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CITY COUNCIL <br />AGENDA ITEM 6 Biii <br /> <br />STAFF ORIGINATOR: Michael Grochala <br /> <br />MEETING DATE: January 2 7 , 201 4 <br /> <br />TOPIC: Consideration of Resolution No. 1 4 -0 9 , <br />Declare Intent to Bond. 21 st Avenue Improvement <br />Project <br /> <br />VOTE REQUIRED: 3/5 <br /> <br />INTRODUCTION <br /> <br />Th e improvement project to extend Otter Lake Road is planned to commence in summer of 201 4 . <br />Staff is requesting council approval to declare the City’s intent to bond for the proposed <br />improvements. <br /> <br />BACKGROUND <br /> <br />The 21 st Avenue project was initiated by the Cit y Council in August of 2013 . The estimated <br />project cost is $1 ,316,000 . WSB and Associates have completed the preparation of plans and the <br />city is preparing to advertise for bids . <br /> <br />Funding for the project will be split between the City of Centerville and the City of Lino Lakes in <br />accordance with the Joint Powers Agreement, dated August 26, 2013 . The City’s portion of the <br />project is proposed to be funded by special assessments and the trunk utility fund and financed <br />through the issuance of General Obligation Improvement Bonds. The Internal Revenue Code <br />requires c ities to declare their intent to reimburse project costs from bond proceeds prior to <br />encumbering project costs. P reliminary expenditures such as architectural, engineering, surv eying, <br />bond issuance, and similar costs are exempt from this provision . <br />This is a non -binding declaration that must take place in order to finance projects in this manner. <br /> <br />RECOMMENDATION <br /> <br />Staff is recommending adoption of Resolution No. 1 4 -0 9 . <br /> <br />ATTACHM ENTS <br /> <br />1. Resolution No. 1 4 -0 9