HomeMy WebLinkAbout2016-196 1 RESOLUTION NO. 2016-196
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
3 SAN BERNARDINO DECLARING ITS INTENTION TO REIMBURSE CERTAIN
EXPENDITURES FROM THE PROCEEDS OF ONE OR MORE TAX-EXEMPT
4 BOND FINANCINGS, AS REQUIRED BY UNITED STATES DEPARTMENT OF
5 TREASURY REGULATIONS SECTION 1.150-2; AND AUTHORIZING CERTAIN
OTHER ACTIONS IN CONNECTION THEREWITH
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7 WHEREAS, the City of San Bernardino (the "City") expects to incur one or more
series of obligations relating to tax-exempt bonds to be issued by a conduit issuer
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(collectively, the "Bonds") to finance costs associated with, among other projects, primary
9 influent flow improvements, construction of the initial phase of a sewage treatment facility
10 known as the Clean Water Factory, acquisition and installation of a partially oxidized gas
11 turbine, rehabilitation and repair of premises for a customer service facility and administration
12 building improvements (collectively, the "Project"); and
13 WHEREAS, certain expenditures with respect to the Project are expected to be paid
14 by the City prior to the date of issuance of the Bonds (the "Reimbursable Expenditures"); and
15 WHEREAS, section 1.150-2 of the Treasury Regulations (the "Treasury Regulations")
16 promulgated under the Internal Revenue Code of 1986, as amended, requires that for an
17 allocation of proceeds of the Bonds to a capital expenditure paid prior to the issuance of the
18 Bonds to be respected by the Internal Revenue Service, the City generally must no later than
19 60 days following such payment have declared its reasonable official intent to reimburse itself
20 for such payment out of proceeds of the Bonds; and
21 WHEREAS, the City desires to facilitate the allocation of proceeds of the Bonds to
22 the reimbursement for payment of the Reimbursable Expenditures for the Project.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
23 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
24 SECTION 1. This Resolution is adopted for purposes of establishing compliance
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26 with the requirements of section 1.150-2 of the Treasury Regulations. This Resolution does
27 not obligate the City to make any expenditure or proceed with the Project or obligate the City
28 to cause the issuance of the Bonds.
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1 SECTION 2. The City hereby declares its reasonable official intention to cause the
2 issuance of Bonds or incur related obligations in an aggregate principal amount not to exceed
3 $35,000,000 for the Project, and to apply a portion of the proceeds thereof to the
4 reimbursement for the prior payment of applicable Reimbursable Expenditures. The City
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recognizes that under section 1.150-2 of the Treasury Regulations, the allocation of proceeds
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7 of the Bonds to a Reimbursable Expenditure (other than to certain de minimis or preliminary
8 expenditures described in section 1.150-2(f) of the Treasury Regulations) will be recognized
9 only if (i) the Reimbursable Expenditure was paid not earlier than 60 days prior to the
10 adoption of this Resolution and (ii) the allocation of proceeds of the Bonds to such
11 reimbursement is made not later than the later of(a) 18 months after the date of payment of
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13 the Reimbursable Expenditure or (b) 18 months after the date upon which the applicable
14 Projects are placed in service or abandoned, but in no event more than three years after the
15 date of payment of the Reimbursable Expenditure.
16 SECTION 3. This Resolution shall become effective immediately.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO DECLARING ITS INTENTION TO REIMBURSE CERTAIN
2 EXPENDITURES FROM THE PROCEEDS OF ONE OR MORE TAX-EXEMPT
BOND FINANCINGS, AS REQUIRED BY UNITED STATES DEPARTMENT OF
3 TREASURY REGULATIONS SECTION 1.150-2; AND AUTHORIZING CERTAIN
4 OTHER ACTIONS IN CONNECTION THEREWITH
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
6 and Common Council of the City of San Bernardino at a joint regular meeting thereof, held on
7 the 6th day of September, 2016, by the following vote, to wit:
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9 Council Members: AYES NAYS ABSTAIN ABSENT
10 MARQUEZ X
11 BARRIOS X
12 VALDIVIA X
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SHORETT X
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NICKEL X
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16 RICHARD X
17 MULVIHILL X
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19 George Hanna, C, City Clerk
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21 The foregoing Resolution is hereby approved this day of September, 2016.
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23 R. Carey Dav' , Mayor
24 City of San Vernardino
25 Approved as to form:
Gary D. Saenz, City Attorney
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By:
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