HomeMy WebLinkAboutReso 75-2014RESOLUTION NO. 75 -2014
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION DECLARING THE CIY COUNCIL'S INTENT
TO REIMBURSE THE SEWER ENTERPRISE FUND FROM
STATE WATER RESOURCES CONTROL BOARD LOAN
PROCEEDS FOR SANITARY SEWER AND TREATMENT
PLANT CAPITAL IMPROVEMENT EXPENDITURES MADE BY
THE CITY OF SOUTH SAN FRANCISCO PRIOR TO THE
RECEIPT OF THOSE LOAN PROCEEDS AND PRIOR TO THE
ISSUANCE OF RELATED STATE FUNDING
WHEREAS, the City of South San Francisco (the "City ") desires to finance the costs of
constructing and /or reconstructing certain public facilities and improvements relating to its water and
wastewater system, including certain treatment facilities, pipelines and other infrastructure (the
"Project "); and
WHEREAS, the City intends to finance the construction and /or reconstruction of the Project
or portions of the Project with moneys ( "Project Funds ") provided by the State of California, acting
by and through the State Water Resources Control Board (State Water Board); and
WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale
of obligations the interest upon which is excluded from gross income for federal income tax purposes
(the "Obligations "); and
WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water
Board of the Project Funds the City desires to incur certain capital expenditures (the "Expenditures ")
with respect to the Project from available moneys of the City; and
WHEREAS, the City has determined that those moneys to be advanced on and after the date
hereof to pay the Expenditures are available only for a temporary period and it is necessary to
reimburse the City for the Project Expenditures from the proceeds of the Obligations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco ( "CITY ") that the City Council does hereby resolve, order and determine as follows:
SECTION 1. The City hereby states its intention and reasonably expects to reimburse
Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board
of the Project Funds.
SECTION 2. The reasonably expected maximum principal amount of the Project Funds is
$15,250,000.00.
SECTION 3. This resolution is being adopted no later than 60 days after the date on which
the City will expend moneys for the portion of the Project costs to be reimbursed with Project Funds.
SECTION 4. Each City expenditure will be of a type properly chargeable to a capital account
under general federal income tax principles.
SECTION 5. To the best of our knowledge, this City 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.
SECTION 6. This resolution is adopted as official intent 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 Project costs.
SECTION 7. All the recitals in this Resolution are true and correct and this City so finds,
determines and represents.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a regular meeting held on the 96' day of July, 2014
by the following vote:
AYES: Councilmembers Mark N Addiego Pradeep Gupta and Liza Normandy
Vice Mayor Richard A Garbarino and Ma oar Karyl Matsumoto
NOES: None
ABSTAIN:
ABSENT:
Nnne
ATTEST: Q,t' ""-'t-,-A, t' U �
Anna Brown, Deputy City Clerk