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BOARD OF SUPERVIaORB
COUNTY OF BUTTE, STATE OF CALIFORNIA
Resolution No. 04-054
Resolution Relating to Financing of the Butte County Solar Project,
County Capital Project No. 170.031
To Establish Compliance with Reimbursement Regulations under the
Internal Revenue Code Section 1,150-2
WHEREAS, the County, pursuant to Resolution No. 04-020 adopted February
10, 2004, has elected to proceed with a solar energy project to implement energy efficient
measures, the Butte County Solar Energy Project No.170.031 (the "Project");
WHEREAS, the overall "Project" will be constructed in three phases, the Butte
County Administration Solar System, the Butte County East Jail Facility Solar System,
and the Butte County West Jail Facility Solar System;
WHEREAS, the County desires to fund the "Project" using three funding
sources: A loan from the California Energy Commission, an Incentive Program Grant
from Pacific Gas and Electric Company, and a temporary loan from the Treasurer's
Pooled lnvestment Fund until permanent financing can be obtained;
WHEREAS, the County intends to replace the Treasurer's Pooled Investment
Fund Loan with permanent financing; such borrowing is to be in an amount not to exceed
~1,2oo,ooa.oo;
NOW THEREFORE, the County of Butte hereby finds, declares and resolves as
follows:
Section L Recitals
1.01 The Internal Revenue Service has issued Sections 1.150-2 of the Income Tax
Regulations (the "Regulations") dealing with the issuance of obligations, all or a portion
of the proceeds of which are to be used to reimburse the Lessee for project expenditures
made by the Lessee prior to the date of issuance of the obligations;
1.02 The Regulations generally require that the Lessee, as issuer of the obligations,
make a declaration of its official intent to reimburse itself far such prior expenditures out
of the proceeds of a subsequently issued series of obligations within 60 days after
payment of the expenditures, that the obligations be issued and the reimbursement
allocation be made from the proceeds of such obligations within the reimbursement
period (as defined in the Regulations), and that the expenditures reimbursed be capital
expenditures or costs of issuance of the obligations;
1.03 With respect to the certain projects being undertaken by and within the County of
Butte, the Lessee desires to comply with the requirements of the Regulations.
Section 2. Official Intent Declaration
2.01 The Lessee expects to make original expenditures with respect to the following
projects prior to the issuance of reimbursement obligations, and the Lessee reasonably
expects to issue reimbursement obligations for such projects in the maximum principal
amount shown below:
2004 Projects Maximum Amount of Obligations
Expected to be Issued for Pro,~ect
Butte County Solar Project $4,250,000.00
2.02 Other than (i) de rninimis amounts permitted to be reimbursed pursuant to Section
1.1 SO-2(f)(1) of the Regulations or (ii) expenditures constituting preliminary expenditures
as defined in Section 1.150-2(d){2) of the Regulations, the Lessee will not seek
reimbursement for any original expenditures with respect to the foregoing projects paid
more than 60 days prior to the date of adoption of this resolution. All original
expenditures for which reimbursement is sought will be capital expenditures or costs of
issuance of the reimbursement obligations.
Section 3. Bud~etary Matters
As of the date hereof, there are no Lessee funds reserved, pledged, allocated on a
long term basis or otherwise set aside {or reasonably expected to be reserved, pledged,
allocated on a long term basis or otherwise set aside} to provide permanent financing for
the original expenditures related to the projects, other than pursuant to the issuance of the
reimbursement obligations. Consequently, it is not expected that the issuance of the
reimbursement obligations will result in the creation of any replacement proceeds.
Section 4. Reimbursement Allocations
The Lessee's Butte County Treasurer shall be responsible for making the
"reimbursement allocations" described in the Regulations, being generally the transfer of
the appropriate amount of proceeds of the reimbursement obligations to reimburse the
source of temporary financing used by the Lessee to make payment of the original
expenditures related to the projects. Each reimbursement allocation shall be made within
30 days of the date of issuance of the reimbursement obligations, shall be evidenced by
an entry on the official books and records of the Lessee maintained for the reimbursement
obligations and shall specifically identify the original expenditures being reimbursed.
BE IT FURTHER RESOLVED, that Paul McIntosh, Chief Administrative
Officer, is hereby authorized and empowered to execute in the name of the County of
Butte all necessary documents to implement and carry out the purpose of this resolution,
and to take all actions necessary to complete the permanent financing as replacement for
the X1,200,000.00 Treasurer's Pooled Investment Fund Loan.
PASSED AND ADOPTED by the Board of Supervisors of the County of Butte,
State of California, on this 13thday of April 2004 by the following vote:
AYES: Supervisors Dolan, Houx, Josiassen, Yamaguchi and Chair Beeler
NOES: None
ABSENT: None
NOT VOTING.: None
R. J. BEELER, Chair
Butte County Board of Supervisors
ATTEST:
PAUL MCINTOSH, Chief Administrative Officer
and Clerk of the Board of Supervisors
By.
beputy