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City of Missoula, Montana Item to be Referred to City Council Committee Committee: A & F Item: RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICTS NO. 534 AND 536; AMENDING RESOLUTIONS NO. 6998 AND 7061 TO DELETE SECTION 6.7 THEREOF; AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE Date: October 16, 2009 Prepared by: Brentt Ramharter Initiated by: Brentt Ramharter Action Required: Council is requested to support the resolution to eliminate any pledge of sewer revenues for two Rattlesnake Valley SID's (534 & 536), now that the lawsuits have been resolved. Recommended Motion: The committee recommends the city council adopt a resolution relating to Special Improvement Districts No. 534 and 536; amending resolutions no. 6998 and 7061 to delete section 6.7 thereof; and providing for an immediate effective date. Timeline: Referral to committee: October 15, 2009 Committee discussion: October 21, 2009 Deadline: Have council approve ASAP – preferably on October 26, 2009. Background and Alternatives Explored: Two legal opinions are being provided to the city council (see attachments) from the city attorney's office and from the city's bond counsel for these bond issues, Dorsey & Whitney that indicate that the required 110% annual pledging of sewer revenues for the debt service payments of SID 534 & 536 may be eliminated because the lawsuits have been dismissed. Financial Implications: This means that these revenues may be pledged to other sewer projects to be undertaken in the future that are debt financed. Attachments: Resolution Supplemental Opinion 534 Supplemental Opinion 536 City Attorney Opinion Letter to DNRC Certificate of DNRC