CR 03-052 Intent to Sell Bonds CR73-Hwy 7
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CITY OF
April 1, 2003
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HOPKINS i
Council Report 2003-052
Approve City's Intent to Sell Revenue Bonds to Fund
County Road 73/Highway 7 Improvements Project, City Project 01-06
Proposed Action
Staff recommends adoption of the following motion: Move that Council approve a
Resolution. stating City's intent to sell revenue bonds to fund County Road 73 / Highway
7 Improvements Proiect. City Proiect 01-06
Overview
At the April 16, 2002, meeting, the Hopkins City Council approved final plans and
authorized the CSAH 73/TH 7 Intersection Area Roadway Improvements Project to
proceed to the bidding phase of the project. Council then approved construction cost
cooperative agreement between the City of Hopkins, City of Minnetonka, and Hennepin
County outlining project cost responsibilities for each agency in May of 2002. Bids were
opened late in 2002 and the decision was made to rebid the project at that time due to the
higher than anticipated construction costs. Plans were modified to allow the contractor to
close a portion of CSAH 73 during the first phase of the project in hopes that the change
would reduce the construction costs. Bids were reopened in the spring of 2003 and the
low bidder was Park Construction. Construction is expected to begin this spring once
load restrictions are lifted. The construction is expected to be complete in September
2003.
The attached resolution allows for City staff to sell bonds to finance the project. Staff
recommends council approve Resolution 2003-032
Supporting Information
. Resolution 2003-032
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. Anderson P.E., Assistant City Engineer
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Financial Impact: $ N/ A Budgeted: Y IN Yes
Related Documents (CIP, ERP, etc.):
Source: PIR. Utility. and State Aid Funds
Notes:
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2003-032
DECLARING THE OFFICIAL INTENT OF THE CITY OF HOPKINS
TO REIMBURSE CERTAIN EXPENDITURES FROM
GENERAL OBLIGATION IMPROVEMENT BOND PROCEEDS
TO BE ISSUED BY THE CITY OF HOPKINS
WHEREAS, the Internal Revenue Service has issued Treas. Reg. #1.150-2
providing that proceeds of tax-exempt bonds used to reimburse prior expenditures shall
not be deem'ed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures, which may be
financed temporarily from sources other than bonds and reimbursed from the bond
proceeds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF HOPKINS, MINNESOTA (THE CITY) AS FOLLOWS:
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1. The City intends to incur expenditures for the project described in Council Report
2002-82, for City Project 01-06 (the "Project") and intends to reimburse itself for
such expenditures from the bond proceeds to be issued by the City in the
maximum principal amount described in the "project".
2. The City Manager is authorized to designate additions to Project 01-06 in
circumstances where time is of the essence, and any such qesignation shall be
reported to the Council at the earliest practicable date and shall be filed with the
official books and records of the City.
3. This resolution is intended to constitute a declaration of official intent for the
purpose of Treas. Reg. #1.150-2 and any successor law, regulation, ruling or
amendment pertaining thereto.
Adopted by the City Council of the City of Hopkins, Minnesota, this 1 st day of April, 2003
By
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk