85-7109RRESOLUTION N0. 7109
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $6,225,000 GENERAL OBLIGATION
REFUNDING BONDS OF 1985
BE IT RESOLVED By the City Council. of the City of Richfield,
Minnesota, (City) as follows:
Section 1. Findings: Purpose.
1.01. The City is authorized by the provisions of Minnesota Statutes,
Chapter 475 (Act) and Section .475.61 of the Act to issue and sell its
general obligation bonds to refund outstanding bonds when determined by the
City Council to be necessary and desirable for the reduction of interest
cost and the adjustment of maturities of outstanding issues of bonds.
1.02. It is hereby found and determined that it is necessary and
desirable for the reduction of interest cost and the adjustment of matu-
rities of bonds that the City issue its general obligation refunding bonds
to refund in advance of their maturities certaia outstanding general
.obligations of the City.
Section 2. Refunded and Refunding Bonds.
2.01. The outstanding bonds to be refunded (Refunded Bonds) consist
of $5,750,000 General Obligation Redevelopment Bonds of 1984, originally
dated August 1, 1984, of which the entire principal amount is outstanding.
2.02. To provide monegs to refund the Refunded Bonds in advance of
maturitq, the. City shall issue and sell its ;6,131,625 General Obligation
Refunding Bonds of 1986 (Refunding Bonds). Additional Refunding Bonds
representing additional interest in the amount of $93,375 shall also be
issued and sold as authorized by Section 475.56 of the Act. Any amount in
excess of $6,131,625 received as the purchase price of the Refunding Bonds
shall be deposited in the debt service fund for the Refunding Bonds. The
X6,325,000 Refunding Bonds shall be issued, sold and delivered in accor-
dance with the terms and conditions of the following Official Notice of
Sale:
~~
_~
OFFICIAL
NOTICE OF SALE
$6,225,000 General Obligation
R~funding Bonds of
1985
City of Richfield, Minnesota
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the
above bonds will be received 'until 11:30 a.m. C.T. on Monday, December 2,
1985 in the office of the City Manager, 6700 Portland Avenue, Richfield,
Minnesota, at which time the bids will be opened and tabulated for
consideration by the City Co~ncil at a meeting at 5:30 p.m. C.T. on the
same day. The bonds are offered on the following terms:
Purpose: Security: Form
The purpose of the b',o
of maturity the outstanding
Obligation Redevelopment Bonds
will be general obligations oaf
and taxing powers are pledged'',.
tered fora.
nds is to provide funds to refund in advance
principal amount of the City's General
of 1984, dated August 1, 1984. The bonds
the City, for which its full faith, credit.
The bonds will be issued in fully regis-
Datl',e and Maturities
The bonds will be da~',ted December 1, 1985, will be in denomination
of $5,000 each or any integral multiple thereof, and will mature on Febru-
arq 1 in the following years and amounts:
YEAR AMOUNT YEAR AMOUNT
1987 $ 25,000 1995 $340,000
1988 95,000 ', 1996 365,000
1989 .195,000 1997 385,000
1990 220,000 ' 1998 530,000
.1991 245,000 1999 575,000
1992 270,000 2000 770,000
1993 295,000 2001 780,000
1994 315,000 2002 820,000
* Subject to adjustment
Redemption Feature
Bonds maturing after February 1, 1995 will be subject to redemp-
tion and prepayment at the option of the City in whole, or if in part in
inverse order of maturities and by lot within maturities, on said date and
any interest payment date thereafter, at par plus accrued interest.
Interest
Interest on the bonds will be payable on August 1, 1986, and
semiannually thereafter on each February 1 and August 1. All bonds matur-
ing 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
I/8 of I~, and no rate of interest nor the net effective average rate of
the issue may exceed the maximum rate of interest permitted by law.
Paying Agent/Registrar
Principal and interest on the bonds will be payable at the office of a
Paying Agent and Registrar to be named by the Citq. The City will pay
charges for the services of the Paying Agent and Registrar.
CUSIP lyumbers
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
By December 30, 1985, the City will furnish and deliver at 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 the
validitq of the bonds 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, or within five days after deposit with the delivery agent, in funds
available for expenditure by the City on the day of payment.
Legal Opinion
An unqualified legal opinion on each bond issue will be furnished
by LeFevere, Lefler, Kennedy, O'Brien ~ Drawz, a Professional Association,
Minneapolis, Minnesota. The legal opinion will be printed on the bonds at
the request of the purchaser. The legal opinion will state, among other
things, that the bonds are valid and binding general obligations of the
Citq, that the City is obligated and required to levq taxes if necessary
for the principal and interes~ thereon as the same become due without limit
as to rate or amount, and that the interest on the- Bonds is exempt--from
Federal income taxation.
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 is the amount of $1124,500, payable to the City Finance Manager,
to be retained by the City asliquidated damages if the bid is accepted and
the bidder fails to comply therewith. The good faith check of the purchas-
er will be deposited by the City and deducted from the purchase price of
the bonds at delivery. The bid authorizing the lowest net interest cost
(total interest from date ofj bonds to stated maturities, less any cash
premium or plus any amount less than $6,225,000 bid for principal) wi1S be
deemed the most favorable.
.The Citq specifically reserves the right to increase or decrease
the aggregate principal amount of the bonds but such increase will not
exceed $100,000 in total amount of $25,000 of any annual maturity and to
adjust the minimum purchase puce proportionately, and such decrease will
not exceed $200,000 in total ', amount nor $25,000 of any annual maturity.
The prospective .purchaser. submitting the most favorable bid will be
notified of such modification', in principal amount, if any, no later than
5:30 o'clock p.m. C.T. on the jday of sale. No oral bid and no bid of less
than $6,131,625, or in such jamount as adjusted. as herein provided, for
principal 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 any informality is any bid.
BY ORDER OF THE CITY COUNCIL
/s/ Thomas Ferber
City Clerk
Dated: November 12, 1985
3. The City Clezk is authorized and directed to advertise the Refund-
ing Bonds for sale in accordance1with the foregoing notice of sale and to
cause the abbreviated notice o£ sale attached hereto as Exhibit A, to be
published in the manner required by-law. The Council shall meet on Monday,
December 2, 1985, at 5:30 o'clock p.m. for the purpose of considering the
bids on the Refunding Bonds and taking any other appropriate action.
Passed by the City Council of the City of Richfield,
day of November, 1985. ~j /
\'.~l~/
n Hamill ton
ATTEST:
Thomas Ferber City Clerk
nesota this 12th
Mayor
Exhibit A
NOTICE OF SALE
$6,225,000 General Obligation Refunding
Bonds of 1985
pity of Richfield
Hennepin County, Minnesota
NOTICE IS HEREBY G
above bonds will be received
1985 is the office of the C
Minnesota, at which time 1
consideration by the Citq C~
same day. Dated December 1,
the years and amounts as fol7
BEN that sealed bids for the purchase of the
intil 11:30 a.m. C.T. on Monday, December 2,
:y Manager, 6700 Portland. Avenue, Richfield,
e bids will be opened and tabulated for
ncil at a meeting at 5:30 p.m. C.T, on the
.985, the bonds will mature on February l in
as
YEAR AMOUNT YEAR AMOUNT
1987 $ 25,000 1995 $340,000
1988 95,000 199b 365,000
1989 195,000 ', 1997 385,000
1990 220,000 1998 530,000
1991 245,000 ' 1999 575,000
1992 270,000 2000 770,000
1993 295,000 ', 2001 780,000
1994 315,000 2002 820,000
* Subject to adjustment
Bonds maturing after February 1, 1995 are subject to prior redemption on
said date and any interest ',payment date thereafter. Interest will be
payable on August 1, 1986, and semiannually thereafter. .The bonds will be
issued in fully registered. form. 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. 'Minimum price, $b,131,625. An unqualified
legal opinion will be furnished by LeFevere, Lefler, Kennedy, O`Brien &
Drawz, a Professional Association, Minneapolis, Minnesota. The purpose of
the bonds is to provide fund's to refund in advance of maturity certain
general obligation bonds of the City.
The City specifically reserves the right to increase or decrease
the aggregate principal amount of the bonds but such increase will not
exceed $100,000 in total amount of $25,000 of any annual maturity and to
adjust the minimum purchase price proportionately, and such decrease will
not exceed $200,000 in total amount nor $25,000 of any annual maturity.
The prospective purchaser submitting the most favorable bid will be
notified of such modification'in principal amount, if any, no later than
5:30 o'clock p.m. C.T. on the daq of sale.
Bidders should be aware that the Official Notice of Sale to be pub-
lished in the Official Statement for the bonds may contain additional
bidding terms and information relative to the issue. In the event of a
variance between statements in this Notice of Sale and said Official Notice
of Sale, the provisions of the latter shall be those to be complied with.
Dated: November 12, 1985
BY ORDER OF THE CITY COUNCIL
/s/ Thomas Ferber
City Clerk