HomeMy WebLinkAbout1974.02.11 CC Minutes FEBRUARY 11 , 1974 MINUTES OF PROCEEDINGS OF THE HUGO CITY COUNCIL 2 9
The meeting was called of order at 7:20 PI! by Mayor- Crever. Roll was
called: Crever, LaValle, Martin, Leroux, and Lease present. Also
present were the village engineer, attorney, and the fiscal agent,
and some members of the sewer committee.
Mayor Crever stated the reason for the special meeting was to work
on the sewer project for the city.
Howard K_uusisto stated he had made tabulations with corrections of
the bids, and he had given the official copy to the clerk. He said
Hoffman was the low bidder by w1000.00, and there were six very good
bids from a competitive stand point.
Charles Johnson stated he had only three or four easements to finish.
The fiscal agent, Bob Ehlers Jr. , distributed copies of two cost
siL=-iaries he had worked out. The first summary included a bond issue
for :050,000.00. If all the bond proceeds are not used in the area
perscribed at the public hearing, the city can put the remaining funds
in the bond sinking account to defray the debt service. Also, excess
funds could be borrowed from the sinking funds by council resolution
for improvement to other areas. The borrowed funds would have to be
paid back to the sinking and interest account within three years.
The second alternative was a bond issue for V259000.00, which would
be less one half of the surface replacement. With this plan, the user
charge would be about ;;;4.00 per month. Lease thought streets were going
to be put back the way they were before the project. Howard stated that
within two years of the sewer project, there would probably be some type
of a road improvement program, and streets would have to be torn up again.
He said if you put them back the way they were right away, you could
forget a road improvement program for a number of years. It was noted
that storm drainage system and water mains were left out of the final
project, as the HUD funds would not accommodate them.
LaValle questioned whether the :;;850,000 issue would include blacktop
restoration of those streets now blacktopped, and the answer was affirma—
tive. Joe Marier of the sewer committee stated he would be willing to
have a delay in putting back blacktop, but wouldn't want to be assessed
for it again if he had it in the first place.
Pat Dooley of the sewer committee stated that in the first method, people
on gravel would be paying :1,350.00 more to restore blacktop streets. He
also thought a drainage system should be put in with the sewer, as dry
wells had already been installed for that purpose. Howard said if this
were added, it would be assessed only to the affected property owners.
Ehlers said they could anticipate the cost and include it in the bond
issue.
It was noted that HUD would have to be informed of the second alternative
if it was desired over the first. Howard stated he would like to go the
X850,000 bond issue and have the funds available for street restoration
at a later date.
Don Lease mentioned that the second plan would mean another hearing and
another delay, and maybe the loss of the HUD Grant, as the bid has to
be awarded within sixty days. Bob Ehlers stated he would like a decision
right away, in order to advertise for bids for the bond sale.
FEBRUARY 1 1 , 1974
.:�
Motion made by Lease, seconded by LaValle to adopt Resolution No. 1974-3,
a resolution awarding contracts for construction of sanitary sewer im—
provement No. 1973-1 and providing for the public sale of $"850,000.00
G.O. Improvement Bonds, and $56,000.00 Fire Equipment Bonds, Crever,
LaValle, Leroux, Martin, Lease for. Motion carried.
Attorney Johnson mentioned that policies on assessments should be decided
upon as soon as possible. Joe Marier stated that was a job for the sewer
committee before it would go to the council. Mr. Johnson said once a
policy is set, it can be changed, but groundwork is being laid for the
future.
It was stated that the clerk and engineer had met with a member of the
Metro Sewer Board recently, and they would like to review Hugo's ordinance
and policy on user charges.
Motion made by Lease and seconded that engineer, clerk, and attorney com—
plete survey of sewer use data for 1973. Motion carried.
Don Lease mentioned a decision should be made as to how deferred billing
of $18,000 to the Sewer Board should be made. Payments could be made in
five, ten, or fifteen years. The idea of raising the tax levy was mentioned,
and also the idea of including small payments in the budget for years to
come was mentioned.
Marvin LaValle mentioned he had received a call from a Jerome Boyd vdio
wanted to move a house into town on a lot across from the Legion Hall.
The building inspector had looked at the house and found nothing wrong.
The building inspector is to inform Mr. Boyd as to how he should proceed
with this project.
Motion made by LaValle, seconded by Crever to adjourn at 10:20 PM. Motion
carried.
Ili Clerk
EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF
HUGO, MINNESOTA
HELD: FEBRUARY 11, 1974
Pursuant to due call and notice thereof, a special
meeting of the City Council of the City of Hugo, Minnesota .,
was duly held at the City Hall in said City on the
11th day of February, 1974, at 7:UO o'clock P M.
The following members were present: LaValle, Lease,
Laroux, Martin and Crever;
and the following were absent : None;
Member Lease introduced the follow-
ing resolution and moved its adoption:
RESOLUTION PROVIDING FOR PUBLIC SALE
OF $56,000 GENERAL OBLIGATION FIRE EQUIPMENT
BONDS OF 1974
AND
$850,000 GENERAL OBLIGATION SANITARY SEWER
IMPROVEMENT BONDS OF 1974
BE IT RESOLVED by the City Council of the City of
Hugo., Minnesota, as follows:
1. It is hereby found, determined and declared that
this City should issue $56,000 General Obligation Fire Equipment
Bonds of 1974 to defray the expense of fire equipment and
$850,000 General Obligation Sanitary Sewer Improvement Bonds
of 1974 to defray the expense of various improvements to the
sanitary sewer system.
2. This Council shall meet at the time and place
specified in the form of notice hereinafter contained for the
purpose of opening and considering sealed bids for., and awarding
the sale of $56,000 General Obligation Fire Equipment Bonds
of 1974 and $850 ,000 General Obligation Sanitary Sewer Improvement
Bonds of 1974 of said City .
3 . The City Clerk is hereby authorized and dir-
ected to cause notice of the time, place and purpose of said
meeting to be published in the official newspaper of the
City and in Commercial West not less than ten days in
advance of date of sale, as provided by law, which notice
shall be in substantially the following form:
NOTICE OF SALE
$56,000 GENERAL OBLIGATION FIRE EQUIPMENT BONDS OF 1974
$850,000 GENERAL OBLIGATION SANITARY
SEWER IMPROVEMENT BONDS OF 1974
These bonds will be offered Monday,
March 18, 1974
at 8: 00 P.M . , C .D.S.T. , at the City Hall, Hugo, Minnesota.
Dated April 1, 1974 , the bonds will mature on April 1 in
the years and amounts as follows:
Year Sanitary Sewer Fire Equipment Total
1976 $ 25,000 $ 51000 $ 30 ,000
1977 25,000 5,000 30 ,000
1978 25,000 5,000 30 ,000
1979 30,000 5,000 35,000
1980 30,000 5,000 35,000
1981 30,000 5,000 35,000
1982 35,000 5,000 40,000
1983 35,000 5000 40,000
1984 40 ,000 5,000 45,000
1985 40,000 7,000 45,000
1986 40 ,000 6,000 46,000
1987 45,000 45,000
1988 45,000 45,000
1989 50 ,000 50,000
1990 50,000 50,000
1991 55,000 55,000
1992 60 ,000 60,000
1993 60 ,000 60 ,000
1994 . , 65,000 65,000
1995 65,000 65,000
all bonds maturing 1985 through 1995 are subject to prior
redemption on April 1, 1984 . Interest will be payable on
October 1, 1974 , and semiannually thereafter. No rate of
interest nor the net effective average rate of the issue may
exceed 7% per annum. An unqualified legal opinion will be
furnished by Messrs . Briggs and Morgan, of St. Paul, Minnesota.
The purpose of the Fire Equipment Bonds is to purchase fire
equipment . The purpose of the Sanitary Sewer Improvement Bonds
is to defray the expense of various sanitary sewer improvements .
Dated: February 11, 1974 BY ORDER OF THE CITY COUNCIL
Robert E. Burkard
City Clerk
Further information may be obtained from and bids may be
delivered to: EHLERS AND ASSOCIATES, INC . , Financial
Consultants to the City , First National Soo Line Concourse ,
507 Marquette Avenue, Minneapolis , Minnesota 55402 .
Telephone: 612-339-8291
4 . . The terms and conditions of said bonds and
the sale thereof are fully set forth in the Official Notice
of Sale attached hereto as Exhibit A and incorporated herein
by reference.
The motion for the adoption of the foregoing
resolution was duly seconded by member LaValle
and upon a vote being taken thereon, the following voted
in favor thereof: LaValle, Lease, Laroux, Martin and Crever;
and the following voted against the same: None;
Whereupon said resolution was declared duly
passed and adopted .
STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I, the undersigned, being the duly qualified and
acting Clerk of the City of Hugo, Minnesota, DO HERE-
BY CERTIFY that I have carefully compared the attached and
foregoing extract of minutes with the original minutes of a
meeting of the City Council held on the date therein indi-
cated, which are on file and of record in my office, and the
same -is a full, true and complete transcript therefrom inso-
far as the same relates to the propo.ed sale of $56,000
General Obligation Fire Equipment Bonds of 1974 and $850 ,000
General Obligation Sanitary Sewer Improvement Bonds of 1974
of said City.
WITNESS my hand as such Clerk and the official seal
of the ,City this >>th day of February } 1974 .
Ga y Clerk
(SEAL)
EXHIBIT A
OFFICIAL
NOTICE OF SALE
$56,000 GENERAL OBLIGATION FIRE EQUIPMENT BONDS OF 1974
$850,000 GENERAL OBLIGATION SANITARY SEWER
IMPROVEMENT BONDS OF 1974
CITY OF HUG 0, MINNESOTA
NOTICE IS HEREBY GIVEN THAT the City Council of
Hugo, Minnesota, will meet at the City Hall in the City of
Hugo, on Monday , March 18th , 1974, at 8:00 o'clock P.M. ,
to receive, open and consider bids for the purchase of
$906 ,000 negotiable coupon, general obligation bonds of the
City on the following terms:
Date and Maturities
The bonds will be dated April 1, 1974 , will be in denomination
of $1,000 or $5,000 each (bidder's option) and will mature
on April 1 in the following years and amounts:
Year Sanitary Sewer Fire Equipment Tota'
1976 $ 25,000 $ 5,000 $ 30,000
1977 25,000 5,000 30,000
1978 25 ,000 5,000 30,000
1979 30,000 5,000 35,000
1980 30,000 53,000 35,000
1981 30 ,000 5,000 35,000
1982 35,000 5,000 40,000
1983 35,000 5,000
1984 40 ,000 5,000 4`5,000
1985 4o ,000 5,000 45,000
1986 40,000 6,000 46,000
1987 45,000 45,000
1988 45,000 45 ,000
1989 50,000
1990 50 ,000 50,000
50,000
1991 55,000
1992 60 ,000 55,ouo
60 ,000
1.993 60,000 60,000
1994 65,000 65,000
1995 65,000 65,000
Redemption Feature
Bonds maturing in the years 1985 through 1995 will each be subject
to redemption and prepayment at the option of the City Council
and in inverse numerical order, on April 1, 1984, and any inter-
est payment date thereafter, at 100% of par plus accrued interest .
Interest
Interest on the bonds will be payable on October 1, 1974 , and
semiannually thereafter on each April 1 and October l. . All
bonds maturing on the same date must bear interest from date
of issue until paid at a single, uniform rate, not exceeding
the rate specified for bonds of any subsequent maturity. Not
more than 7 interest rates may be spec.ified for the issue.
Each rate must be in an integral multiple of 5/100 of 1%, and
no rate may exceed 7% . No supplemental or "B" coupons will
be permitted .
Paying Agent
Principal and interest will be made payable at any suitable
bank in the United States designated by the successful bidder
with 48 hours after award of sale, subject to approval by
the City, and the City will pay the reasonable and customary
paying agency charges .
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 extension of the time of delivery caused
thereby.
Delivery
Within 40 days after sale, the City will furnish and deliver
at the office of the purchaser or, at his option, will deposit
with a bank in the United States selected by him and approved
by the City as its agent to permit examination by and to deliver
to the purchaser , the printed and executed bonds , the unquali-
fied opinion thereon of bond counsel , and a certificate stating
that no litigation in any manner questioning their validity is
then threatened or pending. The charge of the delivery agent
must be paid by the purchaser, but all other costs will be paid
by the City . The purchase price must be paid upon delivery of
the bonds , or within five days after deposit with the delivery
agent, in funds available for expenditure by the City on the
day of payment .
Legal Opinion
An unqualified legal opinion on the bonds will be furnished by
Messrs . Briggs and Morgan of St. Paul , Minnesota. The legal
opinion will be printed on the bonds at the request of the
purchaser. The legal opinion will state that the bonds are valid
and binding general obligations of the City, and the City is
obligated and required to levy taxes for the principal and
.interest thereon as the same become due without limit as to
rate or amount .
Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned
and must be received prior to the time of said meeting. Each
bid must be unconditional and must be accompanied by a cashier' s
or certified check or bank draft in the amount of $18,120,
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 from date of bonds to stated maturities,
less any cash premium or plus any amount less than $906,000 bid
for principal) will be deemed the most favorable . No oral
bid and no bid of less than $888,500 for principal plus accrued
interest on all of the bonds will be considered, and the City
reserves the right to reject any and all bids and to waive any
informality in any bid .
B ER OF THF C TY C NCIL
�et E. urkard
City Clerk