(1)AR 122209 Award of Bid/International Line Builders, Inc.

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RESOLUTION NO. CPFA 2009-01 RESOLUTION OF THE COLTON PUBLIC FINANCING AUTHORITY DECLARING ITS INTENTION TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF A PROPOSED TAX- EXEMPT FINANCING, AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS SECTION 1.150-2 WHEREAS, the Colton Public Financing Authority (the "Authority") is contemplating the issuance of tax-exempt obligations (the "Bonds") to fund certain improvements to the City of Colton (the "City") electric system, including the financing, design, installation, and construction of a 69/12.47 kV substation located on the north side of the City (the "Project"), that the City expects will allow the utility to balance load properly, improve power quality, reliability, and operating efficiency of the electric system; and WHEREAS, Project expenditures will occur prior to the date of issuance of the Bonds (the "Reimbursable Expenditures"); and WHEREAS, section 1.150-2 of the Treasury Regulations (the "Treasury Regulations") promulgated under the Internal Revenue Code of 1986, as amended, requires that in order than an allocation of proceeds of the Bonds to an expenditure paid prior to the issuance of the Bonds be respected by the Internal Revenue Service, the Authority generally must no later than 60 days following such payment have declared its reasonable official intent to reimburse for such payment out of proceeds of the Bonds; and WHEREAS, the Authority desires to facilitate the allocation of proceeds of the Bonds to the reimbursement for payment of the Reimbursable Expenditures for the Project. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE COLTON PUBLIC FINANCING AUTHORITY, DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: SECTION 1. The foregoing recitals are true and correct. SECTION 2. This Resolution is adopted solely for purposes of establishing compliance with the requirements of section 1.150-2 of the Treasury Regulations. This Resolution does not obligate the Authority to make any expenditure, issue the Bonds, or proceed with the Project. SECTION 3. The Authority hereby declares its reasonable official intention to issue Bonds or incur other obligations in an amount that is not expected to exceed $4 million, and to apply a portion of the proceeds thereof to the reimbursement of, as applicable, the City (including the Electric Utility Department) and/or the Authority for the prior payment of Reimbursable Expenditures. The Authority recognizes that under section 1.150-2 of the Treasury Regulations, the allocation of proceeds of the Bonds to Reimbursable Expenditures (other than certain de minimis or preliminary expenditures described in section 1.150-2(f) of the Treasury 1-23 COLTON 2007 - CITY COUNCIL RESOLUTION.doc