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HomeMy WebLinkAboutReso 89-2017 (17-562) ��x SAN City of South San Francisco P.O. Box 711 (City Hall, o 0 � 1!xo 400 Grand Avenue) South San Francisco, CA a — ° City Council 04 arlP Resolution: RES 89-2017 File Number: 17-562 Enactment Number: RES 89-2017 RESOLUTION DECLARING THE CITY OF SOUTH SAN FRANCISCO'S INTENT TO REIMBURSE THE SEWER ENTERPRISE FUND FROM STATE WATER RESOURCES CONTROL BOARD LOAN PROCEEDS FOR SOUTH SAN FRANCISCO/SAN BRUNO WATER QUALITY CONTROL PLANT WET WEATHER AND DIGESTER IMPROVEMENTS PROJECT 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 "Agency") 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 Agency desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the Agency; and WHEREAS,the Agency 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 Agency for the Project Expenditures from the proceeds of the Obligations. NOW, THEREFORE, THE AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. The Agency 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 City of South San Francisco Page 1 File Number: 17-562 Enactment Number: RES 89-2017 of the Project Funds. SECTION 2. The reasonable expected maximum principal amount of the Project Funds is $53,403,000. SECTION 3.This resolution is being adopted no later than 60 days after the date on which the Agency will expend moneys for the portion of the Project costs to be reimbursed with Project Funds. SECTION 4. Each Agency 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 Agency 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 Agency in order to comply with Treasury Regulations §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 Agency so finds, determines and represents. At a meeting of the City Council on 7/12/2017, a motion was made by Richard Garbarino, seconded by Liza Normandy, that this Resolution be approved.The motion passed. Yes: 5 Vice Mayor Normandy, Councilmember Garbarino, Councilmember Matsumoto, Mayor Gupta, and CouncilmemberAddiego Attest by lt■ 414111/..., Gabri� �:r City of South San Francisco Page 2