Reso 2001-647K
RESOLUTION NO. 2001-647
RESOLUTION OF THE COSTA MESA SANITARY DISTRICT BOARD
DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM
THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE
DISTRICT AND DIRECTING CERTAIN ACTIONS
RESOLVED, by the District Board of the Costa Mesa Sanitary District, Costa Mesa,
California:
WHEREAS, the District (the Issuer) proposes to undertake the project referenced
below, to obtain a lease financing or issue or incur other debt for such project and to use a
portion of the proceeds of such debt to reimburse expenditures made for the project prior to the
issuance of the debt; and
WHEREAS, United States Income Tax Regulations section 1.150 -2 provides
generally that proceeds of tax - exempt debt are not deemed to be expended when such proceeds
are used for reimbursement of expenditures made prior to the date of issuance of such debt
unless certain procedures are followed, one of which is a requirement that (with certain
exceptions), prior to the payment, of any such expenditure, the issuer declares an intention to
reimburse such expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the District
declares its official intent to reimburse the expenditures referenced herein.
NOW, THEREFORE, it is hereby DECLARED and ORDERED, as follows:
SECTION 1. The District intends to obtain lease financing or issue or incur other
debt obligations, either directly or on its behalf (the "Obligations "), for the purpose of paying
costs of acquisition of standardized trash containers made of Crosslink High Density
Polyethylene to be used for a semi - automated curbside commercial and residential refuse
collection and recycling program servicing District customers together with all other necessary
or convenient improvements.
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SECTION 2. The District hereby declares that it reasonably expects (i) to pay certain
costs of the Project prior to the date of obtaining or of the issuance or incurrence of the
Obligations and (ii) to use a portion of the proceeds of the Obligations for reimbursement of
expenditures for the Project that are paid before the date of obtaining or of the issuance or
incurrence of the Obligations.
SECTION 3. The reasonably expected maximum principal amount of the Obligations
to be issued is Two Million Five Hundred Thousand Dollars ($2,500,000.00).
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 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.
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 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 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
Obligation 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
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policies with respect to the Project costs. To the best of our knowledge, this District Board 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 8. This resolution is adopted as official action of the Issuer 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 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. All the recitals in this Resolution are true and correct and this District
Board so finds, determines and represents.
PASSED AND ADOPTED this 14`h day of Ji
= Secretary
ATTEST: `
a
Clerk ofJhe Costa Mesa Sanitary- District
APPROVED AS TO FORM:
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Alan Burns, Board Attorney
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, Joan Revak, Clerk and ex- officio Clerk of the Board of the Costa Mesa Sanitary
District, hereby certify that the above and foregoing Resolution No. 2001 -647 was duly and
regularly passed and adopted by the said District Board at a regular meeting thereof, held on
the 14`h day of June, 2001, by the following roll call vote:
AYES: Arlene Schafer, Greg Woodside, Art Perry, James Ferryman,
Dan Worthington
NOES: None
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the
Costa Mesa Sanitary District this 14`h day of June 2001.
Clerk= of ' District and ex- officio
y
Clerk o+ e Board of the C -Sta Mesa
Sanitaly Dis Pict.
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