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HomeMy WebLinkAboutItem 05 - Reimbursement of ExpendituresMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: APRIL 21, 2020 SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE REIMBURSEMENT OF EXPENDITURES TO BE INCURRED FROM FUTURE DEBT ISSUANCES RECOMMENDATION: City Council to consider adopting a reimbursement resolution in the amount of $4,900,000 so the City will have the option of reimbursing itself through a future certificate of obligations debt issuance. FUNDING SOURCE: Upon approval of the attached reimbursement resolution, funds in an estimated amount of $4,900,000 will be available in the Capital Projects Fund. BACKGROUND: On February 24, 2020, City Council completed a workshop relative to Capital Planning relative to streets and related infrastructure. During that meeting, staff presented a series of projects that focused primarily on enhancing the City's street maintenance program, signals, markings and signs. This action will allow for: 1) staff to begin letting contracts for that work and 2) reimbursement resulting in this summer's planned debt issuance. Therefore, staff is seeking the approval of the attached reimbursement resolution expressing intent to finance expenditures to be incurred for paving, designing, engineering, constructing, reconstructing and renovating streets, roadways and projects as required in the City. Staff recommends approval GJ RESOLUTION NO. 2020-007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY COUNCIL OF GRAPEVINE, TEXAS, AUTHORIZING THE REIMBURSEMENT OF EXPENDITURES TO BE INCURRED FROM FUTURE CERTIFICATE OF OBLIGATIONS AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine (the "City") is a municipal corporation and political subdivision of the State of Texas authorized to finance its activities by issuing obligations; and WHEREAS, the City will make, or has made not more than 60 days prior to the date hereof, payments with respect to the design, engineering, acquisition, construction, reconstruction or renovation of the projects listed on Exhibit "A" attached hereto (collectively, the "Financed Projects"); and WHEREAS, the City has concluded that it does not currently desire to issue obligations to finance the costs associated with the Financed Project; and WHEREAS, the City desires to reimburse itself for the costs associated with the Financed Project from the proceeds of obligations to be issued subsequent to the date hereof; and WHEREAS, the City reasonably expects to issue obligations to reimburse itself for the costs associated with the Financed Projects; and WHEREAS, all constitutional and statutory prerequisites for the approval of this resolution have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this resolution to be in the best interest of the health, safety, and welfare of the public. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1 . That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That the City reasonably expects to reimburse itself for costs that have been or will be paid subsequent to the date that is 60 days prior to the date hereof and that are to be paid in connection with the design, engineering, acquisition, construction, reconstruction or renovation of the Financed Projects from the proceeds of obligations to be issued subsequent to the date hereof. Section 3. The City reasonably expects that the maximum principal amount of obligations issued to reimburse the City for the costs associated with the Financed Projects will be $4,900,000. Section 4. Unless otherwise advised by bond counsel, any reimbursement allocation will be made not later than 18 months after the later of (1) the date the original expenditure is paid or (2) the date on which the Financed Project to which the expenditure relates is placed in service or abandoned, but in no event more than three years after the original expenditure is paid. Section 5. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 21 st Day of April, 2020. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: City Attorney Resolution No. 2020-007 2 EXHIBIT "A" DESCRIPTION OF PROJECT Purpose/Project Amount Designing, engineering, constructing, reconstructing and $4,900,000 renovating streets, roadways and projects as required in the City. Resolution No. 2020-007 3