HomeMy WebLinkAbout1975.11.17 CC MinutesNO L iBER 17, 1975 PfIINUTES OF TIE PROCEEDINGS OF THE HUGO CITY COUNCIL, -,"
TIME: 7:35 P.M. November 17, 1975 �' �I
PRESENT: Lease, Schletty and Smith at 7:30 P.M.
ABSENT: LaValle, Leroux
NOTICE OF SALE - $1559000 GENERAL OBLIGATION IMPROVEMENT BONDS
was first order of business. Clerk read notice of avertising
for bids as printed in the Forest Lake Times and Bond Buyers
Index.
Robert Ehlers, Jr. Opened bids as follows:
Bids opened:
Name Net Cost Net Interest Percentage
Piper, Jaffray & Hopwood, Inc.
Juran & Moody, Inc.
The First National Bank of St. Paul
$1559000 $67,831.88 6.3468
It 69,335.62 6.4875
If
73, 415.63 6.8692
Dain, Kalman & Quail, Inc. If 69,375.00 6.4912
Robert Ehlers reported he would check bids and refer back to Council
in a few minutes.
3.0 APPROVAL OF MINUTES
MOTION: Motion made and seconded that minutes change page 6 of
8, 6-1-2 change Title Ord. proposed Ord. delete No.
124, be approved as corrected.
MOTION CARRIED
4.0 APPROVAL OF CLAIMS
MOTION: Motion made and seconded that claims be paid from
1-21 on claim sheet.
MOTION CARRIED
MOTION: Motion made and seconded that claims for 22-26
to be paid on payment of check from bonding company.
LOTION CARRIED
Robert Ehlers came back to Council with following information.
Lowest Bidder was Piper, Jaffray & Hopwood, Inc.
MOTION: Motion made by Lease seconded by Smith that
Resolution 1975-40 with bid of Piper, Jaffray
& Hopwood, Inc. for $155,000 Bond issue be
approved.
VOTING FOR: Lease, Smith and Schletty.
ABSENT: LaValle and Leroux
MOTION CARRTED
NOVEMBER 17, 1975
5.0 PETITIONS. REQUESTS,, & COMMUNICATIONS & LICENSES
5.1 JERRY MOE - RE- ZONING
MOTION: Motion made and seconded that action on Jerry Moe
property be tabled.
MOTION CARRIED
The City Council will meet on December 3 with the Planning Commission
and B. Schwab on matter of density under zoning program at 8:00 P.M.
MOTION CARRIED
Attorney Johnson instructed by Mayor Lease to draw changes in sewer
ordinance in reference to sewer installers and plumbers section.
DOG ORDINANCE N0, 125, Chapter 30
MOTION: Motion made and seconded that Ordinance Number #125 Chapter
30 pertaining to dogs be adopted.
MOTION CARRIED
Report of Chief Barth on Tauer property read by Clerk, no action taken.
MOTION: Motion made and seconded that lighting plans of White Bear
Rod & Gun Club be reviewed by Engineer, and be tabled until
a later date.
MOTION CARRIED
7.3 and 7.4 DURAINE & R. SCHUH
Parties have been referred back to the Planning Commission as
new application for the Special Use Permit and the Mining Permit.
5.2 Edward R. Brown - Re -Subdivide - Lot 4, Block 2, Evergreen Hills,
cut in half 22 acres.
MOTION: Motion made and seconded that denial of Ed Browns request.
Its non -conforming use in area zoned five acres minimum.
MOTION CARRIED
Clerk insturcted to sign sub -grant letter of agreement for C.E.T.A.
program for police Department employee.
STORM SWER EASEMENTS
MOTION: Motion made and seconded that easement grants for storm
sewer project 1975-2 in the amount of 1040.00 be paid
Leonard and Karen Charpentier at 5636 - 141. st. No.
MOTION CARRIED
MOTION: Motion made and seconded that grant of $100.00 be
made to Ida Charpentier for temporary easement for
Storm sewer Project 1975-2, 5598 - 141th. st. No., Hugo.
MOTION CARRIED
NOVE11BER 17, 1975
MOTION: Motion made and seconded
past 11:00 P.M.
MOTION CARRIED
BEISANG ROAD PROBLEM
that regular meeting be extended
Beisang property problem discussed. Mayor Lease reported that road
could be brought up to city standards and maintenance to be done by
agreement solely Grant Township.
MOTION: Motion made and seconded that:
1. Mayor Lease and Attorney Johnson be given authority
to draw up road maintenance agreement with Grant
Township for Biesang property.
2. Examination of titles for proposed roadway.
3. Engineering work to bring road up to city street
standards.
4. Letter of Credit with amount to be recommended by
Engineer.
5. Property owner Ivr. Biesang to deposit with City
;1,000 0500.00 already deposited) toward attorney
and engineer fees for -the project.
MOTION CARRIED
MOTION: Motion made and seconded that change order be issued by
Engineer for Catch Basins `;990.00, Outlet Structure to
Egg Lake .0,708.00 for Storm Sewer Project 1975-2
Kuusisto to issue change order for removal of earth in streets with
Shaffer Cont. Co.
Kuusisto reported on Sewer Maintenance Ilan interview.
MOTION: Motion made and seconded to adjourn at 11:48 P.M.
MOTION CARRIED
ofiert E. Bur ard, Clerk
City of Hugo
EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF
HUGO, MINNESOTA
HELD: NOVEMBER 17, 1975
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Hugo, Washington
County, Minnesota, was duly held at the City Hall in said
City on the 17th day of November, 1975, at 7:30 o'clock P.M.
for the purpose of opening and considering bids for and
awarding the sale of $155,000 General Obligation Improvement
Bonds of 1975 of said City.
The following members were present: Mayor Lease,
Councilman Smith and Councilman Schletty
and the following were absent: Councilmen LaValle and Leroux
The Clerk presented affidavits showing publication
of notice of call for bids on $155000 General Obligation
Improvement Bonds of 1975 of the City, for which bids were
to be received at this meeting, in accordance with the
resolution adopted by the City Council on September 24,
1975• Said affidavits were examined, found to comply with
the provisions of Minnesota Statutes, Chapter 4?5, and were
approved and ordered placed on file.
The Council proceeded to receive and open bids for
the sale of said bonds. The following bids were received:
Bidder Interest Rate . Net Interest Cost
(See bid tabulation attached)
BID TABULATION
$155,000 GENERAL OBLIGATION IMPROVEMENT BONDS
HUGO, MINNESOTA
SALE: MONDAY, NOVEMBER 17, 1975
AWARD
PIPER, JAFFRAY & HOPWOOD, INC., MINNEAPOLIS, MINNESOTA
Moody's Rating: Baa -1
NAME OF BIDDER RATES
YEARS
NET INTEREST COST
& RATE PRICE
PIPER, JAFFRAY & HOPWOOD, INC. 5.25%
1978/79
$67,831.88 $152,000.00
Minneapolis, Minnesota 5.40%
1980
5.60%
1981
6.3468%
5.80%
1982
6.00%
1983
6.10%
1984
6.25%
1985
6.40%
1986
6.50%
1987
AN & MOODY, INC. 6.00% 1978/83 $69,335.62 $152,000.00
St. Paul, Minnesota 6.10% 1984
E. J. Prescott & Company 5.25% 1985 6.4875%
Minneapolis, Minnesota 6.40% 1986
6.50% 1987
DAIN, KALMAN & QUAIL, INC. 5.50% 1978/80 $69,375.00 $152,000.00
Minneapolis, Minnesota 5.75% 1981/82
6.00% 1983 6.4912%
6.20% 1984
6.40% 1985
6.60% 1986
6.75% 1987
THE FIRST NATIONAL BANK OF ST. PAUL 6.50% 1978/85 $73,415.63 $152,000.00
St. Paul, Minnesota 6.75% 1986/87
First State Bank of Hugo 6.8692%.
Hugo, Minnesota
EHLERS AND ASSOCIATES, INC.
Financial Consultants to the City
First National -Soo Line Concourse
507 Marquette Avenue
Minneapolis, Minnesota 55402
Telephone: (612) 339-8291
The Cou::cil then proceeded to consider such bids.
After the bids had been considered and discussed, member
Lease introduced the following resolution
and moved its adoption:
RESOLU^SON ACCEPTING BID ON SALE OF
$155,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1975 AND
PROVIDING FOR THEIR ISSUANCE
BE IT RESOLVED by the Council of the City of
Hugo, Minnesota, as follows:
1. That the bid of Piper, Jaffray & Hopwood, Inc.
to purchase $155,000 General Obligation Improvement Bonds of
1975 of the City, in accordance with the notice of bond sale,
at the rates of interest hereinafter set forth, and to pay
therefor the sura of $ 152,000.00 ( plus a premium of 0 )
is hereby found, determined and declared to be the most
favorable bid received, and is hereby accepted and said
bonds are hereby awarded to said bidder. The City Clerk
is directed to retain the deposit of said bidder and to
forthwith return the good faith checks or drafts to the
unsuccessful bidders. Said bonds shall be payable as to
principal and interest at The First National Bank of Saint Paul,
in St. Paul, Minnesota
or any successor -Paying Agent duly appointed by the City.
2. The $155,000 negotiable coupon general obliga-
tion bonds of the City shall be dated December 1, 1975 and
shall be issued forthwith. Said bonds shall be 31 in number
and numbered from 1 to 31, both inclusive, in the denomin-
ation of $5,000 each. Said bonds shall mature serially,
lowest numbers first, without option of prepayment, on
March 1 in the years and amounts as follows:
$15000 in each of the years 1978 to 1986,
both inclusive; and
$20,000 in the year 1987.
3. Said bonds shall provide funds for the construc-
tion of street and storm sewer improvements in the City.
The total cost of said improvements, including the cost of
construction under the terms of the lowest bid received,
engineering, legal and other professional charges, publi-
cation and printing costs, interest accruing on money
borrowed for the improvements before the collection of
special assessments levied therefor, and all other costs
necessarily incurred and to be incurred from the inception
to the completion of the improvements, is estimated to be at
least equal to the amount of the bonds herein authorized.
Work on the improvements shall proceed with due diligence to
completion.
- �1-
4. The bonds of said issue maturing in the years
and bearing the serial numbers set forth below shall bear
interest, payable September 1, 1976 and semiannually there-
after on March 1 and September 1 of each year, at the respec-
tive rates per annum set opposite said maturity years and
serial numbers:
Maturity Years
1978 and 1979
1980
1981
1982
1983
1984
1985
1986
1987
Serial Numbers
1 - 6
7 - 9
10 - 12
13 - 15
16 - 18
19 - 21
22 - 24
25 - 27
28 - 31
Interest Rate
5.25%
5.40%
5.60%
5.80%
6.00%
6.10%
6.25%
6.40%
6.50%
5. The bonds and interest coupons to be issued
hereunder shall be in substantially the following form:
-3-
No.
UNITED STATES OF XC RICA
STATE OF MINNESOTA
WASHINGTON COUNTY
CITY OF HUGO
GENERAL OBLIGATION IMPROVEMENT
BOND OF 1975
$5,000
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Hugo, Washington County, Minnesota, certifies that it is
indebted and for value received promises to pay to bearer,
without option of prepayment the principal sum of
FIVE THOUSAND DOLLARS
on the first day of March, 19 and to pay interest there-
on from the date hereof until the principal is paid at the
rate of percent
( %) per annum, payable on the first day of September,
197 and semiannually thereafter on the first day of March
and the first day of September in each year, interest to
maturity being represented by and payable in accordance with
and upon presentation and surrender of the interest coupons
hereto attached, as the same severally become due. Both
principal and interest are payable atThe First National Bank of
of Saint Paul, in St. Paul, Minnesota , or any successor
Paying Agent duly appointed by the City, in any coin or
currency of the United States of America which at the time
of payment is legal tender for public and private debts.
This bond is one of an issue in the total principal
amount of $155,000 all of like date and tenor, except as to
serial number, maturity and interest rate, which bond has
been issued pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota for the
purpose of providing money for the construction of street
and storm sewer improvements, and is payable out of the
General Obligation Improvement Bonds of 1975 Fund of the
City. This bond constitutes a general obligation of the
City, and to provide moneys for the prompt and full payment
of said principal and interest when the same become due, the
full faith and credit and taxing powers of said City have
been and are hereby irrevocably pledged.
-4-
IT IS HEREBY CERTIFIED AND RECITED that all acts,
conditions and things required by the Constitution and laws
of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this bond,
have been done, have happened and have been performed, in
regular and due form, time and manner as required by law,
and this bond, together with all other debts of the City
outstanding on the date hereof and the date of its actual
issuance and delivery does not exceed any constitutional
or statutory limitation of indebtedness.
IN WITNESS WHEREOF,'the City of Hugo, Washington
County, Minnesota, by its City Council has caused this bond
to be executed in its behalf by the.signatures of the Mayor
and the City Clerk, and the corporate seal of said City to
be affixed hereto, and has caused the interest coupons to be
executed and authenticated by the facsimile signatures of
said officers, all as of December 1, 1975•
-manual- -facsimile-
City Clerk Mayor
(Form of Coupon)
No. $
On the first day of September (March), 19_, the
City of Hugo, Washington County, Minnesota, will pay to
bearer at The First National Bank of Saint Paul, in St. Paul, Minnesoka
or any successor Paying Agent duly appointed by the City, the
sum shown hereon for interest then due on its General Obli-
gation Improvement Bond of 1975 No. dated December 1,
1975.
/s/ Facsimile
City Clerk
-5-
/s/ Facsimile
Mayor
6. The bonds shall be executed on behalf of the
City by the signature of its Mayor and the signature of
its Clerk and be sealed with the seal of the City; provided,
that one of such signatures and the seal of the City may
be primed facsimiles. The interest coupons pertaining there-
to shat be executed by the printed, engraved or lithographed
facsimile signatures of the Mayor and Clerk.
7. The said bonds when so prepared and executed
shall be delivered by the Treasurer to the purchaser thereof
upon receipt of the purchase price, and the said purchaser
shall not be obliged to see to the proper application thereof.
8. There is hereby created a special fund to be
designated "General Obligation Improvement Bonds of 1975 Fund"
to be held and administered by the City Treasurer separate
and apart from all other funds of the City. Said fund
shall be maintained in the manner herein specified until all
of the bonds herein authorized and the interest thereon have
been fully paid. In said fund there shall be maintained two
separate accounts, to be designated as the "Construction
Account" and the "Sinking Fund Account", respectively. The
proceeds of the sale of the bonds herein authorized, less
any premium and accrued interest received thereon, and less
any amount paid for said bonds in excess of $152,000, and
less capitalized interest in the amount of $ 11,384.37 (sub-
ject to such adjustments as are appropriate to provide suffi-
cient funds to pay interest due on the bonds on or before
March 1, 1977 ), shall be credited to the Construc-
tion Account, from which there shall be paid all costs and
expenses of making said improvements, including the costs of
construction contracts heretofore let and all other costs
incurred and to be incurred and the moneys in said account
shall be used for no other purpose, provided that the bond
proceeds may also be used to the extent necessary to pay
interest on said bonds due prior to the anticipated date of
commencement of the collection of special assessments herein
levied, and provided further that if upon completion of said
improvements there shall remain any unexpended balance in
said Construction Account, said balance may be transferred
by the Council to the fund of any other improvement instituted
pursuant to Chapter 429 M.S.A. There is hereby pledged and
there shall be credited to the Sinking Fund Account, all
collections of special assessments herein covenanted to be
levied, all accrued interest and any premium received upon
delivery of said bonds, all funds paid for said bonds in
excess of $1521000, capitalized interest in the amount of
$11938.4.37 (subject to such adjustments as are appropriate
to provide sufficient funds to pay interest due on the
bonds on or before March 1, 1977 ), and all funds re-
maining in said Construction Account after completion of the
U
improvements and payment of the costs thereof, not so trans-
ferred to the fund of another improvement. The Sinking -Fund
Account shall be used solely to pay principal and interest on
the bonds issued hereunder and any other general obligation
bonds of the City hereafter issued by the City and made payable
from said account.
9. It is hereby determined that no less than.
20% of the cost of improvements to theCity within the mean-
ing of Minnesota Statutes, Section 475.58, Subdivision 10),
shall be paid by special assessments to be levied against every
assessable lot, piece and parcel of land benefited by said
improvements. The City hereby covenants and agrees that it
will do and perform as soon as they may be done, all acts and
things necessary for the final and valid levy of such special
assessments, and in the event that any such assessment be at
any time held invalid with respect to any lot, piece or parcel
of land due to any error, defect, or irregularity, in any
action or proceedings taken or to be taken by the City or this
Council or any of the City officers or employees, either in the
making of such assessments or in the performance of any condi-
tion precedent thereto, the City and this Council will forth-
with do all such further acts and take all such further pro-
ceedings as may be required by law to make such assessments a
valid and binding lien upon such property. Subject to such
adjustments as are required by conditions in existance av the
time said assessments are levied, it is hereby determined that
the assessments shall be payable in equal, consecutive, annual
installments, with general taxes for the years shown belo:i and
with interest on the deferred balance of all such assessments
at the rate of at least 8 % per annum:
Improvement
Designation Amount
Street and Storm Sewer.
Improvements 1975-1 $155,000
-7-
Levy Years
10
• At the time the assessments are in fact levied the
City Council shall, based on the then current estimated col-
lections of such assessments, make any adjustments in any ad
valorem taxes required to be levied in order to assure that
the City continues to be in compliance frith Minnesota Statutes,
Section 475.61, Subdivision 3. Said special assessments
are such that if collected in full they, together with esti-
mated collections of other revenues pledged for the payment
of said bonds, will produce at least five percent in excess
of the amount needed to meet when due the principal and
interest. payments on the bonds.
10. For the prompt and full payment of the principal
of and interest on said bonds, as the same respectively become
due, the full faith, credit and taxing powers of.the City shall
be and are hereby irrevocably pledged.
11. The City Clerk is hereby directed to file a
certified copy of this resolution with the County Auditor
of Washington County, Minnesota, together with such other infor-
mation as he shall require, and to obtain from said Auditor
his certificate that said bonds have been entered in the said
Auditor's Bond Register.
12. The officers of the City are hereby author-
ized and directed to prepare and furnish to the purchaser
of said bonds, and to the attorneys approving the legality
of the issuance thereof, certified copies of all proceedings
and records of the City relating to said bonds and to the
financial condition and affairs of the City, and such other
affidavits, certificates and information as are required to
show the facts relating to the legality and marketability of
said bonds as the same appear from the books and records under
their custody and control or as otherwise known to them, and
all such certified copies, certificates and affidavits, in-
cluding any heretofore furnished, shall be deemed represen-
tations of the City as to the facts recited therein.
The motion for the adoption of the foregoing
resolution was duly seconded by member Schletty
and upon vote being taken thereon, the following voted in
favor thereof: Lease, Smith and Schletty
and the following voted against the same: none
Whereupon said resolution was declared duly
passed and adopted.
Im
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 HEREBY CERTIFY
that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and
that the same is a full, true and complete transcript of the
minutes of a meeting of the City Council of said City, duly
called and held on the date therein indicated, insofar as such
minutes relate to the opening and considering of bids for, and
awarding the sale of $155,000 General Obligation Improvement
Bonds of 1975 of said City.
WITNESS my hand and the seal of said City this
17th day of November , 1975.
(SEAL)
150
City Clerk