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HomeMy WebLinkAboutResolution - 83-271 - Relating to $2,200,000 General Obligation Improvement Bonds - 11/01/1983 i Member introduced the following resolution and moved its adoption: f-3 _ 7 RESOLUTION NO. -- �7,1 RESOLUTION RELATING TO $2 , 200 , 000 GENERAL OBLIGATION IMPROVEMENT BONDS; $300 , 000 CERTIFICATES OF INDEBTEDNESS, AND $400 , 000 GENERAL OBLIGATION WATER REVENUE 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. $2 , 200 , 000 General Obligation Improvement Bonds to finance local improvements ; $300 , 000 Certificates of Indebtedness to finance public safety and public works equipment purchases ; and $400 , 000 General Obligation Water Revenue Bonds to finance improvements to the City ' s water system . 2. . It is hereby determined that a , 1983 , at /a 'v-v o 'clock , Central Time , will. be the date an time at 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 , a legal newspaper having general circulation in the City, and in , 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 : t i NOTICE OF SALE $2 , 900 , 000 GENERAL OBLIGATION BONDS AND CERTIFICATES OF INDEBTEDNESS CITY OF EDEN PRAIRIE , MINNESOTA Sealed bids for the above obligations of the City of Eden Prairie , Minnesota, will be opened at a -4 o ' clock , Central Time , on Tuesday , // %- , 1983 , at the City Hall in Eden Prairie . The City Council will meet at 7 : 30 o ' clock P . M . that same date to consider the bids and award the sale . The offering includes $2 , 200 , 000 General Obligation Improvement Bonds to finance local improvements ; $300 , 000 Certificates of Indebtedness to finance public safety and public works equipment purchases , and $ 400 , 000 General Obligation Water Revenue Bonds to finance improvements to the City ' s water system . Dated December 1 , 1983 , the obligations will mature on March 1 in each year as follows : G.O. Water G. O. Improve- Certificates of Revenue Year ment Bonds Indebtedness Bonds Total 1985 $ 100 , 000 $25 , 000 $125 , 000 1986 125 , 000 75 , 000 2.5 , 000 225 , 000 1987 125 , 000 100 , 000 25 , 000 250 , 000 4 1988 125 , 000 125 , 000 25 , 000 275 , 000 1989 125 , 000 50 , 000 175 , 000 1990 125 , 000 50 , 000 175 , 000 1991 125 , 000 50 , 000 175 , 000 1992 125 , 000 50 , 000 175 , 000 1993 125 , 000 50 , 000 175 , 000 1994 125 , 000 50 , 000 175 , 000 1995 125 , 000 125 , 000 1996 125 , 000 125 , 000 1997 125 , 000 125 , 000 1998 150 , 000 150 , 000 1999 150 , 000 150 , 000 2000 150 , 000 150 , 000 2001 150 , 000 150 , 000 $2 , 200 , 000 $300 , 000 $400 , 000 $2 , 900 , 000 Interest will be payable on September 1 , 1984 , and semiannually on each March and September thereafter. No rate of interest nor the net effective rate of the issue may exceed the maximum then permitted by law. All bonds maturing in 1991 and thereafter are subject to redemption and prepayment at the option of the City and in whole or in part , in inverse order of maturities and by lot within maturities , on March 1 , 1990 and any interest payment date thereafter , at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption . A legal opinion will be furnished by Dorsey & Whitney , of Minneapolis , Minnesota . Copies of a statement of Terms and Conditions of Sale and additional information -2- may be obtained from the undersigned or from Ehlers and Associates , Inc . , Financial Specialists , Suite 120 - Soo Line Building , 507 Marquette Avenue, Minneapolis , Minnesota 55402. ; telephone : (612 ) 339-8291 , financial consultants to the City. Dated : 1983 . BY ORDER OF THE CITY COUNCIL John D. Frane, Finance Director/Clerk 8950 Eden Prairie Road Eden Prairie, Minnesota 55343 -3- 4 . The following seal ] 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 : -4- i TERMS AND CONDITIONS OF SALE $2 , 900 , 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 /02= '' o ' clock, Central Time , on Tuesday, 1983 , for the purchase of general obligation bonds and certificates of indebtedness in the aggregate principal amount of $2 , 900 , 000 to be issued by the City upon the following terms and conditions : PURPOSES The obligations will comprise three issues , all dated as of December 1 , 1983 : $2 , 200 , 000 General Obligation Improvement Bonds to be issued pursuant to Minnesota Statutes , Chapter 429 , to finance street improvements in the City ; $300 , 000 Certificates of Indebtedness to be issued pursuant to Minnesota Statutes , Section 412 . 301 to finance public safety and public works equipment purchases ; and $400 , 000 General Obligation Water Revenue Bonds to be issued pursuant to Minnesota Statutes , Section 444 . 075 to firiance water system improvements and extensions . DATE , TYPE AND DENOMINATION The obligations will be dated December 1 , 1983 . The obligations will be issuable only as fully registered Bonds in denominations of $5 , 000 or any multiple thereof , of single maturities , with interest payable by check or draft to the person in whose name each Bond is registered 15 days prior to each interest payment date on the register maintained by the Bond Registrar which will be a suitable bank or trust company selected by the City. Principal is payable upon surrender of each Bond at maturity or upon prior redemption at the office of the Registrar . The City will pay the charges of the Registrar with respect to registration of ownership, transfer and exchange and payment of principal and interest . MATURITIES The obligations of each issue will mature serially on March 1 in the following years and amounts : -5- G.O. Water. G.O. Improve- Certificates of Revenue Year ment Bonds Indebtedness Bonds Total 1985 $ 100 , 000 $25 , 000 $125 , 000 1986 125 , 000 75 , 000 25 , 000 225 , 000 1987 125 , 000 100 , 000 25 , 000 250 , 000 1988 125 , 000 125 , 000 25 , 000 275 , 000 1989 125 , 000 50 , 000 175 , 000 1990 125 , 000 50 , 000 175 , 000 1991 125 , 000 50 , 000 175 , 000 1992 125 , 000 50 , 000 175 , 000 1993 125 , 000 50 , 000 175 , 000 1994 125 , 000 50 , 000 175 , 000 1995 125 , 000 125 , 000 1996 125 , 000 125 , 000 1997 125 , 000 125 , 000 1998 150 , 000 150 , 000 1999 150 , 000 150 , 000 2000 150 , 000 150 , 000 2001 150 , 000 150 , 000 $2 , 200 , 000 $300 , 000 $400 , 000 $2 , 900 , 000 REDEMPTION The bonds maturing in 1991 and subsequent years will each be subject to redemption and prepayment at the option of the City , in inverse order of maturities and by lot within maturities, on March 1 , 1990 , and any interest payment date thereafter at par . INTEREST Interest will be payable on September 1 , 1984 , and semiannually thereafter on each March 1 and September 1 . All. Bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for Bonds of any subsequent maturity . Each rate must be in an integral multiple of 5 / 100 of 1% , and no rate of interest nor the net effective rate of the issue may exceed the maximum then permitted by law. DELIVERY Within 40 days after sale and without cost to the purchaser, 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 certificate stating that no litigation in any manner questioning the validity -6- of the obligations is then threatened or pending . All costs , with -the exception of the printing of CUSIP numbers as indicated , 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 provided by Dorsey & Whitney , 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 enforceable in accordance with their terms , except to the extent enforceability may be limited by State of Minnesota or United States laws relating to bankruptcy , reorganization, moratorium or creditors ' rights generally . 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 P.M. , Central Time , the same day for consideration and action . Each bid must be unconditional and must be accompanied by a cashier ' s or certified check or bank draft in the amount of $58 , 000 , payable to the City Finance Director/Cl.erk , 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 amount more than $2 , 900 , 000 or plus any amount less than $2 , 900 , 000 bid for principal. ) will be considered , and the City Council. reserves the right to reject any and all bids and to waive any informality in any bid . 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 purchaser waives any extension of the time of. delivery caused thereby . Further information may be obtained from and bids may be delivered to : Ehlers and Associates , Inc . , Financial Specialists , Suite 120 - Soo Line Building , 507 Marquette Avenue , Minneapolis , Minnesota 55402 ; telephone : ( 612 ) 339-8291 . -7- 5 . The Finance Director/Clerk , in cooperation with ` . Ehlers and Associates , 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 Bonds . Such official statement shall contain the statement of Terms and Conditions of Sale set forth in paragraph 4 hereof and such other information as shall be deemed advisable and necessary to adequately describe the City and the security for, and terms and conditions of , the Bonds . Mayor Attest: _ . t nce 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. -8-