HomeMy WebLinkAbout030128 RES - 03/18/2014RESOLUTION NO. n 3� 01°8
A RESOLUTION RELATING TO ESTABLISHING THE CITY COUNCIL
OF THE CITY OF CORPUS CHRISTI, TEXAS' INTENTION TO
REIMBURSE ITSELF FOR THE PRIOR LAWFUL EXPENDITURE OF
FUNDS RELATING TO THE ACQUISITION OF A NEW ENERGY
MANAGEMENT AND CONTROL SYSTEM ON A CITY -WIDE BASIS
AND CERTAIN OTHER PERSONAL PROPERTY FROM THE
PROCEEDS OF TAX - EXEMPT OBLIGATIONS TO BE ISSUED BY THE
CITY FOR AUTHORIZED PURPOSES; AUTHORIZING OTHER
MATTERS INCIDENT AND RELATED THERETO; AND PROVIDING
AN EFFECTIVE DATE
WHEREAS, the City Council (the Governing Body) of the City of Corpus Christi, Texas
(the Issuer) has entered into or will enter into various contracts pertaining to the expenditure of
lawfully available funds of the Issuer (i) to acquire a new energy management and control
system on a City -wide basis and certain other personal property (the Acquisition Costs) and
(ii) for the payment of various administrative costs, including the fees of bond counsel, financial
advisor, and other professional services (the Administrative Costs) [the Acquisition Costs and
Administrative Costs collectively constitute the costs of the Issuer's project that is the subject of
this Resolution (the Project)]; and
WHEREAS, the provisions of Section 1201.042, as amended, Texas Government Code
(Section 1201.042) provide that the proceeds from the sale of obligations issued to finance the
acquisition, construction, equipping, or furnishing of any project or facilities, such as the Project,
may be used to reimburse the Issuer for costs attributable to such project or facilities paid or
incurred before the date of issuance of such obligations; and
WHEREAS, the United States Department of Treasury (the Department) released
Regulation Section 1.150 -2 (the Regulations) which establishes when the proceeds of obligations
are spent and therefore are no longer subject to various federal income tax restrictions contained
in the Internal Revenue Code of 1986, as amended (the Code); and
WHEREAS, the Issuer intends to reimburse itself, within eighteen months from the later
of the date of expenditure or the date the property financed is placed in service (but in no event
more than three years after the original expenditures are paid), for the prior lawful capital
expenditure of funds from the proceeds of one or more series of tax - exempt obligations (the
Obligations) that the Issuer currently contemplates issuing its Public Property Finance
Contractual Obligations, Series 2014 in the principal amount of not to exceed $9,000,000 to
finance a portion of the costs of the Project; and
WHEREAS, under the Regulations, to fund such reimbursement with proceeds of the
Obligations, the Issuer must declare its expectation ultimately to make such reimbursement
before making the expenditures; and
40514045.2
fl 0128
INDEXED
WHEREAS, the Issuer hereby finds and determines that the reimbursement for the prior
expenditure of funds of the Issuer is not inconsistent with the Issuer's budgetary and financial
circumstances; and
WHEREAS, the Governing Body hereby finds and determines that the adoption of this
Resolution is in the best interests of the citizens of the Issuer; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS THAT:
SECTION 1: This Resolution is a declaration of intent to establish the Issuer's
reasonable, official intent under section 1.150 -2 of the Regulations and Section 1201.042 to
reimburse itself from certain of the proceeds of the Obligations for any capital expenditures
previously incurred (not more than 60 days prior to the date hereof) or to be incurred with
respect to the Project from the Issuer's General Fund or other lawfully available funds of the
Issuer.
SECTION 2: The Issuer intends to issue the Obligations and allocate within 30 days
after the date of issuance of the Obligations the proceeds therefrom to reimburse the Issuer for
prior lawful expenditures with respect to the Project in a manner to comply with the Regulations.
SECTION 3: The reimbursed expenditure will be a type properly chargeable to a capital
account (or would be so chargeable with a proper election) under general federal income tax
principles.
SECTION 4: The Issuer intends to otherwise comply, in addition to those matters
addressed within this Resolution, with all the requirements contained in the Regulations.
SECTION 5: This Resolution may be relied upon by the appropriate officials at the
Office of the Attorney General for the State of Texas and establishes compliance by the Issuer
with the requirements of Texas law and the Regulations.
SECTION 6: With respect to the proceeds of the Obligations allocated to reimburse the
Issuer for prior expenditures, the Issuer shall not employ an abusive device under Treasury
Regulation Section 1.148 -10, including using within one year of the reimbursement allocation,
the funds corresponding to the proceeds of the Obligations in a manner that results in the creation
of replacement proceeds, as defined in Treasury Regulation Section 1.148 -1, of the Obligations
or another issue of tax - exempt obligations.
SECTION 7: The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the Governing Body.
SECTION 8: All ordinances and resolutions, or parts thereof, which are in conflict or
inconsistent with any provision of this Resolution are hereby repealed to the extent of such
conflict, and the provisions of this Resolution shall be and remain controlling as to the matters
resolved herein.
-2-
40514045.2
SECTION 9: This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
SECTION 10: If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the
Governing Body hereby declares that this Resolution would have been enacted without such
invalid provision.
SECTION 11: It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, as amended, Texas Government Code.
SECTION 12: This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
[The remainder of this page intentionally left blank]
-3-
40514045.2
PASSED, ADOPTED AND APPROVED on this the 18th day of March, 2014.
CITY OF CORPUS, CHRISTI, TEXAS
Mayor
ATTEST:
City Secretary
(CITY SEAL)
APPROVED THIS i q DAY OF 1/16" . 2014:
Barney L. Knight, Interim City Attorney
-4-
40514045.2
THE STATE OF TEXAS )(
COUNTY OF NUECES )(
I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the
above and foregoing is a true, full and correct copy of a Reimbursement Resolution passed by
the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on
the 18 day of March, 2014, relating to establishing the City's intention to reimburse itself in an
amount not to exceed $9,000,000 for public improvements throughout the City, which
Reimbursement Resolution is duly of record in the minutes of said City Council, and said
meeting was open to the public, and public notice of the time, place and purpose of said meeting
was given, all as required by Texas Government Code, Chapter 551.
EXECUTED UNDER MY HAND AND SEAL of said City, this the l ir day of March, 2014.
City Secretary
(CITY SEAL)
-5-
40514045.2
m
Corpus Christi, Texas
moo,
Wourou v)/41
The above resolution was passed by the following vote:
Nelda Martinez
Kelley Allen
Rudy Garza
Priscilla Leal
David Loeb
Chad Magill
Colleen McIntyre
Lillian Riojas
Mark Scott
n3f128