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HomeMy WebLinkAbout1986 [07] Jul 17 140/( , , 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: 16nS ~ :t \_I C (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 jlino _ "X C¡ Û ~ 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. - >- 1410 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 I - 3 - 1~l11 The motion for the adoption of the foregoing resolution - 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. ~ Gð +-ù I l rUA.A-'~~-tJ',) ) / y\ s: e.. y-- Î - 4 .;.. . jL//lcv ¡:; ç¡ j e- /Y// f- h f' 5 , CCJh>e.s bo?-Iot.e. I h S I!:- y--I- .-. 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 - - I tj-/I b 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 - ~ 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: - - - -2- /'-/1/0. - -~ ~ 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 -3- /'-/1/ ¿ - statement of Terms and Conditions of Sale and additional information 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 . - - -4- '. J <.J//;=- -. Terms and Conditions of Sale. The fOllowing 3. 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: ~ - .-5- ) Lf/ I (þ .- 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. -6- '. / '1-//1 - 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 -7- IL(.//!" , - I enforceable in accordance with their terms, except to the ¡ 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 -8- ·. /tf/I T . 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 - 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. -9- 4-' ~ __........IL._~. I 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.