#100 08-07-78 Award Fire Station BondsResolution #100 August 7, 1978
Member Stockman introduced and read the following resolution and moved its adoption:
RESOLUTION AWARDING THE SALE OF $575,000
GENERAL OBLIGATION FIRE STATION BONDS AND
DETERMINING THE FORM AND DETAILS THEREOF
AND LEVYING A TAX FOR THEIR PAYMENT.
BE IT RESOLVED, by the City Council of the City of Golden Valley, Minnesota
as follows:
Section 1. Authorization and Sale
1.01. Authorization. The City has determined by a resolution adopted
July 5, 1978, to issue its General Obligation Fire Station Bonds, in the principal
amount of $575,000, the proceeds of which will be used to finance the construction,
furnishing and equipping of two fire stations in the City, the Bonds to be
issued in accordance with the provisions of Minnesota Statutes, Chapter 475.
1.02. Sale. The bid of E.J. Prescott, of Minneapolis, Minnesota, for the
purchase of the bonds, dated August 1, 1978, at a price of $163,410.00 and on
the further terms and conditions set forth in this resolution is hereby found
and declared to be the most favorable bid received pursuant to advertised notice
of sale of $575,000 General Obligation Fire Station Bonds, and is hereby accepted.
The Mayor and Finance Director -Clerk are hereby authorized and directed to
execute a contract for the sale of the Bonds by the City in accordance with the
terms of said bid, and the Finance Director -Clerk shall retain the good faith
check of the successful bidder and shall return all other good faith checks
forthwith.
Section 2. Terms. Execution and Deliver
2.01. Terms._ For the purpose and pursuant to the authority referred to
above, the City shall forthwith issue its General Obligation Fire Station Bonds
(hereinafter, the Bonds), in the aggregate principal amount of $575,000. The
Bonds shall be dated August], 1978, and shall be 115 in number and numbered from
0 to 115, inclusive, each in the denomination of $5,000. The Bonds shall mature
without option of prior payment and in order of serial numbers on February 1
in the years and amounts shown below, and the Bonds maturing in such years and
amounts shall bear interest from date of issue until paid at the rate per
annum shown opposite the year of such maturity, as follows:
Year
Amount
Interest Rate
1980
$ 35,000
6.00o
1981
45,000
6.00%
1982
55,000
5.20%
1983
60,000
5.00o
1984
35,000
5.00%
1985
180,000
5.00%
1986
165,000
5.00%
Resolution #100 con't August 7, 1978
2.02. Interest Payment Dates, Paying Agent. The interest on the Bonds
shall be payable February 1, 1979, and semiannually thereafter on February 1 and
August 1 in each year. Both principal and interest shall be payable at
Fidelity Bank and Trust Company, in Minneapolis, Minnesota, which is designated
as paying agent, or in the event of its resignation, removal or incapability
of acting as paying agent, at the office of such successor paying agent as may
be appointed by the Council, and the City agrees to pay the reasonable and
customary charges of the paying agent for this service. Upon merger or consoli-
dation of the paying agent with another corporation, if the resulting corporation
is a bank or trust company authorized by law to conduct such business, such
corporation shall be authorized to act as successor paying agent. No resignation
of the paying agent and no appointment of a successor paying agent shall become
effective until the date specified in a notice of the appointment which the
Council shall cause to be published in a financial newspaper in a Minnesota City
of the first class or its metropolitan area, not less than thirty days before
said effective date.
2.03. Execution and Delivery. The Bonds and the interest coupons and the
certificate on the reverse side of each Bond shall be executed and authenticated
in behalf of the City be the signatures of the Mayor and Finance Director -Clerk
and the corporate seal of the City shall be affixed to each bond. All signatures
and the seal of the City shall be affixed to each Bond. All signatures and the
seal shall be printed, engraved or I ighographed facsimiles except for the manual
signature of one of such officers on the face of each Bond. The Bonds shall
then be delivered by the Finance Director to the purchaser on receipt of the purchase
price heretofore agreed upon. The purchaser shall not be required to see to
the application of the proceeds of the Bonds; however, that portion of the purchase
price at the time of closing representing accrued interest from the date of the
Bonds to the date of closing shall be deposited in the 1978 General Obligation
Fire Station Bond Fund for payment of principal of and interest on the Bonds.
Section 3. Forms.
3.01. The Bonds. The Bonds shall be printed in substantially the following
form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF GOLDEN VALLEY
GENERAL OBLIGATION FIRE STATION BOND
No. $5,000
NOW ALL MEN BY THESE PRESENTS that the City of Golden Valley, Hennepin
County, Minnesota (the City), hereby acknowledges itself to be indebted and for
value received promises to pay to bearer upon presentation and surrender hereof,
the principal sum of
FIVE THOUSAND DOLLARS
Resolution 100 con't August 7, 1978
on the 1st day of February, 19 , without opinion of prior payment, and to
pay interest thereon from the date hereof until said principal sum is paid, at
the rate of percent ( %) per annum,
payable on February 1, 1979, and semiannually thereafter on each February 1 and
August 1, interest to maturity being payable in accordance with and upon present-
ation and surrender of the interest coupons hereto attached. Both principal
and interest are payable at , in
or at the office of such successor paying
agent as may be designated by the City Council under theprovisions of the resolution
authorizing the issuance hereof, in any coin or currency of the United States
of America which on the respective dates of payment is legal tender for public
and private debts. For the prompt and full payment of such principal and interest
as the same become due, the full faith, credit and taxing powers of the City
are hereby irrevocably pledged.
This Bond is one of an issue in the total principal amount of $575,000,
all of like date and tenor except as to serial number, maturity date and interest
rate, issued by the City to finance the construction, furnishing and equipping
of two fire stations in the City, and is issued pursuant to the requisite
majority vote of the electors of the City voting at an election duly called
and held in and for the City, and pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota, thereunto enabling.
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
exist, to happen and to be performed precedent to and in the issuance of this
Bond in order to make it the valid and binding general obligation of the City
have been done do exist, have happened and have been performed in regular and
due form, time and manner as so required; that prior to the issuance hereof,
a direct, annual, irrepealable, ad valorem tax has been duly levied upon all of
the taxable property in the City for the years and in the amounts at least five
percent in excess of sums sufficient to pay the interest hereon and the principal
hereof as they respectively become due, and additional taxes, if necessary, will
be levied upon all of such property without limitation as to rate or amount;
and that this Bond, together with all other indebtedness of the City outstanding
on the date hereof and on the date of its actual issuance and delivery, does
not exceed any constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF the City of Golden Valley, Hennepgn County, Minnesota,
by its City Council, has caused this Bond and the interest coupons appurtenant
hereto and the certificate on the reverse side hereof to be executed and authen-
ticated by the signatures of the Mayor and Finance Director -Clerk, and its cor-
porate seal to be affixed hereto, all such signatures and the seal being authentic
printed, engraved or lithographed facsimiles except for the manual signature of
one of such officers on the face of this Bond, and has dated this Bond as of
August 1, 1978.
ATTEST:
JOHN MURPHY, CITY CLERK
ROBERT R. HOOVER, MAYOR
1
1
Resolution #100 con't
August 7, 1978
3.02. Form of Coupons. Interest to the maturity date of each Bond shall
be represented by consecutively numbered coupons attached thereto, in substantially
the following form:
No.
On the first day of February (August), 19 , the City of Golden Valley,
Hennepin County, Minnesota, will pay to bearer at in
, the amount shown hereon in lawful money of the
United States of America for the installment of interest then due on its General
Obligation Fire Station Bond, dated August 1, 1978,
(Facsimile signature)
City Manager
(Facsimile signature)
Mayor
3.03. Form of Certificate. A certificate in substantially the following
form shall be printed on the reverse side of each Bond, following a copy of the
text of the legal opinion to be rendered by bond counsel:
We certify that the above is a full, true and correct copy of thelegal
opinion rendered by Bond Counsel on the issue of Bonds of the City of Golden
Valley, which includes the within Bond, dated as of the date of delivery of and
payment for the Bonds.
(Facsimile signature) (Facsimile signature)
City Manager Mayor
Section 4. Security Provisions
4.01. 1978 General Obligation Fire Station Bond Fund. As a debt service
fund within the meaning of Minnesota Statutes, Chapter 475, there is hereby
created a separate and special bookkeeping account of the City to be known as
the "1978 General Obligation Fire Station Bond Fund'' (the Fund). The moneys now
or hereafter appropriated to the Fund shall be used solely for the purpose of
paying principal of and interest on the Bonds, until the same are fully paid,
provided that if any payment of principal and interest shall become due when
there is not sufficient money in the Fund therefor, the Finance Director shall
nevertheless provide sufficient money from any other funds of the City which are
available for that purpose, and such other funds shall be reimbursed from the
proceeds of the taxes levied pursuant to this resolution and all other money
received for or appropriated to the payment of principal of and interest on the
Bonds.
4.02. Ad Valorem Taxes. The full faith
the City are irrevocably pledged for the prompt
of and interest on the Bonds as the same become
purpose there is hereby levied upon all of the
annual, ad valorem tax which shall be spread up
the following years and collected in each of th
the following respective amounts:
and credit and taxing powers of
and full payment of the principal
respectively due. For that
taxable property of the City, a direct
on the tax rolls prepared in each of
e respective ensuing years, in
Resolution # 100 con't
August 7, 1978
Levy
Collection
Levy
Collection
Year
Year
Amount
Year
Year
Amount
1978
1979
$83,500
1982
1983
$ 56,700
1979
1980
$76,200
1983
1984
$207,100
1980
1981
583.900
1984
1685
5181.900
1981
1982
$86,100
This tax shall be irrevocably appropriated to the Fund as long as any of the
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 Minnesota
Statutes, Section 475.61.
Section 5. Certifications of Proceedings, Defeasance and Arbitrage.
5.01. Director of Finance and Records' Certificate. The Finance Director -
Clerk is directed to file with the Director of Finance and Records of Hennepin
County certified copies of this resolution, and such other information as the
Director of Finance and Records may require, and to obtain from the Director
of Finance and Records a certificate stating that the tax required by law for
the payment of the Bonds has been duly levied and that the Bonds have been
entered upon his bond register.
5.02. Certification of Proceedings. The officers of the City and the
Director of Finance and Records of Hennepin County are hereby authorized and
directed to prepare and furnish to the purchaser of the Bonds and to Bond Counsel
certified copies of all proceedings and records relating to the Bonds and to the
financial affairs of the City, and such other affidavits, certificates and
information as may be 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.
5.03. Defeasance. When all of the Bonds, and all coupons appertaining
thereoto, have been discharged as provided in this section, all pledges, convenants
and other rights granted by this resolution to the holders of the Bonds shall
cease. The City may discharge its obligations with respect to any Bonds and
coupons appertaining thereto which are due on any date by depositing with the
paying agent on or before that date a sum sufficient for the payment thereof in
full; or, if any Bond or coupon should not be paid when due, it may nevertheless be
discharged by depositing with the paying agent a sum sufficient for the payment
thereof in full with interest accrued to the date of such deposit. The City
may also at any time discharge its obligations with respect to any Bonds, subject
to the provisions of law now or hereafter authorizing and regulating such
actions, by depositing irrevocably in escrow, with a bank qualified by law as
an escrow agent for this purpose, cash or securities which are general obligations
of the United States or securities of United States agencies which are authorized
by law to be so deposited, bearing interest payable at such time and at such rates
and maturing on such dates as shall be required to pay all principal and interest
to become due on the Bonds to their maturity dates.
Resolution #100 con't
August 7, 1978
6.02. Investment of Moneys on Deposit in the Fund. Unless and until the
proposed regulations under Section 103 c of the Code which have been published
by the Internal Revenue Service prior to the date hereof have been modified or
amended in pertinent part, the Finance Director -Clerk shall ascertain monthly
the amount on deposit in the Fund. If the aggregate amount on deposit therein
ever exceeds by more than $86,250 the aggregate amount of principal and interest
due and payable from the Fund within 13 months thereafter, such excess shall not
be invested except at a yield less than or equal to the yield on the Bonds,
computed by the actuarial method.
6.03. Arbitrage Certification. The Mayor and Finance Director -Clerk,
being the officers of the City charged with the responsibility for issuing the
Bonds, are authorized and directed to execute and deliver to the purchaser a
certification in accordance with the provisions of Section 103(c) of the Code and
the regulations promulgated thereunder. Such certification shall state that on
the basis of the facts, estimates and circumstances in existence on the date of
issue and delivery of the Bonds as therein set forth, it is not expected that
the proceeds of the Bonds will be used in such a manner that would cause the
Bonds to be arbitrage bonds. The certification shall further state that to be
best of the knowledge and belief of the certifying officers there are no other
facts, estimates or circumstances that would materially change such expectation.
Section 7. Official Statement.
The Official Statement, dated July 18, 1978, elango t e Bonds, is
approved, and the Finance Director -Clerk is author zed` to sig and deliver to
the purchaser of the Bonds a certificate as to it '''compl gess and correctness.
ROBERT R. HOOVER, MAYOR
ATTEST: �:A�
JOHN MURPHY, C TY CLERK
The motion for the adoption of the foregoing resolution was duly seconded
by Member Johnson, and upon vote being taken thereon, the following voted in
favor thereof: Hoover, Johnson and Stockman and the following voted against the
same: none, whereupon said resolution was declared duly passed and adopted, signed
by the Mayor and his signature attested by the City Clerk.
Section
6. Investment of Moneys in Fund; Arbitrage
6.01.
Covenant. The City covenants and agrees with the holders
from
time to time
of the Bonds that it will not take or permit to be taken
by any of
its officers,
employees or agents any action which would cause the interest
on the
Bonds to become subject to taxation under the Internal Revenue Code of
1954, as
amended (the
Code), and regulations, amended regulations and proposed
regulations
issued thereunder,
as now existing or as hereafter amended or proposed
and in
effect at the
time of such action.
6.02. Investment of Moneys on Deposit in the Fund. Unless and until the
proposed regulations under Section 103 c of the Code which have been published
by the Internal Revenue Service prior to the date hereof have been modified or
amended in pertinent part, the Finance Director -Clerk shall ascertain monthly
the amount on deposit in the Fund. If the aggregate amount on deposit therein
ever exceeds by more than $86,250 the aggregate amount of principal and interest
due and payable from the Fund within 13 months thereafter, such excess shall not
be invested except at a yield less than or equal to the yield on the Bonds,
computed by the actuarial method.
6.03. Arbitrage Certification. The Mayor and Finance Director -Clerk,
being the officers of the City charged with the responsibility for issuing the
Bonds, are authorized and directed to execute and deliver to the purchaser a
certification in accordance with the provisions of Section 103(c) of the Code and
the regulations promulgated thereunder. Such certification shall state that on
the basis of the facts, estimates and circumstances in existence on the date of
issue and delivery of the Bonds as therein set forth, it is not expected that
the proceeds of the Bonds will be used in such a manner that would cause the
Bonds to be arbitrage bonds. The certification shall further state that to be
best of the knowledge and belief of the certifying officers there are no other
facts, estimates or circumstances that would materially change such expectation.
Section 7. Official Statement.
The Official Statement, dated July 18, 1978, elango t e Bonds, is
approved, and the Finance Director -Clerk is author zed` to sig and deliver to
the purchaser of the Bonds a certificate as to it '''compl gess and correctness.
ROBERT R. HOOVER, MAYOR
ATTEST: �:A�
JOHN MURPHY, C TY CLERK
The motion for the adoption of the foregoing resolution was duly seconded
by Member Johnson, and upon vote being taken thereon, the following voted in
favor thereof: Hoover, Johnson and Stockman and the following voted against the
same: none, whereupon said resolution was declared duly passed and adopted, signed
by the Mayor and his signature attested by the City Clerk.
Resolution #100 con't
August 7, 1978
The Finance Director -Clerk presented affidavits showing publication in
the official newspaper and in the Commercial West of the notice of sale of
$575,000 General Obligation Fire Station Bonds, of the City, bids for which were
to be considered at this meeting as provided by the resolution adopted July 5,
1978. The affidavits were examined and approved and ordered placed on file.
The Finance -Director Clerk reported that sealed bids for the purchase of
the Bonds had been received at his office at or before the time stated in the
notice, and the bids were then opened and publicly read and considered, and were
all found to conform to the notice of sale and to be accompanied by the required
security, and the purchase price, coupon rates and net interest cost under the
terms of each bid were found to be as follows:
BIDDERS
E. J. PRESCOTT, A Division of
Carleton D. Beh Company
PIPER, JAFFRAY & HOPWOOD, INC
Allison -Williams Company
Dain, Kalman & Quail, Inc.
ADDRESS RATE PREMIUM NIC
6.00%-1980/81
Minneapolis 5.20%-1982
5.00%-1983/86
Minneapolis 6.00%-1980
Minneapolis 5.90%-1981
Minneapolis 5.70%-1982
5.60%-1983
5.00%-1984/85
5.05%-1986
Par $163,410.0
5.06305%
Par $166,498.7
5.15875%
BANCNORTHWEST Minneapolis 5.75%-1980 Par $166,790.0
Cronin & Marcotte, Inc. Minneapolis 5.50%-1981/82 5.1677%
5.25%-1983/84
5.20%-1985
5.00%-1986
THE FIRST NATIONAL BANK OF SAINT PAUL St. Paul 5.50%-1980/83 $155.25 $168,704.7
5.4o%-1984 5.227%
5.20%-1985
5.10%-1986
FIRST NATIONAL BANK OF MINNEAPOLIS Minneapolis 5.40%-1980/83 Par $169,210.0
5.30%-1984/85 5.2427%
5.10%-1986
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