HomeMy WebLinkAbout05.Y- Water RESOLUTION (ID # 4596) DOC ID: 4596
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Agreement
From: Stacey R. Aldstadt M/CC Meeting Date: 09/06/2016
Prepared by: Amy Casas,
Dept: Water Ward(s): N/A
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Declaring
Its Intention to Reimburse Certain Expenditures from the Proceeds of One or More Tax-
Exempt Bond Financings, as Required by United States Department of Treasury
Regulations Section 1.150-2; and Authorizing Certain Other Actions in Connection
Therewith. (#4596)
Current Business Registration Certificate: Not Applicable
Financial Impact:
None
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
None
Background:
The wastewater treatment facilities are owned and operated by the Water Department,
however the Mayor and Common Council is the governing body. The San Bernardino
Municipal Water Department (the "Department"), through the City of San Bernardino,
expects to issue tax-exempt revenue bonds or other obligations (the "Bonds") to finance
costs associated with the following Sewer Fund projects: primary influent flow
equalization improvements, phase 1 construction of the Clean Water Factory recycled
water project, acquisition and installation of a partially oxidized gas turbine, relocation of
the customer service facility and administration building improvements. Certain
expenditures related to these projects are expected to be paid by the Department prior
to the date of issuance of the bonds. The proposed Resolution would allow the
Department to be reimbursed for these expenditures from the bond proceeds.
This item was approved for submission to the Mayor and Common Council by the Board
of Water Commissioners on August 2, 2016.
City Attorney Review:
N/A
Supporting Documents:
RESOLUTION - CSB MCC BONDS (DOC)
Updated: 8/29/2016 by Jolena E. Grider Packet Pg. 785
I RESOLUTION NO.
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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WHEREAS, the City of San Bernardino (the "City") expects to incur one or more c
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series of obligations relating to tax-exempt bonds to be issued by a conduit issuer L)
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(collectively, the 'Bonds") to finance costs associated with, among other projects, primary
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influent flow improvements, construction of the initial phase of a sewage treatment facility v
10 known as the Clean Water Factory, acquisition and installation of a partially oxidized gas
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11 turbine, rehabilitation and repair of premises for a customer service facility and administration
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building improvements (collectively, the "Project"); and
13 WHEREAS, certain expenditures with respect to the Project are expected to be paid LO
14 by the City prior to the date of issuance of the Bonds (the "Reimbursable Expenditures"); and o
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15 WHEREAS, section 1.150-2 of the Treasury Regulations (the "Treasury Regulations") m
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16 promulgated under the Internal Revenue Code of 1986, as amended, requires that for an v
17 allocation of proceeds of the Bonds to a capital expenditure paid prior to the issuance of the U)
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18 Bonds to be respected by the Internal Revenue Service, the City generally must no later than z
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19 60 days following such payment have declared its reasonable official intent to reimburse itself
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20 for such payment out of proceeds of the Bonds; and w
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. E
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON w
23 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: a
24 SECTION 1. This Resolution is adopted for purposes of establishing compliance
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with the requirements of section 1.150-2 of the Treasury Regulations. This Resolution does
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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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Packet Pg. 786
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 m
8 expenditures described in section 1.150-2(f) of the Treasury Regulations) will be recognized U
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9 only if (i) the Reimbursable Expenditure was paid not earlier than 60 days prior to the v
10 adoption of this Resolution and (ii) the allocation of proceeds of the Bonds to such o
11 reimbursement is made not later than the later of(a) 18 months after the date of payment of �°�,
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the Reimbursable Expenditure or (b) 18 months after the date upon which the applicable
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14 Projects are placed in service or abandoned, but in no event more than three years after the m
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15 date of payment of the Reimbursable Expenditure. m
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16 SECTION 3. This Resolution shall become effective immediately.
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Packet Pg. 787
5.Y.a
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
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7 meeting thereof, held on the day of , 2016, by the following vote,
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t0 wit: m
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10 Council Members: AYES NAYS ABSTAIN ABSENT o
11 MARQUEZ o
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BARRIOS
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VALDIVIA :
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15 SHORETT m
16 NICKEL
17 RICHARD m
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18 MULVIHILL 0
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20 Georgeann Hanna, CMC, City Clerk Uj
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22 The foregoing Resolution is hereby approved this day of 12016. E
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24
R. Carey Davis, Mayor
25 City of San Bernardino
26 Approved as to form:
27 Gary D. Saenz, City Attorney
28 By:
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Packet Pg. 788