Loading...
HomeMy WebLinkAboutReso 71-2021 (21-271)City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Council Resolution: RES 71-2021 File Number: 21-271 Enactment Number: RES 71-2021 RESOLUTION OF THE CITY OF SOUTH SAN FRANCISCO REGARDING INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS RELATED TO THE CIVIC CAMPUS AND STREET PAVING PROGRAM. WHEREAS, City of South San Francisco (the "City"), a municipal corporation and general law city duly organized and existing under and pursuant to the Constitution and laws of the State of California (the "State"), proposes to undertake the financing of the acquisition, construction and installation of certain improvements, betterments, renovations and expansions of facilities (as described in Exhibit A, collectively, the "Project"); and WHEREAS, the City intends to finance the acquisition, construction and installation 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, the City desires to pay certain costs with respect to the Project prior to the issuance of the Obligations from available moneys of the City and to reimburse itself for such costs from a portion of the proceeds of the sale of the Obligations; and NOW, THEREFORE, the City of South San Francisco, does hereby resolve as follows: 1. The City Council of the City (the "City Council") hereby specifically finds and declares that each of the statements, findings and determinations of the City that are set forth in the above recitals are true and correct. 2. The City reasonably expects, and hereby states its intention, to reimburse itself for 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. 3. The reasonably expected maximum principal amount of the Obligations that is anticipated to be used for such reimbursement is $110,000,000. 4. Except as described in Section 8 below, this resolution is being adopted not later than 60 days after the payment of the original expenditures (the "Expenditures Date or Dates"). City of South San Francisco Page 1 File Number. 21-271 Enactment Number. RES 71-2021 5. Except as described in Section 8 below, the expected date of issue of the Obligations will be within 18 months of the later of: (a) the Expenditure Date or Dates; or (b) the date that the Project is placed in service; provided that the reimbursement may not be made more than three years after the Expenditure Date or Dates. 6. Proceeds of the Obligations to be used to reimburse the City 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 City (other than the Obligations)) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the City or any entity related in any manner to the City, 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. 7. This resolution is consistent with the budgetary and financial circumstances of the City as of the date hereof. No moneys from sources other than the Obligations are, or are reasonably expected to be, reserved, allocated on a long-term basis or otherwise set aside by the City (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 City 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. 8. The limitations described in Sections 4 and 5 above 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. 9. This resolution is adopted as official action of the City 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 City expenditures incurred prior to the date of issue of the Obligations, is part of the City's official proceedings, and will be available for inspection by the general public at the main administrative office of the City. 10. This resolution authorizes the Finance Director to take all necessary and appropriate actions to carry out the intent of this resolution. 11. This resolution shall take effect immediately upon its passage. City of South San Francisco Page 2 File Number. 21-271 Enactment Number. RES 71-2021 At a meeting of the City Council on 4/14/2021, a motion was made by Councilmember Flores, seconded by Councilmember Nicolas, that this Resolution be approved. The motion passed. Yes: 5 Mayor Addiego, Vice Mayor Nagales, Councilmember Nicolas, Councilmember Coleman, and Councilmember Flores Attest by Lk osa Govea Acosta, City Clerk City of South San Francisco Page 3 A-1 EXHIBIT A DESCRIPTION OF PROJECTS Community Civic Campus Projects:  Phase 2 Improvements – Library, Parks and Recreation, Community Theater and Council Chamber facilities and associated facilities and improvements  Phase 3 Improvements – Fire Station and associated facilities and improvements City-Wide Projects  Rehabilitation of existing streets and roadways and construction of new streets and roadways and associated improvements, including those that are part of the City’s Street Paving Program. Solar Projects  Solar panels and related improvements to be located on City facilities.