HomeMy WebLinkAbout1986 [07] Jul 17
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I July 17, 1986
Pursuant to due call and notice thereof, the City Council for
the City of St. Joseph met in regular session on Thursday
July 17, 1986 at 7:30 p.m. in the City Hall.
~~~Q~rª rr~ª~n~: Mayor Mike Loso; Councilmen Donald "Bud"
Reber, Steve Dehler, Leo Sadlo, Ross Rieke;
Clerk/Administrator Rachel Stapleton.
§~~~rnª ºQYD~Y: Sadlo moved to allow the Mayor and Dick
Taufen to go to the meeting in St. Cloud that Stearns Co. is
sponsoring to promote cooperation with the area local
gQvernments.as the. State is requiring for a grant to purchase
s~gns and l~ke equ~pment; seconded by Reber.
Ayes: Loso, Reber, Dehler, Sadlo, Rieke.
Nayes:None. Motion carried.
ªYi±Q!Dg InªE~g~Qr g~EQr~ª~ Bud Reber discussed the need to
work on the bUilding inspection ordinance, fees, and
inspections, at a later date.
~!DD~ gYr~±Wa~~r: A motion was made by Dehler to cancel the
membership in Minnesota Rural Water Assn.; seconded by Reber.
Ayes: Loso, Reber, Dehler, Sadlo, Rieke.
Nayes: None. Motion carried.
I Çi~Y ª§§~ªªQr: Reber moved to hire Ollie Lesnick as City
Assessor for 1987; seconded by Rieke.
Ayes: Loso, Reber, Dehler, Sadlo, Rieke.
Nayes: None. Motion carried.
eªri§h Æ~~£~: Council discussed the need to move the fence
posts back along with the fence to allow for snow removal.
B~g~§.ª: The Mayor declared the meeting recessed at 7:55 p.m.
EYQ±ig H~ªriDg ~ª§.~~ ~ª~~r Ir~ª~~~D~ Eªg!li~Y: The Mayor
declared the meeting back in session at 8:00 p.m.
The Mayor stated that this was the time and place fixed by
resolution of this Council, adopted on July 3, 1986, for a
public hearing on proposed 1986 Waste Water Treatment
Facility Project no. 501-23. The Clerk presented an
affidavi t of publication of -the-notice of the public hearing
in the St. Cloud Daily Times, the official newspaper of the
City, and stated that such notice had also been mailed to the
affected property owners as required by law.
The Mayor then opened the meeting for public hearing on
the proposed improvement. The purpose of the hearing was
explained, a map of the proposed improvement was shown, costs
I were discussed, and all persons present who desired to do so
were afforded an opportunity to express their views as to the
improvement described in said notice. The following views or
opinions on the making of said improvement were stated:
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(Copy of the Public Hearing Sign In Sheet is on file.) I
A summary of the opinions and discussions is as follows:
Mr. Joe Bettendorf, City Engineer, discussed the inception of
the project, the need, and the progress to date. He
discussed the oversizing of forcemain for future growth,
and the proposed financing of the project, EPA and MPCA
Grants and bonding.
Question: Would St. Joseph be required to participate
in expansion of the St. Cloud Treatment Facility at a future
date?
Answer: St. Joseph would not have to participate until
we have met the volume already bought by the agreement with
St. Cloud.
Q. What will this cost to run per year?
A. Operation & maintenance & replacement is only a
guess at this point, but may run around $77,000 per year,
this includes replacement (depreciation) on equipment.
Q. What will be done with the existing plan~?
A. It's a good functioning plant except there is a
phosphorus problem, which it can't handle. Will take the
plant out of operation and drain the tanks, punch holes for
drainage in bottom of tanks and partially fill with sand or
gravel. Basically we will just make the existing facility
safe.
Q. Do we have any concerns with Waite Park?
A. Our agreement is with St. Cloud and St. Cloud owns I
the pipeline in Waite Park so we should not have to deal with
Waite Park.
Q. How will user costs compare with current costs?
A. We really don't know, Mayor stated a past survey
indicated costs may rise for both water and sewer in the
future.
Q. Who makes the decisions on assessments and how each
property assessed?
A. A committee has put together the proposal. This
hearing is to listen to public input.
Q. Is it fair to assess businesses the same as homes?
A. This is something we have to consider, and rework the
formula as necessary.
Q. Shouldn't mobile homes be assessed the same as
regular residential homes. (Many in group felt this way.)
A. Mobile homes statistically use less water but this is
something to consider.
Q. Each property connected to the sewer main should be
assessed the same amount, as each property needs the service
equally.
Q. Businesses should be assessed more, considering
volume of water used.
Q. Each unit should be assessed the same.
Q. I am in favor of mobile homes being assessed the
same as a one family residential home. I
A. The Committee will work on the proposals and wishes
discussed tonight and try to come up with an equitable
formula. There are always inequities no matter what formula
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~ we settle on. The assessment role will be prepared and there
will be an assessment hearing for anyone who may wish to
challenge an assessment.
- Q. How are the oversizing costs to be handled so they
aren't picked up in increased user fees?
A. Hopefully the growth of the City will be at a rate
as projected as the bonds come due.
Q. How will St. Ben's be charged?
A. By a special agreement between St. Ben's and the
City which will be by volume of water used. St. Ben's
doesn't anticipate any future growth but if that should
happen a surcharge is written into the agreement.
Q. Why are businesses getting a break?
A. This is something to consider, although the project
will increase property values the same amount and each
property needs the sewer service the same.
Mr. Bettendorf asked if there were any more questions or
comments. There being none the Mayor declared the hearing
closed at 9:40 p.m. and the meeting in recess.
The meeting reconviened at 9:50 p.m.
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Member Sadlo introduced the following resolution I
and moved its adoption:
RESOLUTION ORDERING CONSTRUCTION ~
OF 1986 WASTE WATER TREATMENT FACILITY IMPROVEMENT
BE IT RESOLVED by the City Council of the City of
St. Joseph, Minnesota, as follows:
1. This Council, by resolution duly adopted July 3,
1986, called a public hearing to be held on July 17, 1986,
on a proposed sewage improvement consisting of the conversion
of the City's existing sewage treatment plant to a pumping
station, the construction of a force main from the City to
Waite Park and the connection thereof to the Waite Park inter-
ceptor being constructed by the City of St. Cloud, the payment
of a portion of the cost of the Waite Park Interceptor and
the purchase of a portion of the reserve capacity of ~he St.
Cloud sewage treatment plant, and work appurtenant thereto.
2 . Notice of the public hearing on the proposed
improvement was given by publication and mailing, as required
by law.
3. The public hearing on the proposed improvement I
has been held, and all persons desiring to be heard were given
an opportunity to be heard.
4. The proposed improvement described in paragraph 1
hereof, and as to which a public hearing has been held as
described in paragraphs 2 and 3 hereof, is hereby ordered
to be constructed and is hereby designated as 1986 Waste Water
Treatment Facility Improvement. ~ ~
Mayor
Attest: ~Qº~)
. City Cl rk
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The motion for the adoption of the foregoing resolution
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was duly seconded by Member Reber, and on vote being taken
thereon, the following Council members voted in favor thereof:
All
and the following voted against the same: None
whereupon said resolution was declared passed and adqpted
and was signed by the Mayor and his signature attested by
the City Clerk.
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.-. Councilmember Reber introduced the following
- resolution and moved its adoption:
A RESOLUTION RELATING TO $1,400,000 ~
IMPROVEMENT BONDS, SERIES 1986;
CALLING FOR THE PUBLIC SALE THEREOF
BE IT RESOLVED by the City Council of the City of
St. Joseph, Minnesota (the City), as follows:
Authorization. This Council has heretofore ordered a
local improvement designated the 1986 Waste Water Treatment
Facility Project (the Improvement) to be constructed in the
City, under and pursuant to Minnesota Statutes, Chapter 429.
The present estimated cost of the work to be done is as follows:
Construction (including contingency) · · · · · · ~l,300,000.00
Metro Costs (St. Cloud Costs)
WP Interceptor Preliminary $ 6,429
WP Interceptor Construction ll7,550
Metro System 157,788 · · $ 281,800.00
- Preliminary Engineering
Facilities Plan Addendum $ 9,800
Grant Application and
- Submittals 5,000
Sewer Use Ord., Sewer Rate
Ord. , & Sewer Service
Charge System 4,000
Construction Plans &
Specifications 69,200 · · $ 88,000.00
Construction Engineering · · · · · · · · · · · · $ 99,600.00
Soils . . . . . . . . . · · · · · · · · · · · · $ 3,000.00
Collection System Metering Equipment · · · · · · $ 13,000.00
Legal & Admin . . . . . · · · · · · · · · · · · $ 11,600.00
Subtotal · · $1,797,000.00
Fiscal Fees
st. Joseph Plant Costs $121,200
Metro Costs 36,800 · · $ 158,000.00
Grand Total · · $1. 955.000.00
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The City has been awarded a grant from the United ---
States of America, Environmental Protection Agency in the
amount of $715,000 and from the Minnesota Pollution Control
Agency in the amount of $165,100, to pay a portion of the costs -
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of the Improvement. The City has approximately $100,000 on
hand and available for the purpose of paying costs of the
Improvement. It is hereby determined to be necessary and
expedient for the City to sell and issue its general obligation
improvement bonds in the principal amount of $1,375,000 to
defray the expense incurred in making the Improvement,
including every item of cost of the kinds authorized in
Minnesota Statutes, Section 475.65, and to issue and sell,
together with said bonds, $25,000 of bonds of the same series,
representing interest as provided in Minnesota Statutes,
Section" 475.56. Such bonds shall be denominated HImprovement
Bonds, Series 1986H and be issued in the aggregate principal
amount of $1,400,000 (the Bonds).
2. Sale. This Council shall meet at the t'ime and
place specified in the notice of sale hereinafter prescribed
for the purpose of receiving sealed bids and awarding sale of
the Bonds. The City Clerk is hereby authorized and directed to
cause notice of the time, place and purpose of the meeting to
be pUblished in the St. Cloud Daily Times, the official
newspaper of the City, and in Commercial West, once not less
than ten days before the date of said meeting in substantially -
the following form:
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NOTICE OF BOND SALE
$l,400,000 IMPROVEMENT
BONDS, SERIES 1986
CITY OF St. JOSEPH, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids will be
received at the office of the City Clerk of the City of
St. Joseph, Minnesota, until 2:00 o'clock p.m., on Thursday,
August 7, 1986, for the sale of $1,400,000 Improvement Bonds,
Series 1986 of the City (the Bonds), at which time the bids
will be" opened and tabulated. The City Council will meet at
7:30 o'clock p.m. on the same day to consider the bids and to
award the sale of the Bonds. The Bonds will be issued for the
purpose of financing a portion of the cost of a local
improvement project within the City. The Bonds will be issued
as fully registered bonds of single maturities, in the
denominations of $5,000 or any integral multiple thereof, will
be dated initially as of August is, 1986, and will mature on
January 1 in the following years and amounts:
- Year Amount Year Amount
1988 $360,000 1996 $65,000
- 1989 195,000 1997 65,000
1990 65,000 1998 65,000
1991 65,000 1999 65,000
1992 65,000 2000 65,000
1993 65,000 200l 65,000
1994 65,000 2002 65,000
1995 65,000
Interest will be payable on each January 1 and July 1,
commencing July l, 1987, to the registered owners of the Bonds
appearing of record in the bond register as of the 15th day of
the immediately preceding month. Bonds maturing in 1998 and
later years will each be subject to redemption and prepayment
on January 1, 1997 and any interest payment date thereafter at
a price equal to the principal amount thereof to be redeemed
plus accrued interest. The Bonds will be designated by the
City as "qualified tax-exempt obligations" for purposes of the
Tax Reform Act of 1985 relating to the proposed disallowance of
interest expense for financial institutions. A legal opinion
will be furnished by Dorsey & Whitney, of Minneapolis and Saint
Paul, Minnesota, bond counsel to the City. Copies of a
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statement of Terms and Conditions of Sale and additional
information may be obtained from the undersigned.
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Dated: July 17, 1986. -
BY ORDER OF THE CITY COUNCIL
/s/ Rachel Stapleton
City Clerk
City of St. Joseph, Minnesota
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-. Terms and Conditions of Sale. The fOllowing
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statement of Terms and Conditions of Sale shall constitute the
- terms and conditions for the sale and issuance of the Bonds and
such terms and conditions are hereby authorized to be ~
incorporated in material distributed to prospective bidders for
the Bonds:
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TERMS AND CONDITIONS OF SALE
$1,400,000 IMPROVEMENT BONDS
SERIES 1986 _
CITY OF ST. JOSEPH, MINNESOTA ~
Bids will be received by the City Clerk of the City of
St. Joseph, Minnesota, until 2:00 p.m. on Thursday, the 7th day
of August, 1986, for the purchase of $1,400,000 Improvement
Bonds, Series 1986, of the City (the Bonds), at which time the
bids will be opened and tabulated. The City Council will meet
at 7:30 o'clock p.m. on the same day to consider the bids and
to award the sale of the Bonds.
PURPOSE
The Bonds will be issued for the purpose of financing
a portion of the cost of construction of a local improvement
project within the City, in accordance with the pro~isions of
Minnesota Statutes, Chapters 429 and 475.
DATE, TYPE AND DENOMINATION
The Bonds will be dated initially as of August 15,
1986, will be issued as negotiable investment securities of
single maturities in registered form as to both principal and
interest and will be issuable in the denominations of $5,000 or
any integral multiple thereof.
MATURITIES AND REDEMPTION
The Bonds will mature on January 1 in the following
years and amounts:
Year Amount Year Amount
1988 $360,000 1996 $65,000
1989 195,000 1997 65,000
1990 65,000 1998 65,000
1991 65,000 1999 65,000
1992 65,000 2000 65,000
1993 65,000 2001 65,000
1994 65,000 2002 65,000
1995 65,000
Bonds maturing in 1998 and later years will be subject to
redemption and prepayment, at the option of the City, in whole
or in part, and if in part in inverse order of maturities and
by lot within any maturity assigned in proportion to their
principal amount, on January 1, 1997 and any interest payment
date thereafter at a price equal to the principal amount
thereof to be redeemed plus interest accrued to the date of
redemption.
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BOND REGISTRAR, TRANSFER AGENT
AND PAYING AGENT
The City will contract with American National Bank and -
Trust Company, in St. Paul, Minnesota, to act as Bond
Registrar, Transfer Agent and Paying Agent (the Registrar).
The Bond Register will be kept and transfers of ownership will
be effected by the Registrar. The City will pay the charges of
the Registrar for such services. The City reserves the right
to remove the Registrar and to appoint a successor.
INTEREST PAYMENT DATES, RATES
Interest will be payable each January 1 and July 1,
commencing July l, 1987, to the registered owners of the Bonds
as such appear in the Bond Register as of the close of business
on the 15th day (whether or not a business day) of the
immediately preceding month. All Bonds of the same maturity
must bear interest from August l5, 1986 until paid at a single,
uniform rate, not exceeding the rate specified for Bonds of any
subsequent maturity. Each rate must be expressed in an
integral multiple of l/8 or 5/100 of 1%.
DELIVERY
Within 40 days after the sale, and without cost to the
purchaser, the City will deliver to the purchaser the printed
- and executed Bonds, the opinion of bond counsel hereinafter
described, a no-arbitrage certification and a certificate
verifying that no litigation in any manner questioning the
validity of the Bonds is then pending or, to the knowledge of
officers of the City, threatened. Payment for the Bonds must
be received by the City in immediately available funds at its
designated depositary on the day of closing.
PROPOSED INTEREST DISALLOWANCE
The Bonds will be designated by the City as "qualified
tax-exempt obligations" for purposes of Section 802(e) of the
Tax Reform Act of 1985 relating to the proposed disallowance of
interest expense for financial institutions.
LEGAL OPINION
An opinion as to the validity of the Bonds and the
exemption from taxation of the interest thereon will be
furnished by Dorsey & Whitney, of Minneapolis and Saint Paul,
Minnesota, bond counsel to the City. The legal opinion will be
printed on the Bonds. The legal opinion will state that the
Bonds are valid and binding general obligations of the City
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I enforceable in accordance with their terms, except to the
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extent to which enforceability may be limited by Minnesota or
United states laws relating to bankruptcy, reorganization,
moratorium or creditors' rights generally. ~
TYPE OF BID AND AWARD
Sealed bids for not less than $1,375,000 and accrued
interest on the principal sum of $1,400,000 must be mailed or
delivered to the undersigned and must be received at the office
of the City Clerk prior to the time stated above. Bidders must
bid for all or none of the Bonds. Each bid must be
unconditional and must be accompanied by a cashier's check or
certified check or bank draft in the amount of $28,000, payable
to the City Treasurer to be retained by the City as liquidated
damages if the bid is accepted and the bidder fails to comply
therewith. The bid authorizing the lowest net interest cost
(total interest on all Bonds from August l5, 1986 to: thei r
maturities, less any cash premium or plus any discount), will
be deemed the most favorable. In the event that two or more
bids state the lowest net interest cost, the sale of the Bonds
will be awarded by lot. The City reserves the right to reject
any and all bids, to waive informalities in any bid, and to
adjourn the sale.
CUSIP NUMBERS
The City will assume no obligation for the assignment -
or printing of CUSIP numbers on the Bonds or for the
correctness of any numbers printed thereon, but will permit
such numbers to be assigned and printed at the expense of the
purchaser, if the purchaser waives any delay in delivery
occasioned thereby.
Information for bidders and bidding forms may be
obtained from the undersigned.
Dated: July 17, 1986.
BY ORDER OF THE CITY COUNCIL
/s/ Rachel Stapleton
City Clerk
City of St. Joseph, Minnesota
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4. Official Statement. The City Clerk is hereby
authorized and directed to prepare on behalf of the City an
official statement to be distributed to potential purchasers of
the Bonds. Such official statement shall contain the statement ~
of Terms and Conditions of Sale set forth in paragraph 3 hereof
and such other information as shall be deemed advisable and
necessary accurately to describe the City and the security for,
and terms and conditions of, the BO~ ~
Mayor
Attest: G?~~
City Cle k·
The motion for the adoption of the foregoing
resolution was duly seconded by Councilmember Rieke and upon
vote being taken thereon, the following Councilmembers voted in
favor: All
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and the following voted against the same: None
whereupon said resolution was declared passed and adopted and
was signed by the Mayor which signature was attested by the
City Clerk.
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ªiQ ~~ª£Q !Q kª~Q~§h£ tl§ªyy tlQYi~g:
Councilman Sadlo moved the adoption of the following
resolution:
RESOLUTION AWARDING BID
TO LANDWEHR HEAVY MOVING, INC.
We do hereby determine that Landwehr Heavy Moving, Inc.
of St. Cloud, Minnesota, is the lowest responsible and
responsive bidder for the 1986 Waste Water Treatment Facility
No. 501-23 and award the bid to Landwehr Heavy Moving, Inc.
of St. Cloud, Minnesota, in the amount of $1,141,655.00
subject to satisfactory compliance with the MBE/WBE
provisions of the bid documents, and subject to the approval
of the Minnesota Pollution Control Agency. Consideration of
concurrence by MPCA and of the bidder's compliance with the
stated requirements will be made at 8:00 p.m. on August 7,
1986.
Councilman Dehler seconded the motion.
Ayes: Loso, Reber, Dehler, Sadlo, Rieke.
Nayes: None. Motion carried.
~~gi~§§£i~g ~g£§§ill§n!: A motion was made by Dehler to I
approve the engineering agreement with Pauly, Olsen,
Bettendorf, Eastwood & Associates Ltd., for the 1986 Waste
Water Treatment Facility; seconded by Rieke.
Ayes: Loso, Reber, Dehler, Sadlo, Rieke.
Nayes: None. Motion carried.
ÇQ~n£i1ill§~ B§EQ£!~ êªQ1Q~ Asked if City Engineer is doing
study on proposed street repair project of Second Ave. NW and
First Ave. SE. Mayor stated he is doing it.
B§Q§£: Discussed the request of Eugene Scherer to have the
fee paid for the public hearing refunded because he cancelled
the hearing; felt he could present a plat for approval
without the buffer zone included and have the Planning
Commission review it without paying another fee. Council was
in general agreement not to refund the fee.
Bi§~§~ Planning Commission met; Gene Scherer cancelled his
public hearing; Mike Strikler presented plans for a public,
storm shelter and storage shed for the trailer court; was
accepted by the Planning Commission. Avon Lumber Apartments
want to put up a sign--have met all the requirements.
Q~h±~~~ Brought in a request from the Chairman of the Park
Board-when trees get moved and space is available which is
not on easements, will the Council allow the proposed hills
in the tot lots at all? The maintenance issue must be
settled first. I
~º19!:!~n!!!~n!~ Sadlo moved to adjourn; seconded by Reber at
11:00 p.m.; seconded by Reber.
Ayes: Loso, Reber, Dehler, Sadlo, Rieke. Nayes: None.
Motion carried.