R111781
City Council Meeting June 11, 2019 Santa Monica, California
RESOLUTION NUMBER 11178 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA DECLARING THE CITY’S OFFICIAL INTENT TO
REIMBURSE EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE
ISSUED BY THE CITY OF SANTA MONICA, A RELATED PARTY OR OTHER
AFFILIATE, AND APPROVING CERTAIN RELATED ACTIONS
WHEREAS, the City of Santa Monica, California (the “City”), or an affiliate or
related party to the City, including the Santa Monica Public Financing Authority (any such
party, including the City, the “Issuer”), expects to undertake the construction and
development of the City Yards project (the “Project”), using revenues, proceeds from
bonds or other borrowing, and/or other funds; and
WHEREAS, the Issuer expects to pay certain expenditures related to the Project
prior to the issuance of debt (such expenditures, the “Reimbursement Expenditures”); and
WHEREAS, the Issuer reasonably expects to issue obligations in an amount not
to exceed $65,000,000 (the “Obligations”) and to use all or a portion of the proceeds of
the Obligations to reimburse the Reimbursement Expenditures that are paid before the
date of issuance or delivery of the Obligations; and
WHEREAS, United States Treasury Regulations Section 1.150-2 provides
generally that proceeds of tax-exempt obligations are not deemed to be expended when
such proceeds are used for reimbursement of expenditures made prior to the date of
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issuance of such obligations unless certain procedures are followed, among which is a
requirement that (with certain exceptions), prior to the payment of any such expenditure,
the issuer must declare its official intent to reimburse such expenditure with proceeds of
such obligations; and
WHEREAS, it is in the public interest and for the public benefit that the City declare
its official intent to use all or a portion of the proceeds of the Obligation s to reimburse the
Reimbursement Expenditures that are paid by the Issuer before the date of issuance of
the Obligations; and
WHEREAS, proceeds of the Obligations will be allocated to the Reimbursement
Expenditures no later than eighteen (18) months after the later of (i) the date the cost is
paid, or (ii) the date the Project (or each component thereof) is placed in service or
abandoned, but in no event more than three (3) years after the cost is paid.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SANTA MONICA AS FOLLOWS:
SECTION 1. The above recitals are true and correct.
SECTION 2. The City hereby declares its official intent to use all or a portion of
the proceeds of the Obligations to reimburse the Reimbursement Expenditures that a re
paid before the date of issuance of the Obligations.
SECTION 3. The City hereby declares that it reasonably expects (i) to pay the
Reimbursement Expenditures prior to the date of issuance of the Obligations and (ii) to
use all or a portion of the proceeds of the Obligations for reimbursement of the
Reimbursement Expenditures that are paid by the Issuer before the date of issuance of
the Obligations. This declaration is made solely for purposes of establishing compliance
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with the requirements of United States Treasury Regulations Section 1.150-2. This
declaration does not bind the City or the Issuer to make any expenditure, incur any
indebtedness, or proceed with the Project.
SECTION 4. All actions heretofore taken by the officers, employees and agents
of the City with respect to the actions set forth above are hereby approved, confirmed and
ratified.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
LANE DILG
City Attorney
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Adopted and approved this 11th day of June 2019.
__________________________
G l e a m D a v i s , M a y o r
I, Nikima Newsome, Assistant City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11178 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 11th day of June 2019, by the following vote:
AYES: Councilmember Jara, Winterer, McKeown, Himmelrich, Morena
Mayor Davis
NOES: None
ABSENT: Mayor Pro Tem O’Day
A T T E S T :
_____________________________________
N i k i m a N e w s o m e , A s s i s t a n t C i t y C l e r k
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