9.b Resolution No. 01-16-18-05 Calling for a public hearing on the street reconstruction plan and issuance of debtSCANDILA
Staff Report
Date of Meeting: January 16, 2018
To: City Council
From: Neil Soltis, Administrator
Re: Resolution calling for public hearing
Background: State Statutes require the City to hold a public hearing if general obligation street
reconstruction bonds are to be issued for a project. The 2018 — 2022 Capital Improvement Plan and
the 2018 budget for the Local Road Improvement Fund that were approved by the Council at the
December 19, 2017 provide for the issuance of $4,400,000 of debt in order to finance a portion of
the project. Notice of the public hearing is to be published in the City's official newspaper not less
than 10 days nor more than 28 days of the public hearing. Jessica Green of Northland Securities has
provided a proposed schedule of events that provides for the closing on the binds on June 19, 2018
which would then make the funds available to pay any contractor invoices approved at the June 20,
2018 City Council meeting.
Issue: Should the City approve the resolution calling for a public hearing on the issuance of general
obligation street reconstruction bonds?
Fiscal Impact: There is no immediate impact in calling for the public hearing. The financing plan in
place for the project utilizes the Local Road Improvement Fund balance to cover the remaining
costs of the project. The budget for road maintenance in the General Fund has been reduced by
$115,000 beginning in 2018 in order to utilize those funds for the repayment of the debt.
Options:
1. Approve the Resolution No. 01-16-18-05
2. Defer action on the project.
Recommendation: Option 1
CITY OF SCANDIA, MINNESOTA
GENERAL OBLIGATION STREET RECONSTRUCTION BONDS, SERIES 2018A
PROPOSED SCHEDULE OF EVENTS
The following checklist of items denotes each milestone activity as well as the members of the
finance team who will have the responsibility to complete it. Please note this proposed timetable
assumes regularly scheduled City Council meetings.
Date
Action
May
I
•Thu
City Council Action
Sun
Mon
Tue
Wed
Thu
Fri
Sat
76
2
1
2
1
2
3
4
5
8
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Trigger Resolution adopted and Finance Plan
City Council Action,
discussed
Northland
Construction Bid Award
Date
Action
May
2018
•Thu
City Council Action
Sun
Mon
Tue
Wed
Thu
Fri
Sat
1
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
29
30
Trigger Resolution adopted and Finance Plan
City Council Action,
discussed
Northland
Construction Bid Award
Date
Action
June
2018
•Thu
City Council Action
Sun
Mon
Tue
Wed
Thu
Fri
Sat
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
26
27
28
29
30
Trigger Resolution adopted and Finance Plan
City Council Action,
discussed
Northland
Construction Bid Award
Date
Action
June
2018
Resolution Calling for a Public Hearing on the Street
City Council Action
Sun
Mon
Tue
Wed
Thu
Fri
Sat
Public Hearing)
February 20, 2018
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Trigger Resolution adopted and Finance Plan
City Council Action,
discussed
Northland
Construction Bid Award
Date
Action
Responsible
January 16, 2018
Resolution Calling for a Public Hearing on the Street
City Council Action
Reconstruction Adopted
February 10, 2018
Notice of Hearing published no later than this date (at
City Staff
least 10 days, but not more than 28 days, prior to
Public Hearing)
February 20, 2018
Public Hearing on the Street Reconstruction -
City Council Action
Resolution Approving the Street Reconstruction Plan
and Issuance of Bonds adopted (unanimous vote of
members present)
March 22, 2018
30 Day Petition Period Ends
March 28, 2018
Construction Bid Opening
City Staff
April 11, 2018
Finance Plan and Trigger Resolution Sent to the City
Northland, Bond
Counsel
April 16, 2018
Send Request for Rating
Northland, City
Preliminary Official Statement Sent to City for Sign Off
April 17, 2018
Trigger Resolution adopted and Finance Plan
City Council Action,
discussed
Northland
Construction Bid Award
NORTHLAND
SECURITIES
Week of April 23,
Rating Call
Northland, City,
2018
Rating Agency
May 9, 2018
Rating Received
Northland, City,
Rating Agency
May 16, 2018
Pricing Date
Northland, City
Bond Purchase Contract Signed
May 17, 2018
Ratifying Resolution sent to City for Council packets
Northland, Bond
Counsel
May 22, 2018
Ratifying Resolution Adopted
City Council Action
June 19, 2018
Closing on the Bonds (Proceeds Available)
Northland, City Staff,
Bond Counsel
A RESOLUTION OF THE CITY OF SCANDIA, MINNESOTA, CALLING FOR
A PUBLIC HEARING ON A STREET RECONSTRUCTION AND BITUMINOUS
OVERLAY PLAN AND PRELIMINARILY AUTHORZING THE ISSUANCE
AND SALE OF GENERAL OBLIGATION STREET RECONSTRUCTION
BONDS, SERIES 2018A THEREUNDER
WHEREAS, the City of Scandia, Minnesota (the "City"), has undertaken to prepare a Street
Reconstruction and Bituminous Overlay Plan that describes the street reconstruction to be financed, the
estimated costs, and all planned reconstruction and overlay of other streets in the City over the next five
years (the "Plan"); and
WHEREAS, to finance the Projects to be contained in the Plan, the City is considering the issuance
and sale of its General Obligation Street Reconstruction Bonds, Series 2018A, in the approximate aggregate
principal amount of $4,400,000 (the "Bonds"), pursuant to Minnesota Statutes, Section 475.58, Subdivision
3b, as amended (the "Act"); and
WHEREAS, the City may approve the Plan and issue the Bonds only after a duly noticed public
hearing therefor; and
NOW, THEREFORE, BE IT RESOLVED By the City Council of the City of Scandia, Minnesota,
as follows:
1. Public Hearing. This Council hereby determines to call for and to hold a public hearing on the
Plan and the preliminary authorization of the issuance and sale of the Bonds thereunder at a meeting of this
Council to be held on February 20, 2018, commencing at 7:00 p.m.
2. Publication of Notice. The staff of the City is hereby authorized and directed to cause the Notice
of Public Hearing, which is attached to this Resolution as EXHIBIT A, to be published in the City's official
newspaper not less than ten days nor more than 28 days prior to the scheduled public hearing date.
Approved by the City Council of the City of Scandia, Minnesota this 16th day of January, 2018.
ATTEST:
Neil Soltis, City Administrator/Clerk
Christine Maefsky, Mayor
The motion for the adoption of the foregoing resolution was duly seconded by Council Member
and upon vote being taken thereon, the following members voted in favor of the
motion:
and the following voted against:
whereupon the resolution was declared duly passed and adopted.
1*141,111.11W.1
NOTICE OF PUBLICATION
NOTICE OF PUBLIC HEARING TO CONSIDER THE ADOPTION OF THE STREET
RECONSTRUCTION AND BITUMINOUS OVERLAY PLAN OF THE CITY OF SCANDIA,
AND THE PRELIMINARY AUTHORZATION OF THE ISSUANCE AND SALE OF
GENERAL OBLIGATION STREET RECONSTRUCTION BONDS, SERIES 2018A,
THEREUNDER
NOTICE IS HEREBY GIVEN That the City Council of the City of Scandia, Minnesota (the "City")
will meet at City Hall, 14727 209th St. N., Scandia, MN 55073 at or after 7:00 p.m. on Tuesday, February
20, 2018, to hold a public hearing to consider the adoption of the Street Reconstruction and Bituminous
Overlay Plan, and the preliminary authorization of the issuance and sale of General Obligation Street
Reconstruction Bonds, Series 2018A, thereunder.
The Street Reconstruction and Bituminous Overlay Plan describes the street reconstruction to be
financed, the estimated costs, and all planned reconstruction and overlay of other streets in the City over
the next five years (the "Plan").
It is proposed that the General Obligation Street Reconstruction Bonds, Series 2018A, will be in the
approximate aggregate principal amount of $4,400,000 (the "Bonds"), and issued pursuant to Minnesota
Statutes, Chapter 475, as amended (the "Act"), to finance the cost of the street reconstruction projects, as
described in the proposed Plan, a copy of which is on file in the office of the City Administrator/Clerk.
At the time and place fixed for the public hearing, the City Council will give all persons who appear at
the hearing an opportunity to express their views with respect to the proposal. Written comments will be
considered if submitted to the City Administrator/Clerk at City Hall, 14727 209th St. N., Scandia, MN
55073, on or before the date of the public hearing.