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CC Regular Session <br />Meeting Date: 05/09/2017 <br />By: Diana Lund, Finance <br />Title <br />Information <br />4. 7. <br />Adopt Resolution #17-05-108 Resolution Establishing Procedures Related to Compliance with <br />Reimbursement Bond Regulations under the Internal Revenue Code (Bonding for 2017 Road <br />Reconstruction Projects) <br />Purpose/Background: <br />Purpose: The City will be issuing Road Reconstruction debt in late June/July to fund the reconstruction of Alpine <br />Drive and Sunwood Drive. A reimbursement resolution allows the city to pay itself back for any funds expended <br />prior to receiving bond funds. <br />Background: The authorization of bids for the reconstruction of Alpine Drive and Sunwood Drive are proposed to <br />be presented at the City Council meeting of June 13, 2017. The City has already experienced some soft costs <br />related to such items as legal and engineering time related to these projects. These soft costs were calculated into <br />the total project costs of the road projects in determining the bonding amount. <br />As the city has and will be expending funds prior to receiving the bond funds (proposed funding mechanism), the <br />city is only allowed to "reimburse" itself if it has a bond reimbursement resolution in place. <br />Notification: <br />The resolution that is attached was drafted by the city's bond council of Briggs & Morgan. The reimbursement <br />incorporates all of the reimbursement requirements as mandated by the IRS. <br />Observations/Alternatives: <br />The adoption of this resolution does NOT obligate the City to pay for the soft costs with the bond funds. This <br />resolution simply ALLOWS the City to reimburse itself if so chooses and as stated, these costs were included in the <br />total project costs to be bonded. <br />Funding Source: <br />Funding for the reconstruction of Alpine Drive and Sunwood Drive is proposed to be funded from the issuance of <br />Street Reconstruction Plan bonds. <br />Recommendation: <br />Recommendation is to approve the attached Reimbursement Resolution #17-05-108. <br />Action: <br />Adopt Resolution #17-05-108 Establishing Procedures Relating to Compliance with Reimbursement Bond <br />Regulations Under the Internal Revenue Code (Allows the City to pay itself back for expenditures prior to receiving <br />bond funds). <br />Attachments <br />