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HomeMy WebLinkAboutResolution - 87-313 - Setting Sale Date of $5,000,000 General Obligation Water and Sewer Bonds for December 5, 1987 - CERTIFICATION OF MINUTES RELATING TO $5 , 000 , 000 GENERAL OBLIGATION WATER AND SEWER REVENUE BONDS Issuer : City of Eden Prairie , Minnesota Governing Body : City Council Kind, date, time and place of meeting : A Regular meeting , held on November 17 , 1987 , at 7 : 30 P . M. , at the city Hall in the City of Eden Prairie , Minnesota Members present : Mayor Gary Peterson, Council Memhers: Dick Anderson George Bentley, Jean L. Harris, Patricia Pidcock Members absent : None Documents Attached : Minutes of said meeting (pages) : RESOLUTION NO. ' /-3 RESOLUTION RELATING TO $5 , 000 , 000 GENERAL OBLIGATION WATER AND SEWER REVENUE BONDS ; PROVIDING FOR THE PUBLIC SALE THEREOF I , the undersigned , being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto , as described above , have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed ; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting , so far as they relate to said bonds ; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above , pursuant to call and notice of such meeting given as required by law . WITNESS my hand officially as such recording officer this 25t.h day of November , 1987 . Signature (SEAL) John D. Frane , Finance Director/Clerk Name and Title f. Member Harris introduced the following resolution and moved its adoption : RESOLUTION NO . RESOLUTION RELATING TO $5 , 000 , 000 GENERAL OBLIGATION WATER AND SEWER REVENUE BONDS; PROVIDING FOR THE PUBLIC SALE THEREOF BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota ( the City) , as follows : 1 . It is hereby determined that it is necessary for the City to issue and sell $5 , 000 , 000 General Obligation Water and Sewer Revenue Bonds to finance improvements to the City ' s water and sewer systems . 2 . It is hereby determined that December 15 , 1987 , at _4 :00 o ' clock, P .M. , C . D.T. , will be the date and 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 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: i5'r: NOTICE OF BOND SALE $5 , 000 , 000 GENERAL OBLIGATION WATER AND SEWER REVENUE BONDS CITY OF EDEN PRAIRIE , MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the purchase of $5 , 000 , 000 General Obligation Water and Sewer Revenue Bonds of the City of Eden Prairie will be received until 4 :00 P .M. , Tuesday , December 15 , 19B7 , at the office of the Finance Director/Clerk, and considered by the City Council at 7 : 30 P.M. that same day . The Bonds will be issued for the purpose of financing improvements to the City' s water and sewer systems . The Bonds will be initially dated December 15 , 1987 , and will mature on February 1 in the following years and arnounts Year Amount Year Amount 1989 $ 100 , 000 1999 $225 , 000 1990 125 , 000 2000 250 , 000 1991 125 , 000 2001 275 , 000 1992 150 , 000 2002 300 , 000 1993 150 , 000 2003 325 , 000 1994 150 , 000 2004 350 , 000 1995 175 , 000 2005 375 , 000 1996 200 , 000 2006 400 , 000 1997 200 , 000 2007 425 , 000 1998 225 , 000 2008 475 , 000 Interest will be payable on August 1 , 1988 , and semiannually on each February 1 and August 1 thereafter . No rate of interest nor the net effective rate of the issue may exceed the maximurr. then permitted by law. All bonds maturing in 3.997 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 February 1 , 1996 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 may be obtained from the undersigned or from Ehlers and Associates , Inc . , Suite 120 - Soo Line Building , 507 Marquette Avenue, Minneapolis , Minnesota 55402 ; telephone : (612 ) 339-8291 , financial consultants to the City . Dated : November 17 , 1987 . BY ORDER OF THE CITY COUNCIL John D. Frane Finance Director/Clerk Eden Prairie, Minnesota -2- { 4 . The following shall constitute the terms and conditions for the sale and issuance of the bonds , and the Finance Director/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 : . i, -3- TERMS AND CONDITIONS OF SALE $5 , 000 , 000 GENERAL OBLIGATION WATER AND SEWER REVENUE 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 4:00 o 'clock, P.M. , C. D.T. , on Tuesday, December 15 , 1987 , and the City Council will meet at 7 : 30 o 'clock P .M. that same day to consider bids for and award the sale of $5 , 000 , 000 General Obligation Water and Sewer Revenue Bonds of the City ( the "Bonds" ) . PURPOSE AND SECURITY The Bonds will be issued pursuant to Minnesota Statutes , Section 444 . 075 to finance improvements to the City ' s water and sewer_ systems . The Bonds are general obligations of the City to which its full faith, credit and taxing powers are pledged . DATE, TYPE AND DENOMINATION The Bonds will be dated December 15 , 1987 . The Bonds 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 Bonds will mature on February 1 in the following years and amounts : -4 - i Year Amount Year Amount 1989 $100 , 000 1999 $225 , 000 1990 125 , 000 2000 250 , 000 1991 125 , 000 2001 275 , 000 1992 150 , 000 2002 300 , 000 1993 150 , 000 2003 325 , 000 1994 150 , 000 2004 350 , 000 1995 175 , 000 2005 375 , 000 1996 200 , 000 2006 400 , 000 1997 200 , 000 2007 425 , 000 1998 225 , 000 2008 475 , 000 REDEMPTION The Bonds maturing in 1997 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 February 1 , 1996 , and any interest payment date thereafter , at par plus accrued interest to the date of redemption . INTEREST Interest will be payable on August 1 , 1988 , and semiannually thereafter on each February 1 and August 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 any issue may exceed the maximum 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 Bonds , the opinion of bond counsel and a certificate stating that no litigation in any m4nner questioning the validity of the Bonds is then threatened or pending . All costs , with the exception of the printing of CUSIP numbers as indicated below, 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 f day of payment . -5- LEGAL OPINIONS A legal opinion will be provided by Dorsey & Whitney, of Minneapolis , Minnesota , stating that the Bonds 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 . The legal opinion will be printed on the obligations at the request of the purchaser . TYPE OF B I D AND AWARD Sealed bids for not less than $4 , 902 , 000 and accrued interest on the principal sum of $5 , 000 , 000 must be mailed or delivered to the undersigned and mint be received at the office of the Finance Director/Clerk prior to the time stated above . Bidders must bid for all or none of the Bonds . Each bid must be unconditional and must be accompanied by a cashier ' s check or certified check or bank draft in the amount of $100 , 000 , payable to the 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 authorizing the lowest net interest cost ( total interest on all Bonds from December 15 , 1987 to their stated maturity, less any cash premium or plus any discount ) , will be deemed the most favorable . In the event that two or more bids state the lowest net interest cost , the sale of the Bonds will be awarded by lot . The City reserves the right to reject any and all bids , to waive informalities in any bid, and to adjourn the sale . (QUALIFIED TAX-EXEMPT OBLIGATIONS The Bonds will be designated by the City as "qualified tax-exempt obligations" for purposes of Section 265 ( b) of the Internal Revenue Code of 1986 relating to disallowance of interest expense for financial institutions . CUSIP NUMBERS The City will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds 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. -6- i INFORMATION FROM PURCHASER The purchasers will be required to provide, in a timely manner , certain information relating to the initial offering prices and sales of the Bonds necessary to compute' the yield on the Bonds under the Internal Revenue Code of 1986 . Further information may be obtained from and bids may be delivered to : Ehlers and Associates , Inc . , Suite 120 - Soo Line Building, 507 Marquette Avenue , Minneapolis , Minnesota 55402 ; telephone : ( 612 ) 339-8291 . BY ORDER OF THE CITY COUNCIL John D . F'rane Finance Director/Clerk Eden Prairie, Minnesota -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 . _/s% _Gazy Peterson Mayor Attest : /s/ John D. Frane Finance Director/Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member Anderson and upon vote being taken thereon, the following voted in favor thereof : Mayor Gary Peterson, Council Members: Dick Anderson, George Bentley, Jean L. Harris, Patricia Pidcock 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 Finance Director/Clerk . -8-