HomeMy WebLinkAbout2017-19 CC Reso - Authorizing Incurring of Obligation to the California Intrastructure and Economic Development Bank RESOLUTION NO. 2017- 19
A RESOLUTION OF THE CITY OF UKIAH AUTHORIZING THE INCURRING OF AN
OBLIGATION, PAYABLE TO THE CALIFORNIA INFRASTRUCTURE AND
ECONOMIC DEVELOPMENT BANK, FOR THE FINANCING OF A CAPITAL
IMPROVEMENT PROJECT, DECLARATION OF OFFICIAL INTENT TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS OF AN OBLIGATION, AND
APPROVING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the California Infrastructure and Economic Development Bank
("IBank") administers a financing program to assist local governments with the financing
eligible projects in accordance with Section 63000 et seq. of the California Government
Code (the "Act"); and
WHEREAS, IBank created the Infrastructure State Revolving Fund Program
("ISRF Program") pursuant to the provisions of the Act; and,
WHEREAS, IBank's Criteria, Priorities and Guidelines for the Selection of Projects
for Financing under the ISRF Program, adopted in the IBank Board of Directors February
23, 2016, and as may thereafter be amended from time to time (the"Criteria"), establishes
requirements for the financing of projects under the ISRF Program; and
WHEREAS, the City of Ukiah ("Borrower"), has applied to IBank for financing and
refinancing the costs of Redwood Business Park Infrastructure Improvement Project,
including, but not limited to, roadway and intersection improvements, concrete, asphalt,
intersection and traffic control improvements, acquisition of real property, signage,
drainage improvements, retaining walls, erosion control, beautification improvements,
etc. (the "Project") in an amount not to exceed $4,000,000; and
WHEREAS, the Act and the Criteria require the Borrower to make, by resolution
of its governing body, certain findings prior to a project being selected for financing by
IBank; and
WHEREAS, the Borrower expects to incur or pay certain expenditures in
connection with the Project from its General Fund that are reimbursable with the proceeds
of tax-exempt bonds or other tax-exempt securities under Federal Tax Law (defined
below) prior to incurring indebtedness for the purpose of financing costs associated with
the Project on a long-term basis (the "Reimbursement Expenditures"); and
WHEREAS, the Borrower reasonably expects that a financing arrangement
("Obligation") in an amount not expected to exceed $4,000,000 will be entered into under
and memorialized by one or more financing agreements and related documents
(collectively, the "Financing Agreement") and that certain proceeds of such Obligation will
be used to reimburse the Borrower for Reimbursement Expenditures incurred or paid prior
to incurring the Obligation; and
1.
WHEREAS, the Borrower acknowledges that (Bank funds the ISRF Program, in
part, with the proceeds of tax-exempt bonds and, as such, has certain compliance
obligations that may require it to have the Borrower enter into new financing agreements
to replace the Financing Agreement (the "Replacement Agreement") on terms and
conditions substantially identical to the original Financing Agreement.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ukiah
as follows:
Section 1. The City Council hereby approves, confirms, ratifies and affirms all
actions of the Borrower's representatives, employees and officers heretofore taken in
connection with, or with respect to, submitting an application for financing for the Project
and the consideration and approval of the Obligation and the Financing Agreement, if
IBank approves the Obligation; and in connection therewith finds and certifies:
a. The Project facilitates effective and efficient use of existing and future
public resources so as to promote both economic development and
conservation of natural resources;
b. The Project develops and enhances public infrastructure in a manner that
will attract, create, and sustain long-term employment opportunities;
c. That the Project is consistent with the General Plan of the City of Ukiah,
and the General Plan of the County of Mendocino;
d. The proposed financing is appropriate for the Project;
e. The Project is consistent with the Criteria; and
f It has considered (i) the impact of the Project on California's land
resources and the need to preserve such resources; (ii) whether the
Project is economically or socially desirable; and (iii) whether the project
is consistent with, and in furtherance of the State Environmental Goals
and Policy Report (as defined in the Criteria).
Section 2. The Borrower hereby declares its official intent to use certain proceeds
of the Obligation to reimburse itself for the Reimbursement Expenditures with the
proceeds of tax-exempt bonds or other tax-exempt securities issued under the provisions
of the Internal Revenue Code of 1986, as amended, and those Treasury Regulations
implementing such provisions (collectively, "Federal Tax Law"). This declaration is made
solely for purposes of establishing compliance with applicable requirements of Federal
Tax Law and its date is controlling for purposes of reimbursement under Federal Tax Law.
This declaration does not bind the Borrower to make any expenditure, incur any
indebtedness, or proceed with the Project.
Section 3. All of the Reimbursement Expenditures were made no earlier than 60
days prior to the date of this Resolution. The Borrower will allocate proceeds of the
Obligation to pay Reimbursement Expenditures within 18 months of the later of the date
the original expenditure was paid or the date the Project was placed in service or
abandoned, but in no event more than 3 years after the original expenditure was paid.
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Section 4. The City Manager and Finance Director, and any designee of either
the City Manager or Finance Director (each and "Authorized Officer") are each hereby
authorized and directed to act on behalf of the Borrower in all matters pertaining to its
application for financing from (Bank, and if (Bank approves the Obligation, the execution
of related financial documents, with authority to (i) make payments from general fund
revenues and other legally available sources of funds for the repayment of the Obligation
and to provide covenants relating to the Obligation and as to any security or collateral
securing the Obligation, and (ii) take any other action necessary or desirable to enable
the Borrower to enter into the Financing Agreement and incur the Obligation.
Section 5. If the Obligation is approved by IBank, each Authorized Officer is
authorized to negotiate, enter into and sign financing documents and any amendments
thereto, including, but not limited to the Financing Agreement and the Replacement
Agreement, with (Bank for the purpose of financing the Obligation.
Section 6. This resolution shall become effective immediately upon adoption.
PASSED AND ADOPTED by the City Council of the City of Ukiah on this 5th day
of April 2017, by the following roll call vote:
AYES: Councilmembers Scalmanini, Crane, Muiheren, Doble, and Mayor Brown
i NOES: None
ABSENT: None
ABSTAIN: None
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SI fa. Brown, Mayor
ATTEST:
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Kristine Lawler, City Clerk