IV.12. Approve Resolution 2017-021 Declaring the Official Intent of the City of Hopkins to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City; Stadler (CR2017-041)���� ��
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APPROVE RESOLUTION 2017-021
DECL�RIi�G 1"HE �FFICiAL IiV�fEi�1" �F 1"HE ��I"Y ��
HOPKINS T� REIMBURSE CERTAI�1 EXPENDITURES
FRC�M THE PROCEEDS OF BONDS TO BE ISSUED
BY THE CITY
Proposed Action
Staft'reco�llnends adaption of the follawing motion: Move to ado�t Resolutian 2017-021 Declari n�
the Of�cial Intent of the City to Reirnburse Certain Expe�lditures fro�n the Proceeds of Bonds to be
Issued by the City,
Approval of this motion will allaw the city to move forward with c e r t a i n 2 a 17 r e h a b i 1 i t at i o n
�vork to sa�itary sevver lift station no. 7 wh�le nr�a.i�tainir�� a rea.so�ab�e cash �low and
vvorkin� capital fund balance in the sanit��' sewer fund to allow for on�oing operations,
�aintenance and repair work on the city's sanitary sewer s�stern.
Qverview
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Lift station No. 7 is the largest of the city's si� lift stations. The existing lii� sta.tion is in a condition
that warrants improvements. T�e station vvas built in the 1970's and is becon�ing unreliable, has severa.l
safety concerns and a severel� corroding steel dry well. The station will be rehabbed to a safer, more easily
mainta.ined, more reliable 3-pump sub�nersible li� sta.tion. The tota.l proj ect cost based on the consltruc�an
low bid amount is $960,044. Sta.ff is intending to sell bonds to cover the cost of this 2017 work.
Supportin� Information
• Resolution 2017-021
Steven J. Stadler
Public Works Director
Financial- �nnpact: $ 96�,�0� Budgeted : Y Source: Bond Proceeds
Related Docs:
CITY OF HOPI�:Il�TS, P�IINNESOTA
S LUTI N N. 2017�021
DECLARING THE OFFICIAL INTENT OF T]�
CITY OF HOPKINS TO REIl��IBURSE
C�Y�'�'�T �E�'�I�D�'�:�5 FROl� 'I'� PROC��DS
OF BONDS TO BE ISSUED BY TrI� CITY
VVI�REAS, 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
W�]�REAS, the City of Hopkins, Minnesota. (the "City") expects to incur certain expenditures that
may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a ta.x-
exempt bond; �
�VHEREAS, the City has determined to make this declaration of off'icial intent ("Declaration") to
reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY TI� CITY COUNCIL OF THE CITY OF
HOPK:Il�S AS FOLLOWS:
1. The City proposes to complete a project to rehabilitate sanitary sewer lift sta.tion no. 7(the
"Proj ect") .
2. The City reasonably expects to reimburse the expenditures made for certain costs of the
Project from the proceeds of bonds. All reunbursed expenditures will be capita.l 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 -
expellditure 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 proj ect for which the preliminary expenditures were incurred. The ter�n "preliminary
expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are
incurred prior to commencement of acquisition, construction or rehabilitation of a proj ect, 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 are consistent with the City's budgetary and financial circumstances.
5. This Declaration is intended to constitute a declaration of official intent for purposes of
the Reimbursement Regulations.
Approved this 21 St day of February, 2017, by the City Council of the City of Hopkins, Minnesota.
Attest:
Amy Domeier, City Clerk
400649v1 SJB HP110-1
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l0�olly Cu��gs, l�ayor