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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.