Resolution 1991-18
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RESOLUTION NO.
91-18
RESOLUTION PROVIDING FOR THE ADVANCEMENT OF FUNDS
IN CONNECTION WITH THE PROPOSED SANITARY SEWER PROJECT
OF THE CITY OF GILROY IN ANTICIPATION OF THE REIMBURSEMENT
THEREOF FROM THE PROCEEDS OF PROCEEDINGS TO BE
UNDERTAKEN BY SAID CITY FOR THE FINANCING THEREOF
The City Council of the City of Gilroy resolves as follows:
WHEREAS, it is the intent of the City of Gilroy to undertake
proceedings pursuant to law to finance the construction of
certain sanitary sewer facilities generally described in Exhibit
A hereto attached and by reference incorporated herein;
WHEREAS, in connection therewith certain preliminary steps
including, but not limited to, environmental impact reports,
feasibility studies, engineering and cost estimates and legal
expenses, must be undertaken by the City and for which said City
must incur and pay the expenses thereof prior to the receipt by
it of the proceeds from said proposed proceedings for the
financing of said project;
WHEREAS, City wishes to assure that such amounts to be
expended by it in furtherance of the project and prior to the
,'receipt of the proceeds from said financing may be reimbursed to
City; and
WHEREAS, it is in the public interest, for public benefit
and in furtherance of the public purposes of the City that such
advances be made by City as a loan to be repaid out of the
proceeds of said financing;
NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED AND ORDERED
as follows:
1. The City intends to undertake proceedings pursuant to
law for the financing of said sanitary sewer project as well as
to reimburse the City for any and all amounts advanced by it to
said project in furtherance thereof prior to the receipt of the
proceeds from said financing.
2. A special fund designated by the name of the
improvement proceeding be, and is hereby, created.
3. City shall from time to time, transfer from available
City funds to said special fund hereby created such sums as this
Council shall deem necessary to be expended for the cost of the
acquisitions and improvements, including all costs incidental
thereto, as such funds are required therefor.
4. All of said sums so transferred from available funds of
the city to said special fund as herein provided shall be deemed
RESOLUTION NO. 91 - 18
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to be a loan to said special fund, and shall be repaid out of the
proceeds of the financing proceedings to be undertaken by city.
5. When the purposes for which said special fund have been
fully accomplished and the proceeds of the proposed financing
provided are available for the repayment of said transfers, all
monies remaining therein shall be returned to the fund from which
said transfers were made to said special fund, and said special
fund shall be discontinued.
6. This Council hereby finds that the adoption hereof
constitutes a substantial inducement to the City to expend
amounts for the project in advance of the availability of the
proceeds of said financing and that the project will further the
public purposes of the city.
7. -This Resolution is adopted solely for the purpose of
assuring that the tax exempt status of the bonds to be issued to
finance said project will not be adversely affected by reason of
the use of a portion of the proceeds of said financing to
reimburse the City for costs paid or incurred by it on behalf of
said project prior to the receipt of the proceeds from the sale
of the bonds to be issued in said proceeding for the financing of
the project.
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I hereby certify that the foregoing resolution was duly and
regularly adopted and passed by the City Council of the city of
Gilroy, California, at a regular meeting thereof held on the
18th
day of March
, 1991, by the following vote of the
members thereof:
AYES, and in favor, thereof, Councilmembers: GAGE, HALE, KLOECKER,
MUSSALLEM, NELSON, VALDEZ and HUGHAN.
NOES, Councilmembers: None
ABSENT, Councilmembers: ~~
/ City Clerk of the
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RESOLUTION NO. 91-18