Resolution Number 10-12-07-03RESOLUTION NO. 10-12-07-03
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JUAN CAPISTRANO REGARDING ITS INTENTION
TO ISSUE TAX-EXEMPT OBLIGATIONS AND TO
REIMBURSE THE CITY FROM PROCEEDS OF SUCH
OBLIGATIONS FOR COSTS INCURRED PRIOR TO
ISSUANCE (WATER SYSTEM IMPROVEMENTS)
WHEREAS, the City Council of the City of San Juan Capistrano (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");
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, THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO 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 $20,000,000, with respect to the Water System Improvements described
at Exhibit A.
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 the 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
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Obligations subject to the small issuer exception of Section 148(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.
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 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 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 City Council so finds, determines and represents.
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PASSED, APPROVED AND ADOPTED this 7th day of December 2010.
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
STATE OF CALIFORNIA j
s
SAM ALLEVATO, MAYOR
1, MARIA MORRIS, appointed City Clerk of the City of San Juan Capistrano, do hereby
certify that the foregoing Resolution No. 1012-07-03 was duly adopted by the
City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the
7th day of December 2010, by the following vote:
AYE: COUNCIL MEMBERS: Freese, Reeve, Taylor, Kramer and Mayor Allevato
NOES: �COUNCIL MEMBERS: None
e,
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EXHIBIT A
DESCRIPTION OF PROJECT
Water System Improvements:
Recycled Water
Existing Service Retrofits, 426 N. Reservoir,
Recycled Water — Pressure. Reducing Valves and Pump Stations,
Recycled Water —Transmission Lines,
Domestic Water
Pump Stations Improvements,
SCADA System Improvements,
GWRP Plant/Regional Domestic Distribution Facility Expansion — Phase II,
San .Juan Hills DIP Waterline Replacements,
760 S. Reservoir - Phase Il,
Emergency Standby Electrical Generation,
Pressure Regulating Stations
And other similar projects benefiting the water system.
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