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HomeMy WebLinkAboutCity Council Resolution 1987-352Extract 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, Minnesota, was held at the City Hall in said City on Monday, June 1 1987, commencing at 7:30 o'clock P.M. The following members were present: Mayor Schneider, Councilmembers Crain, Sisk, Vasiliou and Zitur and the following were absent: none The following resolution was Sisk who moved its adoption: presented by Councilmember RESOLUTION NO. 87 - 352 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $3,300,000 GENERAL OBLIGATION WATER REVENUE BONDS OF 1987 BE IT RESOLVED By the City Council of the City of Plymouth, Hennepin County, Minnesota (City) as follows: 1. It is hereby determined: (a) That the City Engineer has recommended the construction of various improvements to the City's water system (Project). (b) That the City is authorised by Minnesota Statutes, Section 444.075 (Act) to finance all or a portion of the cost of the Project (Costs) by the issuance of general obligation bonds of the City payable from the net revenues of the water system which Costs are presently estimated by the engineer to be as follows: Page #2 Project Designation 6 Description: Total Proiect Cost Total project costs including construction, engineering, contingency $4.959,000 Less: cash on hand 1,700,000 Subtotal $3;259,000 Issuance costs 28,500 Capitalized Interest 0 Less: Interest earnings 37,000 Subtotal #3,250,500 Discount 49,500 Total Bond Issue 3,300,000 (c) That it is necessary and expedient to the sound financial management of the affairs of the City to issue $3,300,000 General Obligation Water Revenue Bonds of 1987 (Bonds) pursuant to the Act to provide financing for the Project. 2. In order to provide financing for the Project, the City shall therefore issue and sell Bonds in the amount of $3,250,500. In order to provide in part the additional interest required to market the Bonds at this time, additional Bonds shall be issued in the amount of $49,500. Any excess of the purchase price of the Bonds over the sum of $3,250.500 shall be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on such additional Bonds. The Bonds shall be issued, sold and delivered in accordance with the terms of the following Official Notice of Sale: OFFICIAL NOTICE OF SALE $3,300,000 General Obligation Water Revenue Bonds of 1987 City of Plymouth Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that sealed bids for the above bonds will be received until 7:00 p.m., C.T. on Monday, June 22, 1987, at the office of the City Manager in the Municipal Building in the City of Plymouth, Minnesota, 3400 Plymouth Boulevard, Plymouth, Minnesota 55447, at which time the bids will be opened and tabulated for presentation to the City Council at a regular meeting at 7:30 p.m., C.T. on the same day. The bonds are offered on the following terms. Purpose and Security The purpose of the bonds is to provide funds for the financing of the costs of improvements to the water system of the City. The bonds will be general obligations of the City, for which its full faith, credit and taxing powers are pledged together with net revenues of the water system of the City. Date and Maturities The bonds will be issued in fully registered form, will be dated June 16, 1987, will be in integral multiples of $5,000 each and will mature on February 1, in the years and amounts as follows: Year Amount Year Amount 1989 $150,000 1996 $225,000 1990 175,000 1997 250,000 1991 175,000 1998 275,000 1992 175,000 1999 275,000 1993 200,000 2000 300,000 1994 200,000 2001 325,000 1995 225,000 2002 350,000 Redemption The City may elect on February 1, 1995 or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1996 at a price of par plus accrued interest to date of redemption. Interest Interest on the bonds will be payable on February 1, 1988, and semi- annually thereafter on each Augusc 1 and February 1. All bonds maturing on the same date must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for bonds of any subsequent maturity. Each rate must be in an integral multiple of 5/100 or 1/8 of 17, and no rate of interest nor the net effective average interest rate of the issue may exceed the maximum rate of interest permitted by law on the day of sale. Paying Agent Norwest Bank Minneapolis, National Association, will be the Bond Registrar. Principal will be payable at the principal office of the Registrar and interest will be payable by check or draft of the Registrar mailed to the registered holder of a bond. The City will pay the reason- able and customary charges for the services of the Registrar. 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 at the expense of the purchaser, if the purchaser waives any extension of the time of delivery caused thereby. Delivery Within 40 days after sale, the City will furnish and deliver to the office of the purchaser or, at its option, will deposit with a bank in the United States selected by it and approved by the City as its agent to permit examination by and to deliver to the purchaser, the printed ai.d 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. The charge of the delivery agent must be paid by the purchaser, but all other costs will be paid by the City. The purchase price must be paid upon delivery of the bonds in funds available for expenditure by the City on the day of payment. Legal Opinion An unqualified legal opinion on the bonds will be furnished by Le - Fevers, Lefler, Kennedy, O'Brien 6 Drawz, a Professional Association, Minneapolis, Minnesota. The legal opinion will be printed on the bonds at the request of the purchaser. The legal opinion will state that the bonds are valid and binding general obligations of the City, and that the City is obligated and required to levy taxes for the principal and interest thereon as the same become due without limit as to rate or amount. Type of Bid - Amount Sealed bids must be mailed or delivered to the undersigned and must be received prior to the time of said meeting. Each bid must be unconditional and must be accompanied by a cashier's or certified check or bank draft in the amount of $66.000, payable to the City Finance Director, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid authorizing the lowest net interest cost (total interest from date of bonds to stated maturities, less any cash premium or plus any amount less than $3,300,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $3,250,500 for principal plus accrued interest on all of the bonds will be considered, and the City reserves the right to reject any and all bids and to waive any informality in any bid. BY ORDER OF THE CITY COUNCIL /s/ Laurie Brandt City Clerk Dated: June 1, 1987. 3. The City Clerk is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Notice of Sale and to cause the abbreviated notice of sale attached hereto as Exhibit A, to be published in the manner required by law. The City Council shall meet at 7:00 p.m. on Monday, June 22, 1987, for the purpose of considering bids on the Bonds and taking any other appropriate action. 4. In the resolution awarding the sale of the Bonds the City Council will set forth the undertakings and covenants regarding the Bonds required by the Act. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Zitur and upon vote being taken thereon, the following voted in favor of the motion: Mayor Schneider, Councilmembers Crain, Sisk, Vasiliou and Zitur and the following voted against: none whereupon the resolution was declared duly passed and adopted. EXHIBIT A NOTICE OF BOND SALE $3,300,000 GENERAL OBLIGATION WATER REVENUE BONDS OF 1987 CITY OF PLYMOUTH, HENNEPIN COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the above bonds will be received until 7:00 p.m., C.T. on Monday, June 22, 1987, at the office of the City Manager in the Municipal Building in the City of Plymouth, Minnesota, 3400 Plymouth Boulevard, Plymouth, Minnesota 55447, at which time the bids will be opened and tabulated for presentation to the City Council at a regular meeting at 7:30 p.m., C.T. on the same day. The bonds are offered on the following terms. The Bonds will be dated June 16, 1987, will bear interest payable semiannually on each February 1 and August 1, commencing February 1, 1988, and will mature on February 1 in the years and amounts as follows: Year Amount Year Amount 1989 $150,000 1996 $225,000 1990 175,000 1997 250,000 1991 175,000 1998 275,000 1992 175,000 1999 275,000 1993 200,000 2000 300,000 1994 200,000 2001 325,000 1995 225,000 2002 350,000 The City may elect on February 1, 1995 or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1996 at a price 9f par plus accrued interest to date of redemption. No rate of interest nor the net effective interest rate of the issue may exceed the maximum rate permitted by law. Bidders must specify a price of not less than $3,250,500 plus accrued interest. A legal opinion on the Bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien b Drawz, a Professional Association, Minneapolis, Minnesota. The proceeds of the bonds will be used to finance the costs of an improvement to the water system of the City. Bidders should be aware that the Official Statement to be distributed for the bonds may contain additional bidding terms and information relative to the bonds. In the event of a variance between statements in this Notice of Bond Sale and the Official Statement the provisions of the latter shall be those with which to comply. BY ORDER OF THE CITY COUNCIL /s/ Laurie Brandt City Clerk Dated: June 1, 1987.