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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: -2- 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. -3- 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: -4- 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 -5- 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. -7- t 4 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 -1-