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Res 1982 - 39 Extract of Minutes of Meeting of the City Council of MH (4/20/1982)EXTRACT OF MINUTES OF METING OF THE CITY COUNCIL OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA HELD: APRIL 20, 1982 f02 -3 I 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 the City on the 20th day of April, 1982, at 7:30 P..M. for the purpose of opening and considering bids for and awarding the sale of $1,400,000 General Obligation Temporary Improvement ' Bond of 1982 of the City. The following members were present: Lockwood, Witt Mertensotto, Hartmann and the following were absent: Losl eben The Clerk presented affidavits showing publication of notice of call for bids on $1,400,000 of the City, for which bids were to be received at this meeting, in accordance with the resolution adopted by the City Council on March 16, 1982. The affidavits were examined, found to comply with the provisions of Minnesota Statutes, Chapter 475, and were approved and ordered placed on file. The Council proceeded to receive and open bids for the sale of the bonds. The following bids were received: Bidder Interest Rate Net Interest Cost BIDS RECEIVED CITY OF MENDOTA HEIGHTS $1,400,000 TEMPORARY IMPROVEMENT BONDS OF 1982 April 20, 1982 ACCOUNT BANC NORTHWEST Minneapolis, Minn. MERRILL LYNCH WHITE WELD CAPITAL CORP. American National Bank & Trust Co. Juran & Moody Inc. Cronin Marcottee Inc. Blunt Ellis & Loewi Inc. Dean Witter Reynolds Inc. Marquette National Bank Miller Schroeder Municipals FIRST NATIONAL BANK St. Paul, Minn. First National Bank Minneapolis Dougherty Dawkins Strand & Ekstrom M.N. Novic Co. Robert S.C. Peterson Paine Webber Jackson & Curtis Cherokee State Bank PIPER JAFFRAY & HOPWOOD INC. Allison Williams Co. E.H. Hutton Inc. R.W. Baird & Co. RATE DISCOUNT $ COST 9.00% $6,048.00 $384,048 9.144% 9.10% 5,740.00 387,940 9.236% 9.30% 5,600.00 396,200 9.433% Award made to the Banc Northwest Account. The Council then proceeded to consider and discuss the bids, after which member 44-:7 Witt introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BID ON SALE OF $1,400,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS OF 1982 PROVIDING FOR THEIR ISSUANCE BE IT RESOLVED by the Council of the City of Mendota Heights, Minnesota, as follows: 1. The bid of s alorthwes-t to purchase $1,400,000 of the i y, in accordance with the notice of bond sale, at the rates of interest hereinafter set forth,' and to pay therefor the sum of $ 1,393,952.00 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 theideposit of said bidder and to forthwith return the good faith checks or drafts to the unsuccessful bidders. The bonds shall be payable as to principal and interest at Northwestern National Bank Minneapolis, Minn. , or any successor paying agent duly appointed by the City. 2. The $1,400,000 negotiable coupon general obliga- tion bonds of the City shall be dated May 1, 1982 and shall be issued forthwith. The bonds shall be 280 in number and numbered from 1 to 280, both inclusive, in the denomination of $5,000 each. The bonds shall mature, without option of prepayment, on May 1, 1985. 3. The bonds shall provide funds for the construc- tion of various 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 herein authorized. Work on the improvements shall proceed with due diligence to completion. 4. The bonds shall bear interest payable November 1, 1982 and semiannually thereafter on May 1 and November 1 of each year at the rate per annum of nine percent (9 %). 5. The bonds'and interest coupons to b hereunder shall be in substantially the following issued form: UNITED STATES OF AMERICA STATE OF MINNESOTA DAKOTA COUNTY CITY OF MENDOTA HEIGHTS No. $5,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BOND OF 1982 KNOW ALL PERSONS BY THESE PRESENTS that the City of Mendota Heights, Dakota County, Minnesota, certifies that it is indebted and for value received promises to pay to bearer without option of prepayment the principal sum of FIVE THOUSAND DOLLARS on the first day of May, 1985 and to pay interest thereon from the date hereof until the principal is paid at the rate of percent( %) per annum, payable on the first day of November, 1982 and semiannually thereafter on the first day of May and the first day of November in each year, interest to maturity being represented by and payable in accordance with and upon presentation and surrender of the interest coupons hereto attached, as the same severally become due. Both principal and interest are payable at , or any successor paying agent duly appointed by the City, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. This bond is one of any issue in the total principal amount of $1,400,000 all of like date and tenor, except as to serial number, which bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota for the purpose of providing money for the financing of the construction of various improvements in the City and is payable out of the General Obligation Temporary Improvement Bonds of 1982 Fund of the City, to which fund there has been irrevocably pledged the special assessments and taxes to be levied in respect to the improvements financed by said issue, and into which fund there are to be paid the proceeds of the definitive improvement bonds which the City is required by law to issue at or prior to the maturity of this bond for the purpose of refunding the same if the special assessments theretofore collected, or any other municipal funds which are properly available and are appropriated by the City Council for such purpose, are not sufficient for the payment thereof. This bond constitutes a general obligation of the City and to pro- vide moneys for the prompt and full payment of said principal and interest when the same become due, and full faith and credit of said City have been and are hereby irrevocably pledged. 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 this bond, together with all other debts of the City outstanding on the date hereof and the date of its actual issuance and delivery 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 in its behalf by the facsimile signature of the Mayor and the manual signature of the City Clerk, the corporate seal of the City having been intentionally omitted as permitted by law, and has caused the interest coupons to be executed and authenticated by the facsimile signatures of said officers, all as of May 1, 1982. /s/ Facsimile City Clerk Mayor r (Form of Coupon) No. $ On the first day of November (May), 19, the City of Mendota Heights, Dakota County, Minnesota, will pay to bearer at 1 , or any successor paying agent duly appointed by the City, the sum shown hereon for interest then due on its General -Obligation Temporary Improvement Bond of 1982, No. , dated May 1, 1982. /s/ Facsimile /s/ Facsimile City Clerk Mayor 6. The bonds shall be executed on behalf of the City by the signatures of its Mayor and Clerk and be sealed with the seal of the City; provided, that one (or both) of the signatures and the seal of the City may be printed facsimiles (if the bonds are also signed manually by at least one such officer); and provided further that the corporate seal may be omitted on the bonds as permitted by law. The interest coupons pertaining thereto shall be executed by the printed, engraved or lithographed facsimile signatures of the Mayor and Clerk. 7. The bonds when so prepared and executed shall be delivered by the Treasurer to the purchaser thereof upon receipt of the purchase price, and the purchaser shall not be obliged to see to the proper application thereof. 8. There is hereby created a special fund to be designated "General Obligation Temporary Improvement Bonds of 1982 Fund" to be held and administered by the City Treasurer separate and apart from all other accounts of the City. The Fund shall be maintained in the manner herein specified until all of the bonds herein authorized and the interest thereon have been fully paid. There shall be maintained in the Fund two separate accounts, to be designated the "Construction Account" and the "Debt Service Account", respectively. The proceeds of the sale of the bonds herein authorized, less any- accrued interest received thereon, and less any amount paid for the bonds in excess of $1,393,000, and less capitalized interest in the amount of $ 1Z6,00n (subject to such adjust- ments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before may 1983 ), plus any special assessments levied with respect to improvements financed by the bonds and collected prior to completion of the improvements and payment of theicosts. thereof, shall be credited to the Construction Account, from which there shall be paid all costs and expenses of making the improvements listed in paragraph 9, including thecost 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 bond proceeds 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 special assessments herein levied and provided further that if upon completion of the improvements there shall remainany 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 and on any bonds issued to pay the principal and interest due on the bonds herein authorized. There is hereby pledged and there shall be credited to the Debt Service Account (a) all collections of special assessments herein covenanted to be authorized by resolution and hereafter levied and either initially credited to the Construction Account and required to pay any 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 $1,393,000, (d) capitalized interest in the amount, of $ 126,000 (subject to such adjustments as are ilappropriate to provide sufficient funds to pay interest due on the bonds on or before May 1983 ), (e) any collections of tall taxes which may herafter be levied if needed to pay the principal of and interest on the bonds; and (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; provided, however, that upon termina- tion of the Debt Service Account all collections of such special assessments herein covenanted to be hereafter levied and any other sums pledged and appropriated to the Debt Service Account and not used for the payment of said temporary bonds and interest thereon shall be pledged and credited to the extent necessary to the Debt Service Account of any improvement bonds issued to pay in whole or part said temporary bonds. The Debt Service Account'herein created shall be used !solely to pay the principal and interest and any premiums for redemption of the bonds issued hereunder and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. Any sums from time to time held in the Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be_invested at a yield in excess of the applicable yield restriction's imposed by said arbitrage regulations on such investments. 9. It is hereby determined that no less than 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 the improvements. The City hereby covenants and agrees that it will let all construction contracts not here- tofore let within one year after ordering each improvement financed hereunder unless the resolution ordering the improvement specifies a different time limit for the letting of construction contracts and it will hereafter "authorize by resolution" (within the meaning of Minnesota Statutes, Section 475.55(3), as amended), the special assessments and 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 this 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 this 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. 10. To further provide moneys for the prompt and full payment of principal and interest on said temporary improvement bonds, the City shall issue and sell improvement bonds, at or prior to the maturity date of the bonds issued hereunder, in such amounts as are needed to pay the principal and interest then due on said temporary improvement bonds after the application of the assessments and taxes collected, and the appropriation of such other municipal funds as are properly available for such purpose. The Council hereby finds, determines and declares that the estimated collections of special assessments and taxes to be received before the maturity date of said temporary improvement bonds, together with the proceeds of any improvement bonds to be issued at or before said maturity date, and other revenues pledged for the payment of said temporary improvement bonds and the interest thereon will equal at least 5% in excess of the principal and interest requirements of said temporary improvement bonds as the same become due. For the prompt and full payment of the principal of 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 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. 11. The City 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 shall require, and to obtain from said Auditor his certificate that said bonds have been entered in the said Auditor's Bond Register. 12. The officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of the temporary improvement bonds, and to the attorneys approving the legality of the issuance thereof, 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, in- cluding any heretofore furnished, shall be deemed represen- tations of the City as to the facts recited therein. The motion for the adoption of the foregoing resolution was duly seconded by member Hartmann 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. 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 foregoing 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 the opening and considering of bids for, and awarding the sale of $1,400,000 General Obligation Temporary Improvement Bonds of 1982 of said City. Or) (SEAL) WITNESS my hand day of and the seal of said City this 1982. 140E5A1/24.00 City Clerk