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Declaration of Official Intent to Reimburse Expenses - FY16 Water Projects Copyright 2014 City of Dubuque Action Items # 2. ITEM TITLE: Declaration of Official Intent to Reimburse Expenses - Fiscal Year 2016 Water Projects SUMMARY: City Manager recommending approval of the Declaration of Official Intent Resolution for the acquisition of Central Iowa Water Association water system, construction of English Mill Pump Station, and water main extension and improvements. RESOLUTION Declaring an Official Intent under Treasury Regulation 1.150-2 to issue debt to reimburse the City for certain original expenditures paid in connection with the Fiscal Year 2017 Water Projects SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Resolution Resolutions THE CITY OF DubuquE UBE I erica .i Masterpiece on the Mississippi 200,.2012.201, TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Declaration of Official Intent to Reimburse Expenses Relating to Certain Fiscal Year 2017 Water Projects DATE: November 23, 2016 Budget Director Jennifer Larson recommends City Council approval of the Declaration of Official Intent Resolution for the acquisition of Central Iowa Water Association water system, construction of English Mill Pump Station, and water main extension and improvements that are funded by an upcoming Iowa Finance Authority State Revolving Fund Loan issuance in March 2017. Passage of the Declaration of Official Intent Resolution will allow the City to reimburse itself from loan proceeds for expenditures incurred prior to the actual issuance of the loan. This is a typical and customary action to be taken in anticipation of the issuance of debt. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jml Attachment cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jennifer Larson, Budget Director Jean Nachtman, Finance Director THE CITY OF DubuquE UBE I erica .i Masterpiece on the Mississippi 200,.2012.201, TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director SUBJECT: Declaration of Official Intent to Reimburse Expenses Relating to Certain Fiscal Year 2017 Water Projects DATE: November 23, 2016 INTRODUCTION The City's Bond Counsel has advised that a resolution needs to be passed declaring the City's official intent to reimburse from loan proceeds for expenditures intended to be made prior to the issuance of debt for the acquisition of the Central Iowa Association water system, construction of English Mill Pump Station, and water main extension and improvements. DISCUSSION Passage of the Declaration of Official Intent Resolution will allow the City to reimburse itself from loan proceeds for expenditures incurred prior to the issuance of the Iowa Finance Authority State Revolving Fund Loan. This is a typical and customary action to be taken in anticipation of the issuance of debt. The tentative schedule for issuing the Iowa Finance Authority State Revolving Fund Loan for FY 2017 Water projects is to set a public hearing at the March 20, 2017 City Council meeting, hold the public hearing at the April 3, 2017 City Council meeting, and to close on the Iowa Finance Authority State Revolving Fund Loan on May 5, 2017. The Declaration of Official Intent to reimburse from the proceeds of debt is necessary due to the projects already under design and acquisition and construction will begin prior to when the loan proceeds are received for the project. ACTION STEP I respectfully recommend the approval of the Declaration of Official Intent Resolution. JML Attachments cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jean Nachtman, Finance Director (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Dubuque, Iowa. Date of Meeting: December 19, 2016. Time of Meeting: 6:00 o'clock P.M. Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for the meeting is as follows: • Resolution declaring an official intent under Treasury Regulation 1.150-2 to issue debt to reimburse the City for certain original expenditures paid in connection with the Acquisition of a rural water system, construction of English Mill Pump Station, and Water Main Extension and Improvements along English Mill Road, North Cascade Road and Highway 20. Such additional matters as are set forth on the additional 5 page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of the governmental body. December 19, 2016 The City Council of the City of Dubuque, Iowa, met in regula session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:00 o'clock P.M., on the above date. There were present Mayor Roy D. Buol in the chair, and the following named Council Members: Joyce Connors, Luis Del Toro, Ric Jones, Kevin Lynch., David Resick Absent: Jake Rios Council Member Connors introduced the following Resolution entitled "RESOLUTION DECLARING AN OFFICIAL INTENT UNDER TREASURY REGULATION 1.150-2 TO ISSUE DEBT TO REIMBURSE THE CITY FOR CERTAIN ORIGINAL EXPENDITURES PAID IN CONNECTION WITH THE FISCAL YEAR 2017 WATER PROJECTS" and moved that it be adopted. Council Member Jones seconded the motion to adopt, and the roll being called thereon, the vote was as follows: AYES: Jones, Buol, Resnick, Del Toro, Connors, Lynch NAYS: Whereupon, the Mayor declared the Resolution duly adopted as follows: RESOLUTION NO. 437-16 RESOLUTION DECLARING AN OFFICIAL INTENT UNDER TREASURY REGULATION 1.150-2 TO ISSUE DEBT TO REIMBURSE THE CITY FOR CERTAIN ORIGINAL EXPENDITURES PAID IN CONNECTION WITH THE FISCAL YEAR 2017 WATER PROJECTS WHEREAS, the City anticipates making cash expenditures for capital improvement projects generally described as Acquisition of a Rural Water System, Construction of English Mill Pump Station, and Water Main Extension and Improvements along English Mill Road, North Cascade Road and Highway 20 (hereinafter referred to as the "Projects"); and WHEREAS, the City reasonably expects to issue debt to reimburse the costs of the Projects; and WHEREAS, the Council believes it is consistent with the City's budgetary and financial circumstances to issue this declaration of official intent. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That this Resolution be and does hereby serve as a declaration of official intent under Treasury Regulation 1.150-2. Section 2. That it is reasonably expected that capital expenditures will be made in respect of the Projects, from time to time and in such amounts as this Council determines to be necessary or desirable under the circumstances then and there existing, and this Council reasonably expects to reimburse all or a portion of such expenditures with the proceeds of bonds, notes or other indebtedness to be issued or incurred by the City in the future. Section 3. That the total estimated costs of the Projects, the maximum principal amount of the bonds, notes or other indebtedness to be issued for the foregoing Projects and the estimated date of completion of the Projects is reasonably expected to be as follows: Funds from which Total Amount of Estimated Original expenditures Estimated Borrowing Date of Project are to be Advanced Cost Anticipated Completion Acquisition of Water Fund $6,400,000 $6,400,000 December 2017 Rural Water System Construction of Water Fund $1,050,000 $1,050,000 June 2018 English Mill Pump Station Water Main Extension Water Fund $3,346,500 $3,346,500 June 2018 & Improvements Section 4. That the City reasonably expects to reimburse the above-mentioned Project costs not later than the later of eighteen months after the capital expenditures are paid or eighteen months after the property is placed in service. Section 5. That this Resolution be maintained by the City Clerk and available at all times for public inspection, subject to such revisions as may be necessary. PASSED AND APPROVED this 19th day of December, 2016. ATTEST: .41kir rA PW,HajOVIIP r STATE OF IOWA COUNTY OF DUBUQUE CERTIFICATE ) SS I, the undersigned City Clerk of the City of Dubuque, Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this 20th day of December, 2016. (SEAL) 01144726-1\10422-000 City Cler , City of u ue, Iowa ROLL CALL ORDER FOR MEETING OF December 19, 2016 Jones, Buol, Resnick, Rios, Del Toro, Connors, Lynch CITY OF DUBUQUE, IOWA CITY COUNCIL MEETING Historic Federal Building 350 W. 6th Street December 19, 2016 Council meetings are video streamed live and archived at www.cityofdubuque.org/media and on Dubuque's CityChannel on the Mediacom cable system at cable channel 8 and digital 117.2 REGULAR SESSION 6:00 PM PLEDGE OF ALLEGIANCE CONSENT ITEMS The consent agenda items are considered to be routine and non -controversial and all consent items will be normally voted upon in a single motion without any separate discussion on a particular item. If you would like to discuss one of the Consent Items, please go to the microphone and be recognized by the Mayor and state the item you would like removed from the Consent Agenda for separate discussion and consideration. 1. Minutes and Reports Submitted Cable TV Commission of 12/7; City Council Proceedings of 12/5, 12/12; Community Development Advisory Commission of 11/22; Five Flags Civic Center Commission of 11/28; Historic Preservation Commission of 11/17; Long Range Planning Advisory Commission of 11/17; Zoning Board of Adjustment of 11/17; Proof of Publication for City Council Proceedings of 11/21, 11/28 Suggested Disposition: Receive and File 2. Notice of Claims and Suits Elizabeth Hass for personal injury. Suggested Disposition: Receive and File; Refer to City Attorney 3. Disposition of Claims City Attorney advising that the following claims have been referred to Public Entity Risk Services of Iowa, the agent for the Iowa Communities Assurance Pool: Elizabeth Hass for personal injury; Michael Jelinske for vehicle damage; Alison Schmitt for vehicle damage; Suggested Disposition: Receive and File; Concur 4. Jule Transit Annual Report City Manager transmitting the Fiscal Year 2016 Jule Transit Annual Report and highlights of operating statistics. Suggested Disposition: Receive and File 5. Winter Reminders Brochure Pg. 1