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-
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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)