25 - Notice of Intention ot Issue Certificates of Obligation to Finance Construction of a Wastewater Plant

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Item No. 25 memorandum TO: Mayor, Mayor Pro Tem & City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION TO FINANCE CONSTRUCTION OF A WASTEWATER PLANT DATE: January 22, 2024 BACKGROUND: The City has been working and planning towards building a new Wastewater Treatment Facility for several years. Thalle Construction Company, the general contractor for the wastewater treatment plant project, was issued a notice to proceed for Phase 1 of the project on January 11, 2023. Construction is ongoing and substantial completion of Phase 1 is scheduled for December 2024. For funding purposes, the project was divided into two phases. On December 11, 2023 the City Council heard a project update from Garver Engineering including the fact that Phase 2 design has been completed by Garver. STATUS OF ISSUE: The City will soon need to receive bids on Phase 2 of the project. When those bids are received, the City must have the funds on hand to build the project. Therefore, the city staff has prepared a resolution for this January 22nd meeting directing that notice of intent to issue certificates of obligation not to exceed $65,000,000 to finance construction of a wastewater treatment plant be posted to the City website and published in a newspaper that circulates within the City. BUDGET: A new construction fund and a new Interest & Sinking Fund will be established to handle the expenditure of the CO proceeds and to make the required debt payments. RECOMMENDATION: Move to adopt a resolution directing that notice of intent to issue certificates of obligation to finance construction of a wastewater treatment plant be posted to the City website and published in a newspaper, and approving all other matters pertaining thereto.