HomeMy WebLinkAbout2010-65 - Civic Center ProjectRESOLUTION NO. 2010 -65
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 CIVIC CENTER PROJECT
WHEREAS, the City of Newport Beach ( "City ") intends to finance the costs of site
preparation and construction of a new City Hall, Park, and Parking Structure, all positioned in
relationship with the existing Newport Beach Central Library located on approximately 19 acres of
land located at 1100 Avocado Avenue, 1300 Avocado Avenue and 1450 Avocado Avenue, and the
expansion and improvement of the Newport Beach Central Library at 1000 Avocado Avenue, in
connection with the foregoing improvements (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
$150,000,000.00.
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 eighteen months of
the later of the Expenditures Date or Dates or 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.
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.
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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. To the best of our knowledge, this City Council 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.
7. The limitations described in Section 2 and Section 3 do not apply to (a) costs of
issuance of the Obligations, (b) an amount not in excess of the lesser of $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.
8. This resolution is adopted as official action 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 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 22 °d day of June, 2010
ATTEST:
4 W, , r
CITY CLERK
MAYOR
2
DOCSOC/ 1413530v2/022459 -0014
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
I, Leilani I. 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. 2010 -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 22nd day of
June, 2010, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Selich, Rosansky, Henn, Webb, Gardner, Daigle, Mayor Curry
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 23rd day of June, 2010.
City Clerk
Newport Beach, California
(Seal)