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85-7096R41 RESOLUTION N0. 7096 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,940,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1985 BE IT RESOLVED By the City Council of the City of Richfield, Hennepin County, Minnesota (City) as follows: 1. It is hereby determined: (a) That the following assessable public improvements (Improvements) have been made, duly ordered or con- tracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429: Project Designation & Description 1984 Alleys Richfield State Agency Storm Sewer 1985 Alleys Richfield Schools Fire Protection Systems Capitalized Interest Issuance Costs Discount Total Total Project Cost $ 293,000 150,000 87,000 1,220,000 130,000 23,000 37,000 $1,940,000 (b) That it is necessary and expedient to the sound finan- cial management of the affairs of the City to issue $1,940,000 General Obligation Improvement Bonds of 1985 (Bonds) to provide financing for the Improvements. 2. In order to provide financing for the Improvements, the City shall therefore issue and sell Bonds in the amount of $1,903,000. 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 $37,000. Any excess of the purchase price of the Bonds over the sum of $1,903,000 shall be credited to the debt service fund for the Bonds for the purpose of paying interest first coming 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 $1,940,000 General Obligation Improvement Bonds of 1985 City of Richfield Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that the sealed bids for the purchase of the above bonds will be received until 11:30 A.M. C.T. on Wednes- day, November 6, 1985 in the office of the City Manager, City Hall, 6700 Portland Avenue South, Richfield, Minnesota 55423, at which time the bids will be opened and tabulated for consideration by the City Council at a special meeting at 5:30 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 various assessable public improvements in the City. The bonds will be general obligations of the issuer, for which its full faith, credit and taxing powers are pledged. Date and Maturities The bonds will be issued in fully registered form, will be dated December 1, 1985, will be in integral multiples of $5,000 each and will mature February 1 in the following years and amounts: Year Amount Year Amount 1987 $ 25,000 1997 $165,000 1988 170,000 1998 25,000 1989 170,000 1999 25,000 1990 170,000 2000 25,000 1991 170,000 2001 25,000 1992 170,000 2002 25,000 1993 170,000 2003 25,000 1994 170,000 2004 25,000 1995 170,000 2005 25,000 1996 165,000 2006 25,000 Redemption Feature Bonds of this issue maturing after February 1, 1995 will be subject to redemption and prepayment in whole or in part at the option of the City on that date and on any interest payment date thereafter at a price of par plus accrued interest to date of redemption. Interest Interest on the bonds will be payable on August 1, 1986, and semiannually thereafter on each February 1 and August 1. All 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 5/100 of 17, and no rate of interest nor the net effective average rate of the issue may exceed the maximum rate of interest permitted by law on the day of sale. Paying Agent 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. Delivery is expected to be made on or about December 2, 1985. Legal Opinion An unqualified legal opinion on the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Associa- tion of 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 benefited property, 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 specified above. Each bid must be unconditional and must be accompanied by a cashier's or certified check or bank draft in the amount of $38,800, payable to the City Finance Director, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The good faith check of the successful bidder will be deposited at the time of award and deducted from the purchase price at delivery. The bid authorizing the lowest net interest cost (total interest from date of bonds to stated maturities, less any cash premium or plus any amount less than $1,940,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $1,903,000 for princi- pal plus accrued interest on all of the bonds will be considered, and the City reserves the right to reject any and all bids and to waive any informality in any bid. BY ORDER OF THE CITY COUNCIL /s/ Thomas P. Ferber City Clerk Dated: October 14, 1985. 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 Wednesday, November 6, 1985, at 5:30 p.m. for other EXHIBIT A NOTICE OF BOND SALE $1,940,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1985 CITY OF RICHFIELD, MINNESOTA HENNEPIN COUNTY NOTICE IS HEREBY GIVEN that the sealed bids for the purchase of the above bonds will be received until 11:30 A.M. C.T, on Wednes- day, November 6, 1985 in the office of the City Manager, City Hall, 6700 Portland Avenue South, Richfield, Minnesota 55423, at which time the bids will be opened and tabulated for consideration by the City Council at a special meeting at 5:30 P.M. on the same day. The Bonds will be dated December 1, 1985, will bear interest payable semiannual- ly on each February 1 and August 1 to maturity, commencing August 1, 1986, and will mature on February 1 in the amounts and years as follows: Year Amount Year Amount 1987 $ 25,000 1997 $165,000 1988 170,000 1998 25,000 1989 170,000 1999 25,000 1990 170,000 2000 25,000 1991 170,000 2001 25,000 1992 170,000 2002 25,000 1993 170,000 2003 25,000 1994 170,000 2004 25,000 1995 170,000 2005 25,000 1996 165,000 2006 25,000 Bonds maturing after February 1, 1995 will be subject to redemption on that date at par plus accrued interest. No rate of interest nor the net effective rate of the issue may exceed the maximum rate permitted by law. Bidders must specify a price of not less than $1,903,000 plus accrued interest. A legal opinion on the Bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Asso- ciation, Minneapolis, Minnesota. The proceeds of the Bonds will be used to finance a portion of the costs of various assessable public improvement projects in and for the City. Bidders should be aware that the Official Statement to be published 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 said Official Statement, the provi- sions of the latter shall be those to be complied with. BY ORDER OF THE CITY COUNCIL Dated: October 14, 1985. /s/ Thomas P. Ferber City Clerk STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) CITY OF RICHFIELD ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Richfield, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of a regular meeting of the City Council of said City held on Monday, October 14, 1985, with the original thereof on file in my office and the same is a full, true and correct copy thereof, insofar as the same relates to the issuance and sale of $1,940,000 General Obligation Improvement Bonds of 1985, of the City. WITNESS My hand as such City Clerk and the corporate seal of the City this 14th day of October 1985. C ty Clerk City of Richfield, Minnesota (SEAL)