2005/03/08 City Council Resolution (6)RESOLUTION NO. 2005 - 58
RESOLUTION OF CITY COUNCIL OF
THE CITY OF ROHNERT PARK REGARDING
ITS INTENTION TO ISSUE TAX - EXEMPT WATER OBLIGATIONS
WHEREAS, the City of Rohnert Park (the "Borrower ") desires to finance the costs of
acquiring, constructing, reconstructing and/or equipping certain public facilities and improvements
relating to its water system as defined in the City's Capital Improvement Program Budget and Water
Model Study and provided in Exhibit A attached hereto and incorporated herein (the "Project "); and
WHEREAS, the Borrower intends to finance the acquisition, construction,
reconstructing and/or equipping of the Project or portions of the Project with proceeds of the sale of
obligations anticipated under the City's Capital Improvement Program Budget and Water Model
Study, 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 Borrower desires to incur
certain capital expenditures (the "Expenditures ") with respect to the Project from available moneys
of the Borrower; and
WHEREAS, this Governing Board of the Borrower 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 Borrower for the Expenditures from the
proceeds of the Obligations;
NOW, THEREFORE, THIS GOVERNING BOARD OF THE CITY OF ROHNERT
PARK DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. The Borrower hereby states its intention and reasonably expects to
reimburse Project costs incurred prior to the Loan, or issuance of the Obligations with either loan
funds and/or proceeds of the Obligations. Exhibit A describes the general character, type, purpose,
and function of the Project.
SECTION 2. The reasonably expected maximum principal amount of the
Obligations is not to exceed $4,620,000.
SECTION 3. This resolution is being adopted no later than 60 days after the date on
which the Borrower will expend moneys for the portion of the Project costs to be reimbursed from
proceeds of the Obligations.
SECTION 4. The Borrower will make a reimbursement allocation, which is a written
allocation that evidences the Borrower's use of proceeds of the Obligations to reimburse an
Expenditure, no later than 18 months after the later of the date on which the Expenditure is paid or
the Project is placed in service or abandoned, but in no event more than three years after the date on
which the Expenditure is paid. For Obligations subject to the small governmental issuer exception of
Section 148(f)(4)(D) of the Internal Revenue Code of 1986, as amended, the "eighteen -month limit"
of the previous sentence is changed to "three years" and the "three -year limitation" of the previous
sentence is not applicable.
SECTION 5. 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 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 6. Each Expenditure will be of a type properly chargeable to a capital
account under general federal income tax principles (determined in each case as of the date of the
Expenditure).
SECTION 7. To the best of our knowledge, this Governing Board is not aware of the
previous adoption of official intents by the Borrower 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 8. This resolution is adopted as official action of the Borrower 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 Borrower expenditures incurred prior to the date of
issue of the Obligations.
SECTION 9. All the recitals in this Resolution are true and correct and this
Governing Board so finds, determines and represents.
DULY AND REGULARLY ADOPTED by the City Council of the City of Rohnert
Park this 8h day of March, 2005 by the following vote:
AYES: Five (5) Council Members Flores, Smith, Spradlin, Vidak- Martinez and
Mayor Mackenzie
NOES: None (0)
ABSENT: None (0)
ABSTAIN: None (0)
CITY OF ROHNERT PARK
ayor ake Mackenzie
�W N F1 P7.
DESCRIPTION OF PROJECT
The project to be financed consists of various capital improvements to the Borrower's water
system as defined in the City's Capital Improvement Program Budget and Water Model Study.
1. Commercial Meter Retrofit Project $3,500,000
2. Pipeline Improvements $ 430,000
3. Well -site Improvements $ 150,000
4, Weil -site Chlorination $ 190,000
5. Well Tank Booster Pumps $ 350,000
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