Reso 2001-648RESOLUTION NO. 2001 -648
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA
MESA SANITARY DISTRICT AUTHORIZING THE EXECUTION AND
DELIVERY OF A LEASE WITH OPTION TO PURCHASE, AND
AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH
WHEREAS, the Costa Mesa Sanitary District (the "District ") is a sanitary district
organized and existing under and pursuant to the Health and Safety Code Section 64000 et
seq.;and,
WHEREAS, the District desires to provide for financing in the approximate amount of
$2,200,000.00 for the acquisition of refuse containers (the "Property "); and,
WHEREAS, Municipal Finance Corporation (the "Corporation ") has offered to enter into a
Lease With Option to Purchase (the "Lease ") with the District in order to provide lease financing
of the Property at a 4.92% annual percentage rate;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Costa Mesa
Sanitary District as follows:
SECTION 1. Lease with Option to Purchase. The President and Secretary of the Board
are hereby authorized to enter the Lease with the Corporation to finance the Property, subject to
approval as to form by the District's General Counsel.
SECTION 2. Attestations. The Clerk or other appropriate District officer are hereby
authorized and directed to attest the signature of the President and Secretary of the Board and
to affix and attest the seal of the District, as may be required or appropriate in connection with
the execution and delivery of the Lease.
SECTION 3. Other Actions. The President and Secretary of the Board are each hereby
authorized and directed, jointly and severally, to take any and all actions and to execute and
deliver any and all agreements, documents and certificates which they may deem necessary or
advisable in order to carry out, give effect to and comply with the terms of this Resolution and
the Lease. Such actions are hereby ratified, confirmed and approved.
SECTION 4. Qualified Tax - Exempt Obligations. The Lease is hereby designated as a
"qualified tax - exempt obligation" within the meaning of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended (the "Code "). The District, together with all subordinate
entities of the District, do not reasonably expect to issue during the calendar year in which the
Lease is issued more than $10,000,000 of obligations which it could designate as "qualified tax-
exempt obligations" under Section 265(b) of the Code.
SECTION 5. Reimbursement of Prior Expenditures. The District declares its official
intent to be reimbursed from the proceeds of the Lease approved hereby for a maximum
principal amount of $2,200,000.00 of expenditures occurring no earlier than sixty days prior to
the adoption of this Resolution. All reimbursed expenditures will be capital expenditures as
defined in Section 1.150 -1(b) of the Federal Income Tax Regulations.
SECTION 6. Effect. This Resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED this o� day of 2001, by the
following vote: Vo
AYES: Arlene Schafer, Art Perry, Jim Ferryman, Dan Worthington
NOES: None
ABSTENTIONS: None
ABSENT: Greg Woodside
t 7
i
Secretary, costa esa.-.S #ritary Di trict resident, Costa Mesa Clihnitary District
.;'Board.; of Directors Board of Dire ors
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) SS
CITY OF COSTA MESA )
I, Joan Revak, Clerk of the Costa Mesa Sanitary District, hereby certify that the above
and foregoing Resolution No. 2001 -648, was duly and regularly passed and adopted by said
Board of Directors at a regular meeting thereof held on the 1,91 day of
2001. 011 -d
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa
Mesa Sanitary District, this day of _2001.
Clerk It e:Cesta Mesa Sanitary District