HomeMy WebLinkAboutCity Council Resolution 1989-676Extract of Minutes of Meeting
of the City Council of the City
of Plymouth, Hennepin Couaty, 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 the City on Monday, October 16, 1989, commencing at 7:30
P.M.
The following members of the Council were present:
Sisk, Zitur, Ricker, Va_iliou, Schneider
and the following were absent:
None
The following resolution was presented by Councilmember ,{t,,,
who moved its adoption:
RESOLUTION NO. 89-676
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $715,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1989
BE IT RESOLVED By the City Council of the City of Plymouth,
Hennepin County, Minnesota (City) as follows:
1. It is hereby determined that:
(a) the following assessable public improvements (the
Improvements) have been made, duly ordered or contracts
let for the construction thereof, by the City pursuant
to the provisions of Minnesota Statutes, Chapter 429
(Act);
Project Designation & Description:
1989 Street Improvement Projects
Construction
Plus: Capitalized Interest
Discount
Costs of Issuance
Amount to finance
Less: Interest earnings
TOTAL
Total Project Cost
$ 645,300
55,900
8,937
11,858
721,995
6,995
$ 715,000
(b) it is necessary and expedient to the sound financial
management of the affairs of the City to issue $715,000
General Obligation Improvement Bonds of 1989 (Bonds)
pursuant to the Act to provide financing for the
Improvements.
2. To provide financing for the Improvements, the City will
Issue and sell Bonds in the amount of $706,063. To provide in part
the additional interest required to market the Bonds at this time,
additional Bonds will be issued in the amount of $8,937. The excess
of the purchase price of the Bonds over the sum of $706,063 will be
credited to the debt service fund for the Bonds for the purpose of
paying interest first coming due on the additional Bonds. The Bonds
will be issued, sold and delivered in accordance with the terms of the
following Official Notice of Sale:
' 3. The Clerk is authorized and directed to advertise the Bonds
for sale in accordance with the foregoing Official Notice of Sale and
to publish the abbreviated notice of sale attached hereto as Exhibit A
In the manner required by law. The City Council will most at 7:30
p.m. on Monday, November 6, 1989, to consider bids on the Bonds and
take any other appropriate action with respect to the Bonds.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmember Sisk , and upon vote being
taken thereon the following members voted in favor of the motion:
Zitur, Sisk, Ricker, Vasiliou, Schneider
and the following voted against:
None
whereupon the resolution was declared duly passed and adopted.
OFFICIAL NOTICE OF SALE
$715,000 General Obligation Improvement
Bonds of 1989
City of Plymouth
Hennepin County, Minnesota
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of
the above bonds will be received until 6:30, p.m., C.T. on Monday,
November 6, 1989, in the City Hall in Plymouth, Minnesota, at which
time the bids will be opened and tabulated for consideration by the
City Council at a meeting at 7:30 p.m. 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 finan-
cing of assessable puLlic improvements in the City. The bonds will be
general obligations of the City, for which its full faith, credit and
taxing powers are pledged together with special assessments against
benefitted properties.
Date and Maturities
The bonds will be issued in fully registered form, will be
dated November 1, 1989, will be in denominations of integral multiples
of $5,000 each and will mature on February 1, in the years and amounts
as follows:
Year
Amount Year Amount
1992
$115,000 1995 $150,000
1993
150,000 1996 150,000
1994
150,000
Redemption
The City may elect on February 1, 1994 or on any interest payment
date thereafter to redeem and prepay bonds of this issue maturing on
or after February 1, 1995 at a price of par plus accrued interest to
date of redemption. Prepayment may be in whole or in part and will be
in inverse order of maturities and by lot within maturities.
Interest
Interest on the bonds will be payable on August 1, 1990, and
semiannually thereafter on each February 1 and August 1. 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 1/20 or 1/8 of 1%.
Registrar
The City will name the Registrar which will be subject to
applicable SEC regulations. Principal will be payable at the prin-
cipal 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 reasonable and customary charges for the services of
the Registrar.
CUSIP Numbers
The City assumes no obligation for the assignment or print-
ing of CUSIP numbers on the bonds or for the correctness of any num-
bers 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 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. 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 Holmes & Graven, Chartered, 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 payable primarily from special as-
sessments against benefitted properties and that the City is required
by law 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 specified above for the opening
of bids. Each bid must be unconditional. A good faith deposit in the
amount of $14,300 must be submitted with each bid. The good faith
deposit must be in the form of a certified or cashiers check or bank
draft or a wire transfer of funds to Resource Bank & Trust Company,
ABA #09-10-0550-6 for further credit to Ehlers and Associates, Inc.,
Bond Issue Escrow Account #850-788-1, attention Molly Majerle. The
good faith deposit will be retained by the City as liquidated damages
if the bid is accepted and the bidder fails to comply therewith. The
good faith deposit will be returned to the purchaser at the closing
for the bonds. The bid authorizing the lowest net interest- cost
(total interest from date of bonds to stated maturities less any cash
premium or plus any discount) will be deemed the most favorable. No
oral bid and no bid of less than $706,063 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 Rauenhorst
City Clerk
Dated: October 16, 1989.
Exhibit A
NOTICE OF BOND SALE
$715,000
GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1989
CITY OF PLYMOUTH,
HENNEPIN COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the
above bonds will be received until 6:30, p.m., C.T. on Monday, Novem-
ber 6, 1989, in the City Hall in Plymouth, Minnesota, at which time
the bids will be opened and tabulated for consideration by the City
Council at a mbeting at 7:30 p.m. on the same day. The bonds are
offered on the following terms. The bonds will be dated November 1,
1989, will bear interest payable semiannually on each February 1 and
August 1, commencing August 1, 1990, and will mature on February 1 in
the years and amounts as follows:
Year
Amount Year Amount
1992
$115,000 1995 $150,000
1993
150,000 1996 150,000
1994
150,000
The City may elect on February 1, 1994 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, 1995 at a price of par plus accrued
interest to date of redemption.
Bidders must specify a price of not less than $706,063 plus accrued
interest. A legal opinion on the bonds will be furnished by Holmes &
Graven, Chartered, Minneapolis, Minnesota. The proceeds of the bonds
will be used to finance a portion of the costs of various assessable
public improvements in 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 bidders must
comply with the terms of the latter.
BY ORDER OF THE CITY COUNCIL
/s/ Laurie Rauenhorst
City Clerk
Dated: October 16, 1989.