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CITY COUNCIL <br />AGENDA ITEM 1E <br /> <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br /> <br />MEETING DATE: July 23, 2018 <br /> <br />TOPIC: Consideration of Resolution No. 18-92, Declare Intent to <br />Reimburse from Bond Proceeds, Lake Drive Trunk Water Main <br />Improvements. <br /> <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 2018 Lake Drive Trunk Utility Project. <br /> <br />BACKGROUND <br /> <br /> <br />On February 18, 2018 the City council authorized the preparation of plans and specification for the <br />Lake Drive Trunk Utility Project. The project includes the extension of trunk water main between <br />Park Court and Marshan Lane and between Pheasant Run South and Well No. 3. The estimated <br />project cost is $466,000. <br /> <br />The project is proposed to be financed by issuance of Utility Revenue Bonds. The Internal <br />Revenue Code requires cities to declare their intent to reimburse project costs incurred prior to <br />receipt of bond proceeds. Preliminary expenditures such as architectural, engineering, surveying, <br />bond issuance, and similar costs are exempt from this provision. However, the declaration must <br />be made prior to incurring land acquisition costs or hard construction costs. <br /> <br />Since the City will be considering easement acquisition for the improvements, passage of the <br />resolution is necessary to ensure reimbursement from bond proceeds, if necessary. <br /> <br />Approval of the Intent to Bond resolution does not obligate the City to issue bonds. Bond <br />issuance for this project may be combined with financing for the 2018 Street Reconstruction <br />project utilities. <br /> <br />RECOMMENDATION <br /> <br />Staff is recommending adoption of Resolution No. 18-92. <br /> <br />ATTACHMENTS <br /> <br />1. Resolution No. 18-92