HomeMy WebLinkAboutR-10763 - Seeking reimbursement from the state water reources control boardRESOLUTION NO. 10763 (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, SEEKING REIMBURSEMENT FROM THE
STATE WATER RESOURCES CONTROL BOARD FOR CERTAIN
ADVANCED MONEYS RELATED TO THE CONSTRUCTION OF THE
WATER RESOURCE RECOVERY FACILITY UPGRADE
WHEREAS, the City of San Luis Obispo desires to finance the cost of Water Resource
Recovery Facility Upgrade (the "Project"); and
WHEREAS, the City of San Luis Obispo intends to finance the construction with moneys
("Project Funds") provided by the State of California, acting by and through the State Water
Resources Control Board ("State Water Board"); and
WHEREAS, the State Water Board may fund the Project Funds with proceeds from the
sale of obligations the interest upon which is excluded from gross income for federal income tax
purposes (the "Obligations"); and
WHEREAS, prior to either the issuance of the Obligations or the approval by the State
Water Board of the Project Funds the City of San Luis Obispo desires to incur certain capital
expenditures (the "Expenditures") with respect to the Project from available moneys of the City of
San Luis Obispo Sewer Fund; and
WHEREAS, the City of San Luis Obispo has determined that those moneys to be
advanced on and after the date hereof to pay the Expenditures are available only for a temporary
period and it is necessary to reimburse the City of San Luis Obispo Sewer Fund for the expenditures
from the proceeds of the Obligations.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The City of San Luis Obispo hereby states its intention and reasonably
expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by
the State Water Board of the Project Funds.
SECTION 2. The reasonably expected maximum principal amount of the Project Funds is
One Hundred Forty Million Dollars ($140,000,000.00).
SECTION 3. This resolution is being adopted no later than 60 days after the date on which
the City of San Luis Obispo will expend moneys for the construction portion of the Project cost to
be reimbursed with Project Fun
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Resolution No. 10763 (2016) Page 2
SECTION 4. Each project expenditure will be a type properly chargeable to a capital
account under general federal income tax principles.
SECTION 5. To the best of its knowledge, the City of San Luis Obispo is not aware of the
previous adoption of official intents by the City of San Luis Obispo 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 6. This resolution is adopted as official intent of the City of San Luis Obispo
in order to comply with Treasury Regulation § 1.150-2 and nay other regulations of the Internal
Revenue Service relating to the qualification for reimbursement of Project Cost.
SECTION 7. All the recitals in this Resolution are true and correct and the City of San
Luis Obispo so finds, determines, and represents.
Upon motion of Council Member Christianson, seconded by Council Member Pease, and on the
following roll call vote:
AYES: Council Members Christianson, Gomez and Pease,
Vice Mayor Rivoire, and Mayor Harmon
NOES: None
ABSENT: None
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Resolution No. 10763 (2016) Page 3
The foregoing resolution was adopted this 13`h day of December 2016.
M or heidi Harm n
ATTEST:
Carrie Gallagher
City Clerk
APPROVED AS TO
istine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this a � e,4 day of ')pl° O-Nubl r , _2_<)R0
Carrie Gallagher
City Clerk
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