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HomeMy WebLinkAboutResolution - 80-68 - Relating to $3,570,000 General Obligation Recreation Facility Bonds, $4,000,000 General Obligation Water and Sewer Revenue Bonds and $7,450,000 General Obligation Improvement Bonds and Providing for Sale - t s Member A(0104- '4 introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION RELATING TO $3,570,000 GENERAL OBLIGATION RECREATION FACILITY BONDS, .$4, 000, 000 GENERAL OBLIGATION WATER AND SEWER REVENUE BONDS AND $7, 450,000 GENERAL OBLIGATION IMPROVEMENT BONDS; 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 determined that it is necessary for the City to issue and sell $3,570, 000 General Obligation Recreation Facility Bonds to finance the acquisition and betterment of land, buildings and facilities for the City's public recreation program, $7,450, 000 General Obligation Improvement Bonds to finance local improvements and $4,000,000 General Obligation Water and Sewer Revenue Bonds to finance improvements to the City' s water treatment plant. • (2) It is hereby determined that April 15, 1980, at 1: 00 o' clock P.M. , Central Time, will be the date and time for which sealed bids will be received for said bonds, and this Council shall meet at 7: 30 o'clock P.M. that same date to award the sale. (3) The Finance Director/Clerk is hereby authorized and directed to cause notice of the time, place and purpose of said sale to be published at least ten days in advance of the bid opening 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 circulation throughout the State, which notice shall be in substantially the following form: NOTICE OF SALE $3,570, 000 General Obligation Recreation Facility Bonds $4, 000, 000 General Obligation Water and Sewer Revenue Bonds $7,450, 000 General Obligation Improvement Bonds City of Eden Prairie, Minnesota These bonds will be offered on April 15, 1980. Sealed bids will be received until 1: 00 o' clock p.m. at the City Hall, Eden Prairie, Minnesota, at which time they will be opened and tabulated. The Council will meet at 7 :30 o' clock p.m. on the same day to consider the bids and to award the sale of the Bonds. All of the Bonds will be dated May 1, 1980. All bonds maturing in the years 1991 through 2003 are subject to redemption on May 1, 1990. Interest will be payable on November 1, 1980 and semiannually thereafter. The interest rate may not exceed the maximum rate permitted by Minnesota law on the date of delivery. An opinion as to validity and tax exemption will be requested from Messrs. Dorsey, Windhorst, Hannaford, Whitney & Halladay of Minn- eapolis, Minnesota. The purpose of the bonds is to finance the acquisition and betterment of land, buildings, and facilities for • the City' s public recreation program, to finance improvements to the City' s water treatment plant, and to finance various local improvements in the City. 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, First National- Soo Line Concourse, 507 Marquette Avenue, Minneapolis, Minnesota 55402. Telephone: (612) 339-8291. (4) The following shall constitute the terms and 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 $15, 020 ,000 GENERAL OBLIGATION BONDS CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA Sealed bids will be received at the City Hall in the City of Eden Prairie, Minnesota, until 1:00 o 'clock P.M. , Central Time, on Tuesday, April 15, 1980, for the purchase of general obligation bonds in the aggregate principal amount of $15,020,000 to be issued by the City upon the following terms and conditions: Purposes The obligations will comprise three issues, all dated as of May 1, 1980: $7,450,000 General Obligation Improvement Bonds to be issued pursuant to Minnesota Statutes, Chapters 475 and 429, to finance various local -improvements in the City; $3,570, 000 General Obligation Recreation Facility Bonds to be issued pursuant to Minnesota Statutes, Chapter 474 • and Section 471.191, . to finance the acquisition and betterment of land, buildings and facilities for the City's public recreation program; $4, 000,000 General Obligation Water and Sewer Bonds to be issued pursuant to Minnesota Statutes, Section 444. 075 to finance improvements to the City' s water treatment plant. Maturities The obligations of each issue will be numbered serially, will be in the denomination of $5, 000 each, and will mature serially on May 1 in the following years and amounts: G.O. G.O. Recreation Improvement Water and Sewer Year Facility Bonds Bonds Bonds Total 1982 $25, 000 $250,000 $ --- $275,000 1983 50,000 700,000 --- 750,000 1984 75, 000 700,000 75, 000 850,000 1985 100,000 700,000 100, 000 900,000 1986 125, 000 700, 000 100, 000 925, 000 1987 150, 000 650,000 100 ,000 900,000 1988 175, 000 650 ,000 125, 000 950,000 G.O. • G.O. Recreation Improvement Water and Sewer Year Facility Bonds Bonds Bonds Total .1989 $200,000 $550, 000 $125,000 $ 875,000 1990 250, 000 550,000 150,000 950,000 1991 275,000 550,000 150, 000 975,000 1992 325, 000 550, 000 175, 000 1,050 ,000 1993 350, 000 150,000 175,000 675 ,000 1994 375,000 150, 000 200, 000 725,000 1995 375, 000 150,000 200 , 000 725,000 1996 400, 000 150,000 225,000 775,000 1997 320, 000 150, 000 250, 000 720,000 1998 150,000 275,000 425,000 1999 275,000 275,000 2000 300, 000 300,000 2001 325,000 325,000 2002 325, 000 325,000 2003 350 ,000 350,000 $3 ,570, 000 $7 ,450,000 $4,000,000 $15,020,000 Redemption The bonds maturing in 1991 and subsequent years will each be sub- ject to redemption and prepayment at the option of the City, in • inverse numerical order, on May 1,- 1990, and any interest payment date thereafter at par. Interest Interest 'on the obligations will be payable semiannually on each May 1 and November 1, commencing November 1, 1980. 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. The interest rate may not exceed the maximum interest rate permitted by Minnesota applicable laws on the date of delivery (as of the date hereof, the maximum interest rate per- mitted by applicable laws is 70; various bills pending in the Minnesota Legislature would, if enacted, increase or eliminate the maximum rate) . No supplemental or "B" coupons will be per- mitted. 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 obligations 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 pur- chaser 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 the option of the purchaser, 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 certifi- cate stating that no litigation in any manner questioning the validity of the obligations 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 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 Opinions Legal opinions on the obligations will be requested from Dorsey, • Windhorst, Hannaford, Whitney & Halladay, of Minneapolis, Minnesota. The legal opinions will be printed on the obligations at the request of the purchaser. The legal opinions will state that the obligations are valid and binding general 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 received before the time stated above. All bids will then be publicly opened and tabulated and submitted to the City Council at 7 :30 o'clock P.M. , Central Time, the same day for consideration and action. Each bid must be unconditional (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 $300,400, 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 offering the lowest net interest cost (total interest from date of obligations to stated maturities, less any cash premium or plus any amount less than $15, 020, 000 bid for principal) will be deemed the most favorable. Np oral bid and no bid of less than $14,730, 000 for the principal plus accrued interest on all of the obligations, or resulting in an interest rate exceeding the maximum rate permitted by Minnesota • applicable laws on the date of delivery, 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 . (612) 339-8291. • Mayor Attest: inance Director/Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted, signed by the Mayor and his signature attested by the Finance Director/Clerk.