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87-7325R99 RESOLUTION NO. 7325 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,080,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1987 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 following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429 (Act): Project Designation & Description: Project Cost 1986 Alley Construction $ 44 , 000 1987 Alley Construction 392,000 I Academy of Holy Angels Fire Suppression 58 1,800 Capitalized Interest 28,000 Legal and Administrative 2,000 Costs of Issuance 13 , 300 Subtotal $1,061,100 Discount 18,900 Total $1,080,000 (b) It is necessary and expedient to the sound financial management of the affairs of the City to issue $1,080,000 General Obligation Improvement Bonds of 1987 (Bonds) pursuant to the Act to provide financing for the Improvements. 2. In order to provide financing for the Improvements, the City will therefore issue and sell Bonds in the amount of $1,061,100. In order to provide in .part the additional interest required to market the Bonds at this time, additional Bonds shall be issued in the amount of $18,900. Any excess of the purchase price of the Bonds over the sum of $1,061,100 shall be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Notice of Sale: I~ ~I OFFICIAL NOTICE OF SALE $1,080,000 General Obligltion Improvement Bonds of 1987 City lof Richfield Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that sealed bids for the above bonds will be received until 2:00 o'clock p.m., C.T. on Monday, August 24, 1987, in the offices of the City Manager of the City of Richfield, 6700 Portland Avenue, for opening and consideration by the City Council at a meeting at 7:00 o'clock p.m. on the same day. The bonds are offered on the following terms: Purpose and Security The purpose of the bonds is to provide funds for the finan- cing of assessable public improvements in the City. The bonds will be general obligations of the City,' for which its full faith, credit and taxing powers are pledged together with special assessments against benefitted properties. Date and Maturities The bonds will be issued in fully registered form, will be dated September 1, 1987, will be in integral multiples of $5,000 each and will mature without option o'f prior payment on February 1, in the years and amounts as follows: Year Amount Year Amount 1989 $80,000 1999 $50,000 1990 75,000 2000 50,000 1991 75,000 2001 50,000 1992 50,000 2002 .50,000 1993 50,000 2003 50,000 1994 50,000 2004 50,000 1995 50,000 2005 50,000 1996 50,000 2006 50,000 1997 50,000 2007 50,000 1998 50,000 2008 50,000 Redemption The City may elect on February 1, 1997 or on any interest payment date thereafter to redeem and pepay bonds of this issue maturing on or after February 1, 1998 at a price of par plus accrued interest to date of redemption. Prepayment may be in whole or in part and will be in inverse order of maturities and by lot within maturities. Interest interest on the bonds 'will be payable on February 1, 1988, and semiannually thereafter on each February 1 and August 1. All 2 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 inte- gral multiple of 5/100 or 1/8 of 1~, and no rate of interest nor the net effective average interest rate of the issue may exceed the maximum rate of interest permitted by law on the day of sale. Bond Registrar The City will name the Registrar which shall be subject to applicable SEC regulations. Principal will be payable at the prin- cipal office of the Registrar and interest will be'payable by check or draft of the Registrar mailed to the registered holder of a bond. The City will pay the reasonable and customary charges for the services of the Registrar. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be assigned and printed at the expense of the purchaser, if the purchaser waives any extension of the time of delivery caused thereby. Delivery Within 40 days after sale, the City will furnish and deliver to the office of the purchaser or, at its option, will deposit with a bank in the United States selected by it and approved by the City as its agent to permit examination by and to deliver to the purchaser, the printed and executed bonds, the unqualified opinion thereon of bond counsel, and a certificate stating that no litigation in any manner questioning their validity is then threatened or pending. The charge of the delivery agent must be paid by the purchaser but all other costs will be paid by the City. The purchase price must be paid upon delivery of the bonds in funds available for expenditure by the City on the day of payment. Legal Opinion An unqualified legal opinion on the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Associa- tion, Minneapolis, Minnesota. The legal opinion will be printed on the bonds at the request of the purchaser. The legal opinion will state that the bonds are valid and binding general obligations of the City payable primarily from special assessments against benefitted properties and that the City is required by law to levy taxes for the principal and interest thereon as the same become due without limit as to rate or amount. 3 of Bid - Amount Sealed bids must be mailed or delivered to the undersigned and must be received prior to the time of the meeting. A bid must be unconditional and must be accompanied by a cashier's or certified check or bank draft in the amount of $21,600, payable to the City Finance Coordinator, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid authorizing the lowest net i~!nterest cost (total interest from date of bonds to stated maturities, less any cash premium or plus any amount less than $1,080,000 bid ',for principal) will be deemed the most favorable. No oral bid and no bid of less than $1,061,100 for princi- pal plus accrued interest on all of the bonds will be considered. The City reserves the right to reject any and all bids and to waive an informality in a bid. BY ORDER OF THE CITY COUNCIL /s/ Thomas P. Ferber City Clerk Dated: August 10, 1987. 3. The Clerk is authorized and directed to advertise the Bonds for sale in accordance with the', foregoing Official Notice of Sale and to cause the abbreviated notice of sale attached hereto as Exhibit A to be published in the manner required by law. The City Council will meet at 7:00 p.m. on Monday, August 24, 1987, to consider bids on the Bonds and take other appropriate action with respect to the bonds. 4 Passed by the City Council of the City of Richfield, Minnesota, this 10th day of August, 1987. NOTICE OF BOND SALE $1,080,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1987 CITY OF RICHFIELD, HENNEPIN COUNTY, MINNESOTA EXHIBIT A NOTICE IS HEREBY GIVEN that sealed bids for the above bonds will be received until 2:00 o'clock p.m., C.T. on Monday, August 24, 1987, in the offices of the City Manager of the City of Richfield, 6700 Portland Avenue, for opening and consideration by the City Council at a meeting at 7:00 o'clock p.m. on the same day. The bonds are offered on the following terms. The Bonds will be dated September 1, 1987, will bear interest payable semiannually on each February 1 and August 1, commencing February 1, 1988, and will mature on February 1 in the years and amounts as follows: Year Amount Year Amount 1989 $80,000 1999 $50,000 1990 75,000 2000 50,000 1991 75,000 2001 50,000 1992 50,000 2002 50,000 1993 50,000 2003 50,000 1994 50,000 2004 50,000 1995 50,000 2005 50,000 1996 50,000 2006 50,000 1997 50,000 2007 50,000 1998 50,000 2008 50,000 The City may elect on February 1, 1997 or on any interest payment date thereafter to redeem and prepay Bonds of this issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1998 at a price of par plus accrued interest to date of redemption. No rate of interest nor the net effective interest rate of the issue may exceed the maximum rate permitted by law on the day of sale. Bidders must specify a price of not less than $1,061,100 plus accrued interest. A legal opinion on the Bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneap- olis, Minnesota. The proceeds of the bonds will be used to finance a portion of the costs of various assessable public improvements in the City. Bidders should be aware that the Official Statement to be distributed for the Bonds may contain additional bidding terms and information relative to the Bonds. In the event of a variance between statements in this Notice of Bond Sale and the Official Statement bidders must comply with the terms of the .latter. BY ORDER OF THE CITY COUNCIL /s/ Thomas P. Ferber City Clerk Dated: August 10, 1987.