HomeMy WebLinkAboutCity Council Resolution 1976-004•
CITY OF PLYMOUTH
• Pursuant to due call and notice thereof, a regular meeting of the City
Council of the City of Plymouth, Minnesota, was held on the 5th day
of January , 1976 . The following members were present:
ilHpnt. Neils. Seibold and pg+.h
The o owing mem ers were absent:- None
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Councilman Hunt introduced the following Resolution and
moved its adoption:
RESOLUTION NO. 76-4
AUTHORIZING ARRANGEMENTS FOR ADVANCED REFUNDING BOND SALE
WHEREAS, the tax-exempt securities market at present appears to favor the
issuance of advanced refunding bonds, and
WHEREAS, the City Council has received a report recommending that steps
be taken to seek to issue advanced refunding bonds,
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PLYMOUTH that the City's financial consultants, Ehlers & Associates,
Inc., be and the same are hereby authorized to proceed immediately
to arrange for an advanced refunding bond sale covering as many
presently outstanding bond issues as may be feasible and FURTHER
that the sale would be set for January 26 at 1:00 P.M. for
receiving bids and bids would be acted upon by the Council
at 7:30 P.M. on the same date.
The motion for the adoption of the foregoing Resolution was duly seconded by
Councilman Neils , and upon vote being taken thereon, the
following vote to favor thereof: Mayor Hilde, Councilmen Hunt, Neils, and
Seibold
The following voted against or abstained: Councilman Spaeth abstained
Whereupon the Resolution was declared duly passed and adopted.
EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF PLYMOUTH
HENNEPIN COUNTY, MINNESOTA
Pursuant to due call and notice thereof, a regular meeting
of the City Council of the City of Plymouth, Hennepin County, State
of Minnesota, was duly held in the Council Chambers at 14900 C 23rd
Avenue North, in said City on Monday, the 5th day of January, 1976,
at 7:30 o'clock P.M., C.S.T.
The following members were present: Mayor Al Hilde, Jr.,
Howard L. Hunt, G. H. Neils, Marvin E. Seibold and John Spaeth
and the following were absent: None
Councilman Hunt introduced the following resolution and
moved its adoption: RESOLUTION NO. 76-4
RESOLUTION PROVIDING FOR THE
ISSUANCE AND SALE OF $8,025,000
GENERAL OBLIGATION REFUNDING BONDS
OF 1976, SERIES I AND $5,980,000
GENERAL OBLIGATION REFUNDING BONDS
OF 1976, SERIES II
WHEREAS, the City is authorized by the provisions of
Minnesota Statutes, Section 475.67 to issue bonds to refund outstand-
ing bonds when determined by the City Council to be necessary and
desirable for the reduction of interest cost, and the adjustment of
maturities of.outstanding issues of General Obligation Bonds, and
WHEREAS, the City has outstanding certain General Obligation
Improvement Bonds, and
WHEREAS, the City Council has determined that it is necessary
and desirable for the reduction of interest cost, the adjustment of
maturities, and the elimination of call provisions, to refund said
bonds in advance of their maturities by the issuance of its General
Obligation Refunding Bonds of 1976 in two series of bonds in the total
principal amotnt of $8,025,000 Series I, and $5,980,000 Series II;
A
NOW, THEREFORE, BE IT RESOLVED By the City Council of the
City of Plymouth, Hennepin County, Minnesota, as follows:
1. For the purpose of providing moneys to refund in advance
of maturity outstanding bonds of the followinq General Obligation.
Improvement Bond issues of the City;
a)
$2,550,000
Public Improvement
Bonds of 1969-2,
dated July
1, 1969;
b)
$1,410,000
Public Improvement
Bonds of 1970,
dated June
1, 1970;
c)
$2,010,000
Public Improvement
Bonds of 1970-2,
dated July
1, 1970;
d)
$4,000,000
General Obligation
Improvement Bonds
of 1974, dated September 1, 1974; and
e)
$6,050,000
General Obligation
Improvement Bonds
of 1975, dated August 1, 1975;
respectively, the City shall issue and sell its General Obligation
Refunding Bonds of 1976 in the total aggregate principal amount of
$14,005,000 in separate series of issues as more fully set forth herein.
2. The City Clerk is hereby authorized and directed to cause
notice of the time, place, method of opening and tabulating bids,
conditions of the sale, and consideration by the City of bids in the
manner provided by law to be given. The notice of sale shall be in
the following form, and all the terms and conditions of said notice
are a part of this resolution:
MW W4P
NOTICE OF SALE
$8,025,000 GENERAL OBLIGATION REFUNDING BONDS OF 1976, SERIES I
$5,980,000 GENERAL OBLIGATION REFUNDING BONDS OF 1976, SERIES II
CITY OF PLYMOUTH
HENNEPIN COUNTY, MINNESOTA
Separate sealed bids for each series of these bonds will be received on
Monday, January 26, 1976, until 1:00 o'clock P.M., C.S.T., at the City Admin-
istrative Offices at 14900 23rd Avenue North, Plymouth, Minnesota, 55441, at
which time they will be opened and tabulated. The bids will then be considered
by the City Council at its regular meeting at 8:00 o'clock P.M., C.S.T., the
same day.
PURPOSE, TYPE AND SECURITY
Negotiable coupon general obligation bonds for which the full faith and credit
and unlimited taxing powers of the City will be pledged, in addition to special
assessments against benefited property, in denominations of $5,000 each. The
proceeds of the bonds will be used to refund in advance of maturity certain
outstanding general obligation bonds of the City as follows:
Series I - To refund all outstanding general obligation Improvement
Bonds of the City dated July 1, 1969, June 1, 1970,
July 1, 1970 and September 1, 1974, respectively;
Series II- To refund all outstanding general obligation Improvement
Bonds of the City dated August 1, 1975.
DATE AND MATURITIES
Bonds of both series will be dated February 1, 1976, and will mature+ on February 1
in the following years and amounts:
Year Series I Series II Year Series I Series II
1977 $715,000 $ 75,000 1984 $520,000 $450,000
1978 745,000 705,000 1985 495,000 400,000
1979 725,000 715,000 1986 515,000 275,000
1980 750,000 750,000 1987 490,000 275,000
1981 495,000 755,000 1988 520,000 225,000
1982 520,000 775,000 1989 495,000 130,000
1983 495,000 450,000 1990 545,000 -0-
The City Council reserves the right to reduce the principal amount of the refunding
bonds of either of the issues offered, by the amount which it determines by
actuarial calculation is in excess of the amount needed to provide funds suffi-
cient to provide for the payment of principal, interest and redemption premiums
on the bonds to be refunded. The reduction, if any, in principal amount of
refunding bonds of either issue will be made in multiples of $5,000, in bonds
maturing in a) 1990 for Series I bonds, and b) 1989 for Series II bonds, and
the reduction shall not exceed $50,000 for either series of bonds. The deter-
mination of the exact amount of the refunding bonds of each issue will be
communicated to the successful bidder within 24 hours after award.
REDEMPTION FEATURES
At the option of the issuer, all bonds of both series maturing in the years
1988 and thereafter will be subject to redemption on February 1, 1987 and any
interest payment date thereafter at a price of par and accrued interest.
INTEREST
Interest on the bonds of both series will be payable on August 1, 1976, and semi-
annually thereafter on each February 1 and August 1. All bonds maturing on the
same date must bear interest from date of issue until paid at a single, uniform
rate. Each rate must be in an integral multiple of 5/100 of 1%, and no rate of
interest may exceed 7%. The net effective rate for bonds of Series I may not
exceed 6.20%, and the net effective rate for bonds of Series II may not exceed
5.71%. 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 within 48 he 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 without expense to the
purchaser, if the purchaser waives any extension of the time of delivery caused
thereby.
DFLIVFRY
It is anticipated that the bonds will be delivered on or about February 11,
1976. In any event, the bonds will be delivered within 40 days after acceptance
of the proposal unless an extension is mutually agreed upon. The purchaser
will be required to make payment for the bonds in funds available far
expenditure by the City on the day of payment. 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 unqualified opinion thereon of bond counsel, and a
certificate stating that no litigation in any manner questioning their
validity is then threatened or pending, together with customary closing
papers. The charge of the delivery agent must be paid by the City.
LEGAL OPINION
An unqualified approving legal opinion on the bonds will be furnished by Messrs.
LeFevere, Lefler, Pearson, O'Brien and Drawz, of Minneapolis, Minnesota. The
legal opinion will be printed on the bonds at the request of the purchaser.
BIDDING
All bids must be sealed and for not less than par and accrued interest to date
of delivery on the principal amount of
a) $8,025,000 Series I bonds, and
b) $5,980,000 Series II bonds.
The bids must be filed with the undersigned no later than 1:00 P.M., C.S.T. on
the date of sale together with a certified check or cashier's check in the
amount of
a) $80,250 Series I bonds, and
b) $59,800 Series II bonds,
payable to the order of the City of Plymouth, to be retained by the City as
liquidated damages if the bidder fails to comply with the accepted bid. No bid
may be altered or withdrawn after 1:00 P.M., C.S.T. on the date of sale. The
sealed bids must be in separate, sealed enveloped appropriately marked "Bid for
$8,025,000 General Obligation Refunding Bonds of 1976, Series I", or "Bid for
$5,980,000 General Obligation Refunding Bonds of 1976, Series II", respectively.
AWARD
Award for each series will be made on the basis of the lowest net interest
cost, (total interest from date of bonds to stated maturities, less any cash
n.romism affer4d). Bo oral bid and no bid of less than par for.principal plus
a�rnnn� in+nrn�+ �l.l bonds of each issue will be considered_._ The City
Council reserves the right to reject any and all bids, to waive informalities
in the bidding, and to adjourn the sale.
BY ORDER OF THE CITY COUNCIL
Nell Fitzgerald
City Clerk
City of Plymouth, Minnesota
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.
TAX EXEMPTION:
In the opinion of counsel, the interest on bonds issued by Minnesota municipal
corporations is tax exempt under U.S. Treasury regulations for determining
federal income tax and under Minnesota law for determining Minnesota income
tax for individuals.
3. The City Clerk is authorized and direzted to advertise
such bonds for sale in accordance with the foregoing Notice of Sale
and to cause such advertisement to be published in the manner required
by law. The City Council shall meet on Monday, January 26, 1976, at
8:00 P.M., C.S.T. in the Council Chambers at the City Hall in the City
for the purpose of receiving and considering bids on the bonds.
4. Bids on the bonds shall be received in accordance with said
Notice of Sale until 1:00 P.M. , C.S.T. on January 26, and at
which time such bids shall be opened and read aloud in the office of
the City Manager, in the presence of the City Manager or his designate,
a representative of the financial consultant for the City and at least
one other officer or employee of the City; and after such opening,
said bids shall be tabulated and presented to the City Council for
consideration at its regular meeting at 8:00 P.M. that same day.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilman Neils, and upon vote being taken thereon,
the following voted in favor thereof: Mayor Al Hilde, Jr., Howard L.
Hunt, G. H. Neils, Marvin E. Seibold
and the following voted against the same: Councilman Spaeth abstained.
whereupon said resolution was declared duly passed and adopted.
STATE OF MINNESOTA )
• COUNTY OF HENNEPIN ) SS
CITY OF PLYMOUTH
I, the undersigned, being the duly qualified and acting
Clerk of the City of Plymouth, hereby certify that I have carefully
compared the attached and foregoing extract of minutes of the
regular meeting of the Council of the City of Plymouth held on
January 5, 1976, with the original thereof on file in my office, and
the same is a full, true and complete transcript therefrom insofar
as the same relates to the issuance and sale of $8,025,000 General
Obligation Refunding Bonds of 1976, Series I and $5,980,000 General
Obligation Refunding Bonds of 1976, Series II, of the City.
WITNESS My hand officially as such Clerk this 26th day
of January 1976.
(SEAL)
10
cy
Nell Fitzger
City Clerk
City of Plymouth, Minnesota