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Elk River City Council Meeting November 30, 1998 Page 3 5.2. 5.4. Resolution Providing for the Issuance and Sale of the City's $1,375,000 General Obligation Improvement Bonds, Series 1998A. Resolution Providing for the Issuance and Sale of the City's $820,000 General Obli.qation Wafer Improvement Bonds, Series 1998B Bond Consultant Dave MacGillivray indicated that the GO Improvement Bonds fund the 1998 overlay, Railroad Drive, Boston, Business Center Drive, Lake Orono, and Guardian Angels projects. He indicated that the Iow bidder for the GO Improvement Bonds was Piper Jaffray, Inc. at 4.3091 percent. Dave MacGillivray indicated that the $820,000 GO Water Revenue Bonds Series 1998B would fund well #6 and related treatment facilities. He indicated that the Iow bid for the GO Bonds was from Norwest Investment Services, Inc. at 4.7755 percent. Dave MacGillivray recommended that the City Council adopt the resolutions providing for the issuance and sale of the GO Bonds and the Water Revenue Bonds. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 98-130 PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S $1,375,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 98-131 PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S $820,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1998B. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. Discuss Proposed Public Improvements for East Elk River City Administrator Pat Klaers indicated that the purpose of this Council worksession is to update the City Council on the issues relating to the east Elk River project. He reviewed the issues to be discussed which included reviewing the bids for the project, the shortage between the bids and the assessment amounts, funding options for the shortage, and cash flow issues. The City Administrator informed the Council that the trunk sewer and water project is only part of the entire east Elk River public improvement project. Assistant City Administrator Lori Johnson reviewed the project costs, revenues, and balance to be funded. Following her review of the east Elk River project funding options, she noted that there is funding yet to be identified in the amount of $2.6 million to cover the shortage in the streets, storm sewer, sewer, and water improvements, after funding the railroad crossing and lift station through tax increment financing. Bond Consultant Dave MacGillivray addressed the shortfall. He indicated that some of the uncertain issues include the life of the TIF District, special assessments, connection fees, and storm water management fund. Mayor Duitsman indicated that there are other issues that are not part of the equation. Some of the issues include expenses for County Road 12 and the purchase of the Brown property.