Loading...
HomeMy WebLinkAbout06 - City Hall, Fire Station & Parking Structure ProjectCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 August 12, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Administrative Services Department Dennis C. Danner, Administrative Services Director, (949) 644 -3123, ddanner @city.newport- beach.ca.us SUBJECT: Interim Funding Reimbursement Authorization for Prospective City Hall, Fire Station, and Parking Structure Project ISSUE: Regarding the potential project for construction of a new City Hall, Fire Station, and Parking Structure complex, should the City take action now to establish authority for future recovery of interim expenditures from the proceeds of subsequent debt financing, if it is used? RECOMMENDATION: Adopt the attached Resolution. DISCUSSION: Background: The City Council has directed staff to take preliminary steps regarding the design of a potential replacement structure for the City Hall complex. Expenditures for this process will be paid directly from City assets as approved during the budget process. If the project proceeds, the City may eventually decide to incur an indebtedness to fund it. If the City desires to have the option to repay the General Fund for these prior expenses as part of that debt issuance, an "Inducement Resolution" must be passed ahead of time. Therefore the purpose of this Resolution is to establish the authority for the City to do exactly that, if we choose to do so at the time. If the project does not go forward, or if we end up deciding not to borrow the money, nothing needs to be done and the Resolution will have no effect. Environmental Review: None required. Public Notice: With City Council Agenda. Interim Funding Reimbursement Authorization for Prospective City Hall, Fire Station, and Parking Structure Project August 12, 2003 Page 2 Funding Availability: None Required. Alternatives: To not adopt the Resolution, thereby precluding the use of any proceeds of future debt financing for reimbursement of prepaid expenditures. Prepared by: / 4. ,,2 c . � Richard C. Kurth, Deputy Director Attachment: Proposed Resolution Submitted by: Dennis C. Danner, Director Resolution No. 2003- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH REGARDING ITS INTENTION TO ENABLE REIMBURSEMENT OF INTERIM EXPENDITURES FROM PROCEEDS OF A POSSIBLE FUTURE DEBT ISSUANCE WHEREAS, the City of Newport Beach ( "City') intends to finance the costs of construction of a new City Hall, Fire Station, and Parking Structure complex (the "Project'); WHEREAS, the City intends to finance the Project or portions of the Project with the proceeds of obligations, the interest upon which is excluded from gross income for federal income tax purposes, (the "Obligations "); and WHEREAS, prior to incurring Obligations the City desires to incur certain expenditures with respect to the Project from available monies of the City, which expenditures are desired to be reimbursed by the City from a portion of the proceeds of the Obligations; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach hereby resolve, order and determine as follows: 1. The City hereby states its intention and reasonably expects to reimburse Project costs incurred prior to the incurrence of the Obligations with proceeds of the Obligations. 2. The reasonably expected maximum principal amount of the Obligations is $35,000,000.00. 3. This resolution is being adopted on or prior to the date (the "Expenditures Date or Dates ") that the City will expend monies for the portion of the Project costs to be reimbursed from proceeds of the Obligations. 4. The expected date of incurrence of the Obligations will be within one year of the Expenditures Date or Dates or the date the Project is placed in service, whichever occurs last. 5. Proceeds of the Obligations to be used to reimburse for Project costs are not expected to be used 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 Obligation)) or to be held as a reasonably required reserve or replacement fund with respect to a 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. 6. The resolution is consistent with the budgetary and financial circumstances of the City, as of the date hereof. No monies from sources other than the Obligation 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 its budget or financial statement. 7. This resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation 1.103 -18 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of City expenditures incurred prior to the date of incurrence 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. All the recitals in this Resolution are true and correct and the City Council of the City of Newport Beach so finds, determines and represents. ADOPTED, this 12th day of August, 2003 MAYOR ATTEST: CITY CLERK