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RESOLUTION NO. 2011-093 <br />RESOLUTION (I) AMENDING THE PROCEDURES AND <br />GUIDELINES REGARDING POST -ISSUANCE <br />COMPLIANCE WITH FEDERAL TAX REQUIREMENTS <br />APPLICABLE TO TAX-EXEMPT BONDS AND BUILD <br />AMERICA BONDS AND (II) AUTHORIZING THE <br />OFFICERS OF THE AUTHORITY TO DO ALL OTHER <br />THINGS DEEMED NECESSARY OR ADVISABLE <br />WHEREAS, on December 16, 2010, the Board of Directors of the Southern California <br />Public Power Authority (the "Authority") adopted Resolution No. 2010-117 approving the <br />procedures and guidelines regarding post -issuance compliance with federal tax requirements <br />applicable to the Authority's bonds or other obligations (a) the interest on which is excluded <br />from gross income for federal income tax purposes ("Tax -Exempt Bonds") or (b) that it <br />designated as build America bonds ("BABs") eligible for a federal subsidy, in each case to <br />finance projects for the use and benefit of the applicable participants of the Authority (the <br />"Original Policy"); and <br />WHEREAS, the Authority has issued and expects to issue in the future Tax -Exempt <br />Bonds and, possibly (if authorized under federal law), BABs, in each case to finance projects for <br />the use and benefit of its members; and <br />WHEREAS, the Internal Revenue Code of 1986, as amended, sets forth certain <br />requirements that must be met subsequent to the issuance of (a) Tax -Exempt Bonds in order for <br />interest thereon to be and remain excluded from gross income for federal income tax purposes, <br />and (b) BABs in order for the BABs to be eligible for a federal subsidy; and <br />WHEREAS, the Internal Revenue Service has sent "compliance check" questionnaires to <br />certain issuers of Tax -Exempt Bonds and BABs and has amended certain of its information <br />returns (including Form 8038-G), and those questionnaires and returns inquire as to whether the <br />issuer has written procedures to ensure that its bonds remain in compliance with federal tax <br />requirements after the bonds or other obligations are issued; and <br />WHEREAS, the Finance Committee of the Authority has reviewed the amended policy <br />attached hereto (the "Revised Policy") and the tax compliance questionnaire attached hereto <br />(including as hereinafter revised by the Finance Committee from time to time, the "Tax <br />Compliance Questionnaire") and has recommended to the Board that it consider the adoption of <br />the Revised Policy and the approval of the Tax Compliance Questionnaire; and <br />WHEREAS, to assist in monitoring compliance with the federal tax requirements relating <br />to the use of the Authority's projects financed with Tax -Exempt Bonds or BABs, the Authority <br />intends to send to each SCPPA member once a year the Tax Compliance Questionnaire; <br />