ITEM: 9.3 PUBLIC HEARINGS - Joe Huss, Finance Director
Title
APPROVING STREET RECONSTRUCTION PLAN AND PRELIMINARY APPROVAL TO ISSUE STREET RECONSTRUCTION BONDS
Background
In conjunction with the City's Pavement Management Program (PMP) the City Council has approved a variety of both overlay and street reconstruction projects. In order to finance a portion of the reconstruction projects, Council is being asked to both approve the City's Street Reconstruction Plan and to give preliminary approval to the issuance of Street Reconstruction Bonds as allowed in Minnesota Statutes, chapter 475.
In order to issue bonds under this statute, Council must hold a public hearing to approve the City's five-year street reconstruction plan and notify the public of the City's intent to issue general obligation street reconstruction bonds to finance a portion of the plan. Also under the statute, if a petition requesting a vote on the issuance of the bonds, signed by voters equal to 5% of the votes cast in the City in the last general election, is filed with the City Clerk within 30 days after the public hearing, the City may issue the bonds only after obtaining approval of a majority of voters voting on the question at an election.
Schedule of Actions
05/05/2014 - Public hearing to approve Street Reconstruction Plan and preliminary approval to issue street reconstruction bonds
06/05/2014 - Consider resolution authorizing the bond sale
07/10/2015 - Consideration of sale and award of bonds
Recommendation
Upon conclusion of the public hearing, approve attached resolution
Body
BE IT RESOLVED by the City Council (the "Council") of the City of Blaine, Minnesota (the "City") as follows:
Section 1. Background
1.01. The City is authorized under Minnesota Statutes, Section 475.58, Subdivision 3b, as amended (the "Act") to prepare a plan for reconstruction of streets in the City over the next five years, including a description of the street reconstruction projects to be financed, estimated costs, and any planned reconstruction of other streets in the City over the next five years. Pursuant to the Act, the City may issue general obligation bonds to finance the cost of street reconstruction activities described in the plan.
1.02. Before the approval of the Plan and the issuance of any general obligation bonds under the Act, the City is required to hold a public hearing on the plan and issuance of the bonds.
1.03. Pursuant to the Act, the City has caused to be prepared a Five Year Street Reconstruction Plan (the "Plan"), which describes expected street reconstruction activities in the City for the years 2014 through 2018.
1.04. The City has determined that it is in its best interests to give preliminary approval to the issuance and sale of street reconstruction bonds pursuant to the Act in the maximum principal amount of $1,200,000 (the "Bonds"), to finance a portion of the costs described in the Plan.
1.05. On this date, the Council held a public hearing on the Plan and the issuance of the Bonds, after publication in the City's official newspaper of a notice of public hearing at least 10 days but no more than 28 days before the date of the public hearing.
Section 2. Plan Approved
2.01. The Council finds that the Plan will improve the City's street system, which serves the interests of the City as a whole.
2.02. The Plan is approved in the form on file in City Hall.
Section 3. Bonds Authorized
3.01. The City hereby gives preliminary approval to the issuance of Bonds in the maximum principal amount of $1,200,000, in order to finance certain street reconstruction activities described in the Plan, including costs of issuance of the Bonds, subject to further details regarding the sale of the Bonds to be set forth in a resolution to be considered by the City Council at a subsequent meeting.
3.02. If a petition requesting a vote on the issuance of the Bonds, signed by voters equal to 5% of the votes cast in the last municipal general election, is filed with the City Clerk within 30 days after the date of the public hearing, the City may issue the Bonds only after obtaining approval of a majority of voters voting on the question at an election.
3.03. City staff are authorized and directed to take all other actions necessary to carry out the intent of this resolution.
Approved this 15th day of May, 2014 by the City Council of the City of Blaine, Minnesota.