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HomeMy WebLinkAbout07-17-79 Special Mtg. 102 Hastings, Minnesota July 17, 1979 The City Council of the City of Hastings, Minnesota met in a special meeting on Tuesday, July 17, 1979 at 5: 00 0' clock P. M. in the Council ChaniJers of the City Hall. Manbers present: Councilmen Trautmann, Trutna, Liska, Stoffel, Karnick, Collins, Legler, and Mayor Petersen. Manbers absent: CounciJman Shannon. II Pursuant to due call and notice thereof, a special meeting of the City Council of the City of Hastings, Washington, and Dakota Counties, Minnesota, was duly held at the City Hall in said City on the 17th day of July, 1979, at 5: 00 0' clock P.M. for the purpose of opening and considering bids for and awarding the sale of $1,190,000 General Obligation Improvement Bonds of 1979, Series A of said City. The Clerk presented affidavits sho.ving publication of notice of call for bids on $1,190,000 General Obligation Improvements Bonds of 1979, Series A of the City, for which bids were to be received at this meeting, in accordance with the resolution adopted by the City Council on June 5, 1979. Said affidavits were examined, found to canply 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 follo.ving bids were received: NET INTEREST BIDDER CXXJPONS PRICE CXXST & RATE Northern Trust Conpany 5.25% 1982-83 $1,178,401.00 $458,394.00 LaSalle National Bank 5.30% 1984-85 (5.5328%) 5.35% 1986-87 5.40% 1988-89 l 5.50% 1990-91 Bancnorthwest 5.25% 1982-83 $1,179,290.00 $458,525.00 Cronin & Marcotte, Inc. 5.30% 1984-85 (5.5343%) E.F. Hutton & Co. Inc. 5.35% 1986 Northwestern National Bank 5.40% 1987-88 Hastings, 5.45% 1989 5.50% 1990-91 First National Bank 5.25% 1982-83 $1,179,885.00 $459,375.00 of Chicago 5.30% 1984-85 (5.544659%) Channer Newman Securities 5.35% 1986-87 National Boulevard Bank 5.40% 1988 of Chicago 5.40% 1988 5.45% 1989 5.55% 1990 5.60% 1991 Wauterlek & Bro.vn, Inc. 5.25% 1982 $1,178,885.48 $462,444.52 5.30% 1983-84 (5.581709%) 5.35% 1985-86 5.40% 1987 5.45% 1988 5.50% 1989 ,-- 5.55% 1990 l 5.60% 1991 The Council then proceeded to consider such bids. After the bids had been considered and discussed, meni:>er Collins introduced the follo.ving resolution and moved its adoption: RESOWTIoo AOCEPl'ING BID 00 SAlE OF $1, 190,000 GENERAL 03LIGATION IMPROVEMENT :BaIDS OF 1979, SERIES A PROVIDI~ FOR THEIR ISSUANCE RESOIlJI'IOO #247-79 BE IT RESOLVED by the Council of the City of Hastings, Minnesota, as follo.vs: 103 1. That the bid of The Northern Trust Canpany to purchase $1,190,000 General <.bligation Inprovanent Bonds of 1979, Series A of the City, in accordance with the notice of bond sale, at the rates of interest herein- after set forth, and to pay therefor the sum of $1,178,401.00 is hereby found, determined and declared to be the rrost 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 fai th checks or drafts to the unsuccessful bidders. Said bonds shall be pay- able as to principal and interest at Northwestern National Bank of Minneapolis, in Minneapolis, Minnesota, or any successor paying agent duly appointed by the City. 2. The $1,190,000 negotiable coupon general obligation bonds of the n,' , Ci ty shall be dated August 1, 1979 and shall be issued forthwith. Said bonds shall be 238 in number and nunbered fran 1 to 238, both inclusive, in the denanination of $5,000 each. Said bonds shall mature serially, lo.vest nunbers first, without option' of prepayment, on February 1 in the years and aroounts as follows: $120 ,000 in each of the years 1982 to 1990, both inclusive; and $11,000 in the year 1991. 3. Said bonds shall provide funds for the construction of various inprovanents in the City. The total cost of said inprovements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is esti- rmted to be at least equal to the amount of the bonds herein authorized. Work on the inprovanents shall proceed with due diligence to coo:pletion. 4. The bonds of said issue maturing in the years and bearing the serial nunbers set forth belo.v shall bear interest, payable February 1, 1980 and semiannually thereafter on August 1 and February 1 of each year, at the respective rates per annum set opposite said maturity years and serial nunbers: Maturity Years Serial Numbers Interest Rates 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1-24 25-48 49-72 73-96 97-120 121-144 145-168 169-192 193-216 217-238 5.25% 5.25% 5.30% 5.30% 5.35% 5.35% 5.40% 5.40% 5.50% 5.50% o 5. '!be bonds and interest coupons to be issued hereunder shall be in substantially the follONing form: UNITED STATES OF AMERICA STATE OF MINNESarA WASHI~~ AND DAKarA CXXJNTIES CI'IY OF HASTI~ No. $5,000 GENERAL CBLIGATICN IMPROVEMENT rom OF 1979, SERIFS A KNCM AlL PERSOOS BY THESE PRESENTS that the City of Hastings, 0', Washington and Dakota Counties, Minnesota, certifies that it is indebted and for value received pranises to pay to bearer without option of prepayment, the principal sum of FIVE THOUSAND OOILARS on thefipst daybfFebruary, 19_and to pay interest thereon fran the date hereof until the principal is paid at the rate of percent (-10) per annum, payable on the first day of February, 1980 and semiannually there- after on the first day of August and the first day of February in each year, - ~;LQ9'- 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 becane 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. r I This bond is one of an issue in the total principal am:mnt of $1, 190,000 all of like date and tenor, except as to serial nunber, maturity, and interest rate which bond has been issued pursuant to and in full confonni ty with the Constitution and laws of the State of Minnesota for the purpose of providing money for various improvements in the City, and is payable out of the General Cbliga tion Improvement Bonds of 1979 Fund of the City. This bond constitutes a general obligation of the City, and to provide moneys for the pranpt and full payment of said principal and interest when the same becane due, the full faith and credit and taxing pONers of said City have been and are hereby irrevocably pledged. IT IS HEREBY CERI'IFIED AND RECITED THAT AlL ACI'S, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be perfonned, precedent to and in the issuance of this bond, have been done, have happened and have been perfonned, 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 lirndtation of indebted- ness. IN WITNESS WHEREOF, the City of Hastings, Washington and Dakota CoJ1Ilties, Minnesota, by its City Council has caused this bond to be executed in its behalf by the facsimile signatures of the Mayor and the City Clerk and the manual signature of one of said officers, 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 facsirndle signatures of said officers, all as of August 1, 1979. ,..-- i ! /s/ Facsirndle City Clerk /s/ Facsirndle Mayor (Form of Coupon) No. $5 , 000 On the first day of February and August, 19 , the City of Hastings, Washington and Dakota Counties, Minnesota, will pay tobearer at or any successor paying agent duly appointed by the City, the sum sho.vn hereon for interest then due on its $1,190,000 General Cbligation Improvement Bond of 1979, Series A, No. dated August 1, 1979. /s/ Facsimile City Clerk /s / Facsimile Mayor 6. 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 (or both) of such signatures and the seal of the City may be printed facsirndles (if the bonds are also signed manually by at least one such officer); and provided further that the corporate seal may be omitted on the bonds as penni tted by law. The interest coupons pertaining thereto shall be executed by the printed, engraved or lithographed facsirndle signatures of the Mayor and Clerk. .--- 7. 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. 106 8. There is hereby created a special fund to be designated "General <J:>ligation Improvement Bonds of 1979 Fund" to be held and administered by the Ci ty Treasurer separate and apart fran all other accounts of the City. Said Fund 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 Fund there shall be maintained two separate accounts, to be designated as the "Construction Account" and the''nebt Service Account", resPeCtively. The proceeds of the sale of the bonds herein authorized, less any accrued interest received thereon, and less any am:mnt paid for said bonds in excess of $1,178,100, and less capitalized interest in the am::>unt of ~8,100 (subject to such adjustments as are appropriate to provide sufficient funds to pay interest due on the bonds on or before February 1, 1981), plus any special assessments n. . levied with respect to improvements financed by the bonds and collected prior to carpletion of the improvements and payment of the costs thereof, shall be credited to the Construction Account, from which there shall be paid all costs and expenses of making said improvsnents 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 nx:meys in said account shall be used for no Jother 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 cannencement of the collection of special assessments covenanted to be levied; and provided further that if upon carpletion of said improvements there shall remain any unexpended balance in said Construction Account, said balance (other than any special assessmants) 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 Construc- tion Account 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 Service Account (a) all collections of special assessments herein covenanted to be levied and either initially credited to the Construction Account and required to pay any principal and interest due on the bonds or collected subsequent to the coopletion 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 $1,178,100, (d) capitalized interest in the aroount of $98,100 (subject to such adjustments as are appro- priate to provide sufficient funds to pay interest due on the bonds on or be- 0 fore February 1, 1981), (e) any collections of all taxes which may hereafter. be levied for the payment of said bonds in the event that the special assess- ments herein pledged for the payment of said bonds are insufficient therefor; and (f) all funds remaining in said Construction Account after carpletion of the improvements' and payment of the costs thereof, not so transferred to the account of another improvement. The Debt Service Account herein created shall be used solely to pay principal and interest and any praniuns for redemption on the bonds issued hereunder and any other general Ob,liga tion bonds of the City hereafter issued by the City and made payable fran said Account as provided by law. Any suns fran time to time held in the Debt Service Account (or any other City account which will be used to pay principal or interest to becane due on the bonds) in excess of am::>unts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments. 9. I t is hereby determined that no less than 100% of the cost of each improvement project financed hereunder to the City wi thin. the meaning of Minnesota Statutes, Section 475.58, Subdivision 1 (3) shall be paid by special assessmants to be levied against every assessable lot, piece and parcel of land benefi ted by said improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let wi thin one year after ordering each improvaoont project financed hereunder unless the resolution ordering the improvement project specifies a different tiIne limit for the n letting of construction contracts and will do and. perfo:rm as soon as they may be done, all acts and things necessary for the final and valid levy of such special assessnents, and in the event that any such assessments be at any tnre : 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 Councilor any of the City officers or employees, either in the making of such assessments or in the performance of any condition precedent 100 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 assess- ments 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 sho.vn belo.v and with interest on the deferred balance of all such assessments at the rate of at least 8.00% per annum: Improvement Designation Amount Levy Years I' Municipal Street I Surfacing #7164 $393,327 1980-1989 Utility Const. #7166 $579,223 1980-1989 10th St. Turnback #6932 $160,894 1980-1989 Westview Mall St. Lights #78-8 $ 24,556 1980-1989 10. Said special assessments are such that if collected in full they, together with estimated collections of 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. For the prompt and full payment of the principal of and interest on said bonds, as the same respectively becane due, the full faith, credit and taxing po.vers of the City shall be and are irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the bonds payable therefrom, 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 reint>ursed without interest from the Debt Service Account when a sufficient balance is available therein. II \ 11. The City Clerk is hereby directed to file a certified copy of this resolution with the County Auditor of Washington and Dakota Counties, Minnesota, together with such other information 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. 12. The officers of the City are hereby authorized 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 con- trol or as otherwise knONn 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. The IIDtion for the adoption of the foregoing resolution was duly seconded by member Karnick and upon vote being taken thereon, the follo.ving voted in favor thereof: 11 members present and the follo.ving voted against the same: None. 17th A opted by the City Council of the City of Hastings, Minnesota this July, 1979. ~ i I \- the oved by Counci 1man Collins, g. Ayes, 7; Nayes, none.