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HomeMy WebLinkAboutResolution - 1189 - Authorizing, Selling and Establishing the Terms of $1,360,000 General Obligation Improvement Bonds of 1976 and Providing for Payment - 09/14/1976 RESOLUTION NO. 1189 • RESOLUTION AUTHORIZING, SELLING AND ESTABLISHING THE TERMS OF $1 ,360,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1976, AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED by the City Council of the .City of Eden Prairie, Minne- sota, as follows: Section 1 . Authorization and Sale. 1 .01 Pursuant to Minnesota Statutes, Chapter 429 the Council has determined the necessity of the issuance of General Obligation Improvement Bonds of 1976 of the City in the principal amount of $1 ,360,000 for the purpose of paying the cost of local improvements, including the sum of $27,000 representing interest on the bonds as authorized by Minnesota Statutes, Section 475.56. 1 .02 Notice of sale of the bonds has been duly published and the Council has publicly received, opened and considered all sealed bids presented in con- formity with the notice. The most favorable of such bids is ascertained to be that of BancNorthwest, of Minneapolis, Minnesota, and Juran & Moody, Inc. , of, St. Paul , Minnesota, and associates, to purchase the bonds at a price of $1,339,600 plus accrued interest on the total principal amount thereof to the date of de- livery and payment, and upon the further terms and conditions set forth in this . resolution. 1 .03 The Mayor and Clerk are directed to execute in duplicate a contract on th.e part of the City for the sale of the bonds in accordance with the proposal described in Section 1 .02, and to deliver a duplicate to the purchasers. The Treasurer is directed to retain the purchasers` check securing the contract of sale until the bonds are delivered and the purchase price is paid, and to return the checks securing other bids to the respective bidders. Section 2. Form of Bonds and Coupons. 2.01 The bonds issued hereunder shall be printed in substantially the fol- lowing form: -1- UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDEN PRAIRIE GENERAL OBLIGATION IMPROVEMENT BOND OF 1976 No. $5,000 KNOU ALL MEN BY THESE PRESENTS that the -City of Eden Prairie, a duly organized and existing municipality of Hennepin County, Minnesota, for value received acknowledges itself to be indebted and promises to pay to bearer the sum of FIVE THOUSAND DOLLARS on the 1st day of January, 19 , or, if this bond is prepayable as stated below, on an earlier date on which it shall have been duly called for redemption, and to pay interest thereon at the rate of per cent ( %) per annum from the date hereof until said principal sum is paid or until this bond, if prepayable, has been duly called for redemption? said in- terest being payable July 1 , 1977, and sbmiannuaily thereafter on January 1 and July 1 in each year, interest to maturity being payable in accordance with the upon presentation and surrender of the interest coupons appurtenant hereto. Both principal and interest are payable at National City Bank of Minneapolis in Minneapolis, Minnesota , or at the office of such . successor paying agent as may be designated by the City Council under the pro- visions of the resolution authorizing the issuance hereof, in any coin or cur- rency of the United States of America which on the respective dates of payment is legal tender for payment of public and private debts, and for the prompt and full payment thereof when due the full faith and credit and taxing powers of the City of Eden Prairie have been and are hereby irrevocably pledged. This bond is one of an issue in the aggregate, principal amount of $1 ,360,000, all of like date and tenor except as to serial number, interest rate, maturity and redemption provisions, issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475, for = the purpose of defraying expenses incurred in constructing various local im- provements of special benefit to properties within the City. This bond is payable primarily from the City's Improvement Bond Redemption Fund, but the City Council is required by law to pay maturing principal and interest out of any funds in the treasury if moneys on hand in said fund are insufficient therefor. The bonds of this issue maturing in the years 1978 through 1987 are not subject to redemption Before maturity, but those maturing in the years 1988 through 1997 are each subject to redemption and prepayment at the option of the City on January 1 , 1987, and on any interest payment date thereafter, in inverse order of their serial numbers, and at a price of par plus accrued 0 interest to the date fixed for redemption. Not less than thirty days before the date fixed for prepayment and redemption of any bond, notice of the call -2- thereof will be published in a financial newspaper in a Minnesota city of the • first class or its -metropolitan area. Such notice will also .be mailed to the holder, if known, of each bond called for redemption, and to the bank at which principal and interest thereon are then payable, but published notice of redemp- tion shall be effective without mailing. Holders of prepayable bonds may request mailed notice of redemption by notifying the City Treasurer in writing of their names and addresses and the serial numbers of the bonds held by them. IT IS CERTIFIED AND RECITED that all acts, conditions and things re- quired by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed as so required; that the City has duly contracted for the making of said improvements and will cause the same to be completed with the funds made available by this issue; that said Improvement Bond Redemption Fund has been . duly created and provision made for the support thereof by special assessments to be levied for collection in the years and in aggregate amounts not less than 5% in excess of the amounts needed to pay the principal of and interest on the bonds of th.is issue when due, but taxes, if needed for this purpose, are re- quired by law to be levied upon all taxable property in the City, without limitation as to rate or amount; and that the issuance of this bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. IN, WITNESS WHEREOF the City of Eden Prairie, by its City Council , has caused this bond and the certificate printed on the reverse side hereof and the coupons appurtenant hereto to be executed by the signatures of the Mayor and City Manager and its corporate seal to be affixed hereto, said sig- natures and seal being true and correct printed, lithographed or engraved facsimiles of the originals thereof, except for the signature of the City Manager manually subscribed on the face of this bond, and has caused this bond to be dated as of October 1 , 1976. (Facsimile signature) ' Mayor City Manager (Facsimile Seal) 2.02 Interest on each bond to maturity shall be represented by�a consecu- tively numbered set of interest coupons, printed in substantially the following form: -3- No. $ On the first day of July (January), 19 unless the bond described below is subject to and has been called for earlier redemption, the City of Eden Prairie, Hennepin County, Minnesota, will pay to bearer at National City Bank of Minneapolis , in Minneapolis, Minnesota, the amount shown hereon in lawful money of the United States of America for interest then due on its General Obligation Improvement Bond of .1976, dated October 1 , 1976, No. (Facsimile signature) (Facsimile signature) City Manager Mayor 2.03 A copy of the text of the legal opinion of bond counsel shall be ; printed on the reverse side of each bond and identified by a certificate in the following form: Re certify that the above is a full ,. true and correct copy of the legal opinion rendered by bond counsel on the issue of bonds of the City of Eden Prairie, Minnesota, which includes the within bond, dated as of the date - of delivery of and payment for the bonds. (Facsimile signature) (,Facsimile signature) City Manager Mayor r • t I I -4- r . Section 3. Bond Terms, Execution and Delivery. 3.01 The bonds issued hereunder shall be designated General Obligation Improvement Bonds of 1976, dated October 1 , 1976, shall be issued in the de- nomination of $5,000 each, numbered serially from 1 to 272 , inclusive, shall mature serially on January 7 in the respective years and amounts stated below and shall bear interest from date of issue until paid or duly called for re- demption at the respective annual rates stated opposite their maturity years: Interest Interest Year Amount Rate Year Amount Rate 1978 $ 70,000 3.75% 1988 $65,000 5.40% 1979' 70,000 4.00% 1989 65,000 5.60% 1980 70,000 4.25% 1990 55,000 5.70% 1981 80,000 4.50% 1991 40,000 5.80% 1982 80,000 4.60% 1992 40,000 5.90% 1983 110,000 4.75% 1993 40,000 6.00% 1984 110,000 4.90% 1994 40,000 6.00% 1985 - 115,000 5.00% 1995 30,000 6.10% 1986 110,000 5.10%' 1996 30,000 6.20% 1987 110,000 5.25% 1997 30,000 6.20% 3.02 The bonds maturing in the years 1978 through 1987 shall not be sub- ject to redemption before maturity.. The bonds maturing in the years 1988 through 1'99.7 shall each be subject to redemption and prepayment at the option of the City on January *1 , 1987, and on any interest payment date thereafter, in inverse order of their serial numbers, and at a price of par plus-accrued interest to the date fixed for redemption. Not 'less than thirty days before the date fixed for re- demption of any bonds, notice of the call thereof shall be published in a daily or weekly periodical in a Minnesota city of the first class or its metropolitan area, which circulates throughout the State and furnishes financial news as a part of its service, and shall also be marled to the holder of each bond called for redemption who has filed with the Treasurer a written request to receive such notice, but failure to mail notice shall not affect the validity of the published call for redemption. 3.03 The interest on the bonds shall be payable July 1 , 1977, 'and semi- annually thereafter on January land July 1 in each year. The principal of and interest on the bonds shall be payable .at National City Bank of Minneapolis ,. in Minneapolis, Minnesota, which is designated as paying agent, or in the event of its resignation, removal or incapability of acting as paying agent, at the office of such successor paying agent as may be appointed by the City Council , and the City agrees to pay the reasonable and customary charges of the paying agent for this service. Upon merger or consolidation of the paying agent with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such- busi- ness, such corporation shall be authorized to act as successor paying agent. No resignation of the paying agent and no appointment of a successor paying agent shall become effective until the date specified in a notice of the ap- pointment which the Council shall cause to be published ,in a financial news- paper in a Minnesota city of the first class or its metropolitan area, not less than thirty days before said effective date. -5- K 3.04 The bonds and the certificate on the reverse side thereof and the interest coupons appurtenant thereto shall be executed in behalf of the City • by the signatures of the Mayor and of the City Manager. All of the signatures shall be printed, engraved or lithographed facsimiles of the original signatures of the officers, except for the -signature of the City Manager on the face of each bond, which shall be manually subscribed, and a facsimile of the seal shall be printed on the face of each bond. On the date fixed for the delivery of the bonds the Mayor and City Manager shall make and file in the office of the City Clerk and deliver to the purchasers a certificate in accordance with the provi- sions of Section 103(c) of the Internal Revenue Code of 1954, as amended, and Proposed Treasury Regulations, Sections 1.103-13 and 1.103-14, stating that on. the basis of facts, estimates and circumstances in existence on the date of is- sue and delivery of the bonds, as such facts, estimates and circumstances are set forth in the certificate, it is not expected that the proceeds of the bonds will be used in a manner that would cause the bonds to be arbitrage bonds within the meaning of said Code and Regulations. Section 4. Application of Bond Proceeds. 4.01 To the Improvement Bond Redemption Fund referred to below shall be credited $5,900 plus the accrued -interest paid by the purchasers. The remaining proceeds shall be credited to the funds of the improvements described in Section 4.02, in amounts determined to be necessary, with other funds on hand therein, to pay the costs of the improvement for which they have been established. There shall also be credited to each of the improvement funds all special assessments levied with respect to the improvement for which it is established, until all costs of that improvement have been paid. After all costs of each improvement • have been paid, its fund shall be discontinued and any bond proceeds remaining' therein may be transferred to the fund established for the construction of any other improvement instituted pursuant to Chapter 429, Minnesota Statutes. All special assessments and taxes, if any, then on hand in the improvement fund or thereafter received, and any bond proceeds not so transferred shall. be transferred to the Improvement Bond Redemption Fund. 4.02 The proceeds of the bonds herein authorized are appropriated for the payment of the cost of the following designated improvements instituted pursuant to Chapter 429, each of which has been ordered following public hearing and notice as required by law, and contracts for the completion of all or a substantial part of each improvement have been or will be awarded upon public advertisement for bids, and costs of the respective improvements are estimated to be not less than the following amounts: Chestnut Road $ 91,621 T.H. 169 512,000 Mitchell Road overlay 5,000 Lochanhun Street 23,800 Area F & A streets 180,000 Riley Lake Road 4,800 Preserve Blvd. 192,000 School Road and Eden Court 54,000 Streets - Mitchell Lake PVP 144,500 Westgate East - Streets 166,200- Eden Prairie Road 10,700 $1,384,621 Less available funds 50,000 $1,334,621 r 4.03 The City covenants and agrees that it has done or will do and perform • all acts and things necessary for the final and valid levy of said special assess- ments, and for the extension thereof upon the tax rolls of the City at the same time as general taxes, with interest on deferred installments thereof at a rate not less than that payable on the bonds. In the event that any assessment should at any time be held invalid with respect to any property, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or any of its officers or employees, either in the making of the assessment or in the performance of any condition precedent thereto, the City covenants and agrees that it will forthwith do all such further -things and take all such further pro- ceedings as shall be required by law to make the assessment a valid and binding lien upon the property. Section 5. Improvement Bond Redemption Fund. 5.01 The bonds issued hereunder shall be payable from the Improvement Bond Redemption Fund of the City, which shall be maintained as a separate and special account on its official books and records until all bonds payable therefrom have been retired. The money in this fund shall be used only to pay the principal of and interest on the bonds issued hereunder and any other bonds now or hereafter issued to pay the cost of local improvements instituted pursuant to Minnesota Statutes, Chapter 429, and directed to 5e paid from the Improvement Bond Redemp- tion Fund. 5.02 The full faith_ and credit and taxing powers of the City are pledged for tha prompt and full payment of the principal of and interest on the bonds • issued hereunder and all other bonds now or hereafter made payable from the Im- provement Bond Redemption Fund. If that fund should at any time be- insufficient to pay such principal or interest when due, it shall be paid from any other funds of the City, and such other funds shall be reimbursed therefor when sufficient money becomes available in the Improvement Bond Redemption Fund. No tax is levied for the payment of the bonds at this time, inasmuch as the "estimated collections of the special assessments described in Section 4 are sufficient for compliance with the provisions of Minnesota Statutes, Section 475.61; but the City covenants and agrees that it will in accordance with the provisions of that statute levy and cause to be extended, assessed and collected any taxes found necessary for full payment of the principal and interest. Section 6. Defeasance. When any bonds of this issue and all interest accrued thereon has been fully paid, or provision for such payment has been made in the manner herein set forth, - all pledges, covenants and other rights granted -to the holder thereof by this resolution shall cease, and the bond shall no longer be.considered outstanding hereunder. Any bond or coupon for the payment or redemption of which money shall have been deposited With the paying agent, whether at or prior to the maturity thereof, shall be deemed paid within the meaning of this section, provided that if any such bond is to be redeemed before maturity, notice of the redemption thereof shall have been duly published. Alternatively, any bonds and the cou- pons appertaining thereto, whether at or before the maturity or redemption date of such bonds, shall be deemed paid within the meaning of this section if, but only if: -7- ' t (a) In case any of such bonds are to be redeemed before maturity, 101otice of such redemption shall have been duly published; and (b) There shall have been deposited in escrow with a bank or trust company qualified by law.to perform the duties referred to in clause (c) below securities which are direct obligations of the United States, or of such agen- cies of the United States as may be permitted by law, the principal of and in- terest on which, when due, will provide money which, together with any money deposited with the escrow agent at the same time, will be sufficient to pay the principal and interest due and to become due on such bonds on and prior to the redemption dates or maturity dates thereof, as the case may be; and (c) The escrow agent shall enter into an agreement with the City pro- viding that all securities so deposited and all money deposited and received in payment of the securities will be held in trust for and be applied only to the payment of the principal due on the maturity dates or earlier redemption dates of such bonds, as the case may be, and the interest when due thereon at and prior to such maturity and. redemption dates; and (d) Such deposit and escrow agreement shall be made and executed only pursuant to and in accordance with express authorization by laws then in effect. . Section 7. Certifications of Proceedings_ 7.01 The City Clerk is directed to file with the Director of Finance and Records of Hennepin County a certified copy of this resolution, and such other information as the Director of Finance and Records may require, and to obtain fromthe Director of Finance and Records a certificate stating that such bonds have been entered upon his bond register. 7.02 The officers of the City and the Director of Finance and Records are authorized and directed to prepare and furnish to the purchasers of the bonds, and to bond counsel , certified copies of all proceedings and records of the City relating to the authorization and issuance of the bonds and such other affidavits and certificates as may be reasonably required to show the facts relating to the legality and marketability of the bonds, as such facts appear from the officers' books and records or are otherwise known to them. All such certified copies, certificates and affidavits, including any hereto- fore furnished, constitute representations of the City as to the facts recited _ therein. -Mayor Attest: y Cl erk -8-