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CITY COUNCIL <br />AGENDA ITEM 6F <br /> <br />STAFF ORIGINATOR: Michael Grochala <br /> <br />MEETING DATE: November 14, 2016 <br /> <br />TOPIC: Consideration of Resolution No. 16-150, <br />Declare Intent to Reimburse from Bond Proceeds, <br />Trunk Water Main Improvements, Black Duck <br />Drive to Aqua Lane <br /> <br />VOTE REQUIRED: 3/5 <br /> <br />INTRODUCTION <br /> <br />Staff is requesting council approval to declare the City’s intent to reimburse itself from bond <br />proceeds for the proposed trunk water main improvements. <br /> <br />BACKGROUND <br /> <br />The Black Duck Drive to Aqua Lane Trunk Water Main project was initiated by the City Council <br />in March of 2015. A construction contract was awarded to GM contacting on September 26, <br />2016. The estimated project cost is $1,420,000. <br /> <br />The project will be financed by the issuance of General Obligation Water Utility Revenue Bonds. <br />The sale was awarded on October 24, 2016. The Internal Revenue Code requires cities to declare <br />their intent to reimburse project costs incurred prior to receipt of bond proceeds. Preliminary <br />expenditures such as architectural, engineering, surveying, bond issuance, and similar costs are <br />exempt from this provision. <br /> <br />RECOMMENDATION <br /> <br />Staff is recommending adoption of Resolution No. 16-150. <br /> <br />ATTACHMENTS <br /> <br />1. Resolution No. 16-150