92-7922R74
RESOLUTION NO. 7922
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $2,160,000 GENERAL OBLIGATION STORM
SEWER REVENUE REFUNDING BONDS, SERIES 1992A
BE IT RESOLVED by the City Council of the City of Richfield,
Hennepin County, Minnesota (City) as follows:
1. It is hereby determined that:
(a) the City is authorized by Minnesota Statutes,
Chapter 465 (Act) and Section 475.67, Subdivision 3, of the
Act to issue-and sell its general obligation bonds to
refund obligations and the interest thereon before the due
date of the obligations, if consistent with covenants made
with the holders thereof, when determined by the City
Council to be necessary or desirable for the reduction of
debt service cost to the City or for the extension or
adjustment of maturities in relation to the resources
available for their payment;
(b) subdivision 4 of the Act permits the sale of
refunding obligations during the six month period prior to
the date on which the obligations to be refunded may be
called for redemption;
(c) it is necessary and desirable to reduce debt
service costs that the City issue $2,160,000 General
Obligation Storm Sewer Revenue Refunding Bonds, Series
1992A (Bonds) to refund certain outstanding general
obligations of the City;
(d) the outstanding bonds to be refunded (Refunded
Bonds) consist of the $2,525,000 General Obligation Storm
Sewer Revenue Bonds, Series 1986A, dated March 1, 1986, of
which $2,090,000 in principal amount is currently callable
on February 1, 1993.
2. To provide moneys to refund the Refunded Bonds, the
City will issue and sell Bonds in the amount of $2,138,400. To
provide in part the additional interest required to market the
Bonds at this time, additional Bonds will be issued in the amount
of $21,600. The excess of the purchase price of the Bonds over
the sum of $2,138,400 will be credited to the debt service fund
for the Bonds for the purpose of paying interest first coming due
on the additional Bonds. The Bonds will be issued, sold and
delivered in accordance with the terms of the following Official
Terms of Proposal:
$2,160,000 General Obligation Storm
Sewer Revenue Refunding Bonds, Series 1992A
City of Richfield
Hennepin County, Minnesota
Resolution No. 7922
Page 2
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of
the above bonds will be re~eived in the offices of the Finance
Director in Richfield, Min~esota at the time and date specified
in a notice distributed by Evensen Dodge, Inc., which notice
will be given at least 48 hours before the time set for
receiving bids.
The purpose of the bonds is to provide funds for refunding
the City's $2,525,000 Gene al Obligation Storm Sewer Revenue
Bonds, Series 1986A, dated March 1, 1986. The bonds will be
general obligations of the City for which its full faith, credit
and taxing powers are pledged, together with net revenues of the
storm sewer, sanitary sewer; and water system of the City.
The bonds will be issued in fully registered form, will be
dated December 1, 1992, will be in denominations of integral
multiples of $5,000 each and will mature on February 1, in the
years and amounts as follows:
Year Amount Year Amount
1994 $ 85,000 2001 $155,000
1995 110,000 2002 165,000
1996 115,000 2003 170,000
1997 125,000 2004 185,000
1998 130,000 2005 200,000
1999 135,000 2006 210,000
2000 145,000 2007 230,000
Redemption
The City may elect on'IFebruary 1, 2001 or on any interest
payment date thereafter toredeem and prepay bonds of this issue
maturing on or after February 1, 2002 at a price of par plus
accrued interest to date o~ redemption. Prepayment may be in
whole or in part and will be in inverse order of maturities and
by lot within maturities.
Interest
Interest on the bondswill be payable on August 1, 1993, and
semiannually thereafter on leach February 1 and August 1. Bonds
maturing on the same date must bear interest from date of issue
until paid at a single, uniform rate, not exceeding the rate
specified for bonds of any subsequent maturity. Each rate must
be in an integral multiple of 1/20 or 1/8 of 1$.
-i
Resolution No. 7922
Page 3
Registrar
The Bonds will be issued as book entry only securities
through The Depository Trust Company. The City Finance Director
will be the Registrar/Paying Agent.
CUSIP Numbers
The City assumes no obligation for the assignment or
printing of CUSIP numbers on the bonds or for the correctness of
any numbers printed thereon, but will permit such numbers to be
assigned and printed at the expense of the purchaser, if the
purchaser waives any extension of the time of delivery caused
thereby.
Delivery
Within 40 days after sale, the City will furnish and deliver
to the office of the purchaser or, at its option, will deposit
with a bank in the United States selected by it and approved by
the City as its agent to permit examination by and to deliver to
the purchaser, the printed and executed bonds, the unqualified
opinion thereon of bond counsel, and a certificate stating that
no litigation in any manner questioning their validity is then
threatened or pending. The charge of the delivery agent must be
paid by the purchaser but all other costs will be paid by the
City. The purchase price must be paid upon deliver of the bonds
in funds available for expenditure by the City on the day of
payment.
Legal Opinion
An unqualified legal opinion on the bonds will be furnished
by Holmes & Graven, Chartered, Minneapolis, Minnesota. The
legal opinion will be printed on the bonds at the request of the
purchaser. The legal opinion will state that the bonds are
valid and binding general obligations of the City, and that the
City is required by law to levy taxes for the principal and
interest thereon as the same become due without limit as to rate
or amount.
Official Statement
The City has authorized the preparation of an Official
Statement containing pertinent information relative to the
Bonds, and said Official Statement will serve as a nearly-final
Official Statement as required by Rule 15c2-12 of the Securities
and Exchange Commission. The Official Statement, when further
supplemented by an addendum or addenda specifying the interest
rates of the Bonds, together with any other information required
by law, shall constitute a Final Official Statement of the City
with respect to the Bonds, as that term is defined in Rule 15c2-
12. By awarding the Bonds to any underwriter or underwriting
syndicate submitting an official Bid Form therefor, the City
agrees that, no more than seven business days after the date of
Resolution No. 7922
Page 4
such award, it shall provid
underwriter of the syndicat
copies of the Official Stat
above. The City designates
the syndicate to which the
the purposes of distributin
Statement to each Participa
executing and delivering an
the Bonds agrees thereby th
(i) it shall accept such de
into a contractual relation
Underwriters of the Bonds f
by each such Participating
Statement.
A sealed bid shall be i
accrued interest on the tot<
Bids shall be accompanied b~
in the form of a certified c
Surety Bond in the amount o~
the City. If a check is usE
Financial Surety Bond is usE
company licensed to issue st
and preapproved by the City,
Evensen Dodge, Inc., prior 1
Financial Surety Bond must
Deposit is guaranteed by suc
Bonds are awarded to an undE
Bond, then that purchaser is
Evensen Dodge, Inc., in the
check or wire transfer as ii
later than 3:30 p.m., Centr<
following the award. If su<
time, the Financial Surety 1
satisfy the Deposit requires
check of the purchaser, the
settlement and no interest ~
event the purchaser fails t<
amount will be retained by ~
amended after the time set
meeting of the City schedulc
adjourned, recessed, or con-
of the Bonds having been mac
multiples of 5/100 or 1/8 0:
order. Bonds of the same m.
the date of the Bonds to the
proposals will be accepted.
without cost to the senior managing
to which the Bonds are awarded 25
ment and the addenda described
the senior managing underwriter of
onds are awarded as its agent for
copies of the Final Official
ing Underwriter. Any underwriter
Official Bid form with respect to
t if its bid is accepted by the City
ignation and (ii) it shall enter
hip with all Participating
r purposes of assuring the receipt
nderwriter of the Final Official
or not less than $2,138,400 and
.1 principal amount of the Bonds.
the Good Faith Deposit ("Deposit")
.r cashier's check or a Financial
$43,200, payable to the order of
:d, it must accompany each bid. If a
;, it must be from an insurance
Bch a bond in the State of Minnesota,
Such bond must be submitted to
.o the opening of the bids. The
.dentify each underwriter whose
;h Financial Surety Bond. If the
:rwriter using a Financial Surety
required to submit its Deposit to
form of a certified or cashier's
~structed by Evensen Dodge, Inc. not
~1 Time, on the next business day
;h Deposit is not received by that
fond may be drawn by the City to
lent. The City will deposit the
amount of which will be deducted at
rill accrue to the purchaser. In the
- comply with the accepted bid, said
:he City. No bid can be withdrawn or
`or receiving proposals unless the
:d for award of the Bonds is
:inued to another date without award
le. Rates shall be in integral
1$. Rates must be in ascending
iturity shall bear a single rate from
;date of maturity. No conditional
BY ORDER OF THE CITY COUNCIL
/s/ Thomas P. Ferber
City Clerk
Dated: October 26, 1992.
Resolution No. 7922
Page 5
3. Evensen Dodge, Inc. is authorized and directed to
negotiate the Bonds in accordance with the foregoing Terms of
Proposal. The City Council will meet upon proper notice to
consider bids on the Bonds and take any other .appropriate action
with respect to the Bonds.
Adopted by the City Council of the City of Richfield,
Minnesota this 26th day of October 1992.
~a
Martin J. K'~r ch Mayor
ATTEST:
Thomas P. Ferber -City Clerk