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.