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HomeMy WebLinkAboutResolution - 77-100 - Relating to $998,000 Fire Equipment Bonds, $1,400,000 Water and Sewer Bonds, and $200,000 Certificates of Indebtedness and Providing for Public Sale Thereof - Member Pauly introduced the following resolution and moved its adoption: RESOLUTION NO. 77-100 RESOLUTION RELATING TO $998,000 FIRE EQUIPMENT BONDS, $1,400, 000 WATER AND SEWER BONDS, AND $200, 000 CERTIFICATES OF INDEBTEDNESS; PROVIDING FOR THE PUBLIC SALE THEREOF BE IT RESOLVED by the City Council of the City of Eden Prairie, .Minnesota, as follows: 1. It is hereby found, determined and declared that at a special election held on June 14 , 1977, the voters. of the City authorized the issuance of its general obligation bonds -in the maximum -amount. of $998 , 000, for the purpose of financing improve- ments to the Fire and Rescue Service Syste;n and the purchase of new equipment and that it is necessary and expedient to issue all of said bonds forthwith. 2. It is also hereby determined that it is necessary for the City to issue and sell its $1,400,000 Water and Sewer Bonds and '$200, 000 Certificates of Indebtedness for the purpose of financing improvements to the City' s water and sewer systems and to purchase fire, police and street maintenance equipment. • 3. This Council shall meet at the time and place specified in the form of notice included in paragraph 4 hereof for the purpose of opening .and considering sealed bids for and awarding the sale of said bonds, 4. The Clerk is hereby authorized and directed to cause notice of the time, place and purpose of said meeting to be pub- lished at least ten days in advance of the time of said meeting in the Eden Prairie News, a legal newspaper having general circulation in the City, and in Commercial West, a periodical published in Minneapolis, Minnesota, giving financial news and of general circula- tion through out the state, which notice shall be in substantially the following form:. 410 NOTICE OF SALE $2,598,000 GENERAL OBLIGATION BONDS AND CERTIFICATES OF INDEBTEDNESS CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA Sealed 'aids for the above obligations of the City of Eden Prairie will be opened on Tuesday, September 20, 1977, at 6:00 o'clock P.M. , C.D.T. at the City Hall, Eden Prairie, Minnesota, and will be considered by the Council at 7:00 o'clock P.M. , C.D.T. that same day. They include $200, 000 Certificates of Indebtedness, to be issued to finance purchase of fire, police and street maintenance equipment; $998,000 Fire Equip- ment Bonds to finance fire system improvements; and $1,400,000 Water and Sewer Bonds to finance water and sewer utility improvements in anticipa- tion of special assessments and utility revenues. The obligations will be dated October 1, 1977, and will mature on January 1 in the following years and amounts: Certificates of Fire Equipment Water and Year Indebtedness Bonds Sewer Bonds Total 1979 $35, 000 $33,000 $ 68,000 1980 40 ,000 30,000 $ 40 ,000 110,000 1981 40 ,000 35,000 40 ,000 115,000 1982 40 ,000 .35 ,000 45,000 120,000 1983 45, 000 35,000 45,000 125,000 • 1984 40,000 50, 000 90,000 1985 40,000 55,000 95,000 1986 40 ,000 55,000 95,000 1987 45,000 60,000 105,000 1988 45,000 60 ,000 105,000 1989 50,000 65,000 115,000 1990 50, 000 70,000 120,000 1991 55,000 75,000 130,000 1992 60,000 75,000 135,000 1993 60,000 80,000 140,000 1994 65, 000 85,000 150,000 1995 65,000 90 , 000 155,000 1996 70,000 95, 000 165,000 1997 75,000 100, 000 175,000 1998 70,000 105,000 175,000 1999 110, 000 110,-000 The bonds maturing in 1989 and subsequent years will each be subject to redemption at par on January 1, 1988 . Interest will be payable on each January 1 and July 1. Neither the net interest cost nor any rate of interest may exceed 7% per annum. Legal opinions will be requested from Dorsey, Windhorst, Hannaford, Whitney & Halladay, of Minneapolis, Minnesota. BY ORDER OF THE CITY COUNCIL John D. Frane, Finance Director-Clerk 8950 Eden Prairie Road Eden Prairie, Minnesota 55343 5. The following shall constitute the terms and i conditions for the sale and issuance of the bonds, and the Clerk is hereby authorized and directed to cause the following terms and conditions to be incorporated in material distributed to prospective bidders for the bonds: TERMS AND CONDITIONS OF SALE $2,598,000 GENERAL OBLIGATION BONDS AND CERTIFICATES'OF INDEBTEDNESS CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA Sealed bids will be received at the City Hall in the City of Eden Prairie, Minnesota, until 6:00 o'clock P.M., CDT, on Tuesday, September 20, 1977, for the purchase of general -obligation bonds and certificates of indebtedness to be issued by the City in the amount of $2,598,000 upon the following terms: Purposes The obligations wiTi comprise three issues, all dated as of October 1, 1977: $200,000 Certificates of Indebtedness to be issued pursuant to Minnesota Statutes, Section 412.301 to purchase fire, police and street maintenance equipment; $998,000 Fire Equipment Bonds to be issued pursuant to Minnesota Statutes, Chapter 475, to finance fire system improvements and -purchase of new equipment; and $1,400,000 Water and Sewer Bonds" to be issued pursuant to Minnesota Statutes, Section 444.075 to finance water and sewer utility improvements and extensions in anticipation of special assessments on benefitted property and revenues of the utility. • Maturities The obligations of each issue will be numbered serially, will be issued in the denomination of $5,000 or $1,000 each, at the purchaser's option, and will mature serially on January 1 in the following years and amounts: Certificates of Fire Equipment Water and Year Indebtedness Bonds Sewer Bonds -Total 1979 $35,000 $33,000 $ 68,000 1980 40,000. 30,000_ $ 40,000 110,000 1981 40,000 35,000 40,000 115,000 1982 40,000 35,000- 45,000 120,000 1983 45,000 35,000 45,000 125,000 1984 40,000 50,000 90,000 1985 40,000 552000 95,000 1986 .40,000 55,000 95,000 1987 45,000 60,000 105,000 1988 45,000 60,000- 105,000 1989 50,000 65,000 115,000 1990 50,000 70,000 120,000 '1991 55,000 75,000 130,000 1992 60,000 75,000 135,000 1993 60,000 80,000 140,000 1994 65,000 85,000 150,000 1995 65,000 90,000 155,000 1996 702000 95.000 165,000 1997 75,000 100,000 175,000 1998 70,000 105,000 1752000 1999 110,000 110,000 Redemption The bonds maturing in 1989 and subsequent years will each be subject to redemption and prepayment at the option of the City, in inverse numerical order, on January 1, 1988, and any interest payment date thereafter, at par plus accrued interest.. Interest Interest on the obligations will be payable semiannually on each January 1 and July 1, commencing July 1, 1978. All obligations maturing on the same date must bear interest at a single uniform rate, not exceeding the rate specified for obligations of any subsequent maturity. Each rate must be in an integral multiple of 5/100 of 1%, and no rate may exceed 7%. No supplemental or "B" coupons will be permitted. 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 the City, and the City will- pay reasonable and customary charges of the paying agent. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the obliga- tions 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 at the office of the purchaser or, at his option, will deposit with a bank in the United States selected by the purchaser and approved by the City as the City's agent to permit examination by and to-deliver to the purchaser the printed and executed obligations, the opinion 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, 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 Legal opinions on the obligations will be requested from Dorsey, Windhorst, Hannaford, Whitney & Halladay, of Minneapolis, Minnesota. The legal opinion will be printed on the obligations at the request of the purchaser. The legal opinion will state that the obligations are valid and binding valid.and obligations of the City and the City is required to levy taxes for the payment of the .principal and interest thereon when due, without limit as to rate or amount. Consideration of Bids All bids must be sealed and mailed or delivered to the undersigned so as.to be received before the time stated above, and will then be publicly opened and tabulated and submitted to the City Council at 7:00 o'clock P.M., CDT, the same day for consideration and action. Each bid must be uncondi- tional (except that each bid will be deemed to be conditioned on-receipt of the legal opinion referred to above) and must be accompanied by a cashier's or certified check or bank draft in the amount of $51,960, payable to the City Finance Director/Clerk, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid offer- ing the lowest net interest cost (total interest from date of obligations to stated maturities, less any cash premium plus any amount less than $2,598,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $2,548,000 for the principal plus accrued interest on all of the obligations, or resulting in net interest cost over 7% per annum, will be considered, and the City Council reserves the right to reject any and all bids and to waive any - informality in any bid. BY ORDER OF THE CITY COUNCIL John D. Frane, Finance Director/Clerk Further information may be obtained from and bids may be delivered to: EHLERS AND ASSOCIATES, INC., Financial Specialists, 507 Marquette Avenue, Minneapolis, Minnesota 55402. Telephone: (612) 339- 8291. TAX EXEMPTION: In the opinion of counsel, under existing laws, regulations and court decisions, interest on the bonds is exempt from federal income tax, and the bonds are exempt from taxation as property by the State of Minnesota, its subdivisions and muni- cipalities and the' interest. to be paid on the bonds is not includible in gross income of-the recipient for Minnesota income tax purposes (other than Minnesota corporate franchise taxes measured by income) . Mayor Attest: zrt FThe t lerk motion for the adoption of the foregoing resolution was duly seconded by Member Osterholt , and upon vote being taken thereon, the following voted in. favor thereof: Osterholt, Pauly and Mayor Penzel and the following voted against the same: None whereupon said resolution .was declared duly passed and adopted, signed by the Mayor, and his signature attested by the Clerk.