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HomeMy WebLinkAbout98-65 - Tax-Exempt ObligationsRESOLUTION NO. 98 -65 • RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH REGARDING ITS INTENTION TO ISSUE TAX- EXEMPT OBLIGATIONS WHEREAS, the City Council of the City of Newport Beach (the 'Issuer") desires to finance the costs of a document imaging system, certain digital radio equipment, and components of the 800 MHz communication system all as more fully described in Exhibit A attached hereto and incorporated herein (the 'Project); WHEREAS, the Issuer intends to finance the acquisition 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, prior to the issuance of the Obligations the Issuer desires to incur certain expenditures with respect to the Project from available monies of the Issuer which expenditures are desired to be reimbursed by the Issuer from a portion of the proceeds of the sale of the Obligations; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach does hereby resolve, order, and determine as follows: • Section 1. The Issuer hereby states its intention and reasonably expects to reimburse 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. Section 2. The reasonably expected maximum principal amount of the Obligations is $3,000,000. Section 3. This resolution is being adopted on or prior to the date (the "Expenditures Date or Dates ") that the Issuer will expend monies for the portion of the Project costs to be reimbursed from proceeds of the Obligations. Section 4. Except as described below, the expected date of issue of the Obligations will be within eighteen months of the later of the Expenditure Date or Dates and the date the Project is placed in service; provided, the reimbursement may not be made more than three years after the original expenditure is paid. For Obligations subject to the small issuer exception of Section 148(f)(4)(D) of the Internal Revenue Code, the "eighteen -month limit" of the previous sentence is changed to "three years" and the limitation of the previous sentence beginning with "; provided, ...... is not applicable. • Section 5. Proceeds of the Obligations to be used to reimburse 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 Issuer (other than the Obligations)) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any manner to the Issuer, 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. Section 6. This resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from sources other than the Obligation issue are, or are reasonably expected to be reserved, allocated on a long -term basis, or otherwise set aside by the Issuer (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 Issuer that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax - exempt obligations have been issued. Section 7. The limitations described in Section 3 and Section 4 do not apply to (a) costs of issuance of the Obligations, (b) an amount not in excess of the lesser $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. Section 8. This Resolution is adopted as official action of the Issuer 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 Issuer expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer's official proceedings, and will be available for inspection by the general public at the main administrative office of the Issuer. Section 9. All the recitals in this Resolution are true and correct and this City Council so finds, determines and represents. ADOPTED this 28th day of September 1998. Q pEw� O � i ewport Beach u ATTEST: <'FORNNr City Clerk, City of Newport Beach • • EXHIBIT A DESCRIPTION OF PROJECT The 800 MHz Radio system is a communications system which replaces the existing Public Works Radio system. The 800 MHz Radio system provides dispatch and mobile equipment. The system provides connectivity with other participating public safety agencies and municipalities operating in Orange County, California. An additional portion of the required funding is for the Fire and Marine Department emergency digital radio units required prior to online use of the 800 MHz Radio system. The Document Imaging portion of this lease purchase funding provides hardware, software, equipment, and connectivity for scanning stations located in various City departments. • • • • • STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 98 -65, was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 28th day of September, 1998, and that the same was so passed and adopted by the following vote, to wit: Ayes: Thomson, Debay, O'Neil, Hedges, Glover, Noyes, Mayor Edwards Noes: None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 29th day of September, 1998. (Seal) City Clerk of the City of Newport Beach, California