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HomeMy WebLinkAboutCity Council Resolution 1989-677Extract of Minutes of K,14Pring of the City Council of t1 -c ,ity 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 the City on Monday, October 16, 1989, commencing at 7:30 P.M. The following members of the Council were present: Sisk, Zitur, Ricker, Vasiliou, Schneider and the following were absent: None The following resolution was presented by Councilmember Zitur who moved its adoption: RESOLUTION NO. 89-677 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $4,285,000 GENERAL OBLIGATION WATER REVENUE BONDS OF 1989 BE IT RESOLVED By the City Council of the City of Plymouth, Hennepin County, Minnesota (City) as follows: 1. It is determined that: (a) the City engineer has recommended the construction of various improvements to the City's water system (Project). (b) the City is authorized by Minnesota Statutes, Section 444.075 (Act) to finance all or a portion of the cost of the Project (Project Costs) by the issuance of general obligation bonds of the City payable from the net revenues of the water system. The Project Costs are presently estimated by the engineer to be as follows: Project Designation 6 Description: Total Project Cost Highway 101 Water Tower/Trunk Watermain 4,24 ,000 Plus: Discount Allowance 53,562 Finance related fees 24,000 Capitalized interest 0 Amount to finance 4,317.562 Less: Interest earnings 32,562 Total $ 4,285,000 (c) it is necessary and expedient to the sound financial man- agement of the affairs of the City to issue $4,285,000 General Obligation Water Revenue Bonds of 1989 (Bonds) pursuant to the Act to provide financing for the Project. 2. In order to provide financing for the Project, the City will therefore issue and sell Bonds in the amount of $4,231,438. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $53,562. The excess of the purchase price of the Bonds over the sum of $4,231,438 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: OFFICIAI, NOTICE OF SALE $4,285,000 General Obligation water Revenue Bonds of 1989 City of Plymouth Hennepin County, Minnesota NOTICE IS HEREBY GIVEN chat sealed bids for the purchase of the above bonds will be received until 6:30, p.m., C.T. on 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 purpoaq of Lhe U=ds is to provide funds for financing the cost of improvements to the water system of the City. The bonds will be general oblige: ions of the City, for which its full faith, credit and taxing powers are pledged together with net revenues of the [water] [sewer] system. 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 1991 $325,000 1996 $425,000 1992 350,000 1997 475,000 1993 375,000 1998 500,000 1994 375,000 1999 525,000 1995 400,000 2000 535,000 Redemption The City may elect on February 1, 1995 or on any interest payment date thereafter to redeem and prepay bonds of this issue maturing on or after February 1, 1996 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 maturi- ties. 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 bea* 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 bond Registrar which will be subject to applicable SEC regulations. 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 reasonable 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 purchaser's 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 In then threatened or pend- ing. 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 6 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 net [water] [sewer] system revenues, 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 $85,700 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 6 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 $4,231,438 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 ORDEE OF THE CITY COUNCIL /s/ Laurie Rauenhorst City Clerk Dated: October 16, 1989. 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 meet at 7:30 p.m. on Monday, November 6, 1989, to consider bids on the Bonds and take other appropriate action with respect to the Bonds. 4. In the resolution awarding the sale of the Bonds the City Council will set forth the covenants and undertakings required by the Act. 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: Sisk, Zitur, Ricker, Vasiliou, Schneider and the following voted against: None 0 whereupon the resolution was declared duly passed and adopted. Exhibit A NOTICE OF BOND SALE $4,285,000 GENERAL OBLIGATION WATER REVENUE 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 meeting 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 1991 $325,000 1996 $425,000 1992 350,000 1997 475,000 1993 375,000 1998 500,000 ' 1994 375,000 1999 525,000 1995 400,000 2000 535,000 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 of par plus accrued interest to date of redemption. Bidders must specify a price of not less than $4,231,438 plus accrued Interest. A legal opinion on the bonds will be furnished by Holmes 6 Graven Chartered, Minneapolis, Minnesota. The proceeds of the bonds will be used to finance the costs of water improvements 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 bidders must comply with the terms of the latter. BY ORDER OF THE CITY COUNCIL /s/ Laurie Rauenhorst City Clerk Dated: October 16, 1989.