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HomeMy WebLinkAboutCity Council Resolution 1982-410After due consideration of the bids, Councilmember Neils introduced the following resolution and moved its adoption: RESOLUTION NO. 82-410 RESOLUTION AWARDING THE SALE OF $1,825,000 GENERAL OBLIGATION BONDS OF 1982; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT. BE IT RESOLVED By the City Council of the City of Plymouth, Minnesota, as follows: Section 1. Award of Sale. 1.01. The bid of Cronin and Marcotte, Inc. of Minneapolis, Minnesota (the "Purchaser") to purchase $1,825,000 General Obligation Bonds of 1982 consisting of $1,300,000 General Obligation Improvements Bonds of 1982 (the "Improvement Bonds") and $525,000 General Obligation Water Revenue Bonds, (the "Water Revenue Bonds") (collectively the "Bonds") of the City described in the notice of sale thereof is hereby found and determined to be the highest and best bid received pursuant to duly advertised notice of sale and shall be and is hereby accepted, such bid being to purchase the Bonds at a price of $ 1,814,050.00 plus accrued interest to date of delivery, the Bonds to bear interest as follows: Year of Maturity Interest Rate 1984 8.00% 1993 10.00% 1985 8.25% 1986 8.50% 1987 8.75% 1988 9.00% 1989 9.10% 1990 9.25% 1491 9.40% 1992 9.70% The sum of $ 24,820 being the amount bid in excess of $1,789,230, shall be ratably credited to the respective sinking funds hereinafter created. The City Clerk is directed to retain the good faith check of the Purchaser pending completion of the sale and delivery of the Bonds. The City Clerk is directed to return the checks of the unsuccessful bidders forthwith. Section 2. Improvement Bonds. 2.01, The City shall forthwith issue and sell the Improve- Page 2 Res. No. 82-410 ment Bonds in the total principal amount of $1,300,000, dated September 1, 1982, the Bonds being 260 in number and numbered 1 to 260, both inclusive, in the denomination of $5,000 each, bearing interest as above set forth, all interest payable March 1, 1983, and semiannually thereafter on September 1 and March 1 in each year, and which Bonds mature serially without option of prior payment on March 1 in the years and amounts as follows: YEAR AMOUNT YEAR AMOUNT 1984 $ 50,000 1989 $175,000 1985 175,000 1990 150,000 1986 175,000 1991 75,000 1987 175,000 1992 75,000 1988 175,000 1993 75,000 2.02. Both principal of and interest on the Bonds hall be payable at the main office of the First Trust Company of St. au , in the City of St. Paul Minnesota, and the City shall pay the reasonable charges of said bank for its services as paying agent. 2.03. The Bonds and the interest coupons to be thereto at- tached shall be in substantially the following form: No. UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF PLYMOUTH GENERAL OBLIGATION IMPROVEMENT BOND OF 1982 $5,000 KNOW ALL MEN BY THESE PRESENTS that the City of Plymouth, Hennepin County, Minnesota, acknowledges itself to be indebted and, for value received, hereby promises to pay to bearer, without option of prior payment, out of its General Obligation Improvement Bonds of 1982 Fund, the sum of FIVE THOUSAND DOLLARS on the 1st day of March, 19 , and to pay interest thereon from the date hereof until the principal amount is paid at the rate of and hundredths percent ( %) per annum, interest to maturity payable March 1, 1983, and semiannually thereafter on the 1st day of September and the 1st day of March in each year in accordance with and upon presentation and surrender of the interest coupons hereto attached as they severally become due. Both principal of and interest on this bond are payable at the main office of the First Trust Company of St. Paul in the City of St. Paul , Minnesota, in any coin or currency of the United States of America which on the date of payment is legal tender for public and private debts. Page 3 Res. No. 82-140 This bond is one of an issue of bonds in the total principal amount of $1,300,000, all of like date and tenor except as to matur- ity, interest rate, and serial number, all issued by the City for the purpose of providing money to defray the expenses incurred and to be incurred in making local improvements, pursuant to and in full con- formity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and is payable primarily from special assessments against property specially benefited thereby, but constitutes a general obligation of the City, and, to provide moneys for the prompt and full payment of the principal of and in- terest on the bonds as the same become due, the full faith and credit of the City is hereby irrevocably pledged, and the City Council will levy ad valorem taxes, if required for such purpose, which taxes may be levied on all of the taxable property in the City without limita- tion as to rate or amount. 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 that this bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery does not exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the the City of Plymouth, Hennepin County, Minnesota, by its City Council, has caused this bond to be executed by the manual or facsimile signatures of its Mayor and its City Manager, and by the manual signature of one of said officers, to be sealed with a facsimile of the corporate seal of the City, and the interest coupons hereto attached to be executed and authenticated by the facsimile signatures of said officers, all as of September 1, 1982. (Facsimile Signature) Mayor (manual signature) /s/ David J. Davenport City Clerk (FACSIMILE SEAL) (Form of Coupon) No. On the 1st day of March (September), 19 , the City of Plymouth, Hennepin County, Minnesota, will pay to bearer, out of its General Obligation Improvement Bonds of 1982 Fund, at the Page 4 Res. No. 82-410 the main office of the First Trust Company of St. Paul , . in the City of St. Paul , Minnesota, the amount shown hereon for interest then due on its General Obligation Improvement Bond of 1982, dated September 1, 1982, No. (facsimile signature Mayor (facsimile signature City Clerk 2.04. The City Clerk shall obtain a copy of the proposed approving legal opinion of LeFevere, Lefler, Kennedy, O'Brien & Dravz, a Professional Association, Minneapolis, Minnesota, which shall be complete except as to dating thereof and shall cause said opinion t, be printed on each Bond, together with a certificate to be signed by the facsimile signature of the City Clerk in substantially the following form: I hereby certify that the foregoing is a full, true and correct copy of the legal opinion executed by the above named attorneys, except as to the dating thereof, which opinion has been handed to me for filing in my office prior 10 to the time of bond delivery. (facsimile signature) City Clerk City of Plymouth, Minnesota The City Clerk is hereby authorized and directed to execute such certificate in the name of the City upon receipt of such opinion and to file the opinion in the City offices. 2.05. The Bonds shall '!e executed on behalf of the City by the manual or facsimile signatures of the Mayor and the City Manager, and by the manual signature of one of said officers, the interest coupons shall be executed and authenticated by the printed facsimile signatures of the Mayor and City Manager, and a facsimile of the corporate seal of the City may, but need not be, printed thereon; provided, however, that the signatures of both the Mayor and the City Manager may be facsimile signatures, duly authenticated by the manual signature of an officer of the Northwestern National Bank of Minneapolis hereby designated authenticating agent pursuant to Minnesota Statutes, Section 475.55, Subdivision 1, and, if the Bonds are to be so executed and authenticated, the bond form set forth in paragraph 4 hereof shall be modified as follows: Page 5 Res. No. 82-410 a) Substitute the following paragraph for the final paragraph of each of the Bonds: "IN WITNESS WHEREOF, the City of Plymouth, Hennepin County, Minnesota, by its City Council, has caused this bond to be executed by the facsimile signatures of its Mayor and City Manager and to be sealed with a facsimile of the corporate seal of the City, the interest coupons hereto attached to be executed and authenticated by the facsimile signatures of said officers, and such signatures to be authenticated by the manual signature of the City's duly authorized Authen- ticating Agent on the reverse side of this bond, all as of September 1, 1982." b) Add the following on the reverse side of each of the Bonds: "This bond is one of the bonds of the series designated herein issued pursuant to the resolution authorizing its issuance and delivery." Northwestern National Bank of Minneapolis As Authenticating Agent By Its Authorized Officer The Bonds, when fully executed, shall be delivered by the City Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obligated to see to the proper application thereof. 2.06. The Bonds shall be payable from the General Obliga- tion Improvement Bonds of 1982 Fund (the "Sinking Fund") hereby created, and the proceeds of any general taxes hereafter levied and special assessments to be levied for the improvements (the "Improve- ments") financed by the Bonds are hereby pledged to the Sinking Fund. If any payment of principal or interest on the Bonds shall become due when there is not sufficient money in the Sinking Fund to pay the same, the City Finance Director shall pay such principal or interest from the general fund of the City, and such fund may be reimbursed for such advances out of proceeds of assessments levied for the Improve- ments or from such ad valorem taxes, when collected. 2.07. It is hereby determined that the City will levy special assessments for the Improvements (and the levy of such special assessments is hereby authorized) in the principal amount of at least 20% * of the cost of the Improvements and the levy of such special assessments is hereby authorized. To- pay- the- City! s-share-af-.the-cost- -rf-the-improvements,-there-is-hereby-levied-a-dirett;-annuai,-irrepeai= -aaie-ad-vwb remr tax -levy - against- aii-1.axatrl�-grogerttes-tn-the- City,- - which- --tax - levy- sha l i --be - irr -the -years- -and- -amounts -'as- -Parraws - f"ar- -- - -stated-being-year-of-levy-for-collection-the-folloaing-year-j-i------- *It,has been determined that the City will specially assess 100% of the cosh of the "Improvements." Page 6 Res. No. 82-410 it: is hereby determined that the estimated collection of special assessments for the payment of the Bonds aa�dtxgda�cx6o�aocscgavdxavkxv�ac�cnretx OcaPJ XjgyyX will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds. The City Clerk is directed to file a certified copy of this resolution with the Director of Property Taxation of Hennepin County, Minnesota, and obtain the certificate required by Minnesota Statutes, Section 475.63. 2.08. It is hereby determined that the Improvements to be financed by the Bonds will directly and indirectly benefit the abut- ting property, and the City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City has duly ordered the making of the Improvements as contemplated in Minnesota Statutes, Section 429.031, and will cause the assessments for the Improvements to be promptly levied so that the first installment will be collectible not later than 1983 and will take all steps necessary to assure prompt collection. The City Council shall cause all further actions and proceedings relative to the making and financing of the Improvements financed hereby to be taken with due diligence that are required for the construction of each Improvement financed wholly or partly from the proceeds of the Bonds and for the final and valid levy of special assessments and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any current or anticipated defi- ciency in any grants, funds, investment income or special assessments pledged or appropriated for payment of the principal of and interest on the Bonds, the City Council will IL y ad valorem taxes in the amount of said current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing all receipts and disbursements relating to the Improvements, grants and pledged funds, any taxes or assessments levied therefor and other funds appropriated for Bond payment, and all collections thereof and disbursements therefrom, moneys on hand aad balance of unpaid assessments. (d) The City will cause its books and records to be audited at least annually by qualified public accountants Page 7 Res. No. 82-410 and will furnish copies of such audit reports to any in- terested person upon request. 2.09. The tax levy herein provided shall be irrepealable until all of the Bonds are paid, provided that the City Clerk may annually, prior to October 10th, certify to the Director of Property Taxation of Hennepin County the amount available in the Sinking Fund to pay principal and interest due during the ensuing year, and the Director of Property Taxation shall thereupon reduce the levy collect- ible during such year by the amount so certified. 2.10. The sale of the Improvement Bonds was authorized by Council Resolution No. 82- 358 , adopted July 19, 1982 (the "Resolu- tion") which specified the Improvements to be financed and authorized the sale of $1,825,000 in principal amount of Improvement Bonds. This Council has investigated the facts and has determined that Improvement Project No. 122 (Fox Forest Addition/18th) shall not be undertaken, and that a principal amount of $1,300,000 will be adequate to finance the other Improvements authorized by the Resolution. The action of the City Manager, City Attorney and the City's Financial Advisors in modifying the terms of the Official Notice of Sale contained in the Resolution are ratified and confirmed in all respects. The provisions of the Resolution are hereby amended to conform to the provisions of the resolution. Section 3. Water Revenue Bonds. 3.01. The City shall forthwith issue and sell the Water Revenue Bonds in the total principal amount of $525,000, dated September 1, 1982, the Bonds being 105 in number and numbered 1 to 105, both inclusive, in the denomination of $5,000 each, bearing interest as above set forth, all interest payable March 1, 1983, and semiannually thereafter on September 1 and March 1 in each year, and which Bonds mature serially without option of prior payment on March 1 in the years and amounts as follows: YEAR AMOUNT YEAR AMOUNT 1984 $25,000 1989 $50,000 1985 25,000 1990 75,000 1986 25,000 1991 75,000 1987 50,000 1992 75,000 1988 50,000 1993 75,000 3.02. Beth principal of and interest on the Bonds shall be payable at the main office of ;:he First Trust Company in the City of _St. Paul , Minnesota, and the City shall pay the reasonable charges of said bank for its services as paying agent. Page 8 Res. No. 82-410 3.03. The Bonds and the interest coupons to be thereto attached shall be in substantially the form fixed by Resolution No. 82-358 adopted July 19, 1982. 3.04. The City Clerk shall obtain a copy of the proposed approving legal opinion of LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneapolis, Minnesota, which shall be complete except as to dating thereof and shall cause said opinion to be printed on each Bond, together with a certificate to be signed by the facsimile signature of the City Clerk in substantially the following form: I hereby certify that the foregoing is a full, true and correct copy of the legal, opinion executed by the above named attorneys, except as to the dating thereof, which opinion has been handed to me for filing in my office prior to the time of bond delivery. (facsimile signature) City Clerk City of Plymouth, Minnesota The City Clerk is hereby authorized and directed to execute such certificate in the name of the City upon receipt of such opinion and to file the opinion in the City offices. 3.05. The Water Revenue Bonds shall be executed, authenti- cated and delivered in the same manner as the Improvement Bonds as set forth in Section 2.05. 3.06. It is hereby determind that the estimated collections of net revenues of the water utility of the City pledged for the payment of the Bonds will produce at least 5% in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. Section 4. Miscellaneous: Authentication of Transcript. 4.01. The officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of the Bonds and to the attorneys approving the same, certified copies of proceedings and records of the City relating to the Bonds and to the financial condi- tion and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds and such instruments, including any heretofore furnished, shall be deemed relresentations of the City as to the facts stated therein. 4.02. The Mayor, City Manager and City Finance Director are hereby authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the Page 9 Res. No. 82-410 issuance and sale of the Bonds and that to the best of their knowledge and belief said statement is a complete and accurate representation of the facts and representations made therein as of the date of said official statement or prospectus as it relates to the City. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Threinen , and upon vote being taken thereon, the following voted in favor thereof: Acting Mayor Schneider, Councilmembers Moen, Neils, and Threinen and the following voted against: . None 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, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council held on Monday, August 16, 1982, with the original thereof on file in my office and I further certify that the same is a full, true and complete transcript there- from insofar as the same relates to the issuance and sale of the City's $1,825,000 General Obligation Bonds of 1982. WITNESS My hand as Clerk and the corporate seal of the City this 16th day of August , 1982. "City Clerk City of Plymouth, Minnesota (SEAL)