Res 1987 - 87 Accepting Bids & Awarding Contract for Construction of Sanitary Sewer, Water, Storm Sewer & Street Construction to Serve Stratford Woods Subdivision•
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The Council then proceeded to consider and discuss
the bids, after which member Blesener introduced
the following resolution and moved its adoption:
RESOLUTION ACCEPTING BID ON SALE OF
$1,950,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1987,
PROVIDING FOR THEIR ISSUANCE AND LEVYING
A TAX FOR THE PAYMENT THEREOF
#87-79
BE IT RESOLVED by the Council of the City of Mendota
Heights, Minnesota, as follows:
1. Acceptance of Bid. The bid of Norwest Securities
(the "Purchaser"), to purchase $1,950,000 General Obligation
Improvement Bonds of 1987 of the City (hereinafter referred to
as the "Bonds", or individually as 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
.$1,930,500 , plus interest accrued to settlement, is hereby
found, determined 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 or drafts.
2. Title; Original Issue Date; Denominations;
Maturities. The Bonds shall be titled "General Obligation
Improvement Bonds of1987", shall be dated August 1, 1987, 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 February 1 in the years and amounts as
follows:
Year Amount Year Amount
1989 $ 50,000 1997 $150,000
1990 150,000 1998 150,000
1991 150,000 1999 125,000
1992 150,000 2000 90,000
1993 150,000 2001 90,000
1994 150,000 2002 90,000
1995 150,000 2003 80,000
1996 150,000 2004 75,000
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3. Purpose. The Bonds shall provide funds for the
construction of various improvements (the "Improvements") in
the City. The total cost of the Improvements, which shall
include all costs enumerated in Minnesota Statutes, Section
475.65, is estimated to be at least equal to the amount of the
Bonds. Work on the Improvements shall proceed with due
diligence to completion.
4. Interest. The Bonds shall bear interest payable
semiannually on February 1 and August 1 of each year,
commencing February 1, 1988, calculated on the basis of a 360 -
day year of twelve 30 -day months, at the respective rates per
annum set forth opposite the maturity"years as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
1989 4.75% 1997 6.40%
1990 5 1998 6.6
1991 5.25 1999 6.7
1992 5.5 2000 6.8
1993 5.7 2001 6.9
1994 5.9 2002 7
1995 6.1 2003 7.1
1996 6.2 2004 7.2
5. Redemption. All Bonds maturing in. the years
1998 to 2004, both inclusive, shall be subject to redemption
and prepayment at the option of the City on February 1, 1997,
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 first; and if only part of 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
redemption shall be due and payable on the redemption date,
and interest thereon shall cease to accrue from and after the
redemption date. Published notice of redemption shall in each
case be given in accordance with law, and 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 assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the
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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 Registrar. Norwest Bank of Minneapolis
in Minneapolis Minnesota, is appointed to act as bond
registrar ,and transfer agent with respect to the Bonds (the
"Bond Registrar"), and shall do so unless and until a
successor Bond Registrar is duly appointed, all pursuant to
any contract the City and Bond Registrar shall execute which
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 of Bond. The Bonds to be issued hereunder
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:
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R -
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF MENDOTA HEIGHTS
GENERAL OBLIGATION IMPROVEMENT
BOND OF 1987
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
REGISTERED OWNER:
August 1, 1987
PRINCIPAL AMOUNT: DOLLARS
KNOW 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"), commencing February 1,
1988, 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
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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 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 things 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, 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 City Clerk, the corporate seal of the
Issuer having been intentionally omitted as permitted by law.
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Date of Registration: Registrable by:
Payable at:
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
Bond Registrar
By
Authorized Signature
CITY OF MENDOTA HEIGHTS,
DAKOTA COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
Clerk
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ON REVERSE OF BOND
Redemption. All Bonds of this issue maturing in the
years 1998 to 2004, both inclusive, are subject to redemption
and prepayment at the option of the Issuer on February 1,
1997, 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 first; and if only part of 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
redemption shall be due and payable on the redemption date,
and interest thereon shall cease to accrue from and after the
redemption date. Published notice of redemption shall in each
case be given in accordance with law, and mailed notice of
redemption shall be given to the paying agent and to each
affected Holder of the Bonds.
Selection of Bonds for 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 numbers 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.
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Issuance; Purpose; General Obligation. This Bond is
one of an issue in the total principal amount of $1,950,000,
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 on August 18, 1987 (the "Resolution"), for the purpose
of providing money to finance the construction of various
improvements within the jurisdiction of the Issuer. This Bond
is payable out of the General Obligation Improvement Bonds of
1987 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 pledged.
Denominations; 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 registered 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 rights 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.
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Fees 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.
Treatment 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.
Authentication. 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..
Qualified Tax -Exempt Obligations. The Bonds have
been designated by the Issuer as "qualified tax-exempt
obligations" for purposes of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended.
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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 Custodian
(Cust) (Minor)
under Uniform Transfers to Minors
Act
(State)
Additional abbreviations may also be used
though not in the above list..
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ASSIGNMENT
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:
Signature Guaranteed:
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(s) must be guaranteed by a national bank or trust
company or by a brokerage firm having a membership in one of
the major stock exchanges.
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.)
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•
8. Execution; Temporary Bonds. The Bonds shall be
executed on behalf of the City by the signatures of its Mayor
and City Clerk and be sealed with the seal of the City;
provided, however, that the seal of the City may be a printed
facsimile; provided further•that both of such signatures may
be printed facsimiles and the corporate seal may be omitted on
the Bonds as permitted by law. In the event of disability or
resignation or other absence of either such officer, the Bonds
may be signed by the manual or facsimile signature of that
officer who may act on behalf of such absent or disabled
officer. In case either such officer whose signature or
facsimile of whose signature shall appear on the Bonds shall
cease to be such officer before the delivery of the Bonds,
such signature or facsimile shall nevertheless be valid and
sufficient for all 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, one or more
typewritten temporary bonds in substantially the form set
forth above, with such*changes as may be necessary to reflect
more than one maturity in a single temporary bond. Such
temporary bonds shall, upon the printing of the definitive
bonds and the execution thereof, be exchanged therefor and
cancelled.
9. Authentication. No Bond shall be valid or
obligatory for any purpose or be entitled to any security or
benefit under this resolution 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 Bond Registrar. Certificates
of Authentication on different Bonds need not be signed by the
same person. The Bond Registrar shall authenticate the
signatures of officers of the City 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, except that for
purposes of delivering the original Bonds to the Purchaser,
the Bond Registrar shall insert as a date of registration the
date of original issue, which date is August 1, 1987. The
Certificate of Authentication so executed on each Bond shall
be conclusive evidence that it has been authenticated and
delivered under this resolution.
10. Registration; Transfer; Exchange. The City
will cause to be kept at the principal office of the Bond
Registrar a bond register in which, subject to such reasonable
regulations as the Bond Registrar may prescribe, the Bond
Registrar shall provide for the registration of Bonds and the
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registration of transfers of Bonds entitled to be registered
or transferred as herein provided.
Upon surrender for transfer of any Bond at the
principal office of the Bond Registrar, the City shall execute
(if necessary), and the Bond Registrar shall authenticate,
insert the date of registration (as provided in paragraph 9)
and deliver, in the name of the designated transferee or
transferees, one or more new Bonds of any authorized
denomination or denominations of a like aggregate 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 Registrar shall authenticate, insert the date of
registration 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.
Al]. 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.
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— a
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.
11. Rights 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 rights to interest accrued
and unpaid, and to accrue, which were carried by such other
Bond.
12. Interest Payment; Record Date. Interest on any
Bond shall be paid on each interest payment date by check or
draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the
City 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"). Anj such interest not so
timely paid shall cease to be payable to the person who is the
Holder thereof as of the Regular Record Date, and shall be
payable to the person who is the Holder thereof 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 interest. Notice of the Special Record Date
shall be given by the Bond Registrar to the Holders not less
than ten (10) days prior to the Special Record Date.
13. Treatment of Registered Owner. The City and
Bond Registrar may treat the person in whose name any Bond is
registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and
interest (subject to the payment provisions in paragraph 12
above) on, such Bond and for all other purposes whatsoever
whether or not such Bond shall be overdue, and neither the
City nor the Bond Registrar shall be affected by notice to the
contrary.
14. Delivery; Application of Proceeds. The Bonds
when so prepared and executed shall be delivered by the City
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 Accounts. There is hereby created a
special fund to be designated the "General Obligation
Improvement Bonds of 1987 Fund" (the "Fund") to be
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administered and maintained by the City Treasurer as a
bookkeeping account separate and apart from all other funds
maintained in the official financial records of the City. The
Fund shall be maintained in the manner herein 'specified until
all of the Bonds and the interest thereon have been fully
paid. There shall be maintained in the Fund two (2) separate
accounts, to be designated the "Construction Account" and
"Debt Service Account", respectively.
(i) Construction Account. To the Construction
Account there shall be credited the proceeds of the sale
of the Bonds; less accrued interest received thereon, and
less any amount paid for the Bonds in excess of
$1,930,500, and less capitalized interest in the amount
of $2'19,435—(together with interest earnings thereon
and subject to such other adjustments as are appropriate
to provide sufficient funds to pay interest due on the
Bonds on or before August 1, 1988), plus any special
assessments levied with respect to the Improvements and
collected prior to completion of the Improvements and
payment of the costs thereof. From the Construction
Account there shall be paid all costs and expenses of
making the Improvements listed in paragraph 16, including
the cost of any construction contracts heretofore let and
all other costs incurred and to be incurred of the kind
authorized in Minnesota Statutes, Section 475.65; and the
moneys in said account shall be used for no other purpose
except as otherwise provided by law; provided that the '
proceeds of the Bonds may also be used to the extent
necessary to pay interest on the Bonds due prior to the
anticipated date of commencement of the collection of
taxes or special assessments herein levied or covenanted
to be levied; and provided further that if upon
completion of the Improvements there shall remain any
unexpended balance in the Construction Account, the
balance (other than any special assessments) may be
transferred by the Council to the fund of any other
improvement instituted pursuant to Minnesota Statutes,
Chapter 429; and provided further that any special
assessments credited to the Construction Account are
hereby pledged and shall be used only to pay principal
and interest due on the Bonds.
(ii) Debt Service Account. There is hereby pledged
and there shall be credited to the Debt Service Account:
(a) all collections of special assessments herein
covenanted to be levied and either initially credited to
the Construction Account and required to pay any
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principal and interest due on the Bonds or collected
subsequent to the completion of the Improvements and
payment of the costs thereof; (b) all accrued interest
received upon delivery of the Bonds; (c) all funds paid
for the Bonds in excess of $1,930,500; (d) capitalized
interest in the amount of $//9,4-55- (together with
interest earnings thereon and subject to such other
adjustments as are appropriate to provide sufficient
funds to pay interest due on the Bonds on or before
August 1, 1988); (e) any collections of all taxes herein
levied for the payment of the Bonds and interest thereon;
(f) all funds remaining in the Construction Account after
completion of the Improvements and payment of the costs
thereof, not so transferred to the account of another
improvement; (g) all investment earnings on funds held
in the Debt Service Account; and (h) 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 principaland 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 higher 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 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 the
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
instrumentality thereof if and to the extent that such
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investment would cause the Bonds to be "federally
guaranteed" within the meaning of Section 149(b) of the
federal Internal Revenue Code of 1986, as amended (the
"Code").
16. Assessments. It is hereby determined that no
less than twenty percent (20%) of the cost to the City of each
Improvement financed hereunder within the meaning of Minnesota
Statutes, Section 475.58, Subdivision 1(3), shall be paid by
special assessments to be levied against every assessable lot,
piece and parcel of land benefited by any of the Improvements.
The City hereby covenants and agrees that it will let all
construction contracts not heretofore let within one (1) year
after ordering each Improvement financed hereunder unless the
resolution ordering the Improvement specifies a different time
limit for the letting of construction contracts. The City
hereby further covenants and agrees that it will do and
perform as soon as they may be done, all acts and things
necessary for the final and valid levy of such special
assessments, and in the event that any such assessment be at
any time held invalid with respect to any lot, piece or parcel
of land due to any error, defect, or irregularity in any
action or proceedings taken or to be taken by the City or the
City Council or any of the City officers or employees, either
in the making of the assessments or in the performance of any
condition precedent thereto, the City and the City Council
will forthwith do all further acts and take all further
proceedings as may be required by law to make the assessments
a valid and binding lien upon such property. The special
assessments have not heretofore been authorized, and
accordingly, for purposes of Minnesota Statutes, Section
475.55, Subdivision 3, the special assessments are hereby
authorized. Subject to such adjustments as are required by
conditions in existence at the time the assessments are
levied, the assessments are hereby authorized and it is hereby
determined that the assessments shall be payable in equal,
consecutive, annual installments, with general taxes for the
years shown below and with interest on the declining balance
of all such assessments at a rate per annum not greater than
the maximum permitted by law and not less than % % per annum:
18
Improvement Collection
Designation Amount Levy Years Years
86-08 $490,000 A7-05 88-2006
86-09 230,000 88-06 89-2007
86-10 100,000 87-05 88-2006
86-11 250,000 88-97 89-1998
86-12 550,000 88-06 89-2007
87-01 180,000 87-06 88-2006
87-05 160,000 88-06 89-2007
At the time the assessments are in fact levied the
City Council shall, based on the then -current estimated col-
lections of the assessments, make any adjustments in any ad
valorem taxes required to be levied in order to assure that
the City continues to be in compliance with Minnesota
Statutes, Section 475.61, Subdivision 1.
17. Tax Levy; Coverage Test. To provide moneys for
payment of the principal and interest on the Bonds there is
hereby levied upon all of the taxable property in the City a
direct annual ad valorem tax which shall be spread upon the
tax rolls and collected with and as part of other general
property taxes in the City for the years and in the amounts as
follows:
Year of Tax Year of Tax
Levy Collection Amount
1987 1988 $3,000
1988 1989 0
1989 1990 0
1990 1991 0
1991 1992 0
1992 1993 0
1993 1994 0
1994 1995 0
1995 1996 2,000
1996 1997 2,500
1997 1998 1,500
1998 1999 25,000
1999 2000 23,000
2000 2001 21,000
2001 2002 10,000
2002 2003 3,000
The tax levies are such that if collected in full
they, together with estimated collections of special assess -
19
ments and other revenues herein pledged for the payment of the
Bonds, will produce at least five percent (5%) in excess of
the amount needed to meet when due the principal and interest
payments on the Bonds. The tax levies shall be irrepealable
so long as any of the Bonds are outstanding and unpaid,
provided that the City reserves the right and power to reduce
the levies in the manner and to the extent permitted by
Minnesota Statutes, Section 475.61, Subdivision 3.
18. General Obligation Pledge. For the prompt and
full payment 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 hereby irrevocably
pledged. If the balance in the Debt Service Account is ever
insufficient to pay all principal and interest then due on the
Bonds and any other bonds payable therefrom, the deficiency
shall be promptly paid out of any other funds of the City
which are available for such purpose, and such other funds may
be reimbursed with or without interest from the Debt Service
Account when a sufficient balance is available therein'.
19. Certificate of Registration. The Clerk is
hereby directed to file a certified copy of this resolution
with the County Auditor of Dakota County, Minnesota, together
with such other information as he or she shall require, and
to obtain the Auditor's certificate that the Bonds have been
entered in the Auditor's Bond Register, and that the tax levy
required by law has been made.
20. Records and 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 represen-
tations of the City as to the facts recited therein.
21. Negative Covenant as to Use of Project. The
City hereby covenants not to use the Improvements 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"
20
4.
within the meaning of Sections 103 and 141 through 150 of the
Code.
22. Tax -Exempt Status of 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 requirements relating to
temporary periods for investments, limitations on amounts
invested at a yield greater than the,yield on the Bonds, and
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. For purposes of qualifying for the small issuer
exception to the federal arbitrage rebate requirements, the
City hereby finds, determines and declares that the aggregate
face amount of all tax-exempt bonds (other than private
activity bonds) issued by the City (and all subordinate
entities of 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.
23. Designation of Qualified Tax -Exempt
Obligations. 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 not "private activity bonds" as
defined in Section 141 of the Code;
(b) the City hereby designates the Bonds as
"qualified tax-exempt obligations" for purposes
of Section 265(b)(3) of the Code;
(c) 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 subordinate
entities of the City) during this calendar year
1987 will not exceed $10,000,000; and
(d) not more than $10,000,000 of
obligations issued by the City during this
calendar year 1987 have been designated for
purposes of Section 265(b)(3) of the Code.
21
4
The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate
the designation made by this paragraph.
24. 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 of such section, paragraph or provision shall
not affect any of the remaining provisions of this resolution.
25. Headings. Headings 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 seconded by member Cummins and,
after a full discussion thereof and.upon vote being taken
thereon, the following voted in favor thereof: All Yea
and the following voted against the same:
none
Whereupon said resolution was declared duly passed
and adopted.
22
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF MENDOTA HEIGHTS
I, the undersigned, being the duly qualified and
acting Clerk of the City of Mendota Heights, Minnesota, DO
HEREBY CERTIFY that I have compared the attached and fore-
going extract of minutes with the original thereof on file in
my office, and that the same 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 opening and considering bids
for, and awarding the sale of, $1,950,000 General Obligation
Improvement Bonds of 1987 of said City.
WITNESS my hand and the seal of said City this /4P
day of64.2.a.tT , 1987. 24,
(SEAL)
Clerk
City of Mendota Heights
Dakota County, Minnesota
RESOLUTION NO. 87- 79
RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR CONSTRUCTION
OF SANITARY SEWER, WATER, STORM SEWER AND STREET CONSTRUCTION TO
SERVE STRATFORD WOODS SUBDIVISION (IMPROVEMENT NO. 86, PROJECT NO. 13)
WHEREAS, pursuant to an advertisement for bids for the proposed con-
struction of sanitary and storm sewer, water and street, curb and
gutter improvements to serve Stratford Woods Subdivision and adjacent
areas (which improvements have heretofore been known and designated as
Improvement No. 86, Project No. 13), bids were received, opened and
tabulated according to law and the following bids were received com-
plying with said advertisement:
NAME OF BIDDER AMOUNT OF BID
Orfei Contracting, Inc.
Hugo, MN
Crossings, Inc.
Prior Lake, MN
Robert W. Moore Company
St. Paul, MN
Ro-So Contracting, Inc.
Centerville, MN
and
$101,682.85
112,889.16
134,412.00
138,911.00
WHEREAS, the City Engineer recommended that the low bid submitted by
Orfei Contracting, Inc. of Hugo, Minnesota, be accepted.
NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Mendota Heights, Minnesota, as follows:
1. That the bid of Orfei Contracting, Inc. of Hugo, Minnesota,
submitted for the construction of the above described improvements
be and the same is hereby accepted.
2. That the Mayor and Clerk are hereby authorized and directed to
execute and deliver any and all contracts and documents necessary to
consummate the awarding of said bids.
Adopted by the City Council of the City of Mendota Heights this 18th
day of August, 1987.
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
By a..r- y
Charles E. Mertensotto, Mayor
ATTEST:
i
thleen M. Swanson, City Clerk