Res 78 - 47 Extract of Minutes of Meeting of the City Council of MH (5/2/1978)EXTRACT OF MINUTES OF 14EETING OF THE
CITY COUNCIL OF THE CITY OF
14ENDOTA HEIGHTS, MINNESOTA
HELD: MAY 2, 1978
-1
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 the 2nd day of May, 1978, at 7:30 o'clock
P.M. for the purpose of opening and considering bids for and
awarding the sale of $1,930,000 General Obligation Improve-
ment Bonds of 1978 of said City.
The following members were present: Robert Lockwood
James Losleben, James Schaberg, Charles mertensotto, Russ Wahl
and the following were absent:
None
The Clerk presented affidavits showing publication
of notice of call for bids on $1,930,000 General Obligation
Improvement Bonds of 1978 of the City, for which bids were to
be received at this meeting, in accordance with the resolu-
tion adopted by the City Council on April 4, 1978. Said
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 said bonds. The following bids were received:
Bidder Interest Rate Net Interest Cost
BIDS RECEIVED
$1,930,000 IMPROVEMENT BONDS OF 1978
CITY OF MENDOTA HEIGHTS
MAY 2 1978
T
ACCOUNT
RATES
DISCOUNT $ COST % RATE
FIRST NATIONAL BANK OF ST. PAUL
St. Paul, Minn.`
1979-80
5.25%
$149'996.10
BANC NORTHWEST.
1981-90
5.30
Chicago, Ill.,
1991
5.35
$1,418,747.35
First National Bank of Minneapolis
1992
5.40
American National Bank & Trust Co.
1993
5.50
5.6126%
Piper Jaffray & Hopwood
1994-95
5.60
Dain Kalman & Quail,
1996-97
5.70
Allison Williams Co.
1998-99
5.80
White Weld Merrill Lynch
Juran & Moody Inc.
Miller Schroder Co.
Robert S.C.Peterson
Robert W. Baird Co.
Cronin Marcotte"Inc.
Paine Webber Jackson Curtis
E. J. Prescott Co.
Cherokee State Bank of St.LPau1
FIRST NATIONAL BANK OF CHICAGO
1979-85
5.20%
$14,356.93
Chicago, Ill.
1986-89
5.25
Continential 1llinois National
1990
5.30
$1,421,188.79
Bank & Trust Co.
1991
5.40
Harris Trust & Savings Bank
1992
5.50
5.6223%
Kidder Peabody Co.
1993
5.55
Mercantile Trust Co St. Louis
1994
5.60
La Salle National Bank
1995
5.65
Chicago Corp.
1996
5.70
1997
5.75
1998
5.80
1999
5.85
AWARD MADE TO THE FIRST NATIONAL
BANK OF
ST. PAUL
ACCOUNT
The Council then proceeded to consider such bids.
After the bids had been considered and discussed, member
Jim Schaberg introduced the following resolution
and moved its adoption:
RESOLUTION ACCEPTING BID ON SALE OF
$1,930,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1978
PROVIDING FOR THEIR ISSUANCE AND LEVYING
A TAX FOR THE PAYMENT THEREOF
WHEREAS:
A. The City Council of the City of Mendota Heights
by resolution adopted October 19, 1976 has authorized the
issuance and sale of $180,000 General Obligation Temporary
Improvement Bonds of 1976, Series 1 of the City (herein-
after "temporary improvement bonds") to provide interim,
financing of various improvements in the City.
B. The City Council deems it necessary and expedient
to issue $1,930,000 General Obligation Improvement Bonds of 1978
to refund the $180,000 General obligation Temporary Improvement
Bonds of 1976, Series 1, dated November 1, 1976 and to defray
the expense of the construction of a water tower in the City.
BE IT RESOLVED by the Council of the City of
Mendota Heights, Minnesota, as follows:
1. That the bid of First National Bank of St. Paul & Assoc.
to purchase $1,930,000 General Obligation Improvement Bonds
of 1978 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 $ 1,915,003.90 is hereby found,
determined and declared to be the most favorable bid re-
ceived, and is hereby accepted and said 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.
Said bonds shall be payable as to principal and interest at
First National Bank St. Paul, Minnesota
or any successor paying agent duly appointed by the City.
2.• The $1,930,000 negotiable coupon general obliga7-
tion bonds of the City shall be dated May 1, 1978 and shall
be issued forthwith. Said bonds shall be 386 in number
and numbered from 1 to 386, both inclusive, in the denomin-
ation of $5,000 each. Said bonds shall mature serially,
lowest numbers first, on August 1 in the years and amounts
as follows:
$10,000
in
the
year
1979;
5.30%
$60,000
in
the
year
1980;
5.40%
$65,000
in
each of
the years 1981
and 1982;
$70,000
in
the
year
1983;
333-385
$75,000
in
the
year
1984;
_$80,000
in
each of
the years 1985
and 1986;
$85,000
in
each of
the years 1987
and 1988;
$90,000
in
the
year
1989;
$95,000
in
the
year
1990;
$100,000
in
the
year
1991;
$105,000
in
the
year
1992;
$110,000
in
the
year
1993;
$115,000
in
the
year
1994;
$120,000
in
the
year
1995;
$125,000
in
each. -of the years 1996
and 1997;
$130,000
in
the
year
1998; and
$140,000
in
the
year
1999.
3. Said bonds shall provide funds for the construc-
tion of a water tower in the City and to refund at maturity
the $180,000 General Obligation Temporary Improvembnt Bonds
of 1976, Series 1, dated November 1, 1976 of the City. The
total cost of said water tower and refunding, which shall in-
clude 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 water tower shall
proceed with due diligence to completion.
4. The bonds of said issue maturing in the years
and bearing the serial numbers set forth below shall bear
interest, payable February 1, 1979 and semiannually there-
after on August 1 and February 1 of each year, at the respec-
tive rates per annum, set opposite said maturity years and
serial numbers:
Maturity Years
Serial Numbers Interest Rate
1979-1980
1- 14
5.25%
1981-1990
15-172
5.30%
1991
173-192
5.35%
1992
193-213
5.40%
1993
214-235
5.50%
1994-1995
236-282
5.60%
1996-1997
283-332
5.70%
1998-1999
333-385
5.80%
5. All bonds of this issue maturing in the years
1993 to 1999, both inclusive (bonds numbered 214 to 386,
both inclusive), shall be subject to redemption and prepayment
at the option of the City in inverse order of serial numbers,
on August 1, 1992 and on any interest payment date thereafter at
par and accrued interest. Published notice of redemption shall
in each case be given in accordance with law, and mailed notice
of redemption shall be given to the bank where said bonds are
payable and to any registered holders, provided that published
notice alone shall be effective without mailed notice. Holders
desiring to receive mailed notice must register their names,
addresses and bond numbers with the City Clerk.
6. The bonds and interest coupons to be issued
hereunder shall be in substantially the following form•
No.
UNITED STATES OF A�1ERICA
STATE OF �JINNESO TA
DAKOTA COUNTY
CITY OF MENDOTA HEIGHTS
GENERAL OBLIGATION IMPROVEMENT
BOND OF 1978
MIMI]
KNOW ALL MEN 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
the principal sum of
FIVE THOUSAND DOLLARS
on the first day of August, 19 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
February, 1979 and semiannually thereafter on the first
day of August and the first day of February 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
r
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.
All bonds of this issue maturing in the years
1993 to 1999, both inclusive (bonds numbered 214 to 386,
both inclusive), are subject to redemption and prepayment at
the option of the City in inverse order of serial numbers, on
August 1, 1992 and on any interest payment date thereafter
at par and accrued interest. Published notice of redemption
shall in each case be given in accordance with law, and
mailed notice of redemption shall be given to the bank where
said bonds are payable and to any registered holders, provided
that published notice alone shall be effective without mailed
notice. Holders desiring to receive mailed notice must register
their names, addresses and bond numbers with the City Clerk.
This bond is one of an issue in the total principal
amount of $1,930,000 all Qf like date and tenor, except as to
serial number, maturity, interest rate and redemption,privi-
lege, 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 a water
tower in the City and to refund at maturity the $180,000
General obligation Temporary Improvement Bonds of 1976, Series
1, dated November 1, 1976 of the City, and is payable out of the
General Obligation Improvement Bonds of 1978 Account
of the City. This bond constitutes a general obligation of the
City, and to provide moneys for the prompt and full payment of
said principal and interest when the same become due, the full
faith and credit and taxing powers 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 requiredby 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 signa-
ture of the Mayor and the manual signature of the City Clerk,
the corporate seal of said 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, 1978.
Isl Facsimile
City Clerk Mayor
(Form of Coupon)
No. $*
on the first day of February (August), 19 —, unless
the bond described below is called for earlier redemption, the.
City of Mendota Heights. -Dakota County, Minnesota, will pay to
bearer at 61
or any successor paying agent duly appointed by the City, the
sum shown hereon for interest then due on its General obligation
Improvement Bond of 1978, No.- dated May 1,; 1978.
/s/ Facsimile Isl Facsimile
City Clerk Mayor
7. The bonds shall be executed on behalf of the
City by the signature of its Mayor and the signature of its
Clerk and be sealed with the seal of the City; provided,
that one of such signatures and the seal of the City may
be printed facsimiles; 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.
8. The said bonds when so prepared and executed
shall be delivered by the Treasurer to the purchaser thereof
upon receipt of the purchase price, and the said purchaser
shall not be obliged to see to the proper application thereof.
9. There has heretofore been created a "Debt Service
Fund" in the "General Obligation Temporary Improvement Bonds
of 1976, Series 1 Account". Said fund was created solely for
the purpose of paying the principal and interest on the tempor-
ary improvement bonds authorized in the resolution creating said
account. Of the proceeds derived from the bonds herein authorized,
$ 180.000 shall be credited to the Debt Service Fund of the
General Obligation Temporary Improvement Bonds of 1976, Series 1
Account (which sum, together with sums already held in said Debt
Service Fund, is sufficient to pay all principal and interest to
become due on the $180,000 General Obligation Temporary Improve-
ment Bonds of 1976, Series -1 at their maturity on November 1,
1978). Upon discharge of said temporary improvement bonds,
any balance in and all uncollected special assessments pledged
to, said Debt Service Fund are hereby pledged and shall be credited
to the Debt Service Fund hereinafter established.
10. There is hereby created a special account to be
designated."General Obligation Improvement Bonds of 1978 Account"
to be held and administered by the City Treasurer separate
and apart from all other accounts of the City. Said Account
shall be maintained in the manner herein specified until all
of the bonds herein authorized and the interest thereon have
been fully paid. In said Account there shall be maintained
two separate funds, to be designated as the "Construction
Fund" and the "Debt Service Fund", respectively. The proceeds
of the sale of the bonds herein authorized, less (a) the
$ 180 000 credited to the Debt Service Fund of the General
Ob i a iot" n Temporary Improvement Bonds of 1976, Series 1 Account,
(b) any accrued interest received thereon, and (c) any amount
paid for said bonds in excess of $1,915,000, and less capitalized
interest in the amount of $96,250 (subject to such adjust-
ments as are appropriate to provide sufficient funds to pay
interest due on the bonds on or before May 1, 1979), 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 Fund, from which there shall
be paid all costs and expenses of making said improvements
listed in paragraph 11, 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 fund 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 said bonds due prior to the anticipated date
of commencement of the collection of taxes or special assess-
ments herein levied or covenanted to be levied; and provided
further that if upon completion of said improvements there
shall remain any unexpended balance in said Construction Fund,
said 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 Fund 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 Ser-
vice Fund (a) all collections of special assessments herein
covenanted to be levied and either initially credited to the
Construction Fund and required to pay any principal and in-
terest due on the bonds or collected subsequent to the com-
pletion of said improvements and payment of the costs thereof;
(b) all accrued interest received upon delivery of said
bonds, (c),all funds paid for said bonds in excess of $1,915,000,
(d) capitalized interest in the amount of $96,250 (subject
to such adjustments as are appropriate to provide sufficient
funds to pay interest due on the bonds on or before May 1, 1979),
(e) any collections of all taxes herein levied for the
payment of said bonds; (f) all funds remaining in said Con-
struction Fund after completion of the improvements and payment
of the costs thereof, not so transferred to the fund of another
improvement; and (g) upon discharge of said temporary improvement
bonds any balance in and all uncollected special assessments
pledged to said Debt Service Fund. The Debt Service Fund
herein created shall be used solely to pay principal and
interest and any premiums for redemption on the bonds issued
hereunder and any other general obligation bonds of the City
hereafter issued by the City and made payable from said Fund.
11. It is hereby determined,that no less than 20% of
the cost of each improvement project financed hereunder to the
City 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 said improvements. Thd City hereby 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 assess-
ment 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 such assessments or in the performance of any
condition precedent thereto, the City and this Council will
forthwith do all such further acts and take all such further
proceedings as may be required by law to make such assessments
a valid and binding lien upon such property. Subject to such
adjustments as are required by conditions in existence at the
time said assessments are levied, 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 deferred balance of all such assessments
at the rate of at least 7 % per. annum:
Improvement
Designation Amount
Water Tower Improvement
77-8 $960,000
At the time the assessments
City Council shall, based on the then
lections of such assessments, make any
valorem taxes required to be levied in
the City continues to be in compliance
Section 475.61, Subdivision 1.
Levy Years
1979-1998
are in fact levied the
current estimated col -
adjustments in any ad
order to assure that
with Minnesota Statutes,
In addition, there. has heretofore been levied special
assessments for improvements financed by said temporary improve-
ment bonds.; The balance of said special assessments collectable
in 1978 and thereafter shall be paid in equal, consectuive, annual
installments, with general taxes for the years shown below and
with interest on the deferred balance of all such installments
at the rate of At least 1% per Annum.
improvement Uncollected
Designation Amount
-orchard Hunter Lane 74-2 $309,626
Marie, Avenuee-Center 73-4 82,644
Cherry Hill 2 75-2 295,018
Bachelor Avenue 74-7 69,284
'Levy Years
1977-95
1977-95
1978-96
1977-95
12. To provide moneys for the payment of said
principal and interest 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 said
City for the years and in the amounts as follows:
Year of Tax
Year of Tax
Levy
Collection
Amount
1978
1979
$25,000
1979
1980
41,000
1980
1981
46,800
1981
1982
47,200
1982
1983
52,900
1983
1984
58,100
1984
1985
63,200
1985
1986
62,700
1986
1987
67,500
1987
1988
68,700
1988
1989
75,300
1989
1990
79,200
1990
1991
82,900
1991
1992
86,300
1992
1993
89,300
1993
1994
92,700
1994
1995
93,900
1995
1996
95,800
1996
1997
95,500
1997
1998
98,200
1998
1999
104,700
Said tax
levies are such that if collected in full
they, together with
estimated collections of
special assess-
ments and other revenues
herein pledged for
the payment of said
bonds, will produce
at least five percent in
excess of the
amount needed to meet
when due.the principal
and interest
payments on the bonds.
Said tax levies shall be irrepealable so long as
any of said 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 Sec. 475.61(3)
M.S.A.
For the prompt and full Payment of the principal
of and interest on said bonds, as the same respectively be-
come 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 Fund is ever insufficient to pay all
principal and interest then due on the bonds payable there-
from, 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 without interest from the
Debt Service Fund when a sufficient balance is available
therein.
13. 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 infor-
mation 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, and that the tax levy required by
law has been made.
14. The officers of the City are hereby author-
ized and directed to prepare and furnish to the purchaser
of said bonds, and to the attorneys approving the legality
of the issuance thereof, certified copies of all proceedings ngs
and records of the City relating to said 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
said 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 Jim. Losleben
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.
1A
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 the opening and
considering of bids for, and awarding the sale of $1,930,000
General obligation Improvement Bonds of 1978 of said City.
WITNESS my hand and the seal of said City this
,Z,e day of 1978.
City Clerk