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Res 98-005RESOLUTION NO. 98-005 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS WHEREAS, the City Council of the City of Poway (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"); 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, BE IT RESOLVED that the City Council of the City of Poway does hereby ordain as follows: SEGTJObLI_. 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 fund or account from which Project costs are to be paid and the general functional purpose of the fund or account. SECTJON2. The reasonably expected maximum principal amount of the Obligations is $3,500,000.00. SECTJO~L,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. SEGTJOI~IA. The expected date of issue of the Obligations will be within 18 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 "18-month limit" of the previous sentence is changed to "three years" and the limitation of the previous sentence beginning with "; provided,..." is not applicable. SEC_TJOJ~5. Proceeds of the Obligations to be used to reimburse for Project costs are not expected to be used 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 No. 98-005 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 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. ~. 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, allocated on a long- term basis, or otherwise set aside by the Issuer (or any related party) pursuant to their budget or financial policies with respect to the Project costs. 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. ~. 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. ~. 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. ~. All the recitals in this resolution are true and correct and this City Council so finds, determines, and represents. APPROVED AND ADOPTED by the City Council of the City of Poway, State of California, this 27th dayof January ,1998. Don Higginson, Mayor ATTEST: Marjori~ I~. Wahlsten, City Clerk Resolution No. 98-005 Page 3 STATE OF CALIFORNIA ) ) SS. COUNTY OF SAN DIEGO ) I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify under penalty of perjury that the foregoing Resolution No. 98-005 was duly adopted by the City Council at a meeting of said City Council held on the 27th day of Januar,y ,1998, and that it was so adopted by the following vote: AYES: EMERY, GOLDBY, REXFORD, HIGGINSON NOES: NONE ABSTAIN: NONE ABSENT: CAFAGNA Marjori~t~. Wahlsten, City Clerk City of oP-,~ay EXHIBIT A Resolution Page 4 No. 98-005 DESCR/P~ON OF PRO/ECT The following describes the general character, type, purpose and function of the Project. The Project is the development or acquisition of one or more solid waste transfer facility(les) and related facilities including landfill disposal sites. The transfer facilitiy(ies) would be located in an area convenient to all Cities that belong to the Regional Solid Waste Association (RSWA). The project costs will range between $8 to $10 million for the land acquisition and construction of the transfer facility. It is possible that the project may be financed in two phases. In this event, land acquisition would be the first necessary financing of approximately $3 million plus reserve and cost of issuance, with construction dollars to follow. A transfer station is a location where waste is transferred from local solid waste collection vehicles to 20- to 25-ton, eighteen wheel long haul tractor trailer rigs. The solid waste then gets transferred to the ultimate disposal location. A transfer station is considered by the California Integrated Waste Management Board as a non-disposal facility. The transfer station is not a landfill. The proposed ("Site") for construction and development of the Transfer Facility is located in Northwest quadrant of the City of Vista, near the intersection of Melrose Drive and North Avenue. The Site consists of approximately 22 acres of undeveloped land, zoned for industrial use. Final selection of the Site shall be made by the Association, and the Association may assume responsibility for acquisition, including acquisition by eminent domain. The solid waste Transfer Facility to be construction on the Site shall fully comply with all applicable regulation ordinances and laws of local, State and federal governments. The Transfer Facility shall be designed and sized to be capable of handling and processing at least 1,500 tons per day of solid waste. The Regional Solid Waste Association (RSWA) is a joint powers agency which was formed effective September 1, 1997 pursuant to the California Joint Exercise of Powers Act. The Cities of Del Mar, Encinitas, National City, Poway, Solana Beach and Vista, which are all located in San Diego County, have jointly cooperated to create the RSWA. The RSWA is governed by a Board of Members composed of one elected member of the legislative body of each of the Parties to the JPA. Voting is based on one vote per entity. Each City has agreed that 100 percent of the controlled solid waste generated within its jurisdiction shall be committed to the RSWA. Each of the Parties are required to implement a waste flow enforcement program, which to the extent necessary and appropriate, may include taking enforcement action or undertaking a municipal solid waste collection program. Also, under the terms of the JPA, no Party may withdraw from the RSWA without mitigating the financial impact of withdrawal, which mitigation may be satisfied by a combination of cash or continuing disposal of some portion of the Party's solid waste at a fee to be agreed upon.