HomeMy WebLinkAbout06-09-80 Special Mtg.
Hastings, Minnesota
June 9, 1980
The City Council of the City of Hastings, Minnesota met in a special
meeting on Monday, June 9, 1980 at 5:00 o'clock P.M. in the Council Chambers
of the City Hall.
Mari:>ers present: Councilmen Trutna, Kulzer, Stoffel, Shannon, Karnick,
Collins, and Mayor Petersen.
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Ma:ri>ers absent: CounciJmen Trautmann and Legler.
Pursuant to due call and notice thereof, a special meeting of the
Ci ty Council of the City of Hastings, Dakota and Washington Counties, Minnesota,
. was duly held in the City on the 9th day of June, 1980, at 5:00 P.M. for the
purpose of opening and considering bids for and awarding the sale of $305,000
General Cbligation Improvement Bonds of 1980, Series A of the City.
The Clerk-Treasurer presented affidavits showing publication of notice
of call for bids on $305,000 General Cbligation Improvenent Bonds of 1980,
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 May 19, 1980. The
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 the
bonds. The following bids were received:
NEr INTEREST
BIDDER OOUPONS PRICE CffiI' & RATE
M.H. Novick & Co. Inc. 7.25% 1982-83 $305,000.00 $96,213.75
6.80% 1984 (6.138%)
5.75% 1985
5.90% 1986
6.00% 1987-88
- 6.10% 1989
f
I 6.20% 1990
First National Bank 6.25% 1982-86 $305,073.20 $97,234.30
Of Minneapolis 6.00% 1987 (6.2031%)
First National Bank 6.10% 1988
of Hastings 6.25% 1989
6.40% 1990
American National Bank & 6.40% 1982-86 $305,000.00 $98,418.75
Trust Canpany 6.00% 1987 (6.2787%)
6.10% 1988
6.20% 1989
6.35% 1990
Marquette National Bank 6.50% 1982-85 $305,000.00 ~8,430.00
6.15% 1986-88 (6.2794%)
6.30% 1989"
6.40% 1990
The First National Bank 6.50% 1982-85 $305,000 .00 $99.035.00
of St. Pau+ 6.30% 1986 (6.3180%)
6.10% 1987
6.20% 1988
6.30% 1989
6.40% 1990
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Allison-Williams Co. 6.50% 1982-86 $305,061. 00 $99,320.25
6.10% 1987-88 (6.3362%)
6.20% 1989
6.25% 1990
The Council then proceeded to consider and discuss the bids, after
which mart>er Stoffel introduced the following resolution and lOOved its adoption:
RFSOIlJrIrn ACCEPTING BID rn SALE OF RESOlliI'Irn #43-80
$305,000 GENERAL OOLIGATIrn IMPROVEMENT
OONDS OF 1980, SERIFS A
AND PROVIDING FOR THEIR ISSUANCE
BE IT RESOLVED by the Council of the City of Hastings, Minnesota,
as follows:
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1. '!he bid of M.H. Novick & Co. Inc. to purchase $305,000 General
Cbligation Improvement Bonds of 1980, Series A 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 $305,000.00 is hereby found, determined and
declared to be the roost favorable bid received, and is hereby accepted and the
bonds are hereby awarded to said 1!>d..dder. '!he Clerk-Treasurer is directed to
retain the depCEi t of said bidder and to forth wi th return the good faith checks
or drafts to the unsuccessful bidders. '!he bonds shall be payable as to prin-
cipal and interest at Fidelity Bank and Trust Canpany, in Minneapolis, Minn.,
or any successor paying agent duly appointed by the City.
2. '!he $305,000 negotiable coupon general obligation bonds of the City
shall be dated July 1, 1980 and shall be issued forthwith. '!he bonds shall be
61 in number and nuni>ered fran 1 to 61, both inclusive, in the denanination
of $5,000 each. '!he bonds shall mature serially, lcmest nurrbers first, without
option of prepayroont, on January 1 in the amounts and years as follows:
$25,000 in 1982;
$35,000 in each of the years 1983 to 1985;
both inclusive;
$80 , 000 in 1986;
$40,000 in 1987;
$20 , 000 in each of the years 1988 and 1989; and
$15,000 in 1990.
3. '!he bonds shall provide funds for the construction of various
improvements in the City. The total cost of the improvements, which shall in-
clude 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 canp~ion.
4. '!he bonds shall mature in the years and bear the serial nurrbers
set forth belcm, and shall bear interest payable July 1, 1981 and semiannually
thereafter on January 1 and July 1 of each year at the respective rates per
annum set oppCEi te the ma turi ty years and serial numbers:
Maturity Years
Serial Nurrbers
Interest Rate
1982 1 - 5 7.25%
1983 6 - 12 7.25%
1984 13 - 19 6.80%
1985 20 - 26 5.75%
1986 27 - 42 5.90%
1987 43 - 50 6.00%
1988 51 - 54 6.00%
1989 55 - 58 6.10%
1990 59 - 61 6.20%
5. The bonds and interest coupons to be issued hereunder shall be in
substantially the follcming form:
UNITED STATES OF AMERICA
STATE OF MINNESaI'A
DAKarA AND WASHIIDTON CXXJNTIFS
CITY OF HASTIN:JS
No.
$5,000
GENERAL CBLIGATIrn IMPROVEMENT
InID OF 198:>, SERIFS A
Kra ALL PERSCNS BY 'lHE8E PRESEN'ffi that the City of Hastings, Dakota
and Washington Counties, Minnesota, certifies that it is indebted and for value
received pranises to pay to bearer, without the option of prepayroont, the
principal sun of
FIVE 'IHOOSAND OOLLARS
I
on the first day of January, 19 and to pay interest thereon fran tJie date
hereof until the princ:i.pal is paid at the rate of per, cent ( %) per
annum, payable on the ftrst day of July, 1981 and saniannually thereafter on
the first day of January and the first day of July in each year, interest to
maturi ty being represented" by and payable in accordance with and upon presen-
tation and surrender of the interest coupons hereto attached, as the same severally
becooe due. Both principal and interest are payable at ,
or any successor paying agent duly appointed by tb,e City, in any coin or currency
of the United States of America which at the time of payroont is legal tender for
public and private debts.
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rrhis bond is one of an issue in the total principal amount of
$305,000 all of like date and tenor, except as to serial mmber, ma turi ty and
interest rate 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 IIDney for the construction of various improvements in the City, and
is payable out of the General <bligation Improvement Bonds of 1980, Series A,
Fund of the City. This bond constitutes a general obligation of the City, and
to provide IIDneys for the pranpt and full payment of the principal and interest
when the same becane due, the full faith and credit and taxing pONers of the
City have been and are hereby irrevocable 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 Hastings, Dakota and Washington
Counties, Minnesota, by its City Council has caused this bond to be executed in
its behalf by the facsimile signatures of the Mayor and the Clerk-Treasurer and
the manual signature of one of said officers, the corporate seal of the City
having been intentionally ani tted 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 July 1, 1980.
/s/ Facsimile
Clerk-Treasurer
/s/ Facsimile
Mayor
(FORM OF CDUPON)
No.
$
-- On the first day of July (January), 19 , the City of Hastings,
Dakota and Washington Counties, Minnesota, will pay to bearer at
, or any successor paying agent duly appointed by the City,
the sum shONll hereon for interest then due on its General <bligation Improve-
ment Bond of 1980, Series A, No. , Dated July 1, 1980.
/s/ Facsimile
Clerk-Treasurer
/s/ Facsimile
Mayor
6. The bonds shall be executed on behalf of the City by the signatures
of its Mayor and Clerk-Treasurer and be sealed with the seal of the City;
provided, that one (or both) of the signatures and the seal of the City may be
printed facsimiles (if the bonds are also signed manually by at least one such
officer); and provided further that the corporate seal may be ani tted 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-Treasurer.
7. The bonds when so prepared and executed shall be delivered by the
Clerk-Treasurer to the purchaser thereof upon receipt of the purchase price, and
the purchaser shall not be obliged to see to the proper application thereof.
8. There is hereby created a special fund to be designated "General
<bligation Improvement Bonds of 1980, Series A, Fund" to be held and administered
by the Clerk-Treasurer separate and apart fran all other accounts of the City.
The Fund shall be maintained in the manner herein specified until all of the bonds
herein authorized and the interest thereon have been fully paid. There shall be
maintained in the Fund two separate accounts, to be designated the "Construction
Account" and the "Debt Service Account" , respectively. The proceeds of the sale of
the bonds herein authorized, less any prenium and accrued interest received
thereon, and less capitalized interest in the amount of $5,280 (subject to such
adjustments as are appropriate to provide sufficient funds to pay interest due on
the bonds on or before July 1, 1981), plus any special assessments levied with
respect to improvements financed by the bonds and collected prior to canpletion
of the improvements and payment of the costs thereof, shall be credited to the
Construction Account, fran which there shall be paid all costs and expenses of
making the improvements listed in paragraph 9, including the cost of any
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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
IIDneys in said account shall be used for no other purpose except as othezwise
provided by law; provided that the bond proceeds may also be used to the
extent necessary to pay interest on the bonds due prior to the anticipated date
of carnmencement of the collection of special assessments herein covenanted to
be levied; and provided further that if upon canpletion of the improvanents
there shall remain any unexpended balance in the Construction Account, the
balance (other than any special assessments) may be transferred by the Council
to the fund of any other improvanent instituted pursuant to Minnesota Statutes,
<J1apter 429; and provided further that any special assessments credited to the
Construction Account are hereby pledged and shall be used only to pay principal I
and interest due on the bonds. '!here is hereby pledged and there shall be
credi ted to the Debt Service Account (a) all collections of special assessments _ . ·
herein covenanted to be levied and either initially credited to the Construction L_ ~
Account and required to pay any principal and interest due on the bonds or
collected subsequent to the canpletion of the improvements and payment of the
costs thereof; (b) all accrued interest and any premium received upon deli very
of the bonds, (c) capitalized interest in the amount of $5,280 (subject to such
adjustments as are appropriate to provide sufficient funds to pay interest due
on the bonds on or before July 1, 1981), (d) any collections of all taxes which
may hereafter be levied in the event that the special assessments herein pledged
to the payment of the principal and interest on the bonds are insufficient
therefor; and (e) all funds remaining in the Construction Account after can-
pletion of the improvements and payment of the costs thereof, not so transferred
to the account of another improvenent. '!he Debt Service Account herein created
shall be used solely to pay the principal and interest of the bonds issued
hereunder and any other general obligation bonds of the City hereafter issued by
the City and made payable fran said account as provided by law. Any sums from
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 amounts 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.
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9. I t is hereby detennined that no less than 100% of the cost to l
the City of each improvement financed hereunder wi thin the meaning of Minn.
Statutes, Section 475.58, Sl)IxIivision 1 (3) shall be paid by special assess- _J
ments to be levied against every assessable lot, piece and parcel of land
benefi ted by the improvements. '!he City hereby covenants and agrees that it
will let all construction contracts not heretofore let wi thin one year after
ordering each improvement financed hereunder unless the resolution ordering
the improvement specified a different time limit for the letting of construc-
tion contracts and 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 assessments be at any time held invalid with
respect to any lot, piece or parceF~f land due to any error, defect, or
irregulari ty, 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
the assessments or in the performance of any condition precedent thereto, the
City and this Council will forthwith do all further acts and take all further
proceedings as may be required by law to make the assessments a valid and
binding lien upon such property. Subject to such adjus1ments as are required
by conditions in existence at the time the assessments are levied, it is deter-
mined that the assessments shall be payable in equal, consecutive, annual in-
stallments, with general taxes for the years shown belcm and with interest on
the deferred balance of all such assessments at the rate of at least 8.0%
per annum:
Improvement
Designation
Amount
levy Years
1980 Construction Program
Pleasant Drive Project
$239,000
$ 67,400
1980-89
1981-90
At the time the assessments are in fact levied the (:i ty Council
shall, based on the then current estimated collections of the assessments,
make any adjustments in any ad valorem taxes required to be levied in order to
assure that the City continues to be in canpliance with Minnesota Statutes,
Section 475~'61 , Subdivision 1.
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The special assessments are such that if collected in full they, together with
estimated collections of other revenues herein pledged for the payment of the
bonds, will produce at least five percent in excess of the amount needed to
meet when due the principal and interest payment on the bonds.
10. For the pranpt and :fiull payment of the principal and interest
on the bonds, as the same respectively becane due, the full faith, credit and
taxing pcmers of the City shall be and are hereby irrevocable 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
pranptly paid out of any other funds of the City which are available for such
purpose, and such other funds may be reimbursed without interest fran the Debt
Service Account when a sufficient balance is available therein.
11. The Clerk-Treasurer is hereby directed to file a certified copy
of this resolution with the County Auditors of Washington and Dakota Counties,
Minnesota, together with such other information as they shall require, and to
obtain fran the Auditors their certificates that the bonds have been entered in
the Auditors Bond Registers.
12. The officers of the City are hereby authorized and directed to
prepare and furnish to the purchaser of the bonds, and to the attorneys approving
the legality of the issuance thereof, certified copies of all proceEidings and
records of the City relating to the bonds and to the financial condition of the
City, and such other affidavits, certificates and information as are required to
sho.v the facts relating to the legality and marketability of the bonds as the
same appear fran the books and records under their custody and control or as
otherwise kno.vn to them, and all such certified copies, certificates and affi-
davits, including any heretofore furnished, shall be deemed representations of
the City as to the facts recited therein.
The motion for the adoption of the foregoing resolution was duly
seconded by marber Collins and upon vote being taken thereon, the follo.ving
voted in favor thereof: All menDers present; and the follo.ving voted against
the same: None.
pted by the City Counci 1 of the City of Hastings, Minnesota this
e, 1980.
Moved by Councilman Kulzer, seconded by
the meeting. Ayes, 6; Nayes, none.
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