Res 1994 - 79 Extract of Minutes of a Meeting of the City Council of the City of MH (11/15/94)RESOLUTION N0. 94-79
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
MENDOTA HEIGHTS, MINNESOTA
HELD: November 15, 1994
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Mendota Heights,
Dakota County, Minnesota, was duly held at the City Hall in said
City on Tuesday, the 15th day of November, 1994, at 7:30 P.M.,
for the purpose, in part, of considering bids for, and awarding
the sale of, $1,300,000 General Obligation Revenue Bonds of 1994.
of the City.
The following members were present: Mertensotto
Smith, Koch
and the following were absent: Krebsbach, Huber
The Clerk presented affidavits showing publication of notice
of call for bids on $1,300,000 General Obligation Revenue Bonds
of 1994 of the City, for which bids were to be received at this
meeting, in accordance with the resolution adopted by the City
Council on October 18, 1994. The affidavits were examined, were
found to comply with the provisions of Minnesota Statutes,
Chapter 475, and were approved and ordered placed on file.
The Council then proceeded to receive and open bids for the
sale of the Bonds. The following bids were received:
zn�sb.�
Bi der �nterest Rate
Net Interest Cost
d
,
� �
BIDS RECEIVEO
�1,300,000 G.Q.Revenue Bonds
' Nov. 15, 1994
ACCOU�IT
CROf�It�d & C0.
(�li nneapol i s, ^1n.
Smith Barney Company
0
PJORWEST INVESTMENT SERVICES
Minneapolis, Mn.
American National Bank
F.B.S Investment Services
Dougherty Dawkins Strand
Juran & '�loody Inc.
FIRSTAR BA�JK
t�inwaukee, 4�isc.
PIPER JAFFRAY & HOPl�00D INC.
Minneapolis, Mn.
OEAR WITTER REYNOLDS C0. INC.
Chicago, I11.
Prudential Securities Inc.
R.W.Baird & Co.
Paine Webber Co.
RATES DISCOUNT � COST � RATE
5.80 % 995/2002
5.90 �003 �11,733.70
6 2004 �754,570.37
6.10 2005 6.2559%
6.20 2006
E.30 2007
G.40 2008
6.50 2009
5.75 1995/2001
5.80 2002 13,000.00
5.90 2003 754,943.33
b 2004 6.259
6.1Q 2..5
6.20 2006
6.30 2007 •
6.40 2008
6.50 2009
5.55 1995
5.7Q 19g6/1997 12,994.60
5.75 1998 757,988.35
5.80 1�99/2001 6.284
5.85 2002
5.95 2003
6 2004
6.125 2005
6.25 2006
6.375 2007/2008
6.50 2009
6 1995/2004
6.10 2005 13,000.00
b.20 2006 761,733.33
6.30 2007 6.3153
6.40 2008
6.50 2009
5.60 1995/1999
5.70 2Q000 12,994.20
5.80 2001 764,214.20
5.90 2002 6.3358
6 2003
6.10 2004
6.20 2005
6.30 2006
6.40 2007
6.50 2008
6.60 2009
The Council then proceeded to consider and discuss the bids,
after which member Smith introduced the following
resolution and moved its ado�tion:
RESOLUTION ACCEPTING BID ON
SALE OF $1,300,000 GENERAL OBLIGATION
REVENUE BONDS OF 1994 AND
PROVIDING FOR THEIR ISSUANCE
A. WHEREAS, the City of Mendota Heights, Minnesota
(the "City"), owns and operates a municipal water system (the
"Water System") and a municipal storm water system (the "Storm
Water System") as separate revenue producinq public utilities;
and
B. WHEREAS, there are no outstanding obligations of
the City which constitute prior liens upon the net revenues of
the municipal water system and municipal storm water utility; and
C. WHEREAS, the City Council has heretofore determined
and declared that it is necessary and expedient to issue
$1,300,000 General Obligation Revenue Bonds of 1994 of the City,
pursuant to Minnesota Statutes, Chapter 475 and Minnesota
Statutes, Section 444.075, to finance the construction of various
improvements to the Water System and to the Storm Water System of
the City ( the '� Proj ect" ); and
NOW, THEREFORE, BE IT RESOLVED by the Council of the
City of Mendota Heights, Minnesota, as follows:
1. �cceptance of Bid. The bid of lrnnjn � c�, Tnc.
(the „Purchaser"), to purchase $1,300,000 General Obligation
Revenue Bonds of 1994 of the City (the "Bonds", or individually a
"Bond"), in accordance with the notice of bond sale, at the rates
of interest hereinafter set forth, and to pay therefor the sum of
$_,������ plus interest accrued to settlement, is hereby
fou , e ermined and declared to be the most favorable bid
received and is hereby accepted, and the Bonds are hereby awarded
to said bidder. The City Clerk is directed to retain the deposit
of said bidder and to forthwith return to the unsuccessful
bidders their good faith checks and drafts.
2. �itle: Original Issue Date; Denominations:
I�Iaturities. The Bonds shall be titled "General Obligation
Revenue Bonds of 1994", shall be dated December 1, 1994, as the
date of original issue and shall be issued forthwith on or after
such date as fully registered bonds. The Bonds shall be numbered
from R-1 upward in the denomination of $5,000 each or in any
integral multiple thereof of a single maturity. The Bonds shall
mature on August 1 in the years and amounts as follows:
27T156.1 2
�
1995
1996
199?-1998
1999
2Q00
2001
2042
;��._�7
$38,008
35,000
40�000
80,000
85,000
90,000
95,QQQ
A11 dates are inclusive.
��
2003
2004
2005-200b
2007
2008
2009
$100,000
105,Q00
118,0�0
120,Q00
125,000
135,000
3. Purpase. The Bonds shall provide funds to finance
the Project. The total cost af the Praject, wbich shall include
all costs enumerated i� Minnesata Statutes, Sectian 475.65, is
esti.mated to be at least equal to the amount of the Bonds. The
City covenants that it shall do al1 things and perform all acts
required oi' it to assure that work on the Project proceeds with
due diligence to completion and that any and all permits and
studies required under law for the Pro�ec� are obtained.
4. Interest. The Bonds sha11 bear interest payable
semiannually on February 1 and August 2 of each year (each, an
"Interest Payment Date"), commencing August 1, 1995, calcula�ed
on the basis of a 364-day year of twelve 30-day months, at the
respective rates per annum set forth apposite the maturity years
as �ollows: �
Maturity
Y�ar
1995
1996
1997
1998
1999
2Q08
zaoi
2002
Tnterest
Ra�e
5,8 �
5.8
5.8
5.8
5.$
5.8
5.$
5.$
Maturity
�ear
2403
2004
20Q5
200b
zao�
2008
2009
Interest
Rat�
5,9 �
6
6.10
s.2a
6.30
6.40
6.50
5. �tedemption� All Bonds maturing in the years 2044
to 2009, both inclusive, shall be subject to redemption and
prepayment at the option of the City an August 1, 2043, and on
any Interest Payment Date thereafter at a price of par pius
accrued interest. Redemption may be in whole or in part of the
Bands subject to prepayment. If redemption is in part, ihose
Bonds remaining unpaid which have the latest maturity date shall
be prepaid first; and if on2y part af the Bonds having a common
maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or
portions thereof called for redemptian shall be due and payable
on the redemptian date, and interest thereon shall cease to
277156.1 3
accrue from and after the redemption date. Mailed notice of
redemption shall be given to the paying agent and to each
affected registered holder of the Bonds.
To effect a partial redemption of Bonds having a common
maturity date, the Bond Registrar prior to giving notice of
redemption shall assiqn to each Bond having a common maturity
date a distinctive number for each $5,000 of the principal amount
of such Bond. The Bond Registrar shall then select by lot, using
such method of selection as it shall deem proper in its
discretion, from the numbers so assigned to such Bonds, as many
numbers as, at $5,000 for each number, shall equal the principal
amount of such Bonds to be redeemed. The Bonds to be redeemed
shall be the Bonds to which were assigned numbers so selected;
provided, however, that only so much of the principal amount of
each such Bond of a denomination of more than $5,000 shall be
redeemed as shall equal $5,000 for each number assigned to it and
so selected. If a Bond is to be redeemed only in part, it shall
be surrendered to the Bond Registrar (with, if the City or Bond
Registrar so requires, a written instrument of transfer in form
satisfactory to the City and Bond Registrar duly executed by the
holder thereof or his, her or its attorney duly authorized in
writing) and the City shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such
Bond, without service charge, a new Bond or Bonds of the same
series having the same stated maturity and interest rate and of
any authorized denomination or denominations, as requested by
such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond
so surrendered.
6. Bond Reqistrar. Norwest Bank ��i nneapol i s
in h�9i nneapol i s, Mn , Mi nnesota , is appointed
as bond registrar and transfer agent with respect to the
(the "Bond Registrar"), and shall do so unless and until
successor Bond Registrar is duly appointed, all pursuant
contract the City and Bond Registrar shall execute which
to act �
Bonds
a
to any
is
consistent herewith. The Bond Registrar shall also serve as
paying agent unless and until a successor paying agent is duly
appointed. Principal and interest on the Bonds shall be paid to
the registered holders (or record holders) of the Bonds in the
manner set forth in the form of Bond and paragraph 12 of this
resolution.
7. Form o� Bond. The Bonds, together with the Bond
Registrar's Certificate of Authentication, the form of Assignment
and the registration information thereon, shall be in
substantially the following form:
zn�5e. � 4
� UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF MENDOTA HEIGHTS
R-
INTEREST
RAT�
REGISTERED OWNER:
PRINCIPAL AMOUNT:
$
GENERAL OBLIGATION REVENUE
BOND OF 1994
MATURITY DATE OF
DATE QRIGINAL ISSUE
DECEMBER 1, 1994
DOLI�ARS
iQdOW ALL PERSONS BY THESE PRESENTS that the City of
Mendota Heights, Dakota County, Minnesota (the "Issuer"),
certifies that it is indebted and for value received promises to
pay to the registered owner specified above, or registered
assigns, in the manner hereinafter set forth, the principal
amount specified above, on the maturity date specified above,
unless called for earlier redemption, and to pay interest thereon
semiannually on February 1 and August 1 of each year (each, an
"Interest Payment Date"), commencinq August 1, 1995, at the rate
per annum specified above (calculated on the basis of a 360-day
year of twelve 30-day months) until the principal sum is paid or
has been provided for. This Bond will bear interest from the
most recent Interest Payment Date to which interest has been paid
or, if no interest has been paid, from the date of original issue
hereof. The principal of and premium, if any, on this Bond are
payable upon presentation and surrender hereof at the principal
office of , in ,
(the "Bond Registrar"), acting as paying agent,
or any successor paying agent duly appointed by the Issuer.
Interest on this Bond will be paid on each Interest Payment Date
by check or draft mailed to the person in whose name this Bond is
registered (the '�Holder" or "Bondholder") on the registration
books of the Issuer maintained by the Bond Registrar and at the
address appearing thereon at the close of business on the
fifteenth day of the calendar month next preceding such Interest
Payment Date (the "Regular Record Date"). Any interest not so
timely paid shall cease to be payable to the person who is the
Holder hereof as of the Regular Record Date, and shall be payable
to the person who is the Holder hereof at the close of business
on a date (the "Special Record Date") fixed by the Bond Registrar
whenever money becomes available for payment of the defaulted
zn�sb. � 5
interest. Notice of the Special Record Date shall be given to
Bondholders not less than ten days prior to the Special Record
Date. The principal of and premium, if any, and interest on this
Bond are payable in lawful money of the United States of America.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
IT IS HEREBY CERTIFIED AND RECITED that all acts,
conditions and thinqs required by the Constitution and laws of
the State of Minnesota to be done, to happen and to be performed,
precedent to and in the issuance of this Bond, have been done,
have happened and have been performed, in regular and due form,
time and manner as required by law; that the Issuer has
covenanted and agreed with the Holders of the Bonds that it will
impose and collect charges for the service, use and availability
of its municipal water system and its municipal storm water
system at the times and in amounts necessary to produce net
revenues together with other sums pledged to the payment of the
Bonds adequate to pay all principal and interest when due on the
Bonds; and that the Issuer will levy a direct, annual,
irrepealable ad valorem tax upon all of the taxable property of
the Issuer, without limitation as to rate or amount, for the
years and in amounts sufficient to pay the principal and interest
on the Bonds of this issue as they respectively become due, if
the net revenues from the municipal water system and municipal
storm water system and any other sums irrevocably appropriated to
the Debt Service Account are insufficient therefor; and that this
Bond, together with all other debts of the Issuer outstanding on
the date of original issue hereof and the date of its issuance
and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Mendota Heights, Dakota
County, Minnesota, by its City Council has caused this Bond to be
executed on its behalf by the facsimile signatures of its Mayor
and its Clerk, the corporate seal of the Issuer having been
intentionally omitted as permitted by law.
zmsb. � 6
�
Date of Registration:
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
Bond Registrar
By
Authorized Signature
Zmsb.�
Registrable by:
Payable at:
CITY OF MENDOTA HEIGHTS,
DAKOTA COUNTY,
MINNESOTA
ls/ Facsimile
Mayor
��f Facsimile
Clerk
r�
a
ON REVERSE OF BOND
Redemption. All Bonds of this issue (the pBonds")
maturing in the years 2004 to 2009, both inclusive, are subject
to redemption and prepayment at the option of the Issuer on
August 1, 2003, and on any Interest Payment Date thereafter at a
price of par plus accrued interest. Redemption may be in whole
or in part of the Bonds subject to prepayment. If redemption is
in part, those Bonds remaining unpaid which have the latest
maturity date shall be prepaid firet; and if only part of the
Bonds having a common maturity date are called for prepayment,
the specific Bonds to be prepaid ehall be chosen by lot by the
Bond Registrar. Bonds or portions thereof called for redemption
shall be due and payable on the redemption date, and interest
thereon ahall cease to accrue from and after the redemption date.
Mailed notice of redemption shall be given to the paying agent
and to each affected Holder of the Bonds.
�election of Bands fox Redemption; Partial Redemption.
To effect a partial redemption of Bonds having a common maturity
date, the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the
principal amount of such Bond. The Bond Registrar shall then
select by lot, using such method of selection as it shall deem
proper in its discretion, from the numbers assigned to the Bonds,
as many numbers as, at $5,000 for each number, shall equal the
principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned nwnbers so
selected; provided, however, that only so much of the principal
amount of such Bond of a denomination of more than $5,000 shall
be redeemed as shall equal $5,000 for each number assigned to it
and so selected. If a Bond is to be redeemed only in part, it
shall be surrendered to the Bond Registrar (with, if the Issuer
or Bond Registrar so requires, a written instrument of transfer
in form satisfactory to the Issuer and Bond Registrar duly
executed by the Holder thereof or his, her or its attorney duly
authorized in writing) and the Issuer shall execute (if
necessary) and the Bond Registrar shall authenticate and deliver
to the Holder of such Bond, without service charge, a new Bond or
Bonds of the same series having the same stated maturity and
interest rate and of any authorized denomination or
denominations, as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed
portion of the principal of the Bond so surrendered.
Issuance: Purnose; General Obliqation. This Bond is
one of an issue in the total principal amount of $1,300,000, all
of like date of original issue and tenor, except as to number,
maturity, interest rate, denomination and redemption privilege,
which Bond has been issued pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota and
� pursuant to a resolution adopted by the City Council of the
2n��.� 8
Issuer on November 15, 1994 (the "Resolution"), for the purpose
of providing money to finance the construction of various
improvements to the water system and the storm water system of
the Issuer. This Bond is payable out of the General Obligation
Revenue Bonds of 1994 Fund of the Issuer. This Bond constitutes
a general obligation of the Issuer, and to provide moneys for the
prompt and full payment of its principal, premium, if any, and
interest when the same become due, the full faith and credit and
taxing powers of the Issuer have been and are hereby irrevocably
pledqed.
�nom�nat�ons: Exchange; Resolution. The Bonds are
issuable solely as fully registered bonds in the denominations of
$5,000 and integral multiples thereof of a single maturity and
are exchangeable for fully reqistered Bonds of other authorized
denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner
and subject to the limitations provided in the Resolution.
Reference is hereby made to the Resolution for a description of
the riqhts and duties of the Bond Registrar. Copies of the
Resolution are on file in the principal office of the Bond
Registrar.
Transfer. This Bond is transferable by the Holder in
person or by his, her or its attorney duly authorized in writing
at the principal office of the Bond Registrar upon presentation
and surrender hereof to the Bond Registrar, all subject to the
terms and conditions provided in the Resolution and to reasonable
regulations of the Issuer contained in any agreement with the
Bond Registrar. Thereupon the Issuer shall execute'and the Bond
Registrar shall authenticate and deliver, in exchange for this
Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to ��bearer" or similar
designation), of an authorized denomination or denominations, in
aggregate principal amount equal to the principal amount of this
Bond, of the same maturity and bearing interest at the same rate.
F'ees upon Transfer or Loss. The Bond Registrar may
require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or
exchange of this Bond and any legal or unusual costs regarding
transfers and lost Bonds.
�rea�ment of Registered Owners. The Issuer and Bond
Registrar may treat the person in whose name this Bond is
registered as the owner hereof for the purpose of receiving
payment as herein provided (except as otherwise provided on the
reverse side hereof with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and
neither the Issuer nor the Bond Registrar shall be affected by
notice to the contrary.
zn�sb. � 9
�ut�entication. This Bond shall not be valid or become
obligatory for any purpose or be entitled to any security unless
the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
4ualified Tax-Exempt Obl�qation. This Bond has been
desiqnated by the Issuer as a"qualified tax-exempt obliqation"
for purposes of Section 265(b)(3) of the Internal Revenue Code of
1986, as amended.
ABBREVIATIONS
The following abbreviations, when used in the inscription on
the face of this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for
�(Cust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
zmsb.� 10
PiSSIGNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
the within Bond and does
hereby irrevocably constitute and appoint
attorney to transfer the Bond on the books kept for the
registration thereof, with full power of substitution in the
premises.
Dated:
Notice: The assignor's signature to this
assignment must correspond with the name
as it appears upon the face of the
within Bond in every particular, without
alteration or any change whatever.
Signature Guaranteed:
Signature(sj must be quaranteed by a national bank or trust
company or by a brokerage firm having a membership in one of the
major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond
unless the information concerning the transferee requested below
is provided.
Name and Address:
(Include information for all joint owners
if the Bond is held by joint account.)
277�56.1 1 1
8. ��ecution; Tem�orarv Bonds. The Bonds shall be
executed an behalf of the City by the signatures of its �ayor and
Clerk and be sealed �i#h the seal of the City; pravided, however,
that the seal of the City may be a printed facsimile; and
provided further that both of such eignatures may be printed
facsimiles and the corporate seal may be omitted on the Bonds as
permitted by law. In the event of disability or resigna�ian ar
other absence af either such officer, the Bonds may be signed by
the manual or facsimile signature of that officer who may act on
behalf af such absent ar disabled afficer. In ca�e either such
ofiicer whose signature or facsimile of whose signature shall
appear on #he Bonds shall cease ta be such officer before the
delivery of the Bonds, Buch signature or facsimile shall
nevertheless be valid and sufficient for ali purposes, the same
as if he or she had remained in office until delivery. The City
may elect to deliver, in lieu of printed definitive bonds, cne or
more typewritten temporary bonds in substantially the form set
forth abave, with such changes as may be necessary to reflect
more than ane maturity in a single temporary bond. Such
temgorary bonds may be executed with photocopied facsimile
signatures af �he Mayor and Clerk. Such temporary bonds shall,
upon the printing of the definitive bonds and the execution
thereaf, be exchanged therefor and cancelled. .
9. �uth��,�atiQn. No Bond shall be valid or
obligatory for any purpose or be entitled to any security or
benefit under this resolutian unless a Certificate of
Authentication on such Bond, substantially in the form
hereinabove set forth, shall have been duly executed by an
authorized representative of the Band Registrar. Certificates of
Authentication on different Bonds need not be signed by the same
person, The Bond Registrar shall authenticate the signatures of
officer� of the Ci�y on each Bond by execution of the Certificate
of Authentication on the Bond and by inserting as the date of
registration in the space provided the date on which the Bond is
authenticated, excegt that for purposes of de3ivering the
original Bonds ta �he Purchaser, the Bond Registrar shall insert
as a date of registration the date of original issue, which date
is December 1, 2994. The Certificate of Authentication so
executed on each Bond shall be conclusive evidence that �t has
been authenticated and delivered under this resolution.
iQ. �eqistratio�. Transfer; Ex�hanae. The City wili
cause to be kept at the principal office af the Band Registrar a
bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall
provide for the registrat�on of Bonds and the registration of
transfers af Bonds entit2ed to be registered ar transferred as
herein provided.
Upon surrender for transfer of any Sond at the
principal office of the Bond Registrar, the City shall execute
zms�. � 12
(if necessary), and the Sond Reqistrar shall authenticate, insert
the date of registration (as provided in paragraph 9j of, and
deliver, in the name of the designated transferee or transferees,
one or nore new Bonds of any authorized denomination or
denominations of a like aggreqate principal amount, having the
same stated maturity and intereSt rate, as requested by the
transferor; provided, however, that no Bond may be registered in
blank or in the name of "bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for
Bonds of any authorized denomination or denominations of a like
aggregate principal amount and stated maturity, upon surrender of
the Bonds to be exchanged at the principal office of the Bond
Registrar. Whenever any Bonds are so surrendered for exchange,
the City shall execute (if necessary), and the Bond Reqistrar
shall authenticate, insert the date of reqistration of, and
deliver the Bonds which the Holder making the exchange is
entitled to receive.
All Bonds surrendered upon any exchange or transfer
provided for in this resolution shall be promptly cancelled by
the Bond Registrar and thereafter disposed of as directed by the
City.
All Bonds delivered in exchange for or upon transfer of
Bonds shall be valid general obligations of the City evidencing
the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or
transfer.
Every Bond presented or surrendered for transfer or
exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, in form satisfactory to the Bond
Registrar, duly executed by the Holder thereof or his, her or its
attorney duly authorized in writing.
The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable
in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable
regulations of the City contained in any agreement with the Bond
Registrar, including regulations which permit the Bond Registrar
to close its transfer books between record dates and payment
dates. The Clerk is hereby authorized to negotiate and execute
the terms of said aqreement.
11. Richts Upon Transfer or Exchange. Each Bond
delivered upon transfer of or in exchange for or in lieu of any
other Bond shall carry all the riqhts to interest accrued and
unpaid, and to accrue, which were carried by such other Bond.
zn�s6. � 13
12. 2nterest Payment: Rgcord D�te. Interest on any
Bond shall be paid on each Interest Payment Date by check or
draft mailed to the peraon in whose name the Bond is registered
(the MHolder„) on the reqistration books af the City maintained
by the Bond Registrar and at the address appearing thereon at the
close of business an the fifteenth (15th) day of the calendar
month next preceding such Interest Payment Date (the "Regular
Record Date�}. Any such interest not sc timely paid shall cease
to be payakile to the person who is the Holder thereof as of the
Regu2ar Record Date, and shall be payable to the persan who is
the Holder thereof at �he close of business on a date (the
"Special Record Date"} fixed by the Bond Registrar whenever money
becames avaiiable for payment of the defaulted interest. Notice
of the Special Recard Date shall be given by the Bond Registrar
to the Hoiders not less than ten t18) days prior to the Special
Record Date.
13. �rea,t�ie_nt of Re,gistered Ow�}er. The City and Bond
Registrar may treat the person in whose name any Bond is
registered as the awner of such Bond for �he purpase of receiving
payment of principal of and premium, if any, and interest
(subject to tha payment provisions in paragraph 12 above) on,
such Bond and for all ather purposes whatsoever whether or nat
sueh Band sha31 be overdue, and neither the City nor the Band
Registrar shall be affected by notice to the contrary.
14. 'very: Applxcation af Proceeds. The Bonds when
so grepared and executed shall be delivered by the Treasurer to
the Purchaser upon receipt of the purchase price, and the
Purchaser shall not be obliged to see to the proper application
thereof.
15. Fund and Ac�aun�ts. There is hereby established a
special fund ta be designated "General Obligation Revenue Bonds
of 2994 Fund" (the "Fund'�}. The Fund shall be maintained in the
manner herein specified until all of the Bond� and the interest
thereon have been fully paid. There shall be maintained in �.he
Fund the faZlowing separate accounts to which sha21 be credited
and debited all income and disbursements of the municipal water
system and the municipal starm water system as hereinafter set
forth. The Treasurer of the City and all officials and employees
concerned therewith shall establish and maintain financial
records of the receipts and disbursements of the City's water
system and the City's starni water system in accordance with this
reso2ution. in such records there shail be established and
maintained accaunts of the Fund far the purposes and in the
amounts as fol2ows:
{i} Constru�tio� Accoulnt, Tc the Constructian Account
there shall be credited the proceeds of the sale of the Bonds,
less accrued interest received therean, and less any amaunt paid
for the Bonds in excess of $1,287,008. From the Construction
Account shall be paid all costs and expenses of the Project,
2ms�. � 14
includinq the cost of construction contracts heretofore let or to
be let and all other costs incurred and to be incurred of the
kind authorized in Minnesota Statutes, Section 475.65. Any
balance remaining in the fund after completion of the costs shall
be transferred to the Debt Service Account.
(ii) Oneration and Maintenance Account. There shall be
maintained two (2) separate subaccounts in the Operation and
Maintenance Account to be desiqnated the "Water Operation and
Maintenance Account" and the "Storm Water Operation and
Maintenance Account". There are hereby irrevocably appropriated
and pledqed to, and there shall be credited to the separate
subaccounts of the Operation and Maintenance Account:
(a) Water Operation and Maintenance Subaccount. To
the Water Operation and Maintenance Subaccount there shall
be credited all gross revenues and earnings derived from the
operation of the City's water system, including all charges
for service, use, availability and connection to the system,
when collected, and all moneys received from the sale of any
facilities or equipment of the system or any by-products
thereof. From this subaccount there shall be paid all the
normal, reasonable and current costs of operating and
maintaining the facility. Current expenses shall include
the reasonable and necessary costs of operating, maintaining
and insuring the system, salaries, wages, costs of materials
and supplies, necessary legal, engineering and auditing
services, and all other items, which, by sound accounting
practices, constitute normal, reasonable and current costs
of operation and maintenance, but excluding any allowance
for depreciation, extraordinary repairs and payments into
the Debt Service Account. All moneys remaining in the Water
Operation and Maintenance Subaccount after paying or
providing for the foregoing items shall constitute and are
referred to in this resolution as ��Water Net Revenues'�.
(b) Storm Water Operation and Maintenance Subaccount.
To the Storm Water Operation and Maintenance Subaccount
there shall be credited all gross revenues and earnings
derived from the operation of the City's storm water system,
including all charges for service, use, availability and
connection to the system, when collected, and all moneys
received from the sale of any facilities or equipment of the
system or any by-products thereof. From this subaccount
there shall be paid all the normal, reasonable and current
costs of operating and maintaining the facility. Current
expenses shall include the reasonable and necessary costs of
operating, maintaining and insuring the system, salaries,
wages, costs of naterials and supplies, necessary legal,
enqineering and auditing services, and all other items,
which, by sound accounting practices, constitute normal,
reasonable and current costs of operation and maintenance,
but excluding any allowance for depreciation, extraordinary
zm sb. � 15
repairs and payments into the Debt Service Account. All
moneys remaining in the Storm Water Revenue Operation and
Maintenance Subaccount after paying or providing for the
foregoing items shall constitute and are referred to in this
resolution as "Storm Water Net Revenues".
(iii) Debt Service Account. There are hereby irrevocably
appropriated and pledqed to, and there shall be credited to, the
Debt Service Account: (a) Storm Water Net Revenues and Water Net
Revenues not otherwise pledqed and applied to the payment of
other obliqations of the City, in an amount, toqether with other
funds which may herein or hereafter from time to time be
irrevocably appropriated to the account, sufficient to meet the
requirements of Minnesota Statutes, Section 475.61 for the
payment of the principal and interest of this issue; (b) all
accrued interest received upon delivery of the Bonds; (c) all
funds paid for the Bonds in excess of $1,287,000; (d) all
collections of taxes which may hereafter be levied in the event
that net revenues of the water system and the storm water system
and other funds herein pledged to the payment of the principal
and interest of the Bonds of this issue are insufficient
therefore; (e) all funds remaining in the Construction Account
after completion of the Project and payment of the costs thereof;
(fj all investment earnings on funds held in the Debt Service
Account; and (g) any and all other moneys which are properly
available and are appropriated by the governing body of the City
to the Debt Service Account. The Debt Service Account shall be
used solely to pay the principal and interest and any premiums
for redemption of the Bonds and any other general obligation
bonds of the City hereafter issued by the City and made payable
from said account as provided by law.
No portion of the proceeds of the Bonds shall be used
directly or indirectly to acquire higher yielding investments or
to replace funds which were used directly or indirectly to
acquire hiqher yielding investments, except (1) for a reasonable
temporary period until such proceeds are needed for the purpose
for which the Bonds were issued and (2) in addition to the above
in an amount not greater than the lesser of five percent (5�) of
the proceeds of the Bonds or $100,000. To this effect, any
proceeds of the Bonds and any sums from time to time held in the
Construction Account, Operation and Maintenance Account or Debt
Service Account (or any other City account which will be used to
pay principal or interest to become due on the bonds payable
therefrom) in excess of amounts which under then-applicable
federal arbitrage regulations may be invested without regard to
yield shall not be invested at a yield in excess of the
applicable yield restrictions imposed by said arbitrage
regulations on such investments after taking into account any
applicable "temporary periods" or "minor portion" made available
under the federal arbitrage regulations. Money in the Fund shall
not be invested in obligations or deposits issued by, guaranteed
by or insured by the United States or any agency or
Zn�sb. � 16
instrumentality thereof if and to the extent that such investment
would cause the Bonds to be "federally guaranteed" within the
meaninq of Section 149(b) of the Internal Revenue Code of 1986,
as amended (the "Code").
16. Excess Storm Water Net Revenues and Water Net
Revenues. Storm Water Net Revenues and Water Net Revenues in
excess of those required for the foregoinq may be used for any
proper purpose.
17. sufficiency of Storm Water Ne� Revenues and Water
Net Revenues. It is hereby found, determined and declared that
the Storm Water Net Revenues and Water Net Revenues are
sufficient in amount to pay when due the principal of and
interest on the Bonds herein authorized and a sum at least five
percent (5�) in excess thereof, and the Storm Water Net Revenues
and Water Net Revenues are hereby pledged for the payment of the
Bonds of this issue and shall be applied for that purpose, but
solely to the extent required to meet the principal and interest
requirements of this issue as the same become due. Nothing
contained herein shall be deemed to preclude the City from making
further pledges and appropriations of the Storm Water Net
Revenues and Water Net Revenues of the municipal water system and
the municipal storm water system for the payment of other or
additional obligations of the City, provided that it has first
been determined by the City Council that the estimated Storm
Water Net R�v�nues and Water Net Revenues will be sufficient in
addition to all other sources, for the payment of the Bonds
herein authorized and such additional obligations and any such
pledge and appropriation of the net revenues may be made superior
or subordinate to, or on a parity with the pledge and
appropriation herein.
18. �ovenant to Maintain Rates and Charges. In
accordance with Minnesota Statutes, Section 444.075, the City
hereby covenants and agrees with the Holders of the Bonds that it
will impose and collect charges for the service, use, avail-
ability and connection to the municipal water system and the
municipal storm water system at the times and in the amounts
required to produce Storm Water Net Revenues and Water Net
Revenues adequate to pay all principal and interest when due on
the Bonds. Minnesota Statutes, Section 444.075, Subdivision 2,
provides as follows: "Real estate tax revenues should be used
only, and then on a temporary basis, to pay general or special
obliqations when the other revenues are insufficient to meet the
obligations".
19. Aefeasance. When all Bonds have been discharqed
as provided in this paragraph, all pledges, covenants aynd other
rights granted by this resolution to the registered holders of
the Bonds shall, to the extent permitted by law, cease. The City
may discharge its obligations with respect to any Bonds which are
due on any date by irrevocably depositing with the Bond Registrar
277156.1 1 7
on or before that date a sum sufficient for the payment thereof
in full; or if any Bond should not be paid when due, it may
nevertheless be discharged by depositing with the Bond Registrar
a sum sufficient for the payment thereof in full with interest
accrued to the date of such deposit. The City may also discharge
its obliqations with respect to any prepayable Bonds called for
redemption on any date when they are prepayable according to
their terms, by depositing with the Bond Registrar on or before
that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given.
The City may also at any time discharge its obligations with
respect to any Bonds, subject to the provisions of law now or
hereafter authorizinq and requlating such action, by depositing
irrevxably in escrow, with a suitable banking institution
qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota Statutes, Section 475.67,
Subdivision 8, bearing interest payable at such times and at such
rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become
due thereon to maturity or, if notice of redemption as herein
required has been duly provided for, to such earlier redemption
date.
20. ComDliance With Reimbursement Bond Regulations.
The provisions of this paragraph are intended to establish and
provide for the City's compliance with United States Treasury
Regulations Section 1.150-2 (the "Reimbursement Regulations")
applicable to the "reimbursement proceeds�� of the Bonds, being
those portions thereof which will be used by the City to
reimburse itself for any expenditure which the City paid or will
have paid prior to the Closing Date (a "Reimbursement
Expenditure").
The City hereby certifies and/or covenants as follows:
(a) Not later than 60 days after the date of payment of a
Reimbursement Expenditure, the City (or person
designated to do so on behalf of the City) has made or
will have made a written declaration of the City�s
official intent (a "Declaration�') which effectively (i)
states the City's reasonable expectation to reimburse
itself for the payment�of the Reimbursement Expenditure
out of the proceeds of a subsequent borrowing; (ii)
gives a general and functional description of the
property, project or program to which the Declaration
relates and for which the Reimbursement Expenditure is
paid, or identifies a specific fund or account of the
City and the general functional purpose thereof from
which the Reimbursement Expenditure was to be paid
(collectively the "Project"); and (iii) states the
maximum principal amount of debt expected to be issued
by the City for the purpose of financing the Project;
provided, however, that no such Declaration shall
zmsb. � 18
necessarily have been made with respect to: (i)
"preliminary expenditures" for the Project, defined in
the Reimbursement Regulations to include enqineering or
architectural, surveying and soil testing expenses and
similar prefatory costs, which in the aggregate do not
exceed 20� of the "issue price" of the Bonds, �nd (ii)
a de minimis amount of Reimbursement Expenditures not
in excess of the lesser of $100,000 or 5$ of the
proceeds of the Bonds. Notwithstanding the foregoing,
with respect to any Decl�ration made by the City
between January 27, 1992 and June 30, 1994, with .
respect to a Reimbursement Expenditure made prior to
March 2, 1992, the City hereby represents that there
exists objective evidence, that at the time the
Expenditure was paid the City expected to reimburse the
cost thereof with the proceeds of a borrowing (taxable
or tax-exempt) and that expectation was reasonable.
(b) Each Reimbursement Expenditure is a capital expenditure
or a cost of issuance of the Bonds or any of the other
types of expenditures described in Section 1.150-
2(d)(3) of the Reimbursement Regulations.
(c) The ��reimbursement allocation" described in the
Reimbursement Regulations for each Reimbursement
Expenditure shall and will be made forthwith following
(but not prior to) the issuance of the Bonds and in all
events within the period ending on the date which is
the later of three years after payment of the
Reimbursement Expenditure or one year after the date on
which the Project to which the Reimbursement
Expenditure relates is first placed in service.
(d) Each such reimbursement allocation will be made in a
writing that evidences the City's use of Bond proceeds
to reimburse the Reimbursement Expenditure and, if made
within 30 days after the Bonds are issued, shall be
treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any
of the foregoing covenants in this paragraph 20 upon receipt of
an opinion of its Bond Counsel for the Bonds stating in effect
that such action will not impair the tax-exempt status of the
Bonds.
21. General Obligation Pledae. For the prompt and
full payiaent of the principal and interest on the Bonds, as the
same respectively become due, the full faith, credit and taxing
powers of the City shall be and are irrevocably pledged. If the
net revenues of the municipal water system and the municipal
storm water system appropriated and pledged to the payment of
principal and interest on the Bonds, together with other funds
irrevocably appropriated to the Debt Service Account herein
2ms6. t 19
established, shall at any time be insufficient to pay such
principal and interest when due, the City covenants and agrees to
levy, without limitation as to rate or amount an ad valorem tax
upon all taxable property in the City sufficient to pay such
principal and interest as it becomes due. If the balance in the
Debt Service Account is ever insufficient to pay all principal
and interest then due on the Bonds payable therefrom, the
deficiency ahall be promptly paid out of any other accounts of
the City which are available for such purpose, and such other
funds may be reimbursed without interest from the Debt Service
Account when a sufficient balance �s available therein.
22. Certificate of Reqistratia�. The Clerk is hereby
directed to file a certified copy of this resolution with the
County Auditor of Dakota County, Minnesota, toqether with such
other information as he or she ehall require, and to obtain the
County Auditor's certificate that the Bonds have been entered in
the County Auditor's Bond Reqister.
23. Records a�d Certificates. The officers of the
City are hereby authorized and directed to prepare and furnish to
the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and
records of the City relating to the Bonds and to the financial
condition and affairs of the City, and such other affidavits,
certificates and information as are required to show the facts
relating to the legality and marketability of the Bonds as the
same appear from the books and records under their custody and
control or as otherwise known to them, and all such certified
copies, certificates and affidavits, including any heretofore
furnished, shall be deemed representations of the City as to the
facts recited therein.
24. Negative Covenant as to Use of Proceeds and
Pro1ect. The City hereby covenants not to use the proceeds of
the Bonds or to use the Project, or to cause or permit them to be
used, or to enter into any deferred payment arrangements for the
cost of the Project, in such a manner as to cause the Bonds to be
"private activity bonds" within the meaning of Sections 103 and
141 through 150 of the Code.
25. Tax-Exem�t Status o� the Bonds; Rebate. The City
shall comply with requirements necessary under the Code to
establish and maintain the exclusion from gross income under
Section 103 of the Code of the interest on the Bonds, including
without limitation (1) requirements relating to temporary periods
for investments, (2) limitations on amounts invested at a yield
greater than the yield on the Bonds, and (3) the rebate of excess
investment earnings to the United States if the Bonds (together
with other obligations reasonably expected to be issued and
outstanding at one time in this calendar year) exceed the
small-issuer exception amount of $5,000,000.
2n�56. � 2 0
For purposes of qualifying for the exception to the
federal arbitrage rebate requirements for governmental units
issuinq $5,000,000 or less of bonds, the City hereby finds,
determines and declares that (1) the Bonds are iasued by a
governmental unit with general taxinq powers, (2) no Bond is a
private activity bond, (3) ninety-five percent (95�) or more of
the net proceeds of the Bonds aPe to be used for local
qovernmental activities of the City �or of a qovernmental unit
the jurisdiction of which is entirely within the jurisdiction of
the City), and (4) the aggregate face amount of all tax-exempt
bonds (other than private activity bonds) issued by the City (and
all subordinate entities thereof, and all entities treated as one
issuer with the City) during the calendar year in which the Bonds
are issued and outstanding at one time is not reasonably expected
to exceed $5,000,000, all within the meaning of Section
148 (f) (4) (C) of the Code.
26. Pesigr�atio�n of Qualified Tax-E�empt Oblicrations.
In order to qualify the Bonds as "qualified tax-exempt
obligations" within the meaning of Section 265(b)(3) of the Code,
the City hereby makes the following factual statements and
representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds�' as
defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as
"qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of
tax-exempt obligations (other than private activity
bonds, treating qualified 501(c)(3) bonds as not being
private activity bonds) which will be issued by the
City (and all entities treated as one issuer with the
City, and all subordinate entities whose obligations
are treated as issued by the City) during this calendar
year 1994 will not exceed $10,000,000; and
(e) not more than $10,000,000 of obligations
issued by the City during this calendar year 1994 have
been designated for purposes of Section 265(b)(3) of
the Code.
The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate
the desiqnation made by this paragraph.
27. Severability. If any section, paragraph or
provision of this resolution shall be held to be invalid or�
unenforceable for any reason, the invalidity or unenforceability
zn� �. � 21
�
, of such aection, paraqraph or provision shall not affect any of
the remaining provisions of thie resolution.
28. Headinas. Headinqs in this resolution are
included for convenience of reference only and are not a part
hereof, and shall not limit or define the meaning of any
provision hereof.
The motion for the adoption of the foregoing resolution
was duly-aeconded by member Koch and, after a full
discussion thereof and upon a vote being taken thereon, the
followinq voted in favor thereof:
All Yea
and the following voted against the same:
None
Whereupon said resolution was declared duly passed and•
adopted.
Zms6.� 22
. STATE OF MINNESOTA
_ COUNTY OF DAKOTA
CITY OF MENDOTA HEIGHTS
0
I, the undersigned, beinq the duly qualified and acting
Clerk of the City of Mendota Heights, Minnesota, DO HEREBY
CERTIFY that I have compared the attached and foregoing extract
of minutes with the oriqinal thereof on file in my office, and
that the eame is a full, true and complete transcript of the
minutes of a meeting of the City Council of said City, duly
called and held on the date therein indicated, insofar as such
minutes relate to considering bids for, and awarding the sale of,
$1,300,000 General Obligation Revenue Bonds of 1994 of said City.
WITNESS my hand this day of November, 1994.
_.�
2n� �. � 2 3
�
Clerk