86-7144R20
RESOLUTION N0. 71.44
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $2,525,000 GENEP,AL OBLIGATION
STORM SEWER REVENUE BONDS,•SERIES 1986A
BE IT RESOLVED By-the City Council of the City of Richfield,
Hennepin County, Minnesota (City) as follows:
1. It is hereby determined:
(a) The City is authorized by Minnesota Statutes, Section
444.075 (Act) to issue and sell its general .obligation
(Bonds) to finance all or a portion of the cost of the
construction, enlargement and other improvements to its
storm sewer system including mains, holding areas and
ponds, and other appurtenances and related facilities
for the collection and disposal of storm water (Facil-
ities).
(b) The Bonds may be general obligations of the City if the
City Council in the resolution awarding the sale of the
Bonds covenants that it will impose rates and charges
for the use of the Facilities at the times and in the
amounts required to produce, together with any other
revenues pledged for payment of the Bonds, net revenues
(as defined by the Act) adequate to pay all principal
and interest when due on the Bonds.
(c) ..The City has duly adopted Bill No. 1985-5, (Section 8
of the Richfield Code of Ordinances) providing for a
system of rates and charges for the use of the Facil-
ities.
(d) The Director of Community Services has informed this
Council that contracts for the construction and related
costs of construction and improvements to the Facil-
ities (Project) have been or will be incurred as
follows:
Project Item* Cost
Legion Lake $ 155,000
69th Street 47,300
76th & Washburn Ave. 440,000
66th & %erxes Ave. 189,000
Norby's Pond 1,204,000
Wilson Pond 535,000
Miscellaneous Projects 29,700
Subtotal $2,600,000
Less Citq Contribution (300,000)
Balance $2,300,000
Capitalized Interest 155,000
Issuance costs 25,000
Discount bonds 45,000
Grand Total $2,525,000
*includes engineering, administration and 27 contingency costs.
(e) It is determined that it is necessary and desirable for
the sound financial management of the City and the
Facilities th~t the City issue and sell its General
Obligation Storm Sewer Revenue Bonds, Series 1986A
pursuant to-the Act to finance all or a portion of the
costs of the P~Iroject.
2. In order to provide financing for the Project, the City
shall therefore issue and sell Bonds in the amount of $2,480,000. In
order to .provide in part the additional interest required to market.
the Bonds at this time, addi~~tional Bonds shall be issued in the amount
of $45,000. Any excess of ''the purchase price of the Bonds over the
sum of $2,480,000 shall be credited to the debt service fund for the
Bonds for the purpose of p~,aying interest first coning due on such
additional Bonds. -The Bonds shall be issued: and sold in accordance
with the terms of the following Official Notice of Sale:
OFFICIAL
NOTICE OF SALE
$2,525,000 General Obligation Storm Sewer Revenue Bonds,
Series 1986A
City of Richfield
.Hennepin County, Minnesota
NOTICE IS HEREBY GIVEN that the City Council of the City of
Richfield, Minnesota, will receive and open sealed bids for the pur-
chase of $2,525,000 general obligation storm sewer revenue bonds of
the City until 2:00 p.m. on Monday, March 10, 1986 in the office of
the City Manager, 6700 Portland Avenue South, Richfield, Minnesota, at
which time the bids will be opened and tabulated for presentation to
the City Council at a regular meeting at 7:00 p.m. on the same day.
Purpose and Security
.The purpose of the bonds is to provide funds for the finan-
cing of various improvements to the storm sewer system of the City.
The bonds will be general obligations of the issuer, 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.
Date and Maturities
The bonds will be issued in fully registered form, will be
dated March 1, 1986, will be in integral multiples of $5,000 each and
will mature on February 1 in the following years and amounts:
Year Amount Year Amount
1988 $60,000 1998 $120,000
1989 65,000 1999 125,000
1990 70,000 2000 135,000
1991 75,000 2001 150,000
1992 80,000 2002 160,000
1993 85,000 2003 170,000
1994 90,000 2004 185,000
1995 95,000 2005 200,000
1996 100,000 2006 215,000
1997 110,000 2007 235,000
Redemption
The bonds are subject to redemption and prepayment, in whole or
in part, at the election of the City, on February 1, 1992 and any
interest payment date thereafter at their principal amount and accrued
interest to date of redemption plus a premium expressed aS a perCerit-
age of the principal amount to be redeemed for the various redemption
dates as follows:
Redemption Date Premium
February. 1, 1992 and A~gust 1, 1992 27
February 1, 1993 and Aulgust 1, 1993 1.57
February 1, 1994 and Aul
gust 1, 1994 17
February 1, 1995 and i
August 1, 1995 .57
February 1, 1996 and th'~ereafter none
If redemption is in part those bonds remaining unpaid which have the
latest maturity date will b'ie prepaid first. If only a part of the
Bonds having a common maturity date are called for prepayment the
specific bonds to be prepaid'~will be chosen by lot by the Registrar..
Interest
Interest on the bonds will be payable on February 1, 198?.
and semiannually thereafter, on each August 1 and Februarv 1. All
bonds maturing on the same date must bear interest from date of issue
until paid at a single, ur_iform rate, not exceeding the rate specified
for bonds of any subsequent maturity. Each rate must be in an
integral multiple of 1/8 or',1/20 of 17, and no rate of interest nor
the net effective average mate of the issue may exceed the maximum
rate of interest permitted by law on the day of sale.
Paying Agent
The City will, prior to the sale, name the Registrar which
shall be subject to applicable SEC regulations. Principal will be
payable at the principal office of the Registrar and interest will be
payable by check or draft of the Registrar mailed to the registered
holder of a bond. The City will pay the reasonable and customary
charges for the services of the Registrar.
CUSIP Numbers
The City will assume no obligation for the assignment or
printing of CUSIP numbers on'~, the bonds or for the correctness of any
numbers printed thereon, but'wi11 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 the sale, the City will furnish and
deliver to the office of the purchaser or, at its cption, 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 pend-
ing. The charge of the delivery agent must be paid by the purchaser,
but all other costs will be paid by the City. The purchase price must
be paid upon delivery of the 'bonds in funds available for expenditure
by the City on the day of payment. Delivery is expected to be made on
or about April 15, 1986.
Legal Opinion
A.T unqualified legal opinion on the bonds will be furnished
by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Associa-
tion of Minneapolis, 2~innesota. The legal opinion will be printed or.
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 obligated and required to levy taxes for
the principal and interest thereon as the same become due without
limit as to rate or amount.
Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned
and must be received prior to the time of said meeting. Each bid must
be unconditional and must be accompanied by a cashier's or certified
check or bank draft in the amount of X50,500, payable to the City
Finance Coordinator, to be retained by the City as liquidated damages
if the proposal is accepted and the bidder fails to comply therewith.
The check will be deposited by the City and deducted from the purchase
price at the time of delivery of the Bonds. The bid authorizing the
low=est net interest cost (total interest from date of bonds to stated
maturities, less any cash premium or plus any amount less than
$2,525,000 offered for principal) will be deemed the most favorable.
No oral bid and no bid of less than $2,480,000 for principal plus
accrued interest on all of the bonds will be considered, and the City
reserves the right to reject any and all bids and to waive any infor-
mality in any bids.
BY ORDER OF THE CITY COUNCIL
/s/ Thomas Ferber
City Clerk
Dated: February 10, 1986.
3. The City 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 shall meet on Monday, March 10, 1986, at 7:00 o'clock p.m. for
the purpose of considering bids on the Bonds and taking any other
appropriate action.
4. In the resolution awarding the sale of the Bonds the City
will make the covenants regarding payment of the Bonds required by the
Act.
EXHIBIT A
NOiTICE OF BOND SALE
$2,525,000
GENERAL OBLIGATION
STORM SEWEP.~~REVENUE BONDS, SERIES 1986A
CITY O~iF RICHFIELD., MINNESOTA
HENNEPIN COUNTY
Sealed bids for the above bonds will be received until 2:00 p.m. C.T.
on Monday, ~i
March I0, 1986
in the office of the City Manager at city hall, 6700 Portland Avenue
South, Richfield, Minnesota,, at which time the bids will be tabulated
for presentation to the City~'Council at a regular meeting at 7:00 P.M.
cr. that date. The Bonds will be dated March 1, 1986, will bear
interest payable semiannually on each February 1 and August 1 to
maturity, commencing Februar',y 1, 1987, and will mature on February 1
in the amounts and years as follows:
Year Amount Year Amount
1988 $60,000 I 1998 $120,000
1989 65,000 I 1999 125,000
1990 70,000 2000 135,000
1991. 75,000 ' 2001 150,000
1992 80,000 2002 160,000
1993 85,000 ', 2003 170,000
1994 90,000 ', 2004 185,000
1995 95,000 2005 200,000
1996 100,000 ' 2006 215,000
1997 110,000 ! 2007 235,000
Bonds maturing after February 1, 1992 will be subject to redemption
and prepayment on that date,and on any interest payment date there-
after at a price of par plus~l accrued interest to the date of redemp-
tion, plus a premium ranging ',from 2~ in 1992 to OZ in 1996.
No rate of interest nor the rnet effective rate of the issue may exceed
the maximum rate permitted by law. Proposals must specify a price of
not less than $2,480,000 plus accrued interest. A legal opinion on
the Bonds will be furnished ''by LeFevere, Lefler, Kennedy, O'Brien &
Drawz, a Professional Association, Minneapolis, Minnesota. The
proceeds of the Bonds will be used to finance the costs of various
storm sewer improvement projects in the City.
Prospective purchasers should be aware that the Official Iv'otice of
Sale for the Bonds to be contained in the Official Statement for the
offering may contain additional provisions relating to the Bonds and
conditions regarding their s',ale. The Official Notice of Sale will
control the terms and conditions of the sale of the Bonds.
BY ORDER OF THE CITY COUNCIL
Dated: February 10, 1986.
/s/ Thomas Ferber
City Clerk
Passed by the city council of the City of Richfield this 10th
day of February 1986.
ATTEST:
Thomas P. Ferber. ~ City Clerk