77-5836RtS 4
RESOLUTION N0. 5836
° RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $6,500,000 GENERAL OBLIGATION
REFUNDING BONDS OF 1978
0
BE IT RESOLVED by the City Council of the City of Richfield, Hennepin
County, Minnesota as follows:
WHEREAS,.-the City is authorized by the provisions of Minnesota Statutes,
Section 475.67, (the."Act"), to issue and .sell bonds to refund in advance of
their maturity outstanding bonds of the City when determined by the City
Council to be necessary and desirable for the reduction of interest cost and
the adjustment of maturities of outstanding bonds;. and
WHEREAS, the City Council hereby determines that it is necessary and
desirable for the reduction of interest costs-and the sound financial
management of the City to refund certain outstanding bonds (the "Outstanding.
Bonds"j of -the following issues:
a} General Obligation Improvement Bonds of 1974, dated
-May 1, 1974, of which the aggregate principal amount outstanding
is $3,060,000, and
b} General- Obligation Improvement Bonds. of 1975,. dated
" May 1,-1975, of which the aggregate principal amount outstanding
is $4,b00,000, and
WHEREAS, all conditions required under the Act exist for the sale of
bonds to refund the Outstanding Bonds in advance of their maturity.-
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RICHFIELD, HENNEPIN COUNTY, MINNESOTA, AS FOLLOWS:
1. For the purpose of providing moneys to refund the Outstanding Bonds
in advance of maturity, the City shall issue and sell its General Obligation
Refunding Bonds of 1978 (the "Refunding Bonds") in the principal amount of
$6,500,000.. -
2. The Refunding Bonds shall be issued-and sold in advance with the
terms of the following Official`Notice of Sale:
i
OFFICIAL
NOTICE OF SALE
$6,500,000 General Obligation Refunding Bonds of 1978
City of Richfield
Hennepin County, Minnesota
NOTICE IS HEREBY GIVEN that sealed bids for .the purchase of
$6,500,000,General Obligation Refunding Bonds of the City of Richfield
will be received until-11:00 o'clock A.M. on Wednesday, January 4,
1978 at `the office of the City Manager, in the City Municipal
Building, 6700 Portland Avenue South, Richfield, Minnesota 55423, at
which time the bids will be opened and tabulated for presentation to
the City Council for its consideration at a special meeting at 5:00
P.M. that same day. The Bonds will be negotiable coupon, general
obligation bonds of the City. and are offered on the following terms:
Purposeland Security
The purpose of the bonds is to provide funds to refund in
advance of their maturity certain''outstanding general obligation bonds
of 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 datedl'January 1, 1978, will be in the
denomination of $5,000 each, unless other denominations are requested
by the purchaser within 48 hours of the award, and will mature on
February l in the following years', and amounts:
Year
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
Amount
$330,000
315,000
300,000
305,000
300,000
285,000
280,000
275,000
265,000
405,000
415,000
Year
1990
1991
1992
1993
1994
1995
1996
1997
Amount
$410,000
405,000
405,000
400,.000
395,000
390,000
390,000
230,000
85
The City reserves the right to reduce the principal amount of Bonds
maturing in 1979 by an amount not! to exceed $50,000.
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Redemption Feature
All bonds of this issue maturing in the years-1989 to 1997,
inclusive, are subject to prior redemption at the option of the City
in inverse order of serial numbers on February 1, 1987 and.. any
interest payment date thereafter at par. plus accrued interest.
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Lnterest
Interest on the bonds will be payable on August 1, 1978, 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. Rates are to be expressed in
multigles'of 5/100 of 1%. No more than 15 rates may be specified and
the difference between the highest and lowest rate may not exceed 1%.
The City reserves the right't~o specify the coupon rate for each
maturity or otherwise limit the bidding provisions at any time prior
to 11:00 A.M., C.S.T, Tuesday, January 3, 1978 and in such event will
use its best efforts tb notify prospective bidders. Any prospective
bidder may register his/her name and address with the Gity's financial
consultant, T. G. Evensen & Associates for the purpose of receiving.
such notice.
Paying Agent
Principal and interest will be made payable at a suitable
bank recommended by the purchaser and approved by the Council,.-and the
City will pay customary charges for this service in advance provided that
such recommendation is received within 48 hours after the sale and the
City will select the paying agent if the recommendation is not approved.
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 o£ delivery caused..thereby.
Delivery
Within 25 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 that no litigation in any
manner questioning heir 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 the.
delivery agent, in funds available for expenditure by the City on the
day of payment. I
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. The legal opinion will state that the bonds
are valid and binding general obligations of~~the City, and. the City is
obligated and required to levy taxes for any deficiency in amounts
necessary for the prompt payment of 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 theltime stated above. Each bid must be
unconditional and. must be accompanied by a cashier's or certified
check or bank draft. in the amount ', of $130,000, payable to the City
Treasurer, 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 interest cost (total interest from date of
bonds to stated maturities, less any cash premium) will be deemed the
most favorable. No oral bid and no bid of less than $6,500,000 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
Dated: December 12, 1977
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3. The City Clerk is authorized and directed to advertise the
Refunding Bonds for sale in accordance with the foregoing official
notice of sale and to cause the official notice of sale to be published
in the manner required by law. The City Council shall meet on Wednesday,
January 4, 1978, at 5:30 o`clock p.m, for the purpose of considering
sealed bids on the Refunding Bonds and taking any other appropriate
action.
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Passed by the City Council of the City of Richfield, Hennepin County,
Minnesota, this 12th day of December 1977.
ATTEST:
v. j
Thomas J. Mor City Clerk