Council approves procedures for up to $3 million reimbursement bonds to cover water projects, and authorizes consultant for water plant re‑roof

Summary

City staff said water system projects this summer — including raw water rehabilitation and a water treatment plant re‑roof estimated at about $500,000 — will be eligible for reimbursement under a Northland Securities resolution (maximum principal $3,000,000). The council approved the resolution and a $22,000 consultant authorization for re‑roof specs and construction supervision.

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A staff member told the council the city needs to establish procedures for tax‑exempt reimbursement bonds under the Internal Revenue Code to reimburse expenditures for several water system projects planned this summer, including raw water rehabilitation and a planned re‑roof of the water treatment plant.

Staff said the total maximum principal amount for the reimbursement resolution would be $3,000,000 and recommended authorizing the city administrator to sign the Northland Securities resolution. On the re‑roof specifically, staff reported estimated construction costs around $500,000 and recommended hiring Woodstep Smith to prepare specifications and provide construction supervision for an estimated fee of $22,000. The council approved both the resolution and the consultant authorization by voice votes.

Why it matters: the bond procedure allows the city to reimburse initial project expenditures from bond proceeds later, a common municipal financing tool for capital projects. The resolution and consultant authorization move the water projects from planning toward procurement and construction phases.

What happens next: staff will proceed with the reimbursement procedures and consultant work; project financing and any final bond issuance would follow applicable legal and administrative steps, and the resolution authorizes reimbursements up to the stated maximum.