Res 69 - 201/200 Authorizing Issuance & Delivery of $500,000 Temporary Improvement Bonds of 1968, Awarding Sale of $500,000 Temporary Improvement Bonds of 1968RESOLUTION No. 200
Following discussion of the bids received, Member Merten sotto
introduced the following resolution and moved its adoption:
RESOLUTION AWARDING SALE OF $500,000
TEMPORARY IMPROVEMENT BONDS OF 1968
y BE IT RESOLVED by the Village Council of the Village of Mendota Heights,
Minnesota, that the bid of First National Bank ,
of Minneapolis , Minnesota , and associates named therein, to purchase
$500,000 Temporary Improvement Bonds of 1968 of the Village to be dated December 1,
1968, and to be issued as specified in the notice of sale heretofore published, is
hereby found and declared to be the bid most favorable to the Village received pursu-
ant to due notice, and should be and is hereby accepted, said bid being to purchase
the bonds at a price of par and accrued interest plus a premium of $ -0-
all
0-all bonds to bear interest at the basic rate of 4 % per annum, and for the
period from , 19 , to , 19 , only, at the additional
rate of 1.95 % per annum. The Chairman and Clerk are authorized and directed to
endorse an acceptance on said bid and on a copy thereof, and to return such copy to
the bidder. The Treasurer is directed to retain the good faith check of said bidder
pending completion and delivery of the bonds, and the good faith checks of other
bidders shall be forthwith returned to them.
The motion for the adoption of the foregoing resolution was duly seconded
by Member Lockwood, and upon vote being taken thereon, the following members
voted in favor thereof: all yea
and the following voted against the same: none
whereupon said resolution was declared duly passed and adopted.
Member Mertensotto then introduced the following resolution and
moved its adoption: RESOLUTION NO. 201
RESOLUTION AUTHORIZING THE ISSUANCE
AND DELIVERY OF $500,000 TEMPORARY
IMPROVEMENT BONDS OF 1968
BE IT RESOLVED by the Village Council of the Village of Mendota Heights,
Minnesota, as follows:
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1. It is hereby found, determined and declared that the Village of
Mendota Heights has heretofore ordered, in accordance with the provisions of
Minnesota Statutes, Chapter 429, and after public hearing as required by law, the
construction of local improvements designated as Somerset Park Sewer, Street and
Storm,Sewer Improvement (ordered on , 1968), Friendly Hills Sanitary
Sewer Improvement (ordered on May 28, 1968) and Mayfield Heights Water Line Improve-
ment (ordered on October 14, 1968), and has awarded contracts for the construction
thereof; that the total cost of said improvements is approximately equal to and not
less than $500,000, none of which has been borrowed, and it is necessary to borrow
said amount; that the total benefits resulting from said improvements to the proper-
ties within the area proposed to be assessed therefor, and to the Village at large,
will be substantially in excess of the total cost of said improvements; that said
sum of $500,000 may best be borrowed by the issuance of general obligation tempor-
ary improvement bonds of the Village in accordance with the provisions of Minne-
sota Statutes, Section 429.091, Subdivision 3, as amended; and that this Council
has awarded the sale of said bonds to First National Bank
Minneapolis Minnesota, on the terms and conditions as more fully stated in
this resolution.
2. There is hereby created a separate fund for each of said improvements
which is hereby designated as the "(name of improvement) Fund." Each fund shall be
held and administered by the Village Treasurer separate and apart from all other —
funds of the Village. Into each of said funds shall be paid the collections of all
general ad valorem taxes and special assessments levied for the improvement on ac-
count of which the fun4I" as created. The proceeds
ds of sale of $500,000 Temporary
-Improvement Bonds of 1968 herein authorized shall be paid into said funds as
follows: $ 165.000 to the Somerset Park Sewer, Street and Storm Sewer Improve-
ment Fund, $ 280$ 000 to the Friendly Hills Sanitary Sewer Improvement Fund,, and
$ 55*000 to the Mayfield Heights Water Line Improvement Fund. From each fund
there shall be paid costs and expenses of making the improvement on account of which
it was created, as incurred and allowed, and payments of principal and interest on
all temporary improvement bonds issued for the purpose of financing said improve-
ment. Each fund shall constitute a separate and special debt redemption fund, and
shall be continued and maintained in the manner herein specified until all costs of
constructing the improvement have been paid.
3. Upon completion and payment of all costs of making each improvement,
the improvement fund created for such improvement shall be discontinued, and all
moneys therein shall be paid into the Temporary Improvement Bond Fund of the Vil-
lage created by resolution adopted on June 6, 1967, as a separate and special debt
redemption fund, to be maintained as long as any of the bonds herein authorized re-
main unpaid, the moneys therein to be used only for the payment of principal of and
interest on the bonds herein authorized and on any additional bonds heretofore or '
hereafter issued and made payable from said fund. After discontinuance of each im-
provement fund, and as long as any of said bonds shall remain unpaid, the collec-
tions of all general ad valorem taxes and special assessments previously required
to be paid into the discontinued fund shall be paid into said Temporary Improvement
Bond Fund.
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4. It is hereby covenanted and agreed that the Village will not later
than October 1, 1969 , do and perform all acts and things necessary for the final
and valid levy of special assessments upon the properties benefited by said improve-
ments, in a principal amount not less than 20% of the cost of each improvement.
In the event that any such assessment shall be at any time held invalid with respect
to any lot or tract of land, due to any error, defect or irregularity in any action
or proceedings taken or to be taken by the Village or the Village Council or any of
the Village officers or employees in the making of the assessment or the performance
of any condition precedent thereto, the Village will do all such further acts and
things and shall take all such further proceedings as shall be required by law to
make such assessment a valid and binding lien upon the property assessed.
5. Not later than December 1, 1971, the Council will by resolution pro-
vide for the issuance, sale and delivery of definitive improvement bonds, payable
from such fund or funds as may be determined by the Council, for the purpose of
providing moneys to pay and redeem all temporary improvement bonds payable from
said Temporary Improvement Bond Fund which become due and payable on said date, so
far as the same cannot be paid out of moneys then on hand in said fund.
6. The Village shall forthwith issue and deliver to the purchaser there-
of its negotiable coupon general obligation Temporary Improvement Bonds of 1968,
dated as of December 1, 1968, in the denomination of $5,000 each, in the principal
amount of $500,000, to be numbered from 1 to 100. Said bonds shall mature on
December 1, 1971, each bond being subject to redemption in inverse order of serial
numbers at the option of the Village on December 1, 1970, and June 1, 1971, at par
and accrued interest, on notice of call for redemption published not less than 30
days prior to the date specified for redemption in a daily or weekly periodical
published in a Minnesota city of the first class or its metropolitan area which cir-
culates throughout the state and furnishes financial news as a part of its service.
Notice shall also be mailed to the bank at which principal and interest are then
payable, but published notice shall be effective without mailing. The bonds shall
bear interest at the basic rate of 4 % per annum from date of issue until paid
or duly called for redemption, and for the period from January 1 , 1969 , to
June 1 , 1969 , only, at the additional rate of 1.95 % per annum, all in-
terest to be payable on June 1, 1969, and semiannually thereafter on each December 1
and June 1. The principal of and interest on said bonds shall be payable at First
National Bank , in Minneapolis , Minnesota, and the
Village hereby agrees to pay the reasonable and customary charges of said paying
agent for the receipt and disbursement thereof.
7. Said bonds and the coupons attached thereto shall be in substantially
the following form:
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF DAKOTA
VILLAGE OF MENDOTA HEIGHTS
TEMPORARY IMPROVEMENT BOND OF 1968
No.
$5,000
KNOW ALL MEN BY THESE PRESENTS that the Village of Hendota Heights, a
duly organized and existing municipal corporation of the County of Dakota, State of
Minnesota, acknowledges itself to be indebted and_for value received promises to
pay to bearer the sum of FIVE THOUSAND DOLLARS on the 1st day of December, 1971, or
on a date prior thereto on which this bond shall have been duly called for redemp-
tion, and to pay interest thereon at the basic rate of
per cent ( %) per annum from the date hereof until said principal sum has
been paid or this bond has been duly called for redemption, and for the period from
, 19 , to , 19 , only, at the additional rate
of % per annum, said interest being payable on June 1, 1969, and semiannually
thereafter on each December 1 and June 1, interest to maturity being represented by
and payable in accordance with and upon presentation and surrender of the interest
coupons appurtenant hereto, which are in two sets, one representing interest at said
basic rate to maturity, and the other, designated as "B" coupons, representing in-
terest at said additional rate for the limited period stated above. Both principal
and interest are payable at ,
in , Minnesota, in any coin or currency of the United States of
America which on the respective dates of payment is legal tender for public and pri-
vate debts. For the prompt and full payment of such principal and interest as the
same respectively become due the full faith, credit and taxing powers of the Village
are hereby irrevocably pledged.
This bond is one of an issue in the aggregate principal amount of
$500,000, all of like date and tenor except as to serial number, all issued for the
purpose of defraying expenses incurred and to be incurred in constructing local
improvements in said Village heretofore duly ordered and contracted to be made in
accordance with the provisions of Minnesota Statutes, Chapter 429, and is issued
pursuant to and in full conformity with the Constitution and laws of the State of
Minnesota thereunto enabling, and pursuant to resolutions duly adopted by the
Village Council. This bond is payable primarily from the Temporary Improvement Bond
Fund of said Village, to which fund there have been irrevocably appropriated the
general ad valorem taxes and the special assessments to be levied in respect of the
improvements financed by said issue, and into which fund there are to be paid the
proceeds of definitive improvement bonds which the Village is required by law to
issue at or prior to the maturity of this bond for the purpose of refunding the same
so far as the collections of taxes and special assessments on hand in said fund are
not sufficient for the payment thereof.
Each bond of this issue is subject to redemption at the option of the
Village in inverse order of serial numbers on December 1, 1970, and June 1, 1971, at
par and accrued interest, on notice of call for redemption published in a daily or
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weekly financial periodical published in a Minnesota city of the first class or its
metropolitan area, not less than 30 days before the date specified for redemption.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, con-
ditions and things required by the Constitution and laws of the State of Minnesota
to be done, to exist, to happen and to be performed preliminary to and in the issu-
ance of this bond in order to make it a valid and binding general obligation of said
Village according to its terms have been done, do exist, have happened and have been
performed as so required; that ad valorem taxes, if needed for the payment of prin-
cipal and interest, may be levied upon all taxable property in the Village without
limitation as to rate or amount; and that the issuance of this bond did not cause
the indebtedness of said Village to exceed any constitutional or statutory limita-
tion.
IN WITNESS WHEREOF the Village of Mendota Heights, Minnesota, by its
Village Council, has caused this bond to be executed in its behalf by the signature
of the Mayor, attested by the signature of the Clerk, and by affixation hereto of
its official seal, and the interest coupons appurtenant hereto and the certificate
on the reverse side hereof to be executed and authenticated by the facsimile signa-
tures of said officers, and has caused this bond to be dated December 1, 1968.
Attest:
Clerk
(SEAL)
No.
(Form of Coupon)
Mayor
On the 1st day of December (June), 19 , the Village of Mendota Heights,
Dakota County, Minnesota, will pay to bearer at
, in , Minnesota, the sum
shown hereon in lawful money of the United States of America for interest then due
on its Temporary Improvement Bond of 1968, dated December 1, 1968, No.
(Facsimile signature)
Clerk
(Facsimile signature)
Mayor
(Form of certificate to be printed on the back of each bond following
the approving legal opinion)
We certify that the above is a full, true and correct copy of the legal
opinion rendered by bond counsel on the issue of bonds of the Village of Mendota
Heights, Minnesota, which includes the within bond, dated as of the date of delivery
of and payment for the bonds.
(Facsimile signature)
Clerk
(Facsimile signature)
Mayor
8. Said bonds shall be prepared for execution under the direction of the
Village Clerk and executed on behalf of the Village by the signature of the Mayor,
attested by the signature of the Village Clerk, and by affixation of the corporate
seal of the Village on each bond, and the appurtenant interest coupons and the cer-
tificate as to opinion of bond counsel on the back of each bond shall be executed
and authenticated by the printed, engraved or lithographed facsimile signatures of
said Mayor and Clerk. When the bonds have been so executed and authenticated, they
shall be delivered by the Village Treasurer to the purchaser thereof upon payment of
the purchase price specified in the contract of sale, and the purchaser shall not be
obligated to see to the application of the purchase price.
9. Each and all of the terms and provisions of this resolution shall
constitute a covenant and agreement on the part of the Village with the holders
from time to time of each bond issued hereunder. The Village Clerk is hereby au-
thorized and directed forthwith to file a certified copy of this resolution with the
County Auditor of Dakota County, and to obtain from the County Auditor a certificate
that said bonds have been duly entered upon his register.
10. The officers of the Village and the County Auditor of Dakota County.
are hereby authorized and directed to prepare and furnish to the purchaser of the
bonds issued hereunder, and to the attorneys approving the legality of the issuance
thereof, a certified copy of this resolution and of all other proceedings relating
to said bonds, together with such affidavits, certificates and information as may
be reasonably required to show the legality and marketability of said bonds, as .,
such information appears from the books and records in their custody and control or
as otherwise known to them, and all such certified copies, certificates and affida-
vits shall be deemed representations of the Village as to the correctness of all
statements contained therein.
The motion for the adoption of the foregoing resolution was duly seconded
by Member Lockwood, , and upon vote being taken thereon, the following
members voted in favor thereof: all yea
and the following voted against the same: none
whereupon said resolution was declared duly passed and adopted.
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The D4ayor announced that this was the time and place for the receipt and
opening of sealed bids for the purchase of $265,000 Improvement Bonds of 1968 and
$500,000 Temporary Improvement Bonds of 1968 of the Village. The Village Clerk
furnished affidavits of publication of the notices of sale in the [lest St. Paul
Booster -Riverview News and in the Commercial West. Said affidavits were approved
and ordered filed in. the office of the Village Clerk.
The Clerk then stated that 7 sealed bids had been received, which
were thereupon opened and read and found to be as follows:
Bidder or Bidding Account Manager Interest Rates Premium
Temp. Imp. 1 -Qnd,s
1 st National Bank St. Paul 4.210 C_
1.210 2/1/69 to 6/1/69 0 4.333
1 st National Bank Minneapolis 476
Ebin Robertson, Minneapolis 1.95 1/19/69 to 6/1/69 0 4.238%
Dain Kalm an & Quail 4.376
Piper Jaffray & Hopwood, .7516 4/1/69 to 12/1/69 0 4.466%
American National Bank St. Paul 4. 2%
1 1/2 2/1/69 to 6/1/69 0 4.366%
Imp. B and
1st National Bank St. Paul
4 3/416 69-80
5 81-86 0 4.98710
1% 2/1/69 to 2/1/70
Dain Kalman Quail
4.676 69-76
4.8 77-81
Piper Jaffray & Hopwood,
5% 82-86 0 4.943
176 2/1/69 to 2/1/70
American National Bank
4. 3% 69-76
4.7 77-82
`
4.8 83-84 0 4.763
4.9 85-86
176 1/25/69 to 2/1/70
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