment
exhibit a
10-01-02