Staff recommends City Council approve the bond resolution for Special Improvement Districts (SIDs) 1421,1422,1425,1426, and1427.

The Council approved the resolution creating SID 1421 to construct water, sanitary sewer, storm drain, curb and gutter, and street improvements to Opal Lane, Greenbriar Road, and Cypress Point.  SID 1422 was requested by property owners along Montana Avenue between 27th Street and 22nd Street to replace the existing streetlights within this corridor to high-pressure sodium lights to more efficient LED lights. SID 1425 will construct a traffic signal at the intersection of Broso Park Drive and Gabel Road and this project is also widening about 800-feet of the west side of Gabel Road south of Broso Valley Park Drive to add a travel lane.  SID 1426 will construct the remainder of curb and gutter, asphalt pavement, and remove and replace some existing curb and gutter and/or drive approaches to improve drainage on Arvin Lane.  The project will also install a new 8-inch water main, replacing the existing 2-inch water main currently serving the neighborhood. At the request of a property owner on Hancock Drive, SID 1427 was created to construct improvements along Hancock Drive. The project will construct the remainder of curb and gutter, asphalt pavement, and drive approaches, and assess the costs of the improvements to the adjacent addressed and non-addressed property owners requesting certain private improvements. 

The City has been working with Stockman Bank for the purchase of the bonds.  Once the resolution has been approved, the closing will take place and the bond proceeds will be disbursed to the construction accounts.  
 

There are no viable alternatives to funding this project, as the construction bids have been awarded, and the project has been budgeted with an anticipated bond sale. If not approved, staff would like clear direction as to what alternate financing sources are desired for this project.

The term on the bonds is 15 years with an interest rate of 4.75%.  The property owners identified in the documents ordering the improvements will be assessed for principal and interest cost of the bonds on their property tax bills.