03-26-01 Agenda
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CITY OF RICHFIELD
MONDAY, MARCH 26, .2001
RICHFIELD-BLOOMINGTON
WATERSHED MANAGEMENT ORGANIZATION
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND. AVENUE
5:00 P.M. (DINNER SERVED)
5:30 P.M. (MEETING BEGINS)
AGENDA
CALL TO ORDER
ROLL CALL
1. ANNUAL MEETING OF RICHFIELD-BLOOMINGTON WATERSHED
MANAGEMENT ORGANIZATION
ADJOURNMENT
AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON
REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO
THE ADMINISTRATIVE SERVICES DIRECTOR AT 612-861-9702.
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CITY OF RICHFIELD, MINNESOTA
MONDAY, MARCH 26, 2001
RICHFIELD CITY HALL
6700 PORTLAND. AVENUE
REGULAR CITY COUNCIL MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
.` INTRODUCTORY: PROCEEDINGS ~' _
Call to order
Pledge of Allegiance
Roll call
Approval of minutes of (1) Special City Council Study Session of March 12, 2001; and
(2) Regular City Council Meeting of March 12, 2001
PRESENTATIONS
• 1. Presentation of Letter of Commendation from Richfield Public Safety Department to
Firefighter Dave Buzicky
2. Council discussion items
• Council Member Sandahl's report on National League of Cities Congressional
City Conference in Washington, D.C.
Notes:
3. Opportunity for citizens to address the Council on items not on the agenda
(Limited to 15 minutes) Speakers are asked to keep their comment period to
three minutes to allow sufficient time for others. Additional opportunity for
citizens to address the Council on items not on the agenda will be at the end
of this meeting. Individuals who wish to address the Council are requested
to print their name and address on the Speaker's Register for the record.
Notes:
•
AGENDA APPROVAL
4. Council approval of agenda
CONSENT CALENDAR
5. Consent Calendar contains several separate items which are acted upon by
the City Council in one motion. Once. the Consent Calendar has been
approved, the individual items and recommended actions have also been
approved. No further Council:action is necessary. However, any Council
Member may request that an item be removed from the Consent Calendar and
placed on the regular agenda for Council discussion and action. All items
listed on the Consent Calendar are recommended for approval
A. Consideration of approval of resolution authorizing submittal of request to
Department of Trade and Economic Development for funding portion of
redevelopment costs of City Bella S.R. No. 80
B. Consideration of approval of resolution authorizing application for DNR
Conservation Partnership grant for Prairie Restoration Project at Wood Lake
Nature Center S.R. No. 81
C. Consideration of approval of appointments of City Manager and Assistant to City
• Manager as Richfield representatives to Wold-Chamberlain Field Joint Airport
Zoning Board S.R. No. 82
D. Consideration of approval of bid minutes/tabulation and authorization to purchase
fire pumper from General Safety Equipment, LLC in amount of $229,685 S.R. No.
83
Notes:
RESOLUTIONS
6. Consideration of resolution awarding sale of $8,350,000 General Obligation Tax
Increment Bonds, Series 2001A; fixing form and specifications; directing execution
and delivery; and providing for payment
Staff Report No. 84
• Notes:
7. Consideration of resolution awarding sale of $1,180,000 General Obligation Storm
• Sewer Revenue Refunding Bonds,- Series 2001 B; fixing form and specifications;
directing execution and delivery; and providing for payment
Staff Report No. 85
Notes:
.. .-:~AIRPORT'Bl~Sll~?ES.S. ,
8. Airport status report
Notes:
9: Opportunity for citizens to address the Council on items not on the agenda
(Limited to 15 minutes) Individuals who wish to address the Council are
requested to print their name and address on the Speaker's Register for the.
record.
Notes:
COUNCIL CHOICE
10. Claims and payrolls
11. Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests
must be made at least 96 hours in advance to the Administrative Services Director at
612-861-9702.
•
•
AGENDA SECTION
AGENDA ITEM #
REPORT #
STAFF REPORT
RESOLUTION
85
CITY COUNCIL. MEETING
MARCx 26, 2001
REPORT PREPARED BY:
NAME, TITLE
REPORT PRESENTER: CHRIS REGIS, FINANCE MANAGER
DEPARTMENT DIItECTOR REVIEW:
REVIEWED BY CITY MANAGER:
CHRIS REGIS, FINANCE MANAGER
ll ~ NAME, TITLE
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached resolution awarding the sale of $1,180,000 General Obligation
Storm Sewer Revenue Refundin Bonds, Series 2001 B.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution awarding the sale of
$1,1.80,000 General Obligation Storm Sewer Revenue Refunding
Bonds, Series 2001 B; fixing their form and specifications; directing
their execution and delivery: and arovidina for their aavment.
•
II. BACKGROUND
In 1992, to take advantage of a 14 year low in interest rates, the City issued
$2,170,000 G.O. Storm Sewer Revenue Refunding Bonds to refund the 1986
$2,525,000 G.O. Storm Sewer Revenue Bonds. Accordingly, the current interest
rate climate is similar to the climate. in 1992. The City's financial consultant, Ehlers
& Associates, Inc. has reviewed this bond issue and informed staff that a cost
savings will be realized by refunding the current issue.
Accordingly, at the March 12, 2001 City Council meeting, the City Council approved
a resolution authorizing the refunding of the $2,170,000 G.O. Storm Sewer
03262001SSBondRefund
Revenue Refunding Bonds, Series 1992A, with the $1,180,000 G.O. Storm Sewer
• Revenue Refunding Bonds, Series 2001 B.
Bids on the. bonds are due in the offices of Ehlers & Associates, Inc. on Monday,
March 26. Mr. Sid Inman will be at the City Council meeting to recommend the
successful bidder and review the attached documents, and provide information that
is absent from the resolution and available only after the bidding on the bonds has
closed.
Following Mr. Inman's recommendation it would be appropriate for the City Council
to award the bond sale to the qualified buyer and undertake other related actions as
necessary as delineated in the approving resolution. The closing on the G.O. Storm
Sewer Revenue Refunding Bonds is scheduled for May 3, 2001.
III. -BASIS OF RECOMMENDATION
A. POLICY
• The City Council approved the refunding of the G.O. Storm Sewer
Revenue Refunding. Bonds on March 12, 2001.
B. CRITICAL ISSUES
• • The sale of the refunding bonds at the same time as the Penn Avenue
bridge bonds will allow the City to save on costs of issuance.
• The closing on the bond sale is scheduled for May 3, 2001.
C. FINANCIAL
• It is projected that at the current interest rates the refunding would
save the City roughly $31,1.60 after fees are subtracted.
• The Net Interest Cost on the remaining principal of the current issue is
approximately 5.5%, while the Net Interest Cost of the new refunding
issue would be 4.2%.
• The source of funding for the debt service on the refunded bonds is to
be the net revenues of the Storm Sewer Utility.
• The maturity date of the new refunding issue will be the same as the
current outstanding issue.
D. LEGAL
• Legal counsel has been involved with the refunding transaction as
bond counsel to the City.
IV. ALTERNATNE RECOMMENDATION~S~
• Disregard the current refunding option, continue to retire the bonded debt as
• .presently scheduled, and forego the projected savings.
V. ATTACHMENTS
• Resolution Awarding the Sale of $1,180,000 General Obligation Storm Sewer
Revenue Refunding Bonds, Series 2001 B; Fixing Their Form and
Specifications; Directing Their Execution and Delivery; and Providing For
Their Payment.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Sid Inman, Ehlers & Associates, Inc.
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RESOLUTION NO.
A RESOLUTION AWARDING THE SALE OF $1,180,000 GENERAL
OBLIGATION STORM SEWER REVENUE REFUNDING BONDS, SERIES 20016;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR :EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Richfield, Hennepin County,
Minnesota (City) as follows:
Section 1. Sale of Bonds.
.]
1.01. The proposal of (Purchaser)
to purchase $1,180,000 General Obligation Storm Sewer Revenue Refunding Bonds, Series
2001 B (Bonds) of the City described in the Terms of Proposal thereof is determined to be a
reasonable offer and is accepted, the .proposal being to purchase the Bonds at a price. of
$ plus accrued interest to date of delivery, for .Bonds bearing interest as
follows:
Year of Interest
Maturi Rate
Year of Interest
Maturi Rate
2002
2003
2004
2005
2006
2007
True interest cost:
1.02. The sum of $ being the amount proposed by the Purchaser in
excess of $1,168,200 is credited to the Debt Service Fund hereinafter created. The City
Manager is directed to retain the good faith check of the Purchaser, pending completion of
the sale of the Bonds, and to return the good .faith- checks of the unsuccessful proposers
forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser
on behalf of the City.
1.03. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes,
Section 475.67 (Act) in the total principal amount of $1,180,000, originally dated May 3, 2001,
in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1,
upward, bearing interest as above set forth, and which mature serially on February 1 without
option of prior payment in the years and amounts as follows:
•
Year Amount Year Amount
. 2002 $155,000 2005 $205,000
2003 185,000 2006 210,000
2004 .195,000 2007 230,000
1.04. Term Bonds. (To be completed if Term. Bonds are requested by the
Purchaser.)
Section 2. Reqistration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The
interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable
by check or draft issued by the Registrar described herein.
2.02. Dates: Interest Payment Dates. Each Bond will be dated as of the last interest
payment date preceding the date of authentication to which interest on the Bond has been
paid or made available for payment, .unless, (i) the date of authentication is an interest
payment date to which interest has, been paid. or made available for payment, in which case
the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior
to the first interest payment date, in which case the Bond will be dated as of the date of
original issue. The interest on the Bonds is payable on February 1 and August 1 of each
year, commencing February 1, 2002, to the registered owners of record as of the close of
business on the fifteenth day of the immediately preceding month, whether or not that day is
• a business day.
2.03. Reqistration. The City will appoint, and will maintain, a bond registrar, transfer
agent, authenticating agent and paying agent (Registrar). The effect of registration and the
rights and duties of the City and the Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a
bond register in which the Registrar provides for the registration of ownership of Bonds
and the registration of transfers and exchanges of Bonds entitled to be registered,
transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed
by the registered owner thereof or accompanied by a written instrument of transfer, in
form satisfactory to the .Registrar, duly executed by the registered owner thereof or by
an attorney duly authorized by the registered owner in writing, .the Registrar will
authenticate and deliver, in the name of the designated transferee or transferees, one
or more new Bonds of a like aggregate principal amount and maturity, as requested by
the transferor. The Registrar may, however, close the books for registration of any
transfer after the fifteenth day of the month preceding each interest payment date and
until that interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered
• owner for exchange the Registrar will authenticate and deliver one or more new Bonds
of a like aggregate principal amount and maturity as requested by the registered
owner or the owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be
• promptly cancelled by the Registrar and thereafter disposed of as directed. by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar
is satisfied that the endorsement on the Bond or separate instrument of transfer is
valid and genuine and that the requested transfer is legally authorized. The Registrar
will incur no liability for the refusal, in good faith, to make transfers which it, in its
judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the
person in whose name a Bond is registered in the bond register as the absolute owner
of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment
of, or on account of, the principal. of and interest on the Bond and for all other
purposes, and payments so made to a registered owner or upon the owner's order will
be valid and effectual to satisfy and discharge the liability upon the Bond to the extent
of the sum or sums so paid.
(g) Taxes. Fees and Charges. .The Registrar may impose a charge upon
the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the
Registrar for any tax, .fee or other governmental charge required to be paid with
respect to the transfer or exchange.
• (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes
mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like
amount, number, maturity date and tenor in exchange and substitution for and upon
cancellation of the mutilated Bond or in ,lieu of and in substitution for any Bond
destroyed, stolen or lost, upon the payment of the reasonable expenses and charges
of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen
or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was
destroyed, stolen or lost, and- of the ownership thereof, and upon furnishing to the
Registrar an appropriate bond or indemnity in form, substance and amount
satisfactory to it and. as provided by law, in which both the City and the Registrar must
be named as obligees. Bonds so surrendered to the Registrar will be cancelled liy the
Registrar and evidence of such cancellation must be given to the City.. If the mutilated,
.destroyed, stolen or lost Bond has already matured or been called for redemption in
accordance with its terms it is not necessary to issue a new Bond prior to payment.
2.04. Appointment of Initial Registrar. The City appoints Wells Fargo Bank
Minnesota, N.A., Minneapolis,. Minnesota, as the initial Registrar. The Mayor and the City
Manager are authorized to execute and deliver, on behalf of the City, a contract with the
Registrar. Upon merger or consolidation of the Registrar with another corporation, if the
resulting corporation is a bank or trust company authorized by law to conduct such business,
the resulting corporation is authorized to act as successor Registrar. The City agrees to pay
the reasonable and customary charges of the Registrar for the services performed. The City
reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of
a successor Registrar, in which event the predecessor Registrar must deliver all cash and
Bonds in its possession to the successor Registrar and must deliver the bond register to the
successor Registrar. On or before each principal or interest due date, without further order of
this Council, the City Manager must transmit to the Registrar monies sufficient for the
• payment of all principal and interest then due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the
direction of the City Manager and executed on behalf of the City by the signatures of the
Mayor and the City Manager, provided that. all signatures may be printed, engraved or
lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose
signature appears on the Bonds ceases to be such officer before the delivery of-any Bond,
that signature or facsimile will nevertheless be valid .and sufficient for all purposes, the same
as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond
will not be valid or obligatory for any purpose or entitled to any security or benefit under this
Resolution unless and until a certificate of authentication on the Bond has been duly
executed by the manual signature of an authorized representative of the Registrar.
Certificates of authentication on different Bonds need not be signed by the same
representative. The executed certificate of authentication on a Bond is conclusive evidence
that it has been authenticated and delivered under this Resolution. When the Bonds have
been so prepared, executed and authenticated, the City Manager will deliver the same to the
Purchaser upon payment of the purchase price in accordance. with the contract of sale
heretofore made and executed,. and the Purchaser is not obligated to see to the application of
the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive
Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section
3 with such changes as may be necessary to reflect more than one maturity in a single
• temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds
will be exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed or typewritten in substantially the following form:
[Face of the Bond]
No. R- UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF RICHFIELD
GENERAL OBLIGATION STORM SEWER
REVENUE REFUNDING BOND, SERIES 20018
Date of
Rate Maturity Original Issue
May 3, 2001
• Registered Owner: Cede & Co.
CUSIP
The City of Richfield, Minnesota, a duly organized and existing municipal corporation
• in Hennepin County, Minnesota (City), acknowledges itself to be indebted and for value
received promises to pay to the Registered. Owner specified above or registered assigns, the.
principal sum of $ on the maturity date specified above without option of prior
payment, .with interest thereon from the date hereof at the annual rate specified above,
payable February 1 and August 1 in each year, commencing .February 1, 2002, to the person
in whose name this Bond is registered at the close of business on the fifteenth day (whether
or not a business day) of the immediately preceding month. The interest hereon and, upon
presentation and surrender hereof,. the principal hereof are payable in lawful money of the
United States of America by check or draft by Wells Fargo Bank .Minnesota, N.A.,
Minneapolis, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating
Agent, or its designated successor under -the- Resolution described herein. For the prompt
and full payment of such principal and interest as the same respectively become due,-the full
faith and credit and taxing powers of the City have been and are hereby irrevocably pledged.
This Bond is one of an issue in the aggregate principal amount of $1,180,000 all of like
original issue date and tenor, except as to number, maturity date, redemption privilege, and
interest rate, all issued pursuant to a resolution adopted by the City Council on March 26,°
2001 (the Resolution), for the purpose of providing money to refund the outstanding principal
amount of certain general obligation bonds of the City, pursuant to and in full conformity with-
the home rule charter of the City and the Constitution. and laws of the State of Minnesota,
including Minnesota Statutes, Section 475.67, and the principal hereof and interest hereon.:
are payable primarily from net revenues of the storm sewer utility of the City in a special debt
service fund of the City, as set. forth in the Resolution to which reference is made for a full
statement of rights and: powers thereby conferred. The full faith and credit of the City are
irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy
ad valorem taxes on all taxable property in the .City in the event of any deficiency in net storm
sewer utility system revenues pledged, which taxes may be levied without limitation as to rate
or amount.. The Bonds of this series are issued only as fully registered Bonds in
denominations of $5,000 or any integral multiple thereof of single maturities.
IT IS HEREBY CERTIFIED AND RECITED That in and by the Resolution,. the City
has covenanted and agreed that it will continue to own and operate the storm sewer utility
and system free from competition by other like utilities; that adequate insurance on said plant
and system and suitable fidelity bonds on employees. will be carried; -that proper and.
adequate books of account will be kept showing all receipts and disbursements relating to the
Storm Sewer Fund, into which it will pay all of the gross revenues from the storm sewer utility
system; that it will also create and maintain a General Obligation Storm Sewer Revenue
Refunding Bonds, Series 2001 B Debt Service Fund, into which it will pay, out of the net.
revenues from the storm sewer utility system a sum sufficient to pay principal hereof and
interest hereon when due; and that it will provide, by ad valorem tax levies, for. any deficiency
in required net storm sewer utility system revenues.
As provided in the Resolution and subject to .certain limitations set forth therein, this
Bond is transferable upon the books of the City at the principal office of the Bond Registrar,
by the registered owner hereof in person or by the owner's attorney duly authorized in writing,
• upon surrender hereof together with a written instrument of transfer satisfactory to the Bond
Registrar, duly executed by the registered owner or the owner's attorney; and may also be
surrendered in exchange for Bonds of .other authorized denominations. Upon such transfer
or exchange the City will cause a new Bond or Bonds to be issued in the name of the
transferee or registered owner, of the same aggregate principal amount, bearing interest at
the same rate and maturing on the same date,. subject to reimbursement for any tax, fee or
i governmental charge required #o be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and #reat the person in whose- name this
Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the
purpose of receiving payment and for all other. purposes, and neither the City nor the Bond
Registrar will be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, .COVENANTED AND AGREED that all acts,
conditions and things required by the home rule charter of the City and the Constitution and
laws of the State of Minnesota to be done, to exist, to happen and to be performed
preliminary to and in the issuance of this Bond in order to make it a valid and binding general
obligation of the City in accordance with its terms, have been done, do exist, have happened
and have been performed as so .required,. and that the issuance of this Bond does not cause
the indebtedness of the City to exceed any constitutional, statutory or charter limitation of
indebtedness.
This Bond is not valid or obligatory for any :purpose or entitled to any security or
benefit under the.. Resolution until the Certificate of Authentication hereon has been executed
by the Bond Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Richfield, Hennepin County, Minnesota, by its
City Council, has caused this Bond to be executed on its behalf by the facsimile or manual
signatures of the .Mayor and City Manager and .has caused this Bond to be dated as of the..
date set forth below.
Dated:
(Facsimile) (Facsimile)
City Manager Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the. Bonds delivered pursuant to the Resolution mentioned within.
CITY OF RICHFIELD, MINNESOTA
WELLS FARGO BANK
MINNESOTA, N.A.
By
Authorized Representative
The following abbreviations, when used in-the inscription on the face of this Bond, will
be construed as though they were written out in full according to .:applicable laws or
regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT Custodian
in common (Gust) (Minor)
TEN ENT -- as tenants
by entireties
JT TEN -- as joint tenants with
right of survivorship and
not as tenants in common
under Uniform Gifts or
Transfers to Minors
Act.
(State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights thereunder,
and does hereby .irrevocably constitute and. appoint attorney
to transfer the said Bond on the books kept for registration of the within Bond, with full power
of substitution in the premises.
Dated:
Notice: The assi nor's si nature to this assi nment must corres and with
g g g p
the name as it appears .upon the face of the within Bond in every
particular,, without alteration or any change whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a [member of the Medallion Signature Program.]
[national bank or trust company or by a brokerage firm having a membership in one of the
major stock exchanges.]
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the assignee requested below is provided.
U
Name and Address:
•
Please insert social security. or other
identifying number of assignee
(Include information for all joint owners if this Bond
is held by joint account.)
PROVISIONS AS TO REGISTRATION
•
The ownership of the principal of and interest on the within Bond has been registered
on the books of the Registrar in the name of the person last noted below.
Signature of
Date of Registration Registered Owner Officer of Registrar
3.02. The City Manager is authorized and directed to obtain a copy of the proposed
approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is
to be complete except as to dating thereof and cause the opinion to be printed on or
accompany each Bond.
Cede & Co.
Federal ID #13-2555119
Section 4. Payment: Security; Pledges and Covenants.
4.01. The City will create and continue to operate its Storm .Sewer Utility Fund to
which will be credited all gross revenues of the storm sewer utility system and out of which
will be paid all normal and reasonable expenses of current operations of the storm sewer
utility system. Any balance therein will be deemed net revenues and will be transferred from
time to time, to a General Obligation Storm Sewer Revenue Refunding. Bonds, Series 2001 B
Debt Service Fund (Debt Service Fund) hereby created in the Storm Sewer Utility Fund,
which fund will be used only to pay principal of and interest on the Bonds and any other
bonds similarly authorized. The Storm Sewer Utility Fund Accounts established in the
resolution awarding the sale of the Refunded Bonds are continued and will be maintained as
therein provided.. There will always be retained in the Debt Service Fund a sufficient amount
to pay principal of and interest on all the Bonds, and the City Finance Director will report any
current or anticipated deficiency in the Debt Service Fund to the City Council.
• 4.02. It is determined that estimated collection of net revenues of the storm sewer
utility system available for the payment of principal and interest on the Bonds will produce at
least five percent in excess of the amount needed to meet when due, the principal and
interest payments on the Bonds and that no tax levy is needed at this time.
4.03.. The Clerk is directed to file a certified copy of this resolution with the Taxpayer
Services Division Manager of Hennepin County and to obtain the certificate required by
Section 475.63 of the Act.
4.04. It is hereby determined that upon. the receipt of .proceeds of the Bonds
(Proceeds) for payment of the Refunded Bonds that an irrevocable appropriation to the debt
service fund for the Refunded Bonds wilt. have been made within the meaning of Section
475.61, Subdivision 3 of the Act, and the City Clerk is hereby authorized and directed to
certify such fact to and request the Taxpayer Services Division Manager to cancel any and all
tax levies made by the resolution authorizing and approving the Refunded Bonds.
4.06. The City Council covenants and agrees with the holders of the Bonds that so
long as any of the Bonds remain outstanding and unpaid, it will keep and enforce the
following covenants and agreements:
(a) The City will continue to maintain and efficiently operate the storm sewer
utility system as public utilities and conveniences free, from competition of other like
utilities and will cause all revenues therefrom to be deposited in bank accounts and
credited to the storm sewer system accounts as hereinabove provided, and will make
no expenditures -from said accounts except for a duly authorized purpose and in
accordance with this resolution.
(b The Cit will also maintain the Debt Service Fund as a se agate account
) Y p
in the Storm Sewer Utility Fund and will cause money to be credited thereto from time
to time, out of net revenues from the storm .sewer utility system in sums sufficient to
pay principal of and interest on the Bonds when due.
(c) The City will keep and maintain proper and adequate books of records
and accounts separate from all other records of the City in which will be complete and
correct entries as to all transactions relating to the storm sewer utility system and
which will be open to inspection and copying by any bondholder, the bondholder's
agent or attorney, at any reasonable time, and it will furnish certified transcripts
therefrom upon request and upon payment of a reasonable fee therefor, and said
account will be audited at least annually by a qualified public accountant and
statements of such audit and report will be furnished to all bondholders upon request.
(d) The City Council will cause all persons handling revenues of the storm
sewer utility system to be bonded in reasonable .amounts for the protection of the City
and the bondholders and .will cause the funds collected on account of the operations
of the storm sewer utility system to be deposited in a bank whose deposits are
guaranteed under the Federal Deposit Insurance Law.
(e) The Council will keep the storm sewer utility system insured at all times
against loss by fire, tornado and other risks customarily insured against with an insurer
or insurers in good standing, in such amounts as are customary for -like plants, to
protect the holders, from time to time, of the Bonds and the City from any loss due to
any such casualty and will apply the proceeds of such .insurance to make good any
such loss.
•
(f) The City and each and all of its officers will punctually perform all duties
with reference to the storm sewer utility system as required by the laws of the State of
Minnesota.
(g) The City will impose and collect charges of the nature authorized by
Minnesota Statutes., section 444.075 at the times and in the amounts required to
produce net revenues adequate to pay all principal and interest when due on the
Bonds and to create and maintain such reserves securing said payments as may be
provided in this resolution.
(h) The City Council will levy general ad valorem taxes on all taxable
property in the City when required to meet any deficiency in net revenues pledged for
payment of the Bonds.
Section 5. Refunding; Findings; Redemption of Refunded Bonds.
5.01. The Refunded Bonds. are the General Obligation Storm Sewer Revenue
Refunding Bonds, Series 1992A, of the City, dated December 1, 1992, of which $1,1.65,000
in principal amount is callable on August 1, 2001. It is hereby found and .determined that
based upon information presently available from the City's financial advisers, the issuance of
the Bonds is consistent with covenants made with the holders thereof and is necessary and
desirable for the reduction of debt service cost to the municipality:
5.02. It is hereby found and determined that the Proceeds will be sufficient to prepay
all of the principal of, interest on and redemption premium (if any) on the Refunded Bonds.
5.03. The Refunded Bonds maturing on February 1, 2002 and thereafter will be
redeemed and prepaid on August 1, 2001. The Refunded Bonds will be redeemed and
prepaid in accordance with their terms and in accordance with the terms and conditions set
forth in the form of Notice of Call for Redemption attached hereto as Attachment A which
terms and conditions are hereby approved and incorporated herein by reference. The
Registrar for the Refunded Bonds is authorized and directed to send a copy of the Notice of
Redemption to each registered holder of the Refunded Bonds.
5.04. When all Bonds and all interest thereon, have been discharged as provided in
this section, all pledges, covenants and. other rights granted by this resolution to the holders
of the Bonds will cease, except that-.the pledge of the full faith and credit of the City for the
prompt and full. payment of the principal of and interest on the Bonds will remain in full force
and effect. The City may discharge all Bonds which are due on any date by depositing with
the Registrar on or before that date a sum sufficient for the payment thereof in full. If any
.Bond should not be paid when due, it may nevertheless be discharged by depositing with the
Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of
such deposit.
• Section 6. Authentication of Transcript.
6.01. The officers of the City are authorized and directed to prepare and furnish to
the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and
records of the City relating to the Bonds and to the financial condition and affairs of the City,
and such other certificates, affidavits and transcripts as may be required to show the facts
within their knowledge or as shown by the books and records in their custody and under their
control, relating to the validity and marketability of the Bonds and such instruments, including
any heretofore furnished, will be deemed representations of the City as to the facts stated
therein.
6.02. The Mayor, City Manager and Finance Director are hereby authorized and
directed to certify that they have examined the Official Statement prepared and circulated in
connection with the issuance and sale of the Bonds and that to the best of their knowledge
and belief the Official Statement is a complete and accurate representation of the facts and
representations made therein as of the date of the Official Statement.
6.03. The City authorizes the Purchaser to forward the amount of Bond proceeds
allocable to the payment of issuance expenses (other than .amounts payable to Kennedy &
Graven, Chartered as Bond Counsel) to Resource Bank & Trust Company, Minneapolis,
Minnesota on the closing date for further distribution as directed by the City's financial
adviser, Ehlers and Associates, Inc.
Section 7. Tax Covenant.
7.01. The City covenants and agrees with the holders from time to time of the Bonds
that it will not take or permit to be taken by any of its officers, employees or agents any action
which would cause the interest on the Bonds to become subject to taxation under the Internal
Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated
thereunder, in effect at the time of such actions, and that it will take or cause its officers,
employees or agents to take, all affirmative action within its power that may be necessary to
ensure that such interest will not become subject to taxation under the Code and applicable
Treasury Regulations, as presently existing or as hereafter amended and made applicable to
the Bonds.
7.02. The City will comply with requirements necessary under the Code to establish
and maintain the exclusion from gross income of the interest on the Bonds under Section 103
of the Code, including without limitation requirements relating to temporary periods for
investments, limitations on amounts invested at a yield greater than the yield on the Bonds.
7.03. The City further covenants not to use the proceeds of the Bonds or to cause or
permit them or any of them to be used, in such a manner as to cause the Bonds to be
"private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
7.04. The City will use its best efforts to comply with any federal procedural
• requirements which may apply in order to effectuate the designations made by this section.
Section 8. Book-Entry System; Limited Obligation of City.
8.01. The Bonds will be initially issued in the form of a separate single typewritten or
• printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon
initial issuance, the ownership of each Bond will- be registered in the registration books kept
by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust
Company, New York, New York, and its successors and assigns (DTC). Except as provided
in this section, all of the outstanding Bonds will be registered in the registration books kept by
the Bond Registrar in the name of Cede & Co., as nominee of DTC.
8.02. With respect to Bonds registered in the registration .books kept by the Bond
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and
the Paying Agent will have no responsibility or obligation to any broker dealers, banks and
other financial institutions from time to time .for which DTC holds Bonds as securities
depository (Participants) or to any other person on behalf of which a Participant holds an
interest in the Bonds, including but not limited to any responsibility or obligation with respect
to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any
ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other
than a registered owner of Bonds, as shown by the registration books kept by the Bond
Registrar), of any notice with respect to the Bonds, including any notice of redemption, or (iii)
the payment to any Participant or any other person, other than a registered owner of Bonds,
of any amount with respect to principal of, premium, if any, or interest on the Bonds. The
City, the Bond Registrar and the- Paying Agent may treat and consider the person in whose
name each Bond. is registered in the. registration books kept by the Bond Registrar as the
holder and absolute owner of such Bond for the purpose of payment of principal, premium
and interest with respect to such Bond, for the purpose of registering transfers with respect to
• such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if
any, and interest on the Bonds only to or on the order of the respective registered owners, as
shown in the registration books .kept by the Bond Registrar, and all such payments will be
valid and effectual to fully satisfy and discharge the City's obligations with respect to payment
of principal of, premium, if any, or interest on the Bonds to the extent of the sum. or sums so
paid. No person other than a registered owner of Bonds, as shown in the registration books
kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this
resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that:
DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede. &
Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City
Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent.
8.03. Representation Letter. The City has heretofore executed and delivered to DTC
a Blanket Issuer Letter of Representations (Representation Letter) which will govern payment
of principal of, premium, if any, and interest on the Bonds and notices with respect to the
Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect
to the Bonds will agree to take all action necessary for all representations of the City in the
Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to
be com-plied with at all times.
8 04. Transfers Outside Book-Entry System. In the event the City, by resolution of
the City Council, determines that it is in the best interests of the persons having. beneficial
• interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC,
whereupon DTC will notify the Participants,. of the availability through DTC of Bond
certificates. In such event the City will issue, transfer and exchange Bond certificates as
requested by .DTC and any other registered owners in accordance with the provisions of this
Resolution. DTC may determine to discontinue providing its services with respect to the
• Bonds at any time by giving notice to the City and discharging its responsibilities with respect
thereto under applicable law. In such event, if no successor securities depository is
appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in
accordance with this resolution and the provisions hereof will apply to the transfer, exchange
and method of payment thereof.
8.05. Payments to Cede & Co. Notwithstanding any other provision of this
Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as
nominee of DTC, payments with respect to principal of, premium, if any, and interest on the
Bond and notices with respect to the Bond will be made and given, respectively in the
manner provided in DTC's Operational Arrangements as set forth in the Representation
Letter.
Section 9. Continuing Disclosure
9.01. The City hereby covenants and agrees that it will comply with and carry out all
of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other
provision of this Resolution, failure of the City to comply with the Continuing Disclosure
Certificate will not be considered. an event of default with respect to the Bonds; however, any
Bondholder may take such actions as may be necessary and appropriate, including seeking
. mandate or specific performance by court order, to .cause the City to comply .with its
obligations under this section.
9.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure
Certificate executed by the Mayor and City Manager and dated the date of issuance and
delivery of the Bonds, as originally executed and as it may be amended from time to time in
accordance with the terms thereof.
The motion for the adoption of the foregoing resolution was duly seconded by Member
and upon vote being taken thereon, the following voted in
favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
STATE OF MINNESOTA )
• COUNTY OF HENNEPIN ) SS.
CITY OF RICHFIELD )
I, the undersigned, being the duly qualified and acting City Clerk of the City of
Richfield, Hennepin County, Minnesota, do hereby certify that I have carefully compared the
attached and foregoing extract of minutes of a regular meeting of the City Council of the City
held on March 26, 2001 with the original minutes on file in my office and the extract is a full,
true and correct copy of the minutes insofar as they relate to the issuance and sale of
$1,180,000 General Obligation Storm Sewer Revenue Refunding Bonds, Series 20016 of the
City.
WITNESS My hand officially as such City Clerk and the corporate seal of the City this
day of , 2001
•
City Clerk
Richfield, Minnesota
(SEAL)
•
• NOTICE OF CALL FOR REDEMPTION
$2,170,000
GENERAL OBLIGATION STORM SEWER REVENUE
REFUNDING BONDS, SERIES 1992A
CITY OF RICHFIELD
HENNEPIN COUNTY, MINNESOTA
ATTACHMENT B
NOTICE IS HEREBY GIVEN that, by order of the. City Council of the City of Richfield,
Hennepin County, Minnesota, there have been called for redemption and prepayment on
August 1, 2001
all outstanding bonds of the City designated as General Obligation Storm Sewer Revenue
Refunding Bonds, Series 1992A, dated December 1, 1992, having stated maturity dates of
February 1 in the years 2002 through 2007, both inclusive, totaling $1,165,000 in principal
amount, and with the following CUSIP numbers:
Year Amount CUSIP
2002 $165,000 763 325 YR2
2003 175,000 763 325 YSO
2004 185,000 763 325 YT8
2005 200,000 763 325 YU5
2006 210,000 763 325 YV3
2007 230,000 763 325 YW1
• The bonds are bein called at a rice of ar lus accrued interest to Au ust 1 2001 on
9 p p p g ,
which date all interest on said bonds will cease to accrue. Holders of the bonds hereby
called for redemption are requested to present their bonds for payment at the office of the
Finance Manager of the City. of Richfield, Minnesota, on or before August 1, 2001.
In compliance with the Interest and .Dividend Compliance Act of 1983 and Broker
Reporting Requirements, the- redeeming institution is required to withhold a specified
percentage of the principal amount of your holdings redeemed unless they are provided with
your social securitynumber orfederal employer identification number, properly certified. This
Compliance should be fulfilled through the submitting of a W-9 Form which may be obtained
at a Bank or other Financial Institution.
The Registrar will not be responsible for the selection or use of the CUSIP number,
nor is any representation made as to the correctness indicated in the Redemption Notice or
on any Bond. It is included solely for convenience of the Holders.
Dated: , 2001.
BY ORDER OF THE CITY COUNCIL
By
• City Clerk
City of Richfield, Minnesota
n
LJ
•
STATE OF MINNESOTA TAXPAYER SERVICES DIVISION
MANAGER'S CERTIFICATE AS TO
COUNTY OF HENNEPIN REGISTRATION WHERE NO AD
VALOREM TAX LEVY
I, the undersigned Taxpayer Services Division Manager of Hennepin County,
Minnesota, hereby certify that a resolution adopted by the City Council of the City of Richfield,
Minnesota, on March 26, 2001, relating to_ General Obligation Storm Sewer Revenue
Refunding Bonds, Series 20016, in the amount of $1,180,000, dated May 3, 2001, has been
filed in my office and said obligations have been registered on the register of obligations in
my office.
WITNESS My hand and official seal this
day of
2001.
(SEAL)
Taxpayer Services Division Manager
Hennepin County, Minnesota
By
Deputy
•
•
AGENDA SECTION: Resolutions
AGENDA ITEM #
REPORT # $ 4
J STAFF .REPORT
CITY COUNCIL MEETING
MARCH 26, 2001
•
REPORT PREPARED BY: KATIA MEDVETSKI,
REDEVELOPMENT SPECIALIST
NAME TITLE
REPORT PRESENTER: BRUCE PALMBORG,
.COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
SIGNATURE
REVIEWED BY CITY MANAGER: ~ ~~~ `~-
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution awarding the sale of $8,350,000 General Obligation Tax
Increment Bonds, Series 2001A; fixing their form and specifications; directing their execution
and delivery; and providing. for their payment.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution awarding the sale of $8,350,000
General Obligation Tax Increment Bonds, Series 2001 A; fixing their
form and specifications; directing their execution. and delivery; and
providing for their payment.
III. BACKGROUND ~
On March 12, 2001, the City Council adopted a resolution providing for the sale of
$8,350,000 General Obligation Tax Increment Bonds, Series 2001A, (G.O. TIF
Bond) to help provide funding for the construction of the new Penn Avenue bridge
over I-494. The G.O. TIF Bond issue includes approximately $7 million in bond
proceeds plus $1.35 million in interest and .issuance fees.
• The source of funding for the debt service on these bonds is to be the tax increment
generated in the Interchange West area from the Best Buy project. On March 19,
2001, the Housing .and Redevelopment Authority (HRA) approved a resolution
0326awardbond.doc
authorizing the execution of a Tax Increment Pledge Agreement (Pledge
Agreement) with the City for this bond issue. The Pledge Agreement provides the
HRA with the authority to transfer to the City the tax increment from the Best Buy
project to pay debt service on the bonds. The City's resolution awarding the sale of
the bonds also includes language that authorizes and directs the Mayor and City
Manager to execute and deliver the Pledge Agreement on behalf of the City. A
copy of the Pledge Agreement is attached for review.
Bids on the bonds are due in the offices of Ehlers & Associates on Monday, March
26. Mr. Sid Inman will be at the City Council meeting to recommend the successful
bidder, review the attached documents, and provide information that is absent
from the resolution and available only after the bidding on the bonds has
closed.
Following Mr. Inman's recommendation it would be appropriate for the. City Council
to award the bond sale to the qualified buyer and undertake other related actions as
necessary as delineated in the approving resolution. The closing on the G.O. TIF
Bonds is scheduled for April 12, 2001.
III. BASIS OF RECOMMENDATION
A. POLICY
. • The HRA signed a Contract for Private. Development with Best Buy for the
Interchange West area on March 20, 2000 and has made financial
commitments, a component of which includes the issuance of G.O. TIF
Bonds to the Best Buy Project providing for the construction of a new Penn
Avenue Bridge.
• The City Council approved the issuance of G.O. TIF Bonds on March 12,
2001.
• The. HRA approved execution of a Pledge Agreement relating to the G.O. TIF
Bonds on March 19, 2001.
B. CRITICAL ISSUES
• Moving ahead with the bridge financing is critical to the success of the Best
Buy project.
• The closing on the bond sale is scheduled for April 12, 2001.
C. FINANCIAL
• The. bond sale will help make it possible to meet the financial commitments
made to Best Buy.
• The funding for the debt service on the G.O. TIF Bonds is to be the tax
increment generated by the Best Buy development. Legal and financing.
mechanisms have been established in order to assure that there will be
sufficient tax increment to service the debt.
•
D. LEGAL
• Legal counsel has been involved in the bond sale transaction as bond
counsel to the City.
. IV. ALTERNATIVE RECONIlVIENDATION(S~
• The City Council may decide to not proceed with awarding the sale of the
bonds or delay action until a future City Council meeting. However, both of
these alternatives would jeopardize the Best Buy project.
V. ATTAC~IMENTS
• Resolution Awarding the Sale of $8,350,000 General Obligation Tax
Increment Bonds, Series 2001A; fixing their form and specifications; directing
their execution and delivery; .and providing fortheir payment.
• Tax Increment Pledge Agreement
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Sid Inman, Ehlers & Associates, Inc.
•
RESOLUTION NO.
• RESOLUTION AWARDING THE SALE OF $8,350,000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2001A;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Richfield, Hennepin County,
Minnesota (City) as follows:
Section 1. Sale of Bonds.
1.01. The staff of the City and the Housing .and Redevelopment Authority have
prepared a form of Tax Increment Pledge Agreement (TIF Agreement) under which the HRA
agrees to make .tax increments from the .Interchange West and Lyndale Gateway Tax
Increment District available to the City to pay principal of and interest on the bonds authorized
by this Resolution. The form of the Tax Increment Agreement is approved. The Mayor and
City Manager are authorized and directed to execute and deliver the Tax Increment
Agreement on behalf of the City.
1.02. The proposal. of (Purchaser)
to purchase $8,350,000 General Obligation Tax Increment Bonds, Series 2001A (Bonds) of
the City described in the Terms of Proposal thereof is found and determined to be a
• reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price
of $ plus accrued interest to date of delivery, for Bonds bearing interest as
follows:
Year of Interest Year of Interest
Maturity Rate Maturi Rate
2005 2015
2006 2016
2007 2017
2008 2018
2009 2019
2010 2020
2011 2021
2012 2022
2013 2023
2014 2024
True interest cost:
1.03. The sum of $ being the amount proposed by the Purchaser in
excess of $8,237,275 will be credited to the Debt Service Fund hereinafter created. The City
. Finance Manager is directed to retain the good faith check of the Purchaser, pending.
completion of the sale of the Bonds, and. to return the good faith checks of the unsuccessful
proposers forthwith. The Mayor and City Manager are directed to execute a contract with the
Purchaser on behalf of the City.
0326awardbond.doc
• 1.04. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes,
Chapters 469 and 475 (collectively, the Act), in the total principal amount of $8,350,000,
originally dated April 1, 2001, in the denomination of $5,000 each or any integral multiple
thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially
on February 1 in the years and amounts as follows:
Year Amount Year Amount
2005 $260,000 2015 $405,00
0
2006 270,000 2016 425,000
2007 285,000 2017 450,000
2008 295,000 2018 470,000
2009 310,000 2019- 495,000
2010. 320,000 2020. 525,000
2011 335,000 2021 550,000
2012 355,000 2022 580,000
2013 370,000 2023 615,000
2014 385,000 2024 650,000
1.05. Optional. Redemption. The City may elect on February 1, 2011, and on any day
thereafter to prepay Bonds due on or after February 1, 2012. Redemption may be in whole
or in part and. if in part, at the option of the .City and in .such manner as the City will determine.
If less than all Bonds of a maturity are ..called for redemption, the City will notify DTC (as
defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will.
determine by lot the amount of each participant's interest in such maturity to be redeemed
and each participant will then select by lot the beneficial ownership interests in such maturity
to be redeemed. Prepayments will be at a price of par plus accrued interest.
1.06. Term Bonds. (To be completed if Term Bonds are requested by the
Purchaser.)
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The
interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable
by check or draft issued by the Registrar described herein.
2.02. Dates: Interest Payment Dates. Each Bond will be dated as of the last interest
payment date preceding the date of authentication to which interest on the Bond has been
paid or made available for payment, unless (i) the date of authentication is an interest
payment date to which interest has been paid-or made available for payment,. in which case
the Bond will be dated as of the date of authentication, or (ii) the -date of authentication is prior
to the first interest payment date, in which case the Bond will be dated as of the date of
original issue. The interest on the Bonds is payable on February 1 and August 1 of each
year, commencing August 1, 2001, to the registered owners of record as of the close of
business on the fifteenth day of the immediately preceding month, whether or not that day is
a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent,
authenticating agent and paying agent (Registrar). The effect of registration and the rights
S and duties of the City and the Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its .principal corporate trust office a
bond register in which the Registrar provides for the registration of ownership of Bonds
and the registration of transfers and exchanges of Bonds entitled to be registered,
transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed
by the registered owner thereof or accompanied by a written instrument of transfer, in
form satisfactory to the Registrar, duly executed by the registered owner thereof or by
an attorney duly authorized by the registered owner in writing, the Registrar will
authenticate and deliver, in the name of the designated transferee or transferees, one
or more new Bonds of a like aggregate principal amount and maturity, as requested by
the transferor. The Registrar may, however, close the books for registration of any
transfer after the fifteenth day of the month preceding each interest payment date and
until that interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered
owner for exchange the Registrar will authenticate and deliver one or more new Bonds
of a like aggregate principal amount and maturity as requested by the registered
owner or the owner's attorney in writing.
(d) .Cancellation. Bonds surrendered upon transfer or exchange will be
promptly cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar
is satisfied that the endorsement on such Bond or separate instrument of transfer is
valid and genuine and that the requestedtransfer is legally authorized. The Registrar
will incur no liability for the. refusal, in good faith, to make transfers which it, in its
judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the
person in whose name a Bond is registered in the bond register as the absolute owner
of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment
of, or on account of, the principal of and interest on the Bond and for all other
purposes, and payments so made to a registered owner or upon the owner's order will
be valid and effectual to satisfy and discharge the liability upon the Bond to the extent
ofthe sum or sums so paid.
(g) Taxes. Fees and Charges. The Registrar may impose a charge upon
the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the
Registrar for any tax, fee or other governmental charge required to be paid with
respect to the transferor exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes
mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of .like
amount, number, maturity date and tenor in exchange and substitution for and upon
cancellation of the mutilated Bond or in lieu of and in substitution for a Bond
• destroyed, stolen or lost, upon the payment of the reasonable expenses and charges
of the Registrar in connection therewith; and,- in the case of a Bond destroyed, stolen
or lost, upon filing with the Registrar of .evidence. satisfactory to it that the Bond was
destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the
Registrar an appropriate bond or indemnity in form, substance and amount
satisfactory to the Registrar, in which both the City and the Registrar must be named
as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar
and evidence of such cancellation must be given to the City. If the mutilated,
destroyed, stolen or lost Bond has already matured or been called for redemption in
accordance with its terms it is not. necessary to issue a new Bond prior to payment.
(i) Redemption. In .the event any of the Bonds are called .for redemption,
notice thereof identifying the Bonds to be redeemed will be given by the Registrar. by
mailing a copy of the redemption notice by first class mail (postage prepaid) not more
than 60 and not less than 30 days prior to the date fixed for redemption to the
registered owner of each Bond. to be redeemed at the address shown on the
.registration books kept by the Registrar and by publishing the notice if required by law.
Failure to give notice by publication or by mail to .any registered. owner, or any defect
therein, will. not affect the validity of the proceedings for the redemption of Bonds.
Bonds so called for redemption will cease to bear interest after the specified
redemption date, provided that the funds for the redemption are on deposit with the
place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints Wells Fargo Bank
Minnesota, N.A., Minneapolis, Minnesota, as the initial Registrar. The Mayor and the City
Manager are authorized to execute and deliver, on behalf of the City, a contract with the
Registrar. Upon merger or consolidation of the Registrar with another corporation., if the
resulting corporation is a bank or trust company authorized by law to conduct such business,
the resulting corporation is authorized to act as .successor Registrar. The City agrees to pay
the reasonable and customary charges of the Registrar for the services performed. The City
reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of
a successor Registrar, in which event the predecessor Registrar must deliver all cash and
Bonds in its possession to the successor Registrar and must deliver the bond register to the
successor Registrar. On or before each principal or interest due date, without further order of
this Council, the City Manager must transmit to the Registrar moneys sufficient for the
payment of all principal and interest then due.
2.05, Execution. Authentication and Delivery... The Bonds will be prepared under the
direction of the City Manager and executed on behalf of the City by the signatures of the
Mayor and the City Manager, provided that all signatures may be printed, engraved or
lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose
signature appears on the Bonds ceases to be such officer before the delivery of any Bond,
that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same
as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond
will not be valid or obligatory for any purpose or entitled to any security or benefit under this
Resolution unless and until a certificate of authentication on .the Bond has been duly
executed by the manual signature of an authorized representative of the Registrar.
Certificates of authentication on different .Bonds need not be signed by the same
representative. The executed certificate of authentication on a Bond is conclusive evidence
that it has been authenticated and delivered under this Resolution. When the Bonds have
• been so prepared, executed and authenticated, the City Finance Manager will deliver the
same to the Purchaser upon payment of the purchase price in accordance with the contract
of sale heretofore made and executed, and the Purchaser is not obligated. to see to the
application of the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive
Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section
3 with such changes as may be necessary to reflect more than one maturity in a single
temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds
will be exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed or typewritten in substantially the following form:
[Face of the Bond]
No. R- UNITED STATES OF AMERICA $
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF RICHFIELD
• GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 2001A
Rate Maturity Original Issue CUSIP
April 1, 2001
Registered Owner: Cede & Co.
The City of Richfield, Minnesota, a duly organized and existing municipal corporation
in Hennepin County, Minnesota (City), acknowledges itself to be indebted and for value
received hereby promises to pay to the Registered Owner- specified above or registered
assigns, the principal sum of $ on the maturity date specified above, with interest
thereon from the date hereof at the annual rate specified above, payable February 1 and
August 1 in each year, commencing August 1, 2001, to the person in whose name this Bond
is registered at the close of business on the fifteenth day (whether or not a business day) of
the immediately preceding month. The interest hereon and, upon presentation and surrender
hereof, the principal hereof are payable in lawful. money of the United States of America by
check or draft by Wells Fargo Bank Minnesota, N.A., Minneapolis, Minnesota, as Bond
Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated
successor under the Resolution described herein. For the prompt and full payment of such
principal and interest as the same respectively become due, the full faith and credit and
taxing powers of the City have been and are hereby irrevocably. pledged.
The City may elect on February 1, 2011, and on any day thereafter to prepay Bonds
• due on or after February 1, 2012. Redemption. may be in whole or in part and if in part, at the
option of the City and in such manner as the .City will determine.. If less than all Bonds of a
maturity are called for redemption, the City will notify Depository Trust Company (DTC) of the
particular amount of such maturity to be prepaid. DTC will .determine by lot the amount of
each participant's interest in such maturity to be redeemed and each participant will then
select by lot the beneficial ownership interests in such maturity to be redeemed.
Prepayments will be at a price. of par plus accrued interest.
This Bond is one of an issue in the aggregate principal amount of $8,350,000 all of like
original issue date and tenor, except as to number, maturity. date, redemption privilege, and
interest rate, all issued pursuant to a resolution. adopted by the City Council on March 26,
2001 (the Resolution), for the purpose of providing money to aid in financing the public
redevelopment costs of a project (Project) in a Tax Increment Financing District (District) in
the City, pursuant to and in full conformity with the home rule charter of the City and the
Constitution and laws of the State of Minnesota, including Minnesota .Statutes, Sections
469.174 to 469.179, the Minnesota Tax Increment Financing Act, and Minnesota Statutes,
Sections 469.001 through 469.047 and the principal hereof and interest hereon are payable
primarily from tax increments resulting from increases in assessed valuation of real property
in the Project in the District, as set forth in the Resolution to which reference is made for a full
statement of rights and powers thereby conferred. The full faith and credit of the City are
irrevocably pledged for payment of this Bond and .the City Council has obligated itself to levy
ad valorem taxes on all taxable properly in the. City in the event of any deficiency in tax
increments pledged, which taxes may be levied without limitation as to rate or amount. The
• Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or
any integral multiple thereof of single maturities.
As provided in the Resolution and. subject to certain. limitations set forth therein, this.
Bond is transferable upon the books of the City at the principal office of the Bond Registrar,
by the registered owner hereof in person or by the owner's attorney duly authorized in writing,
upon surrender hereof together with a written instrument of transfer satisfactory to the Bond
Registrar, duly executed by the registered owner or the owner's attorney; and may also be
surrendered in exchange for Bonds of other authorized. denominations. Upon such transfer
or exchange the City will cause a new Bond or Bonds to be issued in the name of the
transferee or registered owner, of the same aggregate principal amount, bearing interest at
the same rate and maturing on the same date, subject to reimbursement for any tax, fee or
governmental charge required to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and-treat the person in whose name this
Bond is registered as the. absolute owner hereof, whether this. Bond is overdue or not, for the
purpose of receiving payment and for all other purposes, and neither the City nor the Bond
Registrar will be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the home rule charter of the City and the Constitution and
laws of the State of Minnesota to be done, to exist, to happen and to be performed
preliminary to and in the issuance of this Bond in order to make it a valid and binding general
obligation of the City in accordance with its terms, have been done, do exist, have happened
and have been performed as so required, and that the issuance of this Bond does not cause
the indebtedness of the City to exceed any constitutional, statutory or charter limitation of
indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or
benefit under the Resolution until the Certificate of Authentication hereon has been executed
by the Bond Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Richfield, Hennepin County, Minnesota, by its
City Council, has caused this Bond to be executed on its behalf by the facsimile or manual
signatures of the Mayor and City Manager and has caused this Bond to be dated as of the
date set forth below.
Dated:
CITY OF RICHFIELD, MINNESOTA
(Facsimile) (Facsimile)
City Manager Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered. pursuant to the Resolution mentioned within.
i WELLS FARGO BANK
MINNESOTA, N.A.
By
Authorized Representative
The following abbreviations, when used in the inscription on the face of this Bond, will
be construed as though they were written. out in full according to applicable laws or
regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT Custodian
in common (Gust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and Act . .
not as tenants in common (State)
Additional abbreviations may also be used though not in the above list.
•
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights thereunder,
and does hereby irrevocably constitute and appoint attorney
to transfer the said Bond on the books kept for registration of the within Bond, with full power
of substitution in the premises.
Dated:
Notice: The assignor's signature to this assignment must correspond with
the name as it appears upon the face of the within Bond in every
particular, without alteration or any change whatever.
Signature Guaranteed:
• NOTICE: Signature(s) must be guaranteed by a financial institution that is a .member of the
Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion
Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures .Program
("MSP") or other such "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the
Securities Exchange Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the assignee requested below isprovided.
Name and Address:
(Include information for all joint owners if this Bond
is held by joint account.)
Please insert social security or other
identifying number of assignee
•
• PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered
on the books of the Registrar in the name of the person last noted below.
Signature of
Date of Registration Registered Owner Officer of Registrar
Cede & Co.
Federal ID #13-2555119
3.02. The City Clerk is directed to obtain a copy of the proposed approving legal
opinion of Kennedy & Graven, Chartered,: Minneapolis, Minnesota, which is to be complete
except as to dating thereof and to cause .the .opinion to be printed on or accompany each
Bond.
Section 4. Payment: Security; Pledges and Covenants.
• 4.01. The proceeds of the Bonds are to be used by the City and the Housing and
Redevelopment Authority (HRA) to construct improvements (Project) in the Interchange West
and Lyndale Gateway Tax Increment District (TIF District) identified in the Tax .Increment
Financing Plan (TIF Plan) for the TIF District, all as part of Project Plan for the Richfield
Redevelopment Project Area. As required by the Act the City and the HRA have entered into
a Tax Increment Pledge Agreement (Pledge Agreement) of even date herewith under which
tax increments from. the TIF District received by the HRA have, by the Pledge Agreement,
been pledged to the payment of the principal of and interest on the Bonds.
4.02. The Bonds are payable from the General Obligation Tax Increment Bonds,
Series 2001A Debt Service Fund (Debt Service Fund) hereby created, and all tax increments
(Tax Increments) from the Tax Increment Financing District. (District) in which the project
financed by the Bonds is located received by the City pursuant to the Tax Increment
Agreement are pledged to the Debt Service Fund. If a payment of principal or interest on the
Bonds becomes due when there is not sufficient money in the. Debt Service Fund to pay the
same, the City Finance Manager is directed to pay such principal or interest from the general
fund of the City, and the general fund will be reimbursed for those advances out of the
proceeds of Tax Increments when received. There is appropriated to the Debt Service Fund
(i) capitalized interest funded from Bond proceeds, if any, (ii) any amount over the minimum
purchase price paid by the Purchaser, and (iii) the accrued interest paid by the Purchaser
upon closing and delivery of the Bonds.
4.03. It is determined that the estimated collection of Tax Increments for payment of
• principal and interest on the Bonds pursuant to the Pledge Agreement will produce at least
five percent in excess of the amount needed to meet, when due, the principal and interest
payments on the Bonds and that no tax levy is needed at this time.
4.04. The City Manager is directed to file a certified copy of this Resolution with the
• Taxpayer Services Division Manager of Hennepin County and obtain the certificate required
by Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcript.
5.01. The officers of the City are. authorized and directed to prepare and furnish to
the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and
records of the City relating to the Bonds and to the financial. condition and affairs of the City,
and such other certificates, affidavits and transcripts as may be required to show the facts
within their knowledge or as shown by the books and records in their custody and under their
control, relating to the validity and marketability of the Bonds, and such instruments, including
any heretofore furnished, will be deemed representations of the City as to the facts stated
therein.
.5.02. The Mayor, City Manager and Finance. Manager are authorized and directed to
certify that they have examined the OfFcial Statement prepared and circulated in connection
with the issuance and sale of the Bonds and that to the best of their knowledge and belief the
OfFicial Statement is a complete and accurate representation of the facts and representations
made therein as of the date of the OfFcial Statement.
.5.03. The City authorizes the Purchaser to .forward the amount of Bond proceeds
allocable to the payment of issuance expenses (other than amounts payable to Kennedy &
Graven, Chartered as Bond Counsel) to Resource Bank & Trust Company, Minneapolis,
• Minnesota on the closing date for further distribution as directed by the City's: financial
adviser, Ehlers & Associates, Inc.
Section 6. Tax Covenant,
6.01. The City covenants and agrees with the holders from time to time of the Bonds
that it will: not take or permit to be taken by any of its officers, employees or agents any action
which would cause the interest on the Bonds to become subject to taxation under the Internal
Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated
thereunder, in effect at the time of such actions, and that it will take or cause its officers,
employees or agents to take, all affirmative action within its power that may be necessary to
ensure that such interest will not become subject to taxation under the Code and applicable
Treasury Regulations, as presently existing or as hereafter amended and made applicable to
the Bonds.
6.02. The City will comply with requirements necessary under the Code to establish
and maintain the exclusion from gross income of the interest on the Bonds under Section 103
of the Code, including without limitation requirements relating to temporary periods for
investments, limitations on amounts invested at a yield greater than the yield on the Bonds..
6.03. The City further covenants not to use the proceeds of the Bonds or to cause or
• permit them or any of them to be used, in such a manner as to cause the Bonds to be
"private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
6.04. The City will use its best efforts to comply with any federal procedural
• requirements which may apply in order to effectuate the designations made by this section.
Section 7. Book-Entry System; Limited Obligation of Citv.
7.01. The Bonds will be initially issued in the form of a separate single typewritten or
printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon
initial issuance, the ownership of each Bond will be registered in the registration books kept
by the Bond Registrar in the name of .Cede & Co., as nominee for The Depository Trust
Company, New York, New York, and its successors and assigns (DTC). Except as provided
in this section, all of the outstanding Bonds will be registered in the registration books kept by
the Bond Registrar in the name of Cede & Co., as nominee of DTC.
7.02. With respect to Bonds registered in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and
the Paying Agent will have no responsibility or obligation to any broker dealers, banks and
other financial institutions from time to time for which DTC holds Bonds as securities
depository (Participants) or to any other person on behalf of which a Participant holds an
interest in the Bonds, including but not limited to any responsibility or obligation with .respect
to (i) the accuracy of the .records of DTC, Cede & Co. or any Participant with respect to any
ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other
than a registered owner of Bonds, as shown by the registration books kept by the Bond
Registrar,) of any notice with respect to the Bonds, including. any notice of redemption, or (iii)
• the payment to any Participant or any other person, other than a registered owner of Bonds,
of any amount with respect to principal of, premium, if any, or interest on the Bonds. The
City, the Bond Registrar and the Paying Agent may treat and consider the person m whose
name each Bond is registered in the registration books. kept by the Bond Registrar as the
holder and absolute owner. of such Bond for the purpose of payment of principal, premium
and interest with respect to such Bond, for the purpose of registering transfers with respect to
such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if
any, and interest on the Bonds only to or on the order of the respective registered owners, as
shown in the registration books kept by the Bond Registrar, and all such payments will be
valid and effectual to fully satisfy and discharge the City's obligations with respect to payment
of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so
paid. No person other than a registered owner of Bonds, as shown in the registration books
• kept by the Bond Registrar, will receive acertificated -Bond evidencing the obligation of this
resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that
DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede &
Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City
Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC
a Blanket Issuer Letter of Representations (Representation Letter) which shall govern
payment of principal of, premium, if any, and interest on the Bonds and notices with respect
to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with
respect to the Bonds will agree to take all action .necessary for all representations of the City
• in the Representation letter with respect to the .Bond Registrar and Paying Agent,
respectively, to be complied with at all times.
7.04. Transfers Outside Book-Entry S, sy tem. In the event the City, by resolution of the
City Council, determines that it is in the best interests of the persons having beneficial
interests in the Bonds that they be able to obtain Bond certificates, .the City will notify DTC,
whereupon DTC will notify the Participants, of the availability through DTC of Bond
certificates. In such event the City -will issue, transfer and exchange Bond certificates as
requested by DTC and any other registered owners in accordance with the provisions of this
Resolution. DTC may determine to discontinue providing its services with respect to the
Bonds at any time by giving notice to the City and discharging its responsibilities with respect
thereto under applicable law. In such event, if no successor securities depository is
appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in
:accordance with this resolution and the provisions hereof will apply to the transfer,. exchange
and method of payment thereof.
7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution
to the contrary, so long as a Bond. is registered in the name of Cede & Co., as nominee of
DTC, payments with respect to principal of, premium, if any, and interest on the Bond and
notices with respect to the Bond will be made and given, respectively in the manner provided
in DTC's Operational Arrangements, as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. The City hereby covenants and agrees that it will comply with and carry out all
of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other
provision of this Resolution, failure of the City to comply with the Continuing Disclosure
• Certificate is not to be considered an event of default with respect to the Bonds; however, any
Bondholder may take such actions as may be necessary and appropriate, including seeking
mandate or specific performance by court order, to cause the City to comply with its
obligations under this section.
8.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure
Certificate executed by the Mayor and City Manager and dated the date- of issuance and,
delivery of the Bonds, as originally executed and as it may be amended from time to time in
accordance with the terms thereof.
•
• Adopted by the City Council of the City of Richfie-d, Minnesota this 26th day of March,
2001.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
•
•
TAX INCREMENT PLEDGE AGREEMENT
• by and between
CITY OF RICHFIELD, MINNESOTA
and
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
THIS AGREEMENT is made and entered -into on or as of the day of
2001, by and between the City of Richfield, Minnesota (the "City"), and The
Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the
~~H~~~)
WHEREAS, the HRA has established the Richfield Redevelopment Project Area
(the "Project Area"), and approved a Redevelopment Plan (the "Project Plan") for the
Project Area; and
WHEREAS, the HRA and City have established the Interchange West and Lyndale
Gateway Tax Increment Financing District (the "TIF District") within the Project Area in
accordance with Minnesota Statutes, Sections 469.174 to 469.179; and
WHEREAS, on December 18, 2000, the HRA approved a modification to the tax
increment financing plan for the TIF District related to the Interchange West portion of the
• TIF District; and
WHEREAS, on January 22, 2001, the City Council approved the modification of the
tax increment financing plan for the TIF District; and
WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section
469.178, and Minnesota Statutes, Chapter 475, the City has agreed to finance certain
public redevelopment costs to be incurred by the HRA or the City in the Project Area
through the issuance of general obligation bonds of the City in the principal amount of
$8,350,000, designated the General Obligation Tax Increment Bonds, Series 2001A, and
hereinafter referred to as the "Bonds' ;and
WHEREAS, the HRA has agreed to pledge certain tax increment revenues to the
City for the principal and interest on the Bonds.
WHEREAS, pursuant to Minnesota Statutes, Section 469.178, Subdivision 2, any
agreement to pledge tax increment revenues must be made by written agreement by and
between the HRA and the City and must be filed with the Taxpayer Services Division
Manager of Hennepin County;
NOW THEREFORE, the City and the HRA mutually agree to the following:
• (1) The City will sell the Bonds.
(2) The proceeds from the sale of the bonds and interest earning thereon will be
made available to the City or HRA to pay or reimburse certain public
redevelopment costs paid, incurred, or to be paid or incurred by the City or
0326awardbond.doc
HRA in connection with the Interchange West portion of the TIF District and
• the Project Area.
(3) The HRA hereby pledges to the payment of the principal of and interest on
the Bonds the tax increments derived from property in the Interchange West
portion of the TIF District and received by the HRA, which pledge is in an
amount sufficient to pay 105% of such principal and interest due on the
Bonds from time to time (the "Pledged Tax Increment").
(4) Not less than three (3) business days prior to each debt service payment
date for the Bonds, there shall be transferred from the account for the TIF
District to the Debt Service Fund maintained by the City for the payment of
the Bonds, an amount of Pledged Tax Increment which when taken together
with amounts already on deposit in such Debt Service Fund, is equal to the
principal of and interest on the Bonds to become due on the subject payment
date. Any Pledged Tax Increment in excess of 105% of the principal and
interest due with respect to the Bonds. on any payment date may be retained
by the HRA in the tax increment account for the TIF District and applied to
any public redevelopment costs of the Project Area in accordance with law.
(5) Without regard to anything in this Agreement to the contrary, Pledged Tax
.Increment shall be available (at the HRA's option on a parity, superior or
subordinate basis) to pay principal of and interest on both the Bonds and any
• other obligations issued by the City, HRA or any other public body to finance
public redevelopment costs paid or incurred by the HRA in the Project Area.
(6) An executed copy of this Agreement shall be filed with the Taxpayer Service
Division Manager of County pursuant to the requirement contained in
Minnesota Statutes, Section 469.178, Subdivision 2.
IN WITNESS WHEREOF, the City and the HRA have caused this Agreement to be
duly executed on their. behalf and their seals to be hereunto affixed and such signatures
and seals to be attested, as of the day and year first above written.
CITY OF RICHFIELD, MINNESOTA
Martin J., Kirsch, Mayor
ATTEST:
Samantha Orduno, City Manager
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD,. MINNESOTA
By
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
U
•
I, the undersigned Taxpayer Services Division Manager of Hennepin County,
STATE OF MINNESOTA TAXPAYER SERVICES DIVISION MANAGER'S
COUNTY OF HENNEPIN CERTIFICATE
Minnesota, hereby certify that a Tax Increment Pledge Agreement by and between the City
of Richfield, Minnesota and the Richfield Housing and- Redevelopment Authority dated as
of 2001, relating to the City's $8,350,000 General Obligation Tax
Increment Bonds, Series 2001A, has been filed in my office.
WITNESS my hand and official seal this day of , 2001.
(SEAL)
Taxpayer Services Division. Managers
Hennepin County, Minnesota
By
Deputy
n
LJ
•
AGENDA SECTION: Consent
AGENDA ITEM # SD
REPORT # 8 3
STAFF REPORT
CITY COUNCIL MEETING
•
MARCH 26, 2001
REPORT PREPARED BY:
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER: ~~
BRAD SVEUM, ACTING ASSISTANT FIRE
CHIEF
NAME. TITLE
MIKE EASTLING, PUBLIC WORKS DIRECTOR
NAME, TITLE
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a purchase of a fire pumper from General Safety Equipment, LLC
-- -__
I. RECOMMENDED ACTION:
By Motion: Approve the bid minutes/tabulation and authorize the.
purchase of a fire pumper from General Safety Equipment, LLC in the
sum of $229,685 and authorize execution of an agreement for trade-in
of the existing fire pumper as part of the purchase of new equipment.
III. BACKGROUND I
Unit #3782, a 1979 fire pumper; is fully depreciated and was scheduled to be
replaced in 1999. On December 11, 2000 Council rejected the two bids received at
a formal bid opening held on October 23, 2000 and authorized readvertisement for
bids.
The .account maintained by the Central Garage for the replacement of this particular
vehicle and equipment will contain $220,000 in .2001 at time of delivery. Within the
Central Garage fund there is also a reserved retained earnings account for the
purchase of fire apparatus. The balance of this reserve, as of November 6, 2000,
was approximately $177,000. Of this retained earnings account, approximately
$10,000 will be used for the balance of this purchase.
0326Fire
III. BASIS OF RECOMMENDATION
A. POLICY
• General Safety was the lowest responsible bidder and is an
established contractor that meets all requirements.
B. CRITICAL ISSUES
• As stated above, the apparatus was scheduled for replacement and
has fully depreciated. in value. Because of the lag time for delivery,
this order should be approved now for 2001 expenditure.
C. FINANCIAL
• Sufficient funds are in the Apparatus Replacement Account and the
Reserve Retained Earnings accounts for this purchase. The total
purchase price will be reflected in the Revised 2001 budget for the
Central Garage.
D. LEGAL
• The bid opening. held on February 9, 2001 was in accordance with
legal requirements.
• One bidder, Toyne, Inc.,. did not complete the bid sheet correctly. It is
the recommendation of the City Attorney that the February 9, 2001 bid
submitted by Toyne, Inc., therefore, not be considered.
IV. ALTERNATIVE RECOMMENDATION(S~
• Council may reject all bids and instruct staff to re-advertise. However, it is
the opinion of staff that the bid submitted by General Safety Equipment, LLC
is reasonable and responsible.
• Council could accept a bid received from another vendor. Again, however, it
is the opinion of staff that the bid submitted by General Safety Equipment,
LLC is reasonable and responsible.
V. ATTACHMENTS
• Bid minutes and tabulation.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
CITY OF RICHFIELD, MINNESOTA
Bid Opening
February 9, 2001
11:00 a.m.
• REVISED
Purchase of One New Fire Rescue Engine
Bid No. 01-01
I~-~-~q~hrn~~.-~.
-~o ~~~ .
Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff was called by
Deborah J. Guiher, Deputy City Clerk, who announced that the purpose of the meeting was to
receive, open and read aloud, bids for the purchase of one new Fire Rescue Engine, as advertised in
the official newspaper on January 17, 2001.
Present: Deborah Guiher, Deputy City Clerk
Brad Sveum, Acting Assistant Chief/Fire Marshal
Cheryl Krumholz, City Manager Representative
The following bids were submitted and read aloud:
VENDOR General Safety
Equipment Custom Fire Apparatus Toyne Inc.
Bid Securit 5% 5% 10%
ffadavit
on-Collusion ~ Provided Provided Provided
l
Statement of EEQ
Re uirements Provided Provided Provided
BASE BID
Total A $247,685.00 $267,559.00 $152,089.00
Trade B $ 92,644.00 $ 91,000.00 $ 93,622.00
Total C $155,041.00 $176,559.00 $245,711.00
Trade In -$ 18,000.00 -$ 10,500:00 -$ 20,000.00
Total A-B-Trade 1n $137.041.00 $166,069.00 $225,711.00
Total A-Trade In $229;685.00 ~ $257,059:00 ~ $132,089.00
r
The Deputy Clerk announced that the bids would be tabulated and considered at the March 26, 2001
City Council Meeting.
Deborah J. Guiher Deputy City Clerk
•
CITY OF RICHFIELD, MINNESOTA
Bid Opening
February 9, 2001
11:00 a.m.
~urchase of One New Fire Rescue Engine
Bid No. 01-01
Pursuant to requirements of Resolution No. 1015, a meeting. of the Administrative Staff was called by
Deborah J. Guiher, Deputy City Clerk, who announced that the purpose of the meeting was to
receive, open and read aloud, bids for the purchase of one .new Fire Rescue Engine, as advertised in
the official newspaper on January 17, 2001.
Present: Deborah Guiher, Deputy City Clerk
Brad Sveum, Acting Assistant-Chief/Fire Marshal
Cheryl Krumholz, City Manager Representative
The following bids were submitted and read aloud:
VENDOR I General Safety I Custom Fire Apparatus I Toyne Inc.
Equipment
Bid Security _ _ ~ 5%
_ ~ 5%° _ _ 10%
~ ~-
Affadavit
Non-Collusion Provided Provided Provided
tatement of EEQ
Re uirements Provided Provided Provided
- I _~..
_
BASE BID
Total A $247,685.00 $267,559.00 $152,089.00
Trade B $92,644.00 $91,000.00 $93,622.00
Total C $155,041.00 $176,559.00 $245,711.00
Trade In -$18,.000.00 -$10,500.00 -$20,000.00
Total A-B-Trade In _ $137.041.00 $166;069.00 $225,711.00
i
The Deputy Clerk announced that the. bids would be tabulated and considered at the March 26, 2001
City Council Meeting.
Deborah J. Guiher Deputy City Clerk
r~
AGENDA SECTION:
AGENDA ITEM #
REPORT #
J STAFF REPORT
CITY COUNCIL MEETING
MARCH, 26, 2001
CONSENT CALENDAR
5C
82
REPORT PREPARED BY:
NAME, Tizc~
.7
REPORT PRESENTER:
REVIEWED BY CITY MANAGER
SAMANTHA ORDUNO, CITY MANAGER
SAMANTHA ORDUNO, CITY MANAGER
ITEM FOR COUNCIL CONSIDERATION:
Consideration of appointments to the Wold-Chamberlain Field Joint Airport Zoning Board.
L RECOMMENDED ACTION:
By Motion: Appoint the City Manager and Assistant to the City
Manager as Richfield representatives to the Wold-Chamberlain Field
Joint Airport Zoning Board.
The purpose. of the Board is to review the zoning regulations and restrictions
associated with the areas at the ends of runways. The Board has not been active
since the early 1980's and is now being called into action to address issues,
primarily in Bloomington, that are a result of the new South-South Runway.
The Board traditionally consisted of city officials from Minneapolis, Richfield and
Bloomington and will meet no more than three to four times in the next six months.
Jeff Hamiel has requested that Richfield appoint two representatives.
~ III. ALTERNATIVE RECOMMENDATION(Sl
counci~ appointments are the discretion of the Council and the Council may
wish to make alternative appointments.
•
IV. ATTACHMENTS
• None
~V. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
0326airport
•
AGENDA SECTION: Consent
AGENDA ITEM # 5 B
REPORT # 81
J STAFF REPORT
CITY COUNCIL MEETING
MARCH 26, 2001
REPORT PREPARED BY:
JIM TOPITZHOFER, RECREATION SERVICES
DIRECTOR
NAME, TITLE
REPORT PRESENTER:
JIM TOPITZHOFER, RECREATION SERVICES
DIRECTOR
NAME, TITLE
C.
DEPARTMENT DIRECTOR REVIEW: ~ ~ ~/
IGNATURE
n
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached resolution authorizing staff to submit and application for a
Conservation Partnershi rant to the De artment of Natural Resources DNR rant.
I. RECOMMENDED ACTION:
By Motion: Approval of the attached resolution authorizing the
completion of a Department of Natural Resources (DNR) grant for the
Prairie Restoration Project. at Wood Lake Nature Center.
II. BACKGROUND
Wood Lake Nature Center. staff has plans to remove and regrade a large amount of
dredging spoil on the south. side of the Nature Center and replant the space as a
replicated prairie. This space is indicated on maps of the park as a prairie, but the
dredging project required the temporary storage of the spoil on this land.
The Minnesota DNR is currently accepting Conservation Partnership Grant
applications that require a local match. City staff is still determining the total project
cost, but estimates that it will not exceed $20,000. Using this figure as a maximum
estimated project cost, the City would .provide the local contribution of $10,000 in in-
kind labor costs and expenses. Staff would be requesting a matching $10,000 from
the DNR for a total project cost of $20,000.
0326 dnr grant
• ~ III. BASIS OF RECOMMENDATION ~
A. POLICY
Typically, DNR grant policy requires the approval of a resolution
authorizing staff to apply for the grant.
B. CRITICAL ISSUES
The grant application is due on March 30, 2001. Staff requests action
at the March 26 Council meeting.
C. FINANCIAL
Without the DNR grant, the project would be indefinitely delayed as
staff would have to explore other financing options.
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION~S~
Do not approve the resolution authorizing the DNR grant application.
• V. ATTACHMENTS
• Resolution authorizing the completion and submittal of the DNR grant
application.
VI. PIUNCIl'AL PARTIES EXPECTED AT MEETING
• None
•
RESOLUTION NO.
• RESOLUTION AUTHORIZING THE APPLICATION FORA MINNESOTA DEPARTMENT
OF NATURAL RESOURCES LANDSCAPE PARTNERSHIP GRANT TO ASSIST WITH
THE FUNDING OF THE WOOD LAKE PRAIRIE RESTORATION PROJECT.
WHEREAS, the Wood Lake Nature Center will act as legal sponsor for the project
contained in the Landscape Partnership Grant application to be submitted by March 30,
2001; and
WHEREAS, -Karen Shragg, Nature Center Manager, is hereby authorized to apply
to the Department of Natural Resources for funding of this project. on behalf of the Wood
Lake Nature Center; and
WHEREAS, Wood Lake Nature Center has the legal authority to apply for financial
assistance, and the institutional, managerial and financial capability to ensure adequate
construction, operation, maintenance and replacement of the proposed project for its
design life; and
WHEREAS, the Wood Lake Nature Center has not yet incurred any costs detailed
in the application related to the Prairie Restoration Project; and
WHEREAS, that the Wood- Lake Nature Center has not violated any Federal, State
or Local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or
• other unlawful or corrupt practice;. and
WHEREAS, that upon approval of its application by the state, the Wood Lake
Nature Center may enter into an agreement with the State of Minnesota for the above-
referenced project, and that the Wood Lake Nature Center certifies that it will comply with
all applicable laws and regulations as stated in the grant agreement.
NOW, THEREFORE, BE IT RESOLVED that Nature Center Manager Karen
Shragg is hereby authorized to execute such agreements as are necessary to implement
the project on behalf of the applicant.
Adopted by the City Council of the City of Richfield, Minnesota this 26th day of
March, 2001:
Martin J. Kirsch, Mayor
ATTEST:
•
Nancy Gibbs, City Clerk
AGENDA SECTION: CONSENT CALENDAR
AGENDA ITEM # 5A
REPORT # H ~
STAFF REPORT
CITY COUNCIL MEETING
MARCH 26, 2001
REPORT PREPARED BY: JOHN OLINGER,
COMMUNITY DEVELOPMENT SPECIALIST
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
~ _
r.
-~ ~
i
Cr z
~ si
. A. POLICY _
To investigate all avenues of funding assistance.
B. CRITICAL ISSUES
Any required matching funds are allowed by DTED to come from other
revenues committed to financing the project.
C. FINANCIAL
Matching funds will be provided by other revenues already identified..
D. .LEGAL
• N/A
IV. ALTERNATIVE RECOM1viENDATION~S~
• Not approve a resolution to submit a request to DTED for funding a portion of
the redevelopment costs of City Bella.
V. ATTAC~IMENTS
• Resolution
• VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
•
RESOLUTION. NO.
• RESOLUTION TO SUBMIT A REQUEST TO THE DEPARTMENT OF TRADE
AND ECONOMIC DEVELOPMENT FOR FUNDING A PORTION OF THE
REDEVELOPMENT COSTS OF CITY BELLA
WHEREAS, the City of Richfield will act. as the sponsor for City Bella Department of
Trade and Economic Development (DYED) Redevelopment Grant application to be
submitted April 1, 2001 and that the Mayor is hereby authorized to apply to the DYED for
funding of this project on behalf of the City of Richfield; and
WHEREAS, the City of Richfield has the legal authority to apply for financial
assistance, and the institutional, managerial and financial capability to ensure adequate
project administration;. and
WHEREAS, the sources and amounts of the .local match identified in the application
are committed to the project identified; and
WHEREAS,. the City of Richfield has not violated any Federal, State or local laws
pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful
or corrupt practice; and
WHEREAS, upon approval of its application by the State, the City of Richfield may
enter into an agreement with the State of Minnesota for the above referenced funding
• project, and that the City of Richfield certifies that it will comply with all applicable laws and
regulations as stated in all. contract agreements.
NOW, THEREFORE, BE IT RESOLVED that the Mayor is hereby authorized to
execute such agreements as are necessary to implement the project on behalf of the
applicant.
Adopted by the City Council of the City of Richfield, Minnesota this 26th day of
March, 2001.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs; City Clerk
•