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CITY OF SAN BERt6d.DINO - REQUEST OR COUNCIL ACTION
From: Fred Wilson
Assistant City Administrator
Dept: Administrator's Office
Date: _ December 1, 1994
Reimbursement from lease/purchase
SU~Kt: financing for initial payment to
Motorola for 800 MHz (Communi-
cations Equipment).
Synopsis of Previous Council action:
10/17/94 __ Mayor and Common Council approved the 800 MHz resolution.
Recommended motion:
Adopt resolution.
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Contact person:
Fred Wilson
Phone:
5122
Supporting data attached:
Yes
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. Descriotion)
Finance:
Council Notes:
Aoenda Item No_ --_.~ .
CITY OF SANBERN~INO - REQUEST FOIl COUNCIL ACTION
STAFF REPORT
On October 17, 1994 the Mayor and Common Council approved the implementation of the 800
MHz Radio Communications System and the lease/purchase financing for the project. The total
cost for the project was $2,133,069.71 and was financed over.a 10 year period.
In order to expedite the project a purchase order was submitted to Motorola on November 2,
1994 for various radio backbone components. Motorola required a 25% payment at the time
the purchase order was issued which amounted to $282,355.24. Motorola had indicated that a
lead time of 8 to 12 weeks was required to order and deliver the 800 MHz equipment. Since
this equipment was critical to begin the 800 MHz system installation the purchase order was sent
immediately after Mayor and Common Council approval of the project but prior to the release
of funding by the financing company. The financing company did not fund the project until after
the County Board of Supervisors approved the agreement which occurred on November 22,
1994.
In order for the City to be reimbursed from the lease/purchase financing for the 25 % payment
it is necessary to adopt the attached resolution. The 1986 Tax Reform Act requires that any
government agency which expects to reimburse itself from a tax exempt issue adopt the attached
resolution.
The costs for the purchase were anticipated and are included in the financing of the project.
'5-0264
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RESOLUTION NO.
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2 RESOLUTION OF THE CITY OF SAN BERNARDINO DECLARING ITS
OFFICIAL INTENT TO REIMBURSE ITSELF WITH THE PROCEEDS OF THE 800
3 MHz TAX-EXEMPT BORROWING FOR CERTAIN CAPITAL EXPENDITURES
UNDERTAKEN BY THE CITY.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
5 SAN BERNARDINO AS FOLLOWS:
6 WHEREAS, the Mayor and Common Council have determined that it
7 is in the best interests of the City to make certain capital
8 expenditures for an 800 megahertz communications system (the
9 "Project") which Project was acquired less than 60 days prior to
10 the date of this resolution; and
11 WHEREAS, the City currently intends and reasonably expects to
12 participate in a tax-exempt borrowing to finance such capital
13 expenditures in an amount not to exceed $282,355.24 for reimbursing
14 the City for the Project; and
15 WHEREAS, the Mayor and Common Council hereby desires to
16 declare its official intent, pursuant to section 1.150-2 of the
17 resolution promulgated under the Internal Revenue Code of 1986, as
18 amended, to reimburse the city for such capital expenditures with
19 the proceeds of the City's future tax-exempt borrowing.
20 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO DO HEREBY FIND, DETERMINE AND ORDER AS FOLLOWS:
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SECTION 1.
Declaration of Official Intent.
The City
acquired the project not more than 60 days prior to the date hereof
by paying all or a portion of the costs thereof with moneys
borrowed from funds and accounts of the city which moneys have not
been, and are not reasonably expected to be, allocated to the
project or budgeted to pay for the Project on a long term basis.
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SECTION 2.
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Issuance of Obliaation. The City presently
intends and reasonably expects to participate in a tax-exempt
borrowing within 18 months of the date of the expenditure of moneys
for the Project and to allocate an amount not to exceed $282,355.24
of the proceeds thereof to reimburse the City for its expenditures
in connection with the Project.
SECTION 3.
Effective Date of Resolution. The resolution
shall take effect immediately upon its passage.
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I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the city of San
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meeting thereof, held on
, 1994 by the following
ABSENT
ABSTAIN
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POPE-LUDLAM
MILLER
CITY CLERK
The foregoing resolution is hereby approved this
, 1994.
day
of
TOM MINOR, Mayor
City of San Bernardino
22 Approved as to form
and legal content:
23
JAMES F. PENMAN
24 City Attorney
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26 By:
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