BY COUNCILOR HOGG:01-0639R
RESOLUTION DECLARING INTENT TO PROCEED WITH PUBLIC UTILITIES FACILITIES PROJECT AND TO ISSUE GENERAL OBLIGATION UTILITIES REVENUE BONDS IN AN APPROXIMATE AMOUNT OF $7,250,000 TO FINANCE THE COSTS THEREOF.
WHEREAS, the city of Duluth (the "city") public works and utilities department has considered, and the administration is proposing, to construct and equip a public utilities facility on city property on Garfield Avenue to provide garage and office facilities for the gas utility, the water utility, the sewer utility, and the storm water utility (the "project"); and
WHEREAS, the city is authorized, under and pursuant to the provisions of Section 55 of the City Charter and Chapter 475 of the Minnesota Statutes (the "act") and other pertinent provisions of said Charter and Statutes, to issue its general obligation revenue bonds to provide funds for the construction, extension, and improvement of public utility plants, which bonds shall be a specific lien upon such plants and are payable primarily from net revenues to be derived from operations from such utilities pledged for their payment.
NOW, THEREFORE, BE IT RESOLVED, by the city council of the city, as follows:
Section 1. The city council hereby declares its intent to proceed with the project.
Section 2. The city council hereby declares its intent to issue general obligation revenue bonds pursuant to the City Charter and the act in the amount of approximately $7,250,000 to provide for the costs of constructing and equipping the project and to pay the costs of issuance of the bonds.
Section 3. The city council hereby authorizes the city staff to proceed with the project and to work with the city's financial adviser and bond counsel to begin the process for the financing. Final terms of the development of the project and the issuance of the bonds shall be set forth in resolutions of the city council.
Section 4. This resolution constitutes a declaration of official intent under Treasury Regulations Section 1.150-2. The city reasonably expects to reimburse expenditures with respect to the project being financed.