Loading...
HomeMy WebLinkAboutReso 2000-437 RESOLUTION NO. 2000-437 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS TO FINANCE THE CITY'S NEW POLICE FACILITY AND CIVIC CENTER EXPANSION AND DIRECTING STAFF TO RETURN WITH A FINANCING PLAN WHEREAS, the City Council of the City of Chula (the "Issuer") desires to finance the costs of acquiring certain public facilities and improvements, as provided in Exhibit A attached hereto and incorporated herein (the "Project"); and WHEREAS, the Issuer intends to finance the acquisition of the Project or portions of the Project with the proceeds of the sale of obligations 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 Issuer desires to incur certain expenditures with respect to the Project from available monies of the Issuer which expenditures are desired to be reimbursed by the Issuer from a portion of the proceeds of the sale of the Obligations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. The Issuer hereby states its intention and reasonably expects to reimburse Project costs incurred prior to the issuance of the Obligations with proceeds of the Obligations. Exhibit A describes either the general character, type, purpose, and function of the Project, or the fired 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 $80 million. The total Project cost is estimated to be approximately $170 million, including approximately $90 million in financing costs (interest and fees). SECTION 3. This resolution is being adopted on or prior to the date (the "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 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 years after the original expenditure is paid. For Obligations subject to the small issuer exception of Section 148(f)(4)(D) of the Intemal 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. SECTION 5. Proceeds of the Obligations to be used to reimburse for Project costs are not expected to be used, within one 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 Resolution 2000-437 Page 2 succeeding one 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 fired 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 obligation issue are, or are reasonably expected to be reserved, or otherwise set aside by the Issuer (or any related party) pursuant to their budget or financial policies with respect to the Project costs on a long-term basis. 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 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 8. This resolution is adopted as official action of the Issuer in order to comply with Treasury Regulations § 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. Staff is further directed to return with a detailed financing plan with respect to the Obligations and the Project. SECTION 10. All the recitals in this Resolution are true and correct and this City Council so finds, determines and represents. Presented by Approved as to form by Resolution 2000-437 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 5th day of December, 2000, by the following vote: AYES: Councilmembers: Davis, Padilla, Rindone, Salas, and Horton NAYS: C ouncilmembers: None ABSENT: Councilmembers: None ATTEST: ~ Susan Bigelow, City Clerff STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2000-437 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 5th day of December, 2000. Executed this 5th day of December, 2000. Susan Bigelow, City Clerk R2000-437 EXHIBIT A DESCRIPTION OF PROJECT The proposed new Police Facility and Civic Center Expansion project is necessary to provide current and future administrative office space, equipment and materials storage, vehicle storage and maintenance facilities, and related facilities to serve the Chula Vista community. The current facilities have been determined to be inadequate. Significant renovations and improvements will be required to complete the project. Final facility design and corresponding construction costs have not been determined. The facility is expected to be planned for the Chula Vista population at "build-out" which is estimated to be 277,000 by the year 2030. The maximum estimated total cost of such facility is expected not-to-exceed ~170 million. Approximately $90 million of that is expected to be financing COSTS, The City is currently in the process of preparing a Civic Center Master Plan and a Police Facility Master Plan and Program. At this time it is estimated that the expansion of the Civic Center will include the addition of 20,000 square feet to, and substantial remodeling of, the existing buildings located at 276 Fourth Avenue. The program for the Police Facility estimates that approximately 135,000 square feet will be necessary to accommodate the Police Department. Although a project site has not been identified, conceptual designs are being prepared which may be used at a number of potential locations. These potential locations may involve the acquisition of property.