The URL can be used to link to this page

Home My WebLink About2017-48 - Regarding Its Intention to Recover Costs Associated with the Issuance of Tax Exempt Obligations for Assessment DistrictsRESOLUTION NO. 2017-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, REGARDING ITS INTENTION TO RECOVER COSTS ASSOCIATED WITH THE ISSUANCE OF TAX EXEMPT OBLIGATIONS FOR ASSESSMENT DISTRICTS WHEREAS, the City Council of the City of Newport Beach ( 'Issuer") desires to finance the costs of acquiring certain public facilities and improvements within certain Assessment Districts located in the City, as provided in Exhibit A attached hereto and incorporated herein ('Project'); WHEREAS, the Issuer intends to finance the acquisition of the Project or portions of the Project with the proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes ("Obligations"); and WHEREAS, prior to the issuance of the Obligations, the Issuer may incur certain expenditures with respect to the Project from available monies of the Issuer, which expenditures are desired to be reimbursed to the Issuer from a portion of the proceeds of the sale of the Obligations. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Issuer does hereby state its intention and reasonably expects to reimburse Project costs incurred prior to the issuance of the Obligations with proceeds from the sale 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 Twelve Million Dollars and 00/100 ($12,000,000.00). Section 3: This resolution is adopted on or prior to the date ( "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 (18) 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 (3) 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. Resolution No. 2017-48 Page 2 of 3 Section 5: Proceeds of the Obligations to be used to reimburse for Project costs are not expected to be used, within one (1) 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 (1) 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 Obligations 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 not been issued. Section 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. Section 8: This resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation Section 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: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 10: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Resolution No. 2017-48 Page 3 of 3 Section 11: The City Council finds the adoption of this resolution 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 12: 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 25th day of July, 2017. Kevin Mul oon Mayor FIN i9*111 S Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTO EY'S OFFICE I- t . Aaron C. Harp City Attorney Exhibit A — Description of Project l *Ago 1--] r� DESCRIPTION OF PROJECT Within each of (i) Assessment District No. 111, (ii) Assessment District No. 116, (iii) Assessment District No. 116b and (iv) Assessment District No. 117, the acquisition of certain public facilities and improvements, including: • Utility engineering and construction including the undergrounding of electric, telephone and cable facilities, and the removal of poles, overhead wires, guys, anchors and appurtenant work therewith, such improvements to be designed by utility providers Southern California Edison, AT&T and Time Warner; and • Incidental expenses with respect thereto, including, but not limited to, assessment engineering, contract inspection, city administration and miscellaneous costs. STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. 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. 2017-48 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 2511 day of July, 2017, and that the same was so passed and adopted by the following vote, to wit: AYES: Council Member Jeff Herdman, Council Member Brad Avery, Council Member Diane Dixon, Council Member Scott Peotter, Council Member Will O'Neill, Mayor Pro Tem Duffy Duffield NAYS: None RECUSED: Mayor Kevin Muldoon IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 261h day of July, 2017. 9011'911MM Leilanr I. Brown City Clerk Newport Beach, California