HomeMy WebLinkAboutAgenda Report - September 5, 2007 M• LODI CITY COLNCIL
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Carnegie Forum
305 West Pine Street, Lodi
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AGENDA - Lodi Financing Corporation
Date: September 5, 2007
Time: 7:00 p.m.
MON
For information regarding this Agenda please contact:
Randi Johl
City Clerk
Telephone: (209) 333-6702
MEETING OF THE
Lodi Financinq Corporation
A Call to order — President
B. Roll call to be recorded by Secretary
Res. C. Adopt Resolution Declaringthe Intentof the Lodi Financing Corporation to
Reimburse Certain Expenditures from Proceeds of Indebtednessfor
Wastewater Projects (CM)
D. Other business
E. Comments by public on non -agenda items
F. Adjournment
Pursuantto Section 54954.2(a) of the Government Code of the State of California,this agendawas posted at
least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a
day.
R i Johl
�S etary
Lodi Financing Corporation
JICITYCLRKIFORMRicorp09.05.07doc 8/29/07
AGENDA ITEM Co
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Meeting of the Lodi Financing Corporation for the Purpose of Adopting Resolution
Declaring its Intentto Reimburse Certain Expend ituresfrom Proceeds of
Indebtedness for Wastewater Projects
MEETING DATE: September5,2007
PREPARED BY: City Manager
RECOMMENDED ACTION: Adopt a resolution declaring the intent of the Lodi Financing
Corporation to reimburse certain expenditures from proceeds of
indebtedness for wastewater projects.
BACKGROUND INFORMATION: The City of Lodi has entered into the Phase 3 construction project of
the White Slough Water Pollution Control Facility, which is
necessaryto meet current and anticipated State of California
regulatory requirements and improve treatment process reliability.
The City is also planning to rehabilitate approximately five (5) miles of the Domestic Outfall Pipeline, a
48 -inch diameter reinforced concrete pipe initially installed during the late 1960's. The Phase 3 project is
underway and the intended financing will be needed to pay for final project costs. Staff anticipates the
initial phases of the pipelineswork to commence in 2008.
In order to recapture what are deemed as reimbursable expenses from future bond proceeds, Council
adopted a resolution at its meeting of August 1, 2007, declaring this intent. The resolution does not
commit the City to make any expenditures, incur any indebtedness, seek other financing means, or
proceed with the project. The resolution only provides the City with the ability to seek reimbursementsfor
already incurred and future cost should the City proceed with Certificates of Participation in the future.
This resolution is solely for the purposes of establishing compliance with the requirementsof Section
1.150-2 of the Treasury Regulations.
It is necessaryfor the Lodi Financing Corporation to adopt a resolution as well declaring this intent.
FISCAL IMPACT: The City's Financial Advisor, Tom Dunphy, has recommended taking this
step, but he is also assisting the City in looking at alternatives to COP
financing.
FUNDING AVAILABLE: Not applicable.
Bmmp
cc Stephen Scnwabaier, City Attorney
Cnar es Sw mley, Water Sery ces Manager
Tom Dinpny
Z77�f�
Blair King
Citv Manaaer
APPROVED:
Blair Ki , City Manager
RESOLUTION NO. LFC-16
A RESOLUTION OF THE LODI FINANCING CORPORATION OR
DECLARING ITS INTENTTO REIMBURSE CERTAIN 4prEXPENDITURES FROM PROCEEDS OF INDEBTEDNESS
WHEREAS, the City of Lodi (the "City") owns and operates a wastewater system (the
"System") serving the City and its inhabitants; and
WHEREAS, the City intends to acquire, install, and construct additions, replacements, and
improvements to the System, including outfall relocation, secondary plant improvements, a treatment
wetland, and other improvements (the "Project"); and
WHEREAS, the City expects to pay certain expenditures (the "Reimbursement
Expenditures") in connection with the Project prior to the issuance of indebtedness for the purpose of
financing costs associated with the Project on a long-term basis; and
WHEREAS, the City reasonably expects that debt obligations in an amount not expected to
exceed $28,000,000 will be issued in connection with the Project and that certain of the proceeds of
such debt obligations will be used to reimburse the Reimbursement Expenditures: and
WHEREAS, proceeds of such debt obligations will be allocated to reimbursement
expenditures no later than 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 years after the cost is paid).
NOW, THEREFORE, BE IT RESOLVED by the Lodi Financing Corporation as follows:
Section 1. The Corporation finds and determines that the foregoing recitals are true and
correct.
Section 2. The Corporation hereby declares its official intent to use proceeds of
indebtedness to reimburse itself for Reimbursement Expenditures.
Section 3. This declaration is made solely for purposes of establishing compliance with
the requirements of Section 1.150-2 of the Treasury Regulations. This declaration does not bind the
Corporation to make any expenditure, incur any indebtedness, or proceed with the Project.
Section 4. This resolutionshall take effect from and after its adoption.
Dated: September 5,2007
hereby certify that Resolution No. LFC-16 was passed and adopted by the Lodi Financing
Corporation in a special meeting held September 5,2007, by the following vote:
AYES: DIRECTORS -
NOES: DIRECTORS -
ABSENT: DIRECTORS -
ABSTAIN: DIRECTORS-
LFC-16
RANDIJOHL
Secretary