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.