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AGENDA ITEM NO. 5A AFF ORIGINATOR: Rick DeGardner, Public Services Director DATE: December 28, 2009 TOPIC: Consideration of Resolution 09 -117, Dissolution of Site Agreement Between the City of Lino Lakes and Centennial School District No. 12 VOTE REQUIRED: Simple Majority BACKGROUND: On August 10, 2009, the City Council began the process of formulating the 2010 budget. To assist in balancing the 2010 budget, the termination of the Site Agreement between the City of Lino Lakes and Centennial School District No. 12 (CSD) was agreed upon by the City Council as a cost saving measure during this budget work session and subsequent work sessions. Section 17 of the Site Agreement states, "This Agreement shall continue and be automatically renewed annually commencing on January 1, unless either party is served written notice at least thirty (30) days prior to January 1 of each year that it intends to terminate or modify this agreement." To maintain a positive, working relationship with the CSD, staff sent a letter on September 22, 2009 rving written notice of the City's intent to terminate the Site Agreement. Staff felt it was important to rovide sufficient notice so the CSD would have adequate time to make the necessary adjustments. Upon the official adoption of the 2010 budget (which doesn't include funding for maintaining the school district facilities), at the December 14, 2009 City Council meeting, staff is recommending that a separate resolution be approved acknowledging the termination of the Site Agreement between the City of Lino Lakes and Centennial School District No. 12 as outlined in the letter sent to CSD September 22, 2009 (attached). OPTIONS: 1. Approve Resolution 09 -117. 2. Do not approve Resolution 09 -117. RECOMMENDATION: Option 1. •