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HomeMy WebLinkAbout2012-105 - Intention to Enable Reimbursement of Interim Expenditures from Procees of Possible Future Debt Issuance for Sunset Ridge Park ProjectRESOLUTION NO. 2012 -105 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 FOR SUNSET RIDGE PARK PROJECT WHEREAS, the City of Newport Beach (the "City ") intends to finance the costs of park improvements including but not limited to site preparation and construction of a baseball field that overlaps in area with two soccer fields, a playground, a grass warm -up field, pedestrian paths, view areas, a shade structure picnic area, a restroom/storage facility, and any other appurtenant facilities improvements or capital costs related thereto, all located on approximately 14 acres of land positioned in the northwest corner of West Coast Highway and Superior Avenue in an area known as Sunset Ridge Park (the "Project"); and 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, the City Council of the City of Newport Beach resolves as follows: Section 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. Section 2: The reasonably expected maximum principal amount of the Obligations is $10,000,000.00. Section 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. Section 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. Section 6: Proceeds of the Obligations to be used to reimburse 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. Section 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. Section 7: 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 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. Section 8: The City Council finds this action is not subject to the California Environmental Quality Act ( "CEQA') pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 9: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED, this 27`" day of November, 2012. N ncy Gardner' Mayor ATTEST ti Leilani I. Brown City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } 1, Leiiani 1. Brown, 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. 2012 -105 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 27" day of November, 2012, and that the same was so passed and adopted by the following vote, to wit: Ayes: Hill, Curry, Selich, Henn, Daigle, Mayor Gardner Absent: Rosansky IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 28"' day of November, 2012. City Clerk ' Newport Beach, California (Seal)