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HomeMy WebLinkAbout2016-155 Council ResolutionCITY OF LINO LAKES RESOLUTION NO. 16-155 APPROVING JOINT POWERS AGREEMENT FOR STREET LIGHTING OF THE SUNSET AVENUE AND 109THAVENUE/APOLLO DRIVE ROUNDABOUT WHEREAS, Anoka County completed the construction of the Sunset Avenue and 109th Ave/Apollo Drive Roundabout; and WHEREAS, the project is on a shared boarder between the City of Lino Lakes and the City of Blaine and included the installation of street lighting; and WHEREAS, pursuant to Anoka County policy, the maintenance of street lights and cost of electrical power to the street lights is the sole obligation of the Cities in which the installations are located; and WHEREAS, the parties to this Agreement consider it mutually desirable to share the cost of the metered street light power for the fifteen street lights constructed within the Cities; and WHEREAS, the parties to this Agreement also consider it mutually desirable to divide the cost for the maintenance of the street lights located within the Sunset Avenue roundabout right of way; and WHEREAS, Minnesota Statutes Section 471.59 authorizes political subdivisions of the State to enter into joint powers agreements for the joint exercise of powers common to each. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes approves the Joint Powers Agreement with the City of Blaine for Street Lighting of the Sunset Avenue and 109th Ave/Apollo Drive Roundabout. Adopted by the Council of the City of Lino Lakes this 14th day of November, 2016. The motion for the adoption of the foregoing resolution was introduced by Council Member Kusterman and was duly seconded by Council Member Rafferty and upon vote being taken thereon, the following voted in favor thereof: Kusterman, Rafferty, Maher, Manthey, Reinert The following voted against same: none ATTEST: Jeff Reinert, a or CITY OF LINO LAKES, MINNESOTA RESOLUTION NO. 16-150 DECLARING THE OFFICIAL INTENT OF THE CITY OF LINO LAKES TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the 'Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City expects to incur certain expenditures that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a tax-exempt bond; WHEREAS, the City has determined to make this declaration of official intent ("Declaration") to reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES AS FOLLOWS: 1. The City proposes to undertake trunk utility improvements from Aqua Lane to Black Duck Drive (the "Project"). 2. The City reasonably expects to reimburse the expenditures made for certain costs of the Project from the proceeds of bonds in an estimated maximum principal amount of $1,420,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. 3. This Declaration has been made not later than 60 days after payment of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City to finance the project for which the preliminary expenditures were incurred. The term "preliminary expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation, and similar costs incident to commencement of construction. 4. This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for the Project and the principal amount of the bonds described in paragraph 2 are consistent with the City's budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the City's budget or financial policies to pay such Project expenditures. 5. This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. Adopted by the Council of the City of Lino Lakes this 14th day of November, 2016. The motion for the adoption of the foregoing resolution was introduced by Council Member Kusterman and was duly seconded by Council Member Manthey and upon vote being taken thereon, the following voted in favor thereof: Kusterman, Manthey, Maher, Rafferty, Reinert The following voted against same: none AT 1LST: e Bartell, Ci Cle Jeff Rei - rt, Mayor CITY COUNCIL AGENDA ITEM 6F STAFF ORIGINATOR: Michael Grochala MEETING DATE: November 14, 2016 TOPIC: Consideration of Resolution No. 16-150, Declare Intent to Reimburse from Bond Proceeds, Trunk Water Main Improvements, Black Duck Drive to Aqua Lane VOTE REQUIRED: INTRODUCTION 3/5 Staff is requesting council approval to declare the City's intent to reimburse itself from bond proceeds for the proposed trunk water main improvements. BACKGROUND The Black Duck Drive to Aqua Lane Trunk Water Main project was initiated by the City Council in March of 2015. A construction contract was awarded to GM contacting on September 26, 2016. The estimated project cost is $1,420,000. The project will be financed by the issuance of General Obligation Water Utility Revenue Bonds. The sale was awarded on October 24, 2016. The Internal Revenue Code requires cities to declare their intent to reimburse project costs incurred prior to receipt of bond proceeds. Preliminary expenditures such as architectural, engineering, surveying, bond issuance, and similar costs are exempt from this provision. RECOMMENDATION Staff is recommending adoption of Resolution No. 16-150. ATTACHMENTS 1. Resolution No. 16-150