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HomeMy WebLinkAboutResolution - 80-228 - Relating to $300,000 Certificates of Indebtedness, Series 1980, and Authorizing Issuance and Calling for Public Sale - 11/18/1980 y Member introduced the • following resolution and moved its adoption: 0 - ff- RESOLUTION RELATING TO $300,000 CERTIFICATES OF INDEBTEDNESS, SERIES 1980; AUTHORIZING THE ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota, as follows: 1. Authorization of Certificates. Pursuant to the provisions of Minnesota Statutes, Section 412.301 and Chapter 475, the City of Eden Prairie (the City) has determined that it is necessary to issue and sell its Certificates of Indebtedness, Series 1980 in the aggregate principal amount of $300,000 (the Certificates) , for the purpose of temporarily financing the cost of public safety and public works equipment purchases. The Council finds that the principal amount of the Certificates does not exceed one percent of the assessed valuation of taxable property in the City, and thus hereby authorizes the issuance of the Certificates. • 2. Sale of the Certificates. This Council shall meet at the time and place specified in the form of notice hereinafter prescribed to receive, open and consider sealed bids and award the sale of the Certificates. The City Finance Director/Clerk is hereby authorized and directed to cause notice of the time, place and purpose of the meeting to be published once not less than ten days before the date of the meeting in the a legal newspaper having general circulation in the City, and in Commercial West, which notice shall be in substantially the following form: s S NOTICE OF SALE $300,000 Certificates of Indebtedness, Series 1980 City of Eden Prairie, Minnesota NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above Certificates of the City of Eden Prairie, Minnesota will be received at the office of the City Finance Director/Clerk in the City Hall in Eden Prairie, Minnesota, until o'clock p.m. , December 9, 1980, at which time the bids will be opened and tabulated, and at 7:30 p.m. that same day the City Council will meet to consider the bids and award the sale of the Certificates. The Certificates are being issued to finance the purchase of public safety and public works equipment. The Certificates will be dated December 1, 1980, and will mature, without option of prior payment, on January 1 in the following years and amounts: Year Amount 1983 $ 50,000 1984 100 ,000 1985 150,000 Interest will be payable on September 1, 1981 and semiannually thereafter. No rate of interest nor the net effective average rate of the issue may exceed 12% per annum. An opinion as to validity of the issue and tax exempt nature of the interest thereon will be requested from Dorsey, Windhorst, Hannaford, Whitney & Halladay, of Minneapolis, Minnesota. Copies of a statement of Terms and Conditions for Receipt of Bids and Award of Sale and additional information may be obtained from the undersigned or from Ehlers and Associates, Inc. , 507 Marquette Avenue, Minneapolis, Minnesota 55402; telephone (612) 339-8291, Financial Consultants to the City. BY ORDER OF THE CITY COUNCIL John D. Frane Finance Director/Clerk 8950 Eden Prairie Road Eden Prairie, Minnesota 55344 Dated : November 18, 1980. i . f -2- 4 � 3. Terms and Conditions for Receipt of Bids and Award of Sale. The following shall constitute the terms • and conditions for the sale and issuance of the Certificates, and the City Finance Director/Clerk and the financial consultants to the City are hereby authorized and directed to cause the following terms and conditions to be incorporated in material distributed to prospective bidders for the Certificates: • -3- TERMS AND CONDITIONS FOR RECEIPT OF BIDS AND AWARD OF SALE OF . $300,000 CERTIFICATES OF INDEBTEDNESS, SERIES 1980 CITY OF EDEN PRAIRIE, MINNESOTA Sealed bids for the purchase of $300,000 Certificates of Indebtedness, Series 1980 of the City of Eden Prairie, Minnesota, will be received at the office of -the Finance Director/Clerk in the City Hall until o'clock P.M. , C.S.T. , Tuesday, December 9, 1980, at which time the bids will be opened and tabulated. The City Council will meet at 7:30 o'clock P.M. that same day to consider the bids and award the sale of the Certificates. DATE AND PURPOSE The Certificates are to be dated as of December 1, 1980, and are issued pursuant to Minnesota Statutes, Section 412.301 and Chapter 475, to finance the purchase of public safety and public works equipment. DENOMINATION AND MATURITIES The Certificates will be numbered serially, will be in the denomination of $5,000 each, unless designated otherwise by the purchaser within 48 hours of award of sale and will mature serially, without option of prior • payment, on January 1 in the following years and amounts: Year Amount 1983 $ 50 ,000 1984 100,000 1985 150,000 INTEREST PAYMENT DATES, RATES Interest on the Certificates will be payable semiannually on each March 1 and September 1, commencing September 1, 1981. Certificates maturing on the same date must bear interest at a single uniform rate from their date until their stated maturity, not exceeding 12% per annum, and represented by a single set of coupons. . -4- PAYING AGENT • Principal and interest will be made payable at a suitable bank in the United States designated by the successful bidder within 48 hours after award of sale, subject to approval by the City Council. The Council will select the paying agent if it does not approve the designation of the purchaser. 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 Certificates 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 delay in delivery occasioned thereby. DELIVERY Within 40 days after award of sale, the City will furnish and deliver to the purchaser anywhere within the United States, the printed and executed Certificates, the opinion of bond counsel and customary closing papers, including a no-litigation certificate. Payment for the Certificates must be made in funds immediately available to the City on the date of delivery. LEGAL OPINION A legal opinion on the validity of the Certificates and the tax-exempt nature of the interest thereon will be requested from Dorsey, Windhorst, Hannaford, Whitney & Halladay, of Minneapolis, Minnesota. The legal opinion will be printed on the Certificates at the request of the purchaser. CONSIDERATION OF BIDS Sealed bids for the Certificates for not less than $300,000 and accrued interest on the principal sum of $300,000 must be mailed or delivered to the undersigned and must be received prior to the time set forth above. Each bid must be unconditional (except that each bid will be -deemed to be conditioned on ieceipt of the legal opinion referred to above) and must be accompanied by a cashier 's check or a certified check or bank draft in the amount of $ , 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 -5- r` cost, determined by the deduction of any preT. .^ from the total interest on all Certificates from their date ? , their stated • maturity, will be deemed the most favorable. The net effective rate of the issue may not exceed 12% per annum. The City reserves the right to reject any and all bids, to waive informalities and to adjourn the sale. Information for bidders and bidding forms may be obtained from the undersigned or from Ehlers and Associates, 'Inc. , 507 Marquette Aveneue, Minneapolis, Minnesota 55402; telephone (612) 339-8291, Financial Consultants to the City. Dated: November 18, 1980. BY ORDER OF THE CITY COUNCIL John D. Frane City Finance Director/Clerk Eden Prairie, Minnesota 55344 - 4. Official Statement. The City :: -ce Director/Clerk, in cooperation with Ehlers and f ssociates, • Inc. , Financial Consultants to the City, is hereby authorized and directed to prepare on behalf of the City an official statement to be distributed to potential purchasers of the Certificates. Such official statement shall contain the statement of Terms and Conditions for Receipt of Bids and Award of Sale set forth in paragraph 3 hereof and such other information as shall be deemed advisable and necessary to describe adequately the City and the security, terms and conditions of the Certificates. Mayor Attest: The!n Director/Clerk for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following Members voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor and attested by the Finance Director/Clerk.