11-13-2018 Council Meeting Packet

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CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR: Sarah Cotton, Finance Director MEETING DATE: November 13, 2018 TOPIC: Consider Resolution No. 18-157, Awarding the Sale of $7,169,000 General Obligation Bonds, Series 2018A VOTE REQUIRED: 3/5 INTRODUCTION The City of Lino Lakes has awarded bids and will be undertaking 1) various street reconstruction projects (LaMotte Area and West Shadow Lake Drive Area), and 2) various water and sewer utility projects. As previously discussed, the construction cost of these projects will be financed through the issuance of bonded debt. BACKGROUND At the September 10, 2018, City Council Meeting, the City Council accepted bids and awarded a construction contract for the 2018 LaMotte Area Street and Utility Improvement project. The project includes street reconstruction, drainage and sanitary sewer improvements. The bonds will be repaid over a 15-year period through a general debt service tax levy. At the October 8, 2018, City Council Meeting, the City Council accepted bids and awarded a construction contract for the 2018 West Shadow Lake Drive Area Street and Utility Improvement Project. The project includes street reconstruction, drainage improvements, and sanitary sewer and watermain extension. The Street Reconstruction portion of the bonds will be repaid over a 15- year period through a general debt service tax levy. The utility portion of the bonds will be repaid over a 15-year period through special assessments in the principal amount of $943,343 and by utilizing revenues from the City’s Area and Unit Trunk fund. Finally, at the September 24, 2018, City Council Meeting, the City Council accepted bids and awarded a construction contract related to Trunk Watermain improvements along Lake Drive. The project provides improved water quality supply and adequate pressure for fire demand. The project includes installation of trunk watermain from Marshan Lane to Park Court and from an existing line from Well No. 6 to Well No. 3. The bonds will be repaid over a 10-year period utilizing revenues from the City’s Area and Unit Trunk fund. On October 8, the City Council approved Resolution No. 18-130, providing for the issuance of approximately $7,169,000 G.O. Bonds, Series 2018A to finance the improvements noted above. The City has since issued its Official Statement and advertised for bids for this issue. Bids were received earlier today by the City’s financial advisors, Springsted, Inc. Terri Heaton of Springsted, Inc. will be in attendance to present the results of the bidding process. Approval of Resolution 18-157 awards sale of General Obligation Bonds, Series 2018A, in the proposed aggregate principal amount of $7,169,000.