Adopt Resolution #17-05-108 Resolution Establishing Procedures Related to Compliance with Reimbursement Bond Regulations  under the Internal Revenue Code (Bonding for 2017 Road Reconstruction  Projects)

Purpose:  The City will be issuing Road Reconstruction debt in late June/July to fund the reconstruction of Alpine Drive and Sunwood Drive.  A reimbursement resolution allows the city to pay itself back for any funds expended prior to receiving bond funds.

Background:  The authorization of bids for the reconstruction of Alpine Drive and Sunwood Drive are proposed to be presented at the City Council meeting of June 13, 2017.  The City has already experienced some soft costs related to such items as legal and engineering time related to these projects.  These soft costs were calculated into the total project costs of the road projects in determining the bonding amount. 
 
As the city has and will be expending funds prior to receiving the bond funds (proposed funding mechanism), the city is only allowed to "reimburse" itself if it has a bond reimbursement resolution in place.

The resolution that is attached was drafted by the city's bond council of Briggs & Morgan.  The reimbursement incorporates all of the reimbursement requirements as mandated by the IRS.

The adoption of this resolution does NOT obligate the City to pay for the soft costs with the bond funds.  This resolution simply ALLOWS the City to reimburse itself if so chooses and as stated, these costs were included in the total project costs to be bonded.

Funding for the reconstruction of Alpine Drive and Sunwood Drive is proposed to be funded from the issuance of
Street Reconstruction Plan bonds.

Recommendation is to approve the attached Reimbursement Resolution #17-05-108.

Adopt Resolution #17-05-108 Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations Under the Internal Revenue Code (Allows the City to pay itself back for expenditures prior to receiving bond funds).