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.