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Res 78 - 46 Extract of Minutes of Meeting of the City Council of MH (5/2/1978)9 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA HELD: TUESDAY, MAY 2, 1978 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 $2,120,000 Temporary Improvement Bonds of 1978 of said City. The following members were present: Robert Lockwood James Losleben, James Schal3erg, Charles Mertensotto, Russ Wahl and the following were absent: None The Clerk presented affidavits showing publication of notice of call for bids on $2,120,000 Temporary Improve- ment Bonds of 1978 of the City, for which bids were to be received at this meeting, in accordance with the resolution adopted by the City Council on April 4, 1978. Said affidavits were examined, found to comply with the provisions of Minne- sota 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 $2,120,000 TEMPORARY IMPROVEMENT BONDS CITY OF MENDOTA HEIGHTS MAY 2, 1978 ACCOUNT FIRST NATIONAL BANK OF CHICAGO Chicago', Illinois ' Continential Illinois National Bank & Trust Company Harris Trust & Savings Bank Kidder Peabody Co. Mercantile Trust Company St. Louis La Salle National Bank Chicago Corp. RATE 1981 4.70% ($9,052.40) FIRST NATIONAL BANK OF ST. PAUL St. Paul Minn. 1981 4.75% BANC NORTHWEST Chicago, Ill. ($9,985.20) First National Bank Minneapolis American National Bank & Trust Co. Piper Jaffray & Kopwood Dain Kalman & Quail Allison Williams Co. White Weld Merrill Lynch Juran & Moody Inc. Miller Schroder Co. ' Robert S.C.Peterson Co. Robert W. Baird Co. Cronin Marcotte Co. Paine Webber Jackson Curtis Co. E.J.Prescott Co. AWARD MADE TO THE FIRST NATIONAL BANK OF CHICAGO ACCOUNT "kY $ COST % RATE $307,972.40 --4.84233% 1.312,085.20 4.907% The Council then proceeded to consider such bids. After the bids had been considered and discussed, member Bob Lockwood introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BID ON SALE OF $2,120,000 TEMPORARY IMPROVEMENT BONDS OF 1978 PROVIDING FOR THEIR ISSUANCE BE IT RESOLVED by the Council of the City of Mendota Heights, Minnesota, as follows: 1. That the bid of First National Bank of Chicago, Ill. to purchase $2,120,000 Temporary Improvement Bons 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 $ 2,110,947.60 is hereby found, determined and declared to be the most favorable bid received, 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 Northwestern National PRIMP AF I or y du ss r paying agent duly appointed by the City. 2. The $2,120,000 negotiable coupon general obliga- tion bonds of the City shall be dated May 1, 1978 and shall be issued forthwith. Said bonds shall be 424 in number and numbered from 1 to 424, both inclusive, in the denomin- ation of $5,000 each. All bonds shall mature on May 1, 1981. 3. Said bonds shall provide funds for the construc- tion of various improvements in the City. The total cost of said 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 of said issue maturing in the years and bearing the serial numbers set forth below shall bear interest; payable November 1, 1978 and semiannually there- after on May 1 and November 1 of each year, at the respec- tive rates per annum set opposite said maturity years and serial numbers: Maturity Years 1981 Serial Numbers Interest Rate 1-424 4.70% 5. All bonds of this issue shall be subject to redemption and prepayment at the option of the City in in- verse order of serial numbers, on May 1, 1980 and November 1, 1980 at par and accrued interest. Published notice of redemp- tion 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 AMERICA STATE OF MINNESOTA DAKOTA COUNTY CITY OF MENDOTA HEIGHTS TEMPORARY IMPROVEMENT BOND OF 1978 $5,000 KNOW ALL 14EN 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 May, 1981 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, 1978 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. All bonds of this issue are subject to redemp- tion and prepayment at the option of the City in inverse order of serial numbers, on May 1, 1980 and November 1, 1980 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 $2,120,000 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 various im- provements in the City, and is payable out of the Temporary Improvement Bonds of 1978 Account of the City to which account there has been irrevocably pledged the special assessments to be levied in respect to the improvements financed by said issue and into which account there are to be paid the pro- ceeds 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 appro- priated by the City Council for such purpose, are not suf- ficient for the payment thereof. 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 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, Scott 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 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. /s/ Facsimile City Clerk Mayor (Form of Coupon) No. $ on the first day of November (May), 19_, unless the bond described below is called for earlier redemption, the City of Mendota Heights, Dajota 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 Temporary Improvement Bond of 1978, No. , dated May 1, 1978. /s/ Facsimile /s/ 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 is hereby created a special account to be designated "Temporary 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 any accrued interest received thereon, and less any amount paid for said bonds in excess of $2,110,000, and less capitalized interest in the amount of $95,400 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before May 1, 1979), plus any special assess- ments levied with respect to improvements financed by the bonds and collected prior to completion of the improve- ments 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 10, 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 special assessments herein 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 Con- struction 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 $2,110,000, (d) capitalized interest in the amount of $95,400 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before May 1, 1979), and (e) all funds remaining in said Construction Fund after completion of the improvements and payment of the costs thereof, not so transferred to the fund of another improve- ment provided, however, that upon termination of the Debt Service Fund all collections of such special assessments herein covenanted to be levied and any other sums pledged and appropriated to the Debt Service Fund 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 Fund of any definitive bonds issued to pay in whole or part said temporary bonds. 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. 10. 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. The 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 Levy Years Somerset Park #3 77-6 $240,000 1978-1997 South Ridge 77-9 380,000 1979-1998 Crown Point 77-12 360,000 1979-1998 Friendly Hill Re. 77-10 931,000 1979-1998 Cray Reasearch 78-2 200,000 1979-1998 ;s At the time the assessments are in fact levied the City Council shall, based on the then current estimated col- lections of such assessments, make any adjustments in any ad valorem taxes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. 11. To further provide moneys for the prompt and full payment of principal and interest on said temporary im- provement bonds, the City shall issue and sell definitive improvement bonds, at or prior to the maturity date of the bonds issued5hereunder, in such amounts as are needed to pay the principal and interest then due on said temporary improve- ment bonds after the application of the assessments collected and the appropriation of such other municipal funds as are properly available for such purpose. The Council hereby finds, determines and declares that -the estimated collec- tions of special assessments to be received before the maturity date of said temporary improvement bonds, together with the proceeds of any definitive improvement bonds to be issued at or before said maturity date, -and other revenues pledged for the payment of said bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments5on the temporary improve- ment bonds. For the prompt and full payment of the principal of and interest on said bonds, a$ 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. 12. 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. 13. 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 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 Russ Wahl 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 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 $2,120,000 Temporary Improvement Bonds of 1978 of said City. WITNESS my hand and the seal of said City this day of 1978. City Clerk