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Res 1981 - 20 Extract of Minutes of Meeting of the City Council of MH (3/17/1981)EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA HELD: MARCH 17, 1981 Pursuant to due call and notice thereof, la regular meeting of the City Council of the City of Mendota Heights, Dakota County, Minnesota, was duly held at the City, in the City on the 17th day of March, 1981, at 7:30 o'clock P.M. for the purpose of opening and considering bids for and awarding the sale of $625,000 General Obligation Timporary Improvement Bonds of 1981 of the City. The following members were present: Mayor+ Lockwood, Councelpersons Witt, Losleben, Mertensotto & Hartmann and the following were absent: none The Clerk presented affidavits showing publication of notice of call for bids on $625,000 General Obligation Temporary Improvement Bonds of 1981 of the City, for which bids were to be received at this meeting, in accordance with the resolution adopted•by the City Council on FebruaryI17, 1981. 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 t625,000 Temporary Improvement Bonds March 17, 1981 ACCOUNT RATE BANC NORTHWEST 7,50% Minneapolis, Minn. FIRST NATIONAL BANK 7.60% 3t. Paul, Minn ' D8IM BOSWORTH INC. 7,70 Minneapolis, Minn. Allison Williams Co. Piper Jaffray & Hopwood Inc. Moore JVran Inc. FIRST NATIONAL BANK 7,75 Minneapolis, Minn M^H.MoVfc Company 7,75 Minneapolis, Minn AWPRD MADE TO THE BANC NORTHWEST ACCOUNT. 3»437.52 1145*937,50 7.783%1 3,118.75 |l47* 4g3�^ 75 7 , 865�| | �| 3^500,00 148^812,50 7,936% 3,500,00 |148^812,50 7,936 The Council then proceeded to consider and discuss the bids, after which member Mertensotto introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BID ON SALE OF $625,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS OF 1981 PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX FOR THE PAYMENT THEREOF BE ITRESOLVED by the Council of the City of Mendota Heights, Minne.sota, as follows: 1. The bid of Banc Northwest to purchase $625,000 General Obligation Temporary Improvement Bonds of the City, in accordance with the notice of bond sale, at the rates of interest hereinafter set forth, and. to pay therefor the sum of $699-187.51 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 the good faith checks or drafts to the unsuccessful bidders. The bonds shall Ibe payable as to principal and interest at any St Paul, Minnesotai or any successor paying agent duly appointed by the City. 2. The $625,000 negotiable coupon general obligation bonds of the City shall be dated April 1, 1981 and shall be issued forthwith. The bonds shall be 125 in number and numbered from 1 to 125, both inclusive, in the denomination of $5,000 each. The bonds shall mature, without optionlof prepayment, on April 1, 1984. 3. The bonds shall provide funds for the '7 of various improvements in the City. The totallcost 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. I Work on the improvements shall proceed with due diligence to completion. 4. The bonds shall bear interest at the rate of 7.6per annum payable October 1, 1981 and semiannually there- after on April 1 and October 1 of each year. 5. The bonds and interest coupons to be issued hereunder shall be in substantially the following form:. No. UNITED STATES OF AMERICA STATE OF MINNESOTA DAKOTA COUNTY CITY OF MENDOTA HEIGHTS GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS OF 1981 $5,000 KNOW ALL PERSONS BY THESE PRESENTS that tl Mendota Heights, Dakota County, Minnesota, certifies indebted and for value received promises to pay to l without option of prepayment, the principal sum of FIVE THOUSAND DOLLARS bn the first day of April, 1984 and to pay interest from the date hereof until the principal is paid at percent (_ annum, payable on the first day of October, 1981 an( semiannually thereafter on the first day of April ai day of October in each year, interest to maturity bf represented by and payable in accordance with -and ul presentation and surrender of the interest coupons ] attached, as the same severally become due. Both pi interest are payable at or any successor paying agent c appointed by the City, in any coin or currency of t] States of America which at the time of payment is 14 for public and private debts. This bond is one of an issue in the total amount of $625,000 all of like date and. tenor, exce: serial number, which bond has been issued pursuant full conformity with the Constitution and laws of t Minnesota for the purpose of providing money for va improvements in the City and is payable out of the Obligation Temporary Improvement Bonds of 1981 Fund to which fund there has been irrevocably pledged th assessments and taxes to be levied in respect to th improvements financed by said issue, and into which are to be paid the proceeds of the definitive impro which the City is required by law to issue at or pr maturity of this bond for the purpose of refunding the special assessments and taxes theretofore colle other municipal funds which are properly available City of that it is arer, thereon the rate of - _%) per d the first ing ereto incipal and, United 1 tender principal ,t as to o and in .e State of Iou s eneral of the City special fund there ►ement bonds _or to the :he same if .ted or any ind 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 provide moneys for the prompt and full payment of the principal and interest when the same become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. IT IS HEREBY CERTIFIED AND RECITED that a conditions and things required by the Constitution the State of Minnesota to be done, to happen and to performed, precedent to and in the issuance of this been done, have happened and have been performed, i and due form, time and manner as required by law, a bond, together with all other debts of the City out the date hereof and the date of its actual issuance delivery does not exceed any constitutional or stat limitation of indebtedness. IN WITNESS WHEREOF, the City of Mendota He Dakota County, Minnesota, by its City Council has ca bond to be executed in its behalf by the facsimile s the Mayor and the manual signature of the City Clerk corporate seal of the City having been intentionally permitted by law, and has caused the interest coupon executed and authenticated by the facsimile signatur officers, all as of April 1, 1981. City Clerk /s/ Facsimile Mayor acts, laws of nd, have egular this nding on ry ights, used this ignature of the omitted as s to be es of said (Form of Coupon) No. On the first day of October (April), 198 1 the City of Mendota Heights, Dakota County, Minnesota, will pay to bearer at 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 1981, No. , dated April 1, 1981. 1 /s/ Facsimile City Clerk 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 Improvement Bonds of 11981 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 Iof 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 proceedslof the sale of the bonds herein authorized, less any accrued interest received thereon, and less any amount paid for the bonds in excess of $621,500, and less capitalized interest in the amount of $28,125 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before October 1, 1981), plus any special assessments levied with respect to improvements financed by the bonds and collected prior to completion of the improvements and payment of the costs 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 10, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind I 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 proceedsmay 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. There is hereby pledged and there shall be credited to the Debt Service Account (a) all collections of special assessments herein covenanted to be leviedfand.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 $621,500, (d) capitalized interest in the amount of $28,125 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before October 1, 1981), (e) any collections of all taxes herein levied the payment 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. 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, provided however,ithat upon termination of the Debt Service Account all collections of such special assessments and taxes herein covenanted to be levied assessments and taxes herein covenanted to be 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 thereonshall be pledged.and credited to the extent necessary to the Debt Service -Account of any definitive bonds issued to pay in whole or part said temporary bonds. 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 I may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments. 9. It is hereby determined that no less the cost to the City of each improvement financed l within the meaning of Minnesota Statutes, Section e Subdivision 1(3) shall be paid by special assessmei levied against every assessable lot, piece and par4 benefited by the improvements. The City hereby co, than 20% of iereunder .75.58, its to be :el of land Tenants and i 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 improve- ment specifies a different time limit for the letting of con- struction contracts and 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 orlto 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 prop Subject to such adjustments as are required by cond existence at the time the assessments are levied, i determined that the assessments shall be payable in consecutive, annual installments, with general taxe years shown below and with interest on the deferred all such assessments at the rate of at least _q_% Improvement Designation Amount Valley View Oaks $355,000 Eagle Ridge Storm Sewer 70,000 Victoria Town Homes 75,000 Royal' Redeemer Utilities 45,000 Friendly Hills Water 80,000 At City Council lections of :rry. . .tions in is hereby equal, for the balance of per annum: Levy Years 1982-2001 1982-2001 1982-2001 1981-2000 1982-2001 the time the assessments are in fact levied the shall, based on the then current estimated col - 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. 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 definitive 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 improvementk 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 collectiIons of special assessments and taxes to be received before the 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. principal 11. For the prompt and full payment of the p rinci p 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 Ifunds 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 is available therein. 12. ,The City Clerk is hereby directed to file a. 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 the Auditorihis certificate that the bonds have been entered in the Auditor's Bond Register. 13. The officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of the bonds, and to the attorneys approving the legality sof 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, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. i j; I I i j •. The motion for the adoption of the fore resolution was duly seconded by member Hartmann upon vote being taken thereon; the following vote thereof: S All Yea and the following voted against the'same: none Whereupon said resolution was declared and adopted.• ng and n. favor passed 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 openin% and considering of bids for, and awarding the sale of $625,000 General Obligation Temporary Improvement Bonds of 1981 of said City. WITNESS my hand and the seal of said City this 21 � day of 1981. r- �r City Clerk (SEAL)_