79-6059R41
RESOLUTI0N.N0. 6059-
.RESOLUTION AUTHORIZING THE ISSUANCE AND SALE
OF $1,300,000 GROSS REVENUE: RECREATIONAL
FAGILITIES`BONDS OF 1979 {
WHEREAS, this Council has determined that it is desirable to acquire, ~
construct,. equip and operate a municipal. golf course and related facilities
(the "Project") as part of he recreation program of the City of Richfield, and
WHEREAS, a budget has been established by the City and funds allocated
.for the Project asfollows::
''Federal Revenue Sharing $ 25,000
Liquor Store..Revenue 560.,000
Sale of Revenue Bonds 1,300,.000
Total $1,885,000, and.
WHEREAS, land for the Project site has been acquired by lease from the
Metropolitan Airports Commission,-plans and specifications for the Project pre-
pared, and bids for construction contracts for-the Project have been solicited j
,and received, all indicating that the Project is financially feasible as proposed;
and
.WHEREAS, Minnesota Statutes, Section 471.191 and laws 1979, Chapter 1
(collectively "the Act") authorizes the. Council a) to issue and sell revenue
bonds to provide funds .for the construction and equipping of the Projectas a
recreational facility, which bonds may be secured by a pledge of all income and
revenues of whatsoever nature derived from such facilities as a firstcharge on
the-gross revenues thereof, b) to pledge a defined portion of the net revenues j
of the City's municipal liquor dispensary to the payment of principal and interest
on such bonds, and c) to provide in its budget each year for any anticipated
deficiency in the revenues available for operation and maintenance of the Project;'
and
I
.WHEREAS, the City Council has determined that the estimated gross revenues
to be derived from the operation of the Project during the term of the bonds !,
authorized by this resolution will be sufficient to pay principal and interest
when due on such bonds, to maintain any required reserve therefor, and to pay
current costs of operation and maintenance; and j
WHEREAS, this Council has determined that it is necessary to utilize the
authority granted by the Aet to pledge a defined portion of Municipal Dispensary
net revenues to the payment of principal and interest on such bonds: ~
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota, as follows:
Section 1. Findings: Form and Details of Bonds.
1.01. The City Council has investigated the facts necessary to determine
and does hereby find, determine anddeclarec
a) That it is necessary,.advisable and expedient for .the City to
.construct. and operate the Project described above; and
i
42
Resolution. No. 6059 -2- ~
i b) That it is necessary and expedient that bonds of the City be
I issued and sold .pursuant to ', the Act for the purpose of providing funds
to finance part of the costs of the Eroject, including legal, engineering
and .financing expenses presently estimated.. to be as follows: ~_
Construction Contracts $ 970,000.
Capitalized Interest $ 175;.000
' Reserve $ ..130,000
Total ', $1,275,000
c) That additional bonds in the amount of $25,000 be sold to represent
in part .additional interest ',required to market such bonds as authorized by
Minnesota Statutes,.. Section'475.56, which amount does not exceed 2% of the
amount authorized by paragraph b) hereof-.
• 1.02 The City shall forthwith issue and sell its. negotiable coupon Gross
Revenue Recreational.Facilities Bonds of 1979 (the "Bonds") in the principal
amount of $1,300,000, dated May 1, '',1979, said Bonds being. 260 in number and
numbered 1 to 260, inclusive, in the denomination of $5;000 each, all bearing -
interest at the rate determined at ''public sale, interest payable November 1, =1979
and semiannually thereafter on the',lst day of May and the 1st day of November in
each year, and maturing serially on November l in the years and amounts as follows:.
Year Amount
1981 $ 30;000
1982 35,000
', 1983 35,000
.1984 40, 00.0.
1985 40,000.
1.986 45 , 000
1987. 50,000 _.
.198.8 50;000
1989 55,000 _.
1990 60,000
1.991 65,000
1992 65,000
1993 70,000
1994 75,000
1995 80,000
1996 90,000
1997 95,000
1998 100,000
1999 105,000
2000 115,000
Bonds maturing after November 1, 1993 will be subject to prior :redemption at the
option of the City in inverse order of serial numbers on said date and any interest:.
payment date thereafter at par and ''accrued interest. TYie Bonds shall be payable at
the Bank in the City of ,
Minnesota, and the City. shall. pay the reasonable .charges of said. bank for its
service as paying agent.
43 I
Resolution. No. 6059 -3-
i
1.03. The Bonds and coupons attached thereto shall be in substantially
the following form:-
No. $5,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF RICHFIELD I
GROSS REVENUE RECREATIONAL FACILITIES BOND OF 1979
KNOW ALL MEN BY THESE PRESENTS, that the City of Richfield, Hennepin County,
Minnesota, acknowledges that it is obligated and, for value received, promises to
pay to the bearer ~iereof, out-of the Revenue Bond Account of its Golf Course Fund,
the principal sum of FIVE THOUSAND DOLLARS, on the first day of November, 19 ,
and to pay interest thereon, out of said account, from the date hereof until said
principal sum is paid at the rate of and
percent ( %) per annum, interest to maturity payable November 1, 1979, and
semiannually thereafter on-May 1 and, November 1 in each year, in accordance with
and on presentation and surrender of the interest coupons hereto attached as they
severally become due. Both principal and interest are payable at the I
Bank in the City.. of Minnesota, in
any coin or currency-of the United States`of America which on the-date of payment
is legal tender for public and private debts..
All bonds of this issue maturing after November 1, 1993, are subject to
redemption and prepayment at the option of the City on said date .and any interest
payment date thereafter in inverse order of serial numbers at par and accrued.
interest to date of redemption:
This bond is one of an issue of bonds in the total principal amount of
$1,300,OOO,,a11 of like date and tenor except as to maturity, serial number and
provision for redemption, which bonds have been issued fox the purpose of providing
funds for the acquisition and equipping of a municipally owned and operated golf
course (the "Project"), as part of a program of public recreation, as authorized
by Minnesota Statutes,.Sections-471.15 to 475.191, and -the principal of and the
interest thereon are payable. solely out of the Revenue Bond Account in the Golf
Course Fund of the City to which gross revenues to be derived from the Project have
been appropriated pursuant to and in accordance with the provisions of resolution
no. (the "Resolution").adopted by the City Council on March 12, 1979,
entitled"Resolution Authorizing .the Issuance and Sale of $1,300,000 Gross Revenue
Recreational Facilities Bonds of 1979".and reference is .made to the Resolution
for a full statement of all rights and privileges hereby conferred.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required. by the Constitution and the laws of the State of Minnesota and the Home
Rule Charter of the City to be done, to exist or to be performed precedent to
and in the issuance of this bond have been done, have happened and have been_
performed in due, time and manner as required by law in order to make the bond
a valid and binding special obligation of the City according to its terms; that
the Revenue Bond Account ,and Golf Course Fund have been. duly created and that
44 ',
Resolution No. 6059 -4-
the City Council. has appropriated .thereto all of the revenues to be-derived from
~ the 'operation of the Project and hays duly pledged to said account certain revenues
of its Municipal Liquor Dispensary as authorized by Laws 19.79, Ch. I which combined
revenues are in such amounts as wild be sufficient for the payment of theprncipal ,
of and the interest on the bonds oflthis issue as such. payments become due, and fore.
the creation and maintenance of a reserve securing said payments; that the City has-`
.provided for-the operation of the Project and its Municipal Liquor.Dispensaryin
order to provide revenues sufficien'~t for said purpose;`that the City Council will
impose rates and charges for'the use of the Project sufficient to provide revenues
adequate for such payments; and that in .and by the authorizing resolution, the
City has entered into further covenants and agreements for the security of .the holders..
from time to time of said bonds, each of which will be promptly and fully performed
by the City and its officers and agents; and that the issuance of this bond did note
cause the indebtedness,, general or 'special, of the City to exceed any constitutional,
charter or statutory limitation of indebtedness thereof.
IN WITNESS WHEREOF, the City', of Richfield, Minnesota, by its City Council,
has caused this bond to be executed'in its behalf by the facsimile signatures of
its_Mayor and its. City Manager and has caused a facsimile of its corporate seal
to be imprinted hereon, and the attached interest coupons to be executed and
authenticated by the facsimile. signatures of said officers, all as o£ the first
day of May, 1979.
(facsimile signature)
Mayor
City Manager
(facsimile seal)
(Form of Coupon)..
No. $
On the lst day of November. (May), 19 ,.the City of Richfield, Hennepin
County, Minnesota, will pay to bearer, out of the Revenue Bond Account in its
Hoff Course Fund, at the Bank in the.City
of ,'Minnesota, .the sum. set forth-.hereon for interest
-then due on its Gross Revenue Recreational Facilites Bond of 1979, dated May 1, 1979,.
No.
(facsimile signature)
Mayor
(facsimile signature)
City. Manager
47
Resolution No. 6059 -5-
1.04. The City Clerk-Treasurer shall obtain a copy of the proposed approving
legal opinion of Messrs. LeFeyere,.Lefler,. Pearson, O'Brien & Drawz of Mnneapolis,-
Minnesota, which shall be complete except as to dating thereof and shall cause .said
opinion to be printed on each bond, together w h a certificate to be signed by the
facsimile signature of the.Clerk-Treasurer in substantially the .following form:
I hereby certify that the foregoing is a full,
true. and correct copy of the legal .opinion executed
by the above named attorneys,.except as to the dating
thereof, which opinion has been handed to me for filing
in my office prior to the time-of bond delivery.
(facsimile signature)
City Glerk-Treasurer...
'.City of Richfield, Mn
The Clerk-Treasurer is hereby authorised and directed to execute such certificate
in the name of the City, upon receiptof such opinionand to file 'the opinion in
the City offices.
1.05. The Bonds shall be executed on behalf of the 'City by the facsimile
signature of the Mayor and the manual signature of the-City Manager, and the
interest coupons. shall be"executed and authenticated by the printed facsimile
signatures. of the.Mayor-and City Manager, and the facsimile of the corporate seal
of the .City may, but need not be, printed thereon; provided, however, that thee,
signatures of both the. Mayor and City Manager may be facsimile signatures, duly
authenticated by the manual signature of an officer of the First. National Bank
of Minneapolis hereby designated authenticating agent pursuant to Minnesota-
. Statutes, Section 475.55, .Subdivision 1, and, if the bonds are to be so executed
and authenticated, the bond form set forth in paragraph 4 hereof shall be modified
as follows:
a) Substitute the following paragraph for the final paragraph
- of the bond:
"IN WITNESS WHEREOF, the City of Richfield, Hennepin
County, Minnesota., by .its City Council, has caused
this-bond to be executed by the facsimile signatures
of its Mayor and City Manager (and. with the facsimile
of the corporate seal of the city imprinted thereon)
and the interest coupons hereto attached to be executed
and. authenticated by the facsimile signatures of said
officers, and such signatures to be authenticated by
the manual signature of its duly authorized Authenti-
eating.Agent on the reverse side ofthis bond, all as
of May 1, .1979."
b) Add the following on the reverse side of the bond:
"This Bond is-one of the Bonds of the series
designated herein issued pursuant to the
resolution authorizing its issuance and delivery."
46
Resolutiori No. 6059 -6-
THE FIRST-NATIONAL BANK OF
MINNEAPOLIS --
As Authenticating Agent
By
Its Authorized Officer
The Bonds when dully executed; shal!1 be delivered by the City.Clerk.-Treasurer
to the purchaser thereof upon receipt of the :purchase price, .and the said
purchaser shall not be obligated to see to the `proper app ication thereof:
Section 2. Funds, Accounts, Pledge of `Revenues.
.2.01. For 'the convenience and proper administration of the moneys to be ~.~
borrowed and repaid on tha Bonds, and to make adequate and specific security to
the purchasers and holders of the Bonds frgm time to time, there-is hereby
created a separate special fund of ''the City to be known as the Golf Course Fund,
which .fund shall be continued and maintained as a permanent fund`of the City until
.all the Bonds are paid. All income and receiptsfrom the operation of the Project
shall be credited to the Golf Course Fund. The City Manager and .all officia s and
employees concerned therewith shall establish andmaintan financial records of the ._
receipts and disbusements of the Project in accordance with this Resolution. In
such records there shall be continued and maintained. separate accounts of the Golf
.Course Fund as follows:
(a) A Capital Expenditure Account,. into which .there shall be
be paid.. the proceeds of the ''sale of the Bonds (except the amount paid
into the Reserve. Account under paragraph (d) ) and. of any other obligations
issued toprovide money to p'ay for the Project. From the Capital Expend-
iture Account shall be-:paid 'all costs of the Project., including .but not
limited to; legal,. engineering and financing expenses including capitalized
interest. Money in said. account shall be disbursed only upon orders duly
issued after certification that the purpose for. which the payment is to be
..made is within the scope of ',the work contemplated by this Resolution, that
the work done or the materials furnished are in accordance with the contract_
therefor, (or that such work is, or that such materials. are suitable for the
purposes of the Project, if ';such payments are..no.t covered by an express
contract) and that the amount of such payment. is in accordance with such
contract, or if there is no '',contract, that the amount thereof is reasonable.
Nothing herein shall be construed to prohibit payment without such a certi-
fication of expenses necessarily incident to the issuance and sale of the
Bonds. .The Project shall be, constructed and placed. in operation in accordance
withapproved plans and specifications and: no deviation therefrom of a pub-
stantial nature. shall be made. After the. City Manager certifies that .the
construction of the entire. Project has been completed and paid for, .any
balance remaining in the Cap'ltal Expenditure Account shall be transferred
to the Reserve Account hereinafter created and the Capital Expenditure
Account shall. be closed.
Resolution No. 6059 7-
(b) An -0peration and Maintenance Account, into which shall be paid
all of the gross revenues arid- earnings derived by .the City from its
operation of the Project. From moneys in this account shall be paid a11,
but only, expenses of operation and maintenance of the Project. Such
expenses shall include the reasonable .and necessary cos s of operation;
maintenance, insurance,. salaries, wages, cost of materials and supplies,
and all other items which by sound accounting practices constitute normal,
reasonable costs of operation and maintenance, but excluding any allowance
-for depreciation, extraordinary repairs. Any balance shall be deemed-.net
revenue and transferred to the Revenue Bond Account. The City covenants
and agrees that it will provide in the City budget each. year an amount
sufficient to meet any anticipated deficiency in the xevenues available
for operation and maintenance,.. and the City hereby pledges and agrees to
provide from other funds and 'ad valorem. tax levies, if necessary, suf-
ficent sums to pay all current. costs of operation, maintenance and
administration of the Project as-authorized by Section 471.191, Subdi-
vision 2, of the Act, it being the intention of the City. Council to make
the Bonds a first and prior lien upon all income and revenues from what-
ever source derived as a first charge on the gross revenues thereof as
authorized by the Act.
(c) A Revenue Bond Account,_for payment of the principal of and
interest on the Bonds. There. shall be credited monthly to said account.
commencing April T, 1981, the net revenues in the Operation and Man-
tenance Account until there is credited thereto an amount equal to the
amount of interest due on the next succeeding interest payment date and
the amount of principal due on the next succeeding principal payment
date of the Bonds. The Revenue Bond Account shall be maintained as
herein .provided until all the Bonds have been paid and retired.
(d) A Reserve'Account, into which the sum of $130,000 .(being. an
amount equal to the total principal and interest on the Bonds due in
any calendar year). from the proceeds of the sale of the Bonds shall be
paid: thereafter all net revenues in excess of those required under
paragraphs (b) and (c) shall be paid. into the Reserve Account. Money
in this account may be used to pay principal of and interest on the
Bonds, to pay principal and interest on any junior or subordinate lien
Bonds, or for any major repair or improvement to the Project., on to
purchase equipment for the Project or to prepay Bonds when. they become
subject to redemption. No moneys. in the Reserve Account shall be trans-
ferred to the general fund or used for any other purpose until all Bonds
have been _p aid or sufficient sums for payment of principal and interest
to date of first call. of the Bonds shall have been deposited with. .the
paying agent. Investment earnings on amounts in the Reserve Account in
excess of $130,000 shall be transferred to the Revenue Bond. Account.
2.02. The City reserves the right to issue additional recreational facility
revenue bonds in the future, if found necessary for the making of capital improvements
or additions to the Project,. and to provide for the payment of such additional bonds
and the interest thereon from said account on a parity with the Bonds, provided that
in such event amounts required to be paid into and maintained in the Revenue_Bond
Account and the Reserve Account shall be increased proprotionately.
48
Resolution No. 6059 -8- - .
2.03.- Money in the funds an!d accounts created by this Resolution shall be
kept separate from other municipal ',funds-and shall be deposited in a bank-or banks
which are members of the Federal Deposit Insurance Corporation. All such deposits
which cause the aggregate deposits ''of the City in any one bank to be in excess of
the amount insured by F:D.L.C, shall be continuously secured by the valid pledge
of direct obligations of the United States Government having an equivalent market
value:. Moneys in the Revenue Bond 'Account and Reserve Account may be invested
in general obligations of the United States Government having an'equvalent market
value maturing not later than two years after date of purchase. All income derived
from such investments may at'any time be liquidated and the proceeds thereo f
applied for the purpose or purposeslfor which the respective account was created.
2.04. The fonds shall be a ',first charge and lien upon the gross revenues
of the Project and of all'addtions„ improvements and extensions thereto. Except
as .herein provided, no additional obligations payable out of said revenues shall
be hereafter issued unless made a subsequent lien on said revenues, provided that '
the City reserves the right of isswing additional revenue obligations if and to
the extent needed to refund maturing bonds payable from the Revenue Bond Account
in event the money in said'account'is insufficient to pay the same, which refunding
revenue bonds may. be on a parity with the bonds of this issue.
Section 3. Covenants.
3.01... .For the protection of theholders of the Bonds, the City herein
covenants and agrees. to and with the holders thereof from time to time as follows:.
3.02. It will complete the ',Project and will cause the. same to be constructed
.and completed free from all liens in accordance with plans. and specificatons'here-
tofore approved, with the proceeds of this issue supplemented with other funds, if
necessary.
3.03. It will at alI times provide for and insure the adequate maintenance
and efficient operation of the Proj',ect as part of its program of public recreation..
It will-from time to .time make all needful-and.proper.repairs, replacements, additions
and betterments of the Project. so that they may at all times be operated properly and
advantageously, and whenever any equipment shall have been worn out, destroyed or
otherwise become insufficient for proper use, it shall be promptly replaced or repaired
so that the value and efficiency of he facilities shall be at all times fully main-
tained and the revenues unencumbered by reason thereof.
.3.04. In order to insure the efficient. and economical operation of the
Project and the proper maintenance !thereof, the City will provide for. and insure
.the employment of experenced,personnel to operate and maintain the same. The
compensation of such personnel shal'1 be deemed an operating expense.
3.05. Except for special promotional purposes to encourage use of the Project,
the City will permit no free use by', any person or group. The fees'for all users of
the Project by the residents of the City. and all other customers shall be reasonable
and just, taking into account the cost and value of the facilities, the cost of
maintaining and operating and the plroper and necessary allowances depreciation and
the amounts required for. the payment of principal of .and interest on the Bonds
payable from the revenues pledged therefor.
49
Resolution No. 6059. -9-
3.06. The. City will establish:, maintain and collect such fees and charges
as will produce revenues sufficient to pay the reasonable cost of operation and
maintenance of the Project and to pay the interest on and. principal of the Bonds
as and-when they become due. Fees and charges may not be reduced if the proposed
rate reduction will adversely affect the ability of the City to meet all require-
ments of this Resolution. Such fees and .charges will be increased; from time to
time whenever necessary to carry out. the obligations of this Resoltuion.
3.07. The City will not sell, mortgage or in any manner dispose of the
Project or any part thereof, including any and all extensions and additions that
may be made thereto; until alI of the Bonds have: .been paid in full; provided,
however, that the City may sell the same if there is, simultaneously with the
sale, deposited with-the. paying agent for the Bonds the: amount necessary to
retire all of the outstanding bonds payable from the revenues including interest
to accrue to the date when said bonds are called for payment. -This covenant shall
not be construed to prevent the sale by the City at fair market 'value of real estate,
equipment or other non-revenue producing properties which in the judgment of the
governing body have become unnecessary, uneconomical or inexpedient to use in
connection wiah the Project, provided other facilities are obtained in place thereof,
and-_any cash balance from the transaction is deposited in the Revenue Bond Account.
3.08. The City will provide for. and procure and: keep in force insurance
on the Project of a kind and in an amount which would normally be carried by
private companies in a like business, including public liability insurance,
with an insurer or insurers in good standing; and it will provide-for the keeping
in full force and- effect fiduciary bonds on employees in charge of said Project.
In the event of any, loss; the proceeds from such insurance (including liability
insurance) or bonds. shall. be used to make good such loss or to repair or restore
the Project. Insurance premiums shall be paid as a cost of operation.
3.09. The City shall cause to be kept proper books, records and accounts,
relating to the operation of the Project,. separate from other accounts of the City
and cause such books,. records and accounts to be audited at the end of each fiscal
`.year by a qualified firm of public accountants. The expense of preparing such
audit shall be paid as a current operating expense.
Section 4. Further Security: Pledge of Certain Net Revenues of Municipal
Liquor Dispensary.
4.01. To further secure the payment of principal of and interest on the
Bonds, this council deems it necessary to use the authority granted by the Act
to pledge to the payment of the Bonds a defined portion of the net revenues of
the Municipal Liquor Dispensary of the City (the "MLS").
4..02.. There: is hereby created in the Special Revenue Fund established
pursuant to Section 7.12, Subdivision 2 of the City Charter a separate special
account hereby designated "The Revenue Bonds of 1979 Account" (the "1979 Bonds
Account"). Moneys in this account shall be used for no other purpose than to
pay. principal of .and interest on the Bonds.
JV
Resolution No. 6059 -10-
4.03. AlI profits. (the term,."profits" as used in the City Charter being
hereby defined as "net revenues" as'i determined in accordance with accepted and
prescribed accounting principles governing the operation of Municipal Liquor
Dispensaries in the State of Minnes!,ota) of the MLS paid into the Special Revenue
Fund shall. be deposited in the 1979, Bonds Account until the balance in said account`
equals the total principal and interest due on the Bonds in any calendar year (the
"Maximum Debt Service Requirement")'',_ The Maximum Debt Service Requirement is hereby
declared to be-the "defined portion'"' of MLS net revenues pledged to the holders of
the Bonds for the payment thereof as authorized by the Act and such amount is hereby
so pledged. subject to the modifications and adjustments hereinafter specified.
4.04. Not later than October l0 of each year commencing. in 1979, the City
Council shall review. the status of 'the Reven~ne Bond Account and the Reserve Account
established by Section 2. If on that date the sum of the balances in the. Revenue
Bond Account and the Reserve Account equal two times the Maximum Debt Service Re-
quirement, the balance in the 1979 '',,Bonds Account may be transferred to the Special
Revenue .Fund, but there shall always be retained in the 1979 Bonds Account the
amount of money by which two times the Maximum Debt Service Requirement exceeds
the sum of the balances in the Revenue Bond Account and the Reserve Account...
4.05. As .further security for the pledge of`MLS net revenues made in ths-
section, the City certifies, represents, covenants. and agrees as follows:
{a) So long as the City continues to operate the MLS, it will
..charge for all merchandise sold prices `comparable to those charged
by other liquor stores and will continue`to operate the MLS in ac-
cordance with sound economic practices so as to produce .net. revenues
from the operation thsreof,',andthat it_will not .permit or s~rffer any
private off-sale liquor stores to be operated within the City and
that it will not establish any additional municipal liquor dispensary
unless the revenues therefrom shall be .credited to the Special Revenue
Fund and applied in accordance with this Resolution.
(b) In event any propertes.constitutingcapital assets of the.MLS
shall be sold, the same shall be sold at their full and fair market value
and tb.e proceeds shall be used to procure other capital assets of_equal
utility and value or shall be appropriated to the Special Revenue Fund. -
(c) .The City .will procure and .keep in force insurance on the MLS
.building and all equipment and fixtures thereinand its `stock of mer-
chandise against loss by fire, theft and all ocher causes customarily
insurance against for like properties in amounts sufficient to cover
the total loss thereof and will procure and keep in force suitable:
fidelity bonds on all employees in connection with the liquor dispensary
or handling any funds thereof, in such amounts as are required to fully
protect the City and the holders of bonds issued hereunder against any
loss due to failure. or default on the. part of such employees... In event
of any loss, the proceeds shall be used to repair and restore the damage
or to replace the loss or shall be-deposited to the. Special Revenue Fund.
(d) The Citywill cause proper and adequate books of records and
account for .the MLS to be kept, separate from all other records of the
City, which shall accurately reflect all receip s and disbursements. of
the MLS. Said books and records shall. be open to inspection and copying
.J 1
Resolution No. 6059 -11- •
at al 1. reasonable times by any, holder of ,:a Bond, his attorney or agent,
and the City will furnish certified copies of any portion thereof upon
'reasonable xequest and payment of the cost thereof. The-City will cause
the accounts of the MLS to be audited at least annually by a competent
public accountant acid will furnish a copy~of the audit report to the
,purcha er and to any bondholder upon request.
~~ .
(e) The.-City will cause the net revenues of the MLS to be credited
to the Special Revenue .Fund and.. to the 1979 Bonds Account herein provided
and will make no expenditures therefrom except as herein provided..
(f) In event the operation of the MLS dispensary shall be discontinued,
all merchandise and fixtures, shall be sold, so far as necessary to provide
money to maintain the maximum debt-service requirement and the proceeds. from
such sale Shall, be used for such purpose. The building shall be rented and
all rentals shall be applied in the same manner until all Bonds are paid
in full.
Section 5. Rights and'Remedies of Bondholders.
5:01. The provisions of this Resolution constitute a contract between the
City and the holder or holders of the Bonds, and after the issuance of any of the
Bonds, no change, variation or alteration of-any kind in the provisions of this
Resolution shall be made in any manner, until such time as all of the Bonds .and.
interest have been paid in full, provided that the holders of 80% in principal
amount of the Bonds payable at any time outstanding shall have the right to con-
sent to and approve the adoption of resolutions or other proceedings modifying
or amending any of the terms or provisions contained in this Resolution, except
that without the consentof 100% of the holders of outstanding Bonds this-Reso-
lution shall not be so modified or amended in any manner that may adversely affect
the rights of holders of less than all of the bonds then outstanding or reduce
the percentage of the number of holders whose consent is required to effect a
further modification.
5.02. In the event that at any .time the amount in the Revenue Bond Account,
Reserve Account, or 1979 Bonds Account shall be inssuficent to pay the principal
then due and interest then accrued on all Bonds, and additional bonds, said moneys
shall first be app Lied to .the payment pro rata of the accrued interest on all such
bonds and ariy balance shall be applied in payment of maturing principal in ac-
cordance with the serial numbers of the bonds, namely, as between bonds .having
.different maturity dates, the earlier maturing bonds shall be paid first; as
between .bonds of different series maturing on the same dates, the bonds of the
series first issued shall be paid first; and as between bonds of .the same series
.maturing-on the-same dates, those having the lower serial numbers .shall be paid
first.
5.03. In the event of any default,. the holders from time to fine of the.
Bonds. shall have all.. the remedies, powers and privileges granted by .the laws of
the State of Minnesota for the enforcement of their rights and for the collection
of the principal and the interest due thereon. The holders of 50% or more in
aggregate principal amount of Bonds at any time outstanding may, in the event of
default, declare all outstanding Bonds to be immediately due and payable.. The
holders of 20% or more in aggregate principal amount of Bonds at any time out-
standing may,. either at law or in equity, by suit, action or other proceeding,.
52
Re:olution No. -12- .
protect and enforce the rights of'all holders of Bonds then outstanding,' or enforce
or compel .the performance of any and all of the covenants and duties specified in
this Resolution to be performed byl,the City or its officers and agents, including
the ..fixing and maintaining of rates and charges and the collection and proper _
segregation of revenues and the. application and use thereof..
Section 6. Authentication'of Transcripts Miscellaneous.
6.01.. If any section, paragraph or'provis-ion of this Resolution. shall be
held to be invalid or unenforceabl2 for any reason, the invalidity or unenforce-
ability of such section, paragraph''or provision shall not affect any of the remaining
provisions of this Resolution.
6.02. The Clerk-Treasurer.:s authorized and directed to prepare and,.furnish
to the purchaser of Bonds and the attorneys approving the same, certified copies
of all orders and resolutions of the City relating to the Project and the issuance
of the Bonds, and all other proceedings or records showing the right, power and
authority of the City to issue the same and to provide funds for the payment thereof;
and such certified copies and certificates shall be deemed representations of the-
City as to all: statements therein. The Mayor, City Manager and City Clerk-Treasurer
are 'hereby authorized and directed 'to certify that they have examined any official
statement or prospectus. prepared .and circulated in connection with the issuance
and sale of the.Bonds and'that to Ghe best of their knowledge and belief said
statement is a complete and accurate representation of the facts and representations
made therein as of the date of said official statement or prospectus.
6.03. The Clerk-Treasurer. is authorized .and directed to file a certified
copy of this. Resolution and the subsequent. resolution selling the Bonds with the
County Finance Director of Hennepin County and obtain a certificate that the Bonds
have been duly entered on the bond register as provided by Minnesota Statutes,.
Section 475.63.
Section 7.
7.01. The Bonds shall be issued. and sold in .accordance with the terms and
conditions set out in the following Official: Notice of Bond Sale:.
53
OFFICIAL NOTICE OF BOND SALE
•-$1; 3.00, 000
' GROSS REVENUE RECREATIONAL FACILITIES BONDS OF 1979
CITY OF RICHFIELD (HENNEPIN GOUNTY), MINNESOTA
These Bonds will be offered Wednesday, April 4, 1979. Bides will be opened at
12:00 P.M., Central Time, at the office of the Richfield City Manager, 6700
Portland Avenue South, Richfield, MN. 55423. Award will be at a special council
meeting at 12:30 P.M. Central Time of the same day.: The offering will be upon
the fallowing terms:
TYPE'AND PURPOSE
The Bonds will be payable solely from gross operating revenues of a municipally
owned golf course-facility to be constructed with-the proceeds of the Bonds, and.
from certain revenues of the City's Municipal Liquor Dispensary. The Bonds will.
be in bearer form with interest coupons attached and will be of the denomination
of $5,000 each, unless other denominations are requested by the Purchaser within
48 hours after the award..
MATURITIES. AND REDEMPTION -
The Bonds will be dated May 1, 1979 and will mature November l in the years
and amounts as follows:
Year. Amount Year Amount
1981 $ 30,000 1991 $ 65,000
1982 35,004 1992 65,000
.198.3 35,000 1993 70,000
1984 40,000 1994 75,.000
1985. 40,000 1995 80,000
1986 45,000. 1996 90,000
1987 50,000 1997 95,000
1988 50,000 1998 100,000.
.1989 55,000 1999 105,000
199.0 60,000 2000 115,000
At the option of the City all Bonds maturing after November 1, 1993, shall be
subject to: redemption prior to maturity in inverse order of serial numbers on
said date and any interest payment date thereafter, at a price of par and accrued
interest..
INTEREST
Interest on the Bonds will be payable on November 1, 1979, and semiannually there-
after on each May l and November 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. No limit on the number
of interest rates that may be specified for the issue.: Each rate must be in an
integral multiple of 5/100 of 1%, and no rate of interest nor the net effective.
average rate of the issue may exceed 7% per annum. No supplemental or "B"
coupons will. be permitted.
54
I
(PAYING AGENT-
Principal and interest will be made. payable at any suitable bank in the United
States designated by the successful bidder within 48 hours after award of sale,.
subject to approval by fhe Git.y, and the City will pay the reasonable and
customary paying-agency charges.
GUSIP 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 his option, will deposit with a bank in the United States selected
by him 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 tfi at 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, or within five days
after deposit with delivery agent; 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 Messrs. LeFevere,
Lefler; Pearson, O'Brien & Drawz of Minneapolis, Minnesota.. The legal opinion
will be printed on the bonds at the request. of-the purchaser.
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
$26,000; payable to the City Clerk-,Treasurer, to be retained by the City as
_].iquidated damages if the bid is accepted and the bidder fails to comply therewith.
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
$1,300,000"bid for principal) will be deemed. the most favorable. No oral bid and
no bid of less than $1, 275,000 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 informality in any bid.
BY ORDER OF .THE CITY COUNCIL
/s/ Thomas J. Moran
City Clerk-Treasurer
Dated:March l2, 1979
~~
Exhibit A
NOTICE OF SALE ~ ~ -
$1,300,000 Gross Revenue Recreational .Facilities Bonds of 1979
City of Richfield
Hennepin County, Minnesota
These Bonds will be offered Wednesday, April 4, 1979. Bids will be
opened at 12:00 P.M.; Central Time, at the office of the Richfield City Manager,
6700 Portland Avenue South,. Richfield, MN 55423. Award will be 'at a special
.council meeting at 12:30. p.m. Central Time of the. same. day..
Dated May 1, 1979, the Bonds will mature on November 1 in the years and
amounts as follows:
Year Amount Year Amount
1981 $30,000 1991 $ 65,000
1982 35,000 1992 b5,000
1983 35,000 1993 : 70,000
' 1984 40,000 1994. 75,000
1985 40,000 1995 80,000
1986 45,000 1996 90,000`
1987 50,000 1997 95,000
1988 50,000 1998. 100,000
1989 55,000 1999 105,000
1990 60,000 2000 115,000.
A11 Bonds maturing after November 1, 1993 subject to redemption on said date
and any interest payment date thereafter at par and accrued interest. .Interest
will be payable on November 1, 1979, and, semiannually thereafter. Each rate
must be in an integral multiple of 5/100 of 1% and no rate may exceed 7% per
annum... Minimum price, $1,275,000. An unqualified legal opinion will be
furnished by Messrs. LeFevere, Lefler, Pearson, O'Brien & Drawz of Minneapolis,
Minnesota... The purpose bf the Bonds is to finance the construction of a
municipally owned golf .course in the City.
BY ORDER OF THE CITY COUNCIL.
Dated: March 12, 1979
/s/ Thomas J. Moran
City Clerk-Treasurer
,~
5b i
Resolution No. 6059 -13-
7.02. This Council shall meet at the Richfield Gity Hall on Wednesday, the
4th day of April, 1979, at 12:30 o', clock P.M. Ce~ftral Time to receive and consider
bids previously received and tabulated the same-day. The City Clerk-Treasurer
shall cause the. abbreviated notice,of sale attached hereto as Exhibit A to be,
published in the official newspaper of the City and in Commercial West, a financial -_ '
paper published in Minneapolis, Minnesota, as required by law.
Passed by the City Council of'the City of Kichfield, this'I2th day of March, 1979.
Loren L. a Mayor
i -
I,
ATTEST:
~~~~ ~~~~
Thomas J. oran Ci*y Clerk