REPORT TO THE CITY COUNCIL FROM: SANTINO DANISI, Finance Director Finance Department SUBJECT ..Title RESOLUTION - Declaring the official intent to use proceeds of future indebtedness to reimburse the City for certain expenditures related to the construction of the new Fire Station #12 (Requires 5 Affirmative Votes). ..Body RECOMMENDATION Staff recommends that City Council adopt a Resolution declaring the City's official intent to use the proceeds of future indebtedness to reimburse certain expenditures related to the construction of the new Fire Station #12 (Project). EXECUTIVE SUMMARY The City of Fresno has undertaken construction of a new Fire Station #12 to accommodate needs of the Fire Department due to growth and expansion of the City. The District 12 emergency responses have increased beyond the capacity of the current station located at 2874 West Acacia Avenue and a new location at 3315 West Ashlan Avenue meets the needs of a new permanent location. Funding for the estimated $17 million project has been identified and committed through debt service support in the form of Lease Revenue Bonds issued later this calendar year by the Fresno Joint Powers Financing Authority. In accordance with federal regulations the City is required to declare its official intent in order to provide maximum flexibility to reimburse prior expenditures for the Project with proceeds of a future tax-exempt bond issuance. The proposed resolution meets that requirement. BACKGROUND Council approved the purchase of land at 3315 West Ashlan Avenue, construction documents and a finding of Categorical Exemption relating to the California Environmental Quality Act (CEQA) on December 9, 2021 for the construction of a new Fire Station #12. The Capital Projects Department anticipates returning to Council in July 2024 to award the contract. The attached resolution is necessary for the City to establish compliance with federal regulations (26 CFR � 1.150-2) by officially declaring its intent to use proceeds of indebtedness to reimburse itself for prior expenditures. This declaration does not bind the City to make any expenditure, incur any indebtedness or proceed with the Project. Finance staff and the City's financing team are beginning to lay the groundwork for the issuance of Lease Revenue Bonds to fund the Fire Station #12 project. Such bond issuance, tentatively expected to occur in October, will be subject to separate Council approval later this calendar year. The current action would allow the City maximum flexibility to use tax-exempt bond proceeds to reimburse itself for project expenditures that may need to be incurred in the interim. ENVIRONMENTAL FINDINGS Staff has determined that the project associated with this Reimbursement Resolution is categorically exempt from the requirements of CEQA pursuant to Section 15301/Class 1 as the project consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The proposed square foot addition is less than 10,000 square feet and the subject property is served by the necessary public utilities to allow for maximum development permissible in the General Plan. Further, the area in which the project is located is not environmentally sensitive. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to the project. LOCAL PREFERENCE Local preference was not implemented because this is a reimbursement resolution. FISCAL IMPACT There is no impact to the General Fund or to the ratepayers of the City of Fresno from this action. Attachment: Resolution