Agenda - Council - 04/09/2018 - Laserfiche WebLink

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CC Regular Session Meeting Date: 04/09/2018 By: Diana Lund, Finance Title Information 4. 6. Adopt Resolution # 18-070 Resolution Establishing Procedures Related to Compliance with Reimbursement Bond Regulations under the Internal Revenue Code (Bonding for 2018 Road Reconstruction Projects) Purpose/Background: Purpose: The City will be issuing Road Reconstruction debt in late May/June to fund the reconstruction of River's Bend and Stanhope Terrace and overlays in Northfork, North Forty and Woodland Green. A reimbursement resolution allows the city to pay itself back for any funds expended prior to receiving bond funds. Background: Council has already accepted bids and awarded contracts for the reconstruction of River's Bend and Stanhope Terrace at its Council meeting of March 27, 2018. The bids and contract for the overlay improvements is proposed to be brought to City Council at its regular meeting of May 22, 2018. The City has already experienced some soft costs related to such items as legal and engineering time related to these projects. These soft costs were calculated into the total project costs of the road projects in determining the bonding amount. As the city has and will be expending funds prior to receiving the bond funds (proposed funding mechanism), the city is only allowed to "reimburse" itself if it has a bond reimbursement resolution in place. Notification: The resolution that is attached was drafted by the city's bond council of Briggs & Morgan. The reimbursement incorporates all of the reimbursement requirements as mandated by the IRS. Observations/Alternatives: The adoption of this resolution does NOT obligate the City to pay for the soft costs with the bond funds. This resolution simply ALLOWS the City to reimburse itself if so chooses and as stated, these costs were included in the total project costs to be bonded. Funding Source: Funding for the reconstruction of River's Bend and Stanhope Terrace and the overlays in Northfork, North Forty and Woodland Green is proposed to be funded from the issuance of Street Reconstruction Plan bonds. Recommendation: Recommendation is to approve the attached Reimbursement Resolution # 18-070. Action: Adopt Resolution #18-070 Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations Under the Internal Revenue Code (Allows the City to pay itself back for expenditures prior to receiving bond funds).