HomeMy WebLinkAbout05-14-73 Adjourned Mtg
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May 14, 1973
Pursuant to due call and notice thereof, and adjourned meeting from
May 7, 1973 of the City Council of the City of Hastings, Dakota and Wash-
ington Counties, Minnesota, was duly held at the City Hall in said City
on the 14th day of May, 1973, at 5:00 o'clock P.M. for the purpose of
opening and considering bids for and awarding the sale of $475,000 Improve-
ment Bonds of 1973 of said City.
Members present: Councilmen Kramer, Novak, Wilson, O'Connor, and
Acting Mayor Driscoll.
Members absent: Councilmen Collins, Ha11ber, Schnirring, and Mayor
Petersen.
The Clerk presented affidavits showing publication of notice of call
for bids on $475,000 Improvement Bonds of 1973 of the City, for which bids
were to be received at this meeting, in accordance with the resolution
adopted by the City Council on April 23, 1973. Said affidavits were exam-
ined, found to comply 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 following bids were received:
BIDDER
American Nation~ Bank
& Trust Company
St. Paul, Minn.
The Marquette National
Bank
Minneapolis, Minn.
National eity Bank
Minneapolis, Minn.
Bancnorthwest
Chicago, Illinois
Northwestern National
Bank of Hastings
Hastings, Minn.
Piper, Jaffray &
Hopwood, Inc.
Minneapolis, Minn.
Dain, Kalman & Quail, Inc.
Allison-Williams Company
Minneapolis, Minn.
COUPONS
4.];0%1974-75
4.20% 1976
4.30% 1977-78
4.40% 1979-80
4.50% 1981-82
4.60% 1983
4.25% 1974-76
4.40% 1977
4.50% 1978-80
4.60% 1981-82
4.70% 1983
NET INTEREST
COST & RATE
$129,116.00
(4.5503%)
PRICE
$471,099.00
$472,078.75
$131,251.25
(4.62559%)
4.00% 1974
4.15% 1975
4.25% 1976
4.38% 1977
4.40% 1978
4.45% 1979
4.50% 1980
4.55% 1981
4.60% 1982
4.65% 1983
$470,582.50
$131,488.74
(4.633965%)
4.00% 1974
4.10% 1975
4.20% 1976
4.30% 1977
4.40% 1978
4.50% 1979
4.55% 1980
4.60% 1981
4.65% 1982
4.70% 1983
$470,012.50
$132,793.75
(4.67996%)
4.10% 1974
4.20% 1975
4.30% 1976
4.40% 1977
4.45% 1978
4.50% 1979
4.55% 1980
4.60% 1981
4.65% 1982
4.70% 1983
$468,920.00
$134,603.75
(4.7437%)
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First National Bank
of St. Paul
St. Paul, Minn.
First National Bank
of Minneapolis,
Minneapolis, Minn.
$468,350.00
$136,302.50
(4.8036%)
4.10% 1974
4.20% 1975
4.30% 1976
4.40% 1977
4.50% 1978
4.55% 1979
4.60% 1980
4.65% 1981
4.70% 1982
4.75% 1983
The Council then proceeded to consider such bids. After the bids had
been considered and discussed, Councilman Kramer introduced the following
resolution and moved its adoption:
RESOLUTION ACCEPTING BID ON SALE OF
$475,000 IMPROVEMENT
BONDS OF 1973
AND PROVIDING FOR THEIR ISSUANCE
BE IT RESOLVED by the Council bf the City of Hastings, Minnesota, as
follows:
1. That the bid of The American National Bank & Trust Co. to purchase
$475,000 Improvement Bonds of 1973 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 $471,099.00 is hereby found, determined and declared
to be the most 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 faith checks or
drafts to the unsuccessful bidders. Said bonds shall be payable as to
principal and interest at the American National Bank and Trust Company of
St. Paul.
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2. The $475,000 negotiable coupon general obligation bonds of the City
shall be dated June.",l, 1973 and shall be issued forthwith. Said bonds shall
be 95 in number and numbered from 1 to 95, both inclusive, in the denomina-
tion of $5,000 each. Said bonds shall mature serially, lowest numbers first D
without option of prepayment, on December 1 in the years and amounts as
follows:
$45,000 in each of the years 1974 & 1975;
$50,000 in each of the years 1976 to 1980,
both inclusive; and
$45,000 in each of the years 1981 to 1983,
both inclusive.
3. Said bonds shall provide funds for the construction of various
improvements in the City. The total cost of said Improvement~, including
the cost of construction under the terms of the lowest bid re~eived, engin-
eering, legal and other professional charges, publication and printing costs,
interest accruing on money borrowed for the improvements before the collec-
tion of special assessments levied therefor, and all other costs necessarily
incurred and to be incurred from the inception to the completion of the
improvements, is estimated to "be at least equal to the amount of the bonds
herein authorized. Work on the improvements shall proceed with due dili-
gence to completion.
4. The bonds of said issue maturing in the years and bearing the
serial numbers set forth below shall bear interest, payable 3une 1, 1974
and semiannually thereafter on December 1 and June 1 of each year, at the
respective rates per annum set opposite said maturity years and serial
numbers:
Maturity Years
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
Serial Numbers
Interest Rate
4.10%
4.10%
4.20%
4.30%
4.30%
4.40%
4.40%
4.50%
4.50%
4.60%
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5. The bonds and interest coupons to be issued hereunder shall be
in substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA AND WASHINGTON COUNTIES
CITY OF HASTINGS
No.
$
\
IMPROVEMENT
BOND OF 1973
KNOW ALL MEN BY THESE PRESENTS that the City of Hastings, Dakota and
Washington Counties, Minnesota, certifies that it is indebted and for value
received promises to pay to bearer without option of prepayment the sum of
THOUSAND DOLLARS
on the first day of December, 19____ and to pay interest thereon from the
date hereof until the principal is paid at the rate of
per cent ( %) per annum, payable on the first day of June, 1974 and
semiannually thereafter on the first day of December and the first day of
June in each year, in accordance with and upon presentation and surrender
of the interest coupons hereto attached, as the same severally become due.
Both principal and interest are payable at
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.
This bond is one of an issue in the total principal amount of $475,000
all of like date and tenor, except as to serial number, maturity, and in-
terest 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 money for various improvements, and is payable out of the
Improvement Bonds of 1973 Fund of the City. This bond constitutes a gen-
eral obligation of the City, and to provide moneys for the prompt and full
payment of said principal and interest when the same become due, the full
fait:h>.and credit and taxing powers of said City have been and are hereby
irrevocably pledged.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and
things required by theConstitution 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 reg-
ular and due form, time and manner as required by law, and this bond, to-
gether 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 constitu-
tional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City akota and Washington Counties
Minnesota, by its City Council has caused th s bo d to be executed in its
behalf by the signatures of the Mayor and th Cit Clerk, and the corporate
seal of said City to be printed hereon, and h s c used the interest coupons
to be executed and authenticated by the facs i e signatures of said
officers, all as of June 1, 1973.
~J ~JJ r:~~ -
Ci ty Clerk: . -
(Form of Coupon)
No.
$
ota
the
No.
On the first day of June (December), 19
and Washington Counties, Minnesota, wilt
sum shown hereon for interest then duen
dated June 1, 1973.
, the City of Hastings, Dak-
ay to bearer at
s Improvement Bond of 1973,
/s/ Facsimile
City Clerk
/s
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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 of such signatures and the seal of the City
may be printed facsimiles. The interest coupons pertaining thereto shall
be executed by the printed, engraved or lithographed facsimile 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.
8. There is nereby created a special fund to be designated "Improve-
ment Bonds of 1973 Fund" to be held and administered by the City Treasurer
separate and apart from all other funds 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 "Sinking Fund Account", respectively. The
proceeds of the sale of the bonds herein authorized, less any premium and
the accrued interest received thereon, and less any amount paid for said
bonds in excess of $467,200, and less capitalized interest in the amount
of $ -0- , shall be credited to the Construction Account, from which
there shall be paid all costs and expenses of making said improvements,
including the costs of construction contracts heretofore let and all other
costs incurred and to be incurred and the moneys in said account shall be
used for no other purpose, 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 commencement of the collection of special assessments
herein levied, and provided further that if upon completion of said improv-
ments there shall remain any unexpended ba~ance in said Construction Account,
said balance may be transferred by the Council to the fund of any other
improvement instituted pursuant to Chapter 429,M.S.A. There is hereby
pledged and there shall be credited to the Sinking Fund Account, all collec-
tions of special assessments herein covenanted to be levied, all accrued
interest received upon delivery of said bonds, all funds paid for the
bonds in excess of $467,200, capitalized interest in the amount of $ -0-
all all funds remaining in said Construction Account after completion of
the improvements and payment of the costs thereof, not so transferred to
the fund of another improvement. The Sinking Fund Account shall be used
solely to pay principal and interest on the bonds issued hereunder and
any other general obligation bonds of the City hereafter issued by the
City and made payable from said account.
9. The City will made no use of the proceeds of said bonds which, if
such use had been reasonably expected on the date of delivery of and payment
for the bonds, would have caused such obligations to be arbitrage bonds
within the meaning of Section 103(d) of the Internal Revenue Code and any
regulations promulgated thereunder; and the City will comply with the
requirements of said Section 103(d) and regulations throughout the term
of the issue.
10. It is hereby determined that no less than $467,181 of the cost of
said improvements shall be paid by special assessments to be levied against
every assessable lot, piece and parcel of land benefited by said improve-
ments. The City hereby covenants and agrees that it 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
assessment be at any time 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 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 assessments a valid
and binding lien upon such property. Said assessments shall be payable
in equal, consecutive, annual installments, with general taxes for the
years shown below and with interest on the deferred balance of all such
assessments at the rate of 8% per annum:
11. The estimated collections of special assessments and other revenues
pledged for the payment of said bonds will produce at least five percent in
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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 become due, the full faith, credit
and taxing powers of the City shall be and are hereby irrevocably pledged.
12. The City Clerk is hereby directed to file a certified copy of
this resolution with the County Auditors of Dakota County, and Washington
County, Minnesota, together with such other information as he shall require,
and to obtain from said Auditors their certificates that said bonds have 0.1
been entered in the said Auditor's Bond Register.
13. 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 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.
The motion for the adoption of the foregoing resolution was duly
seconded by member P. Wilson and upon vote being taken thereon, the follow~
ing voted in favor thereof: Councilmen Driscoll, Kramer, Ndvak, O'Connor,
and Wilson; and the following voted against the same: None.
Whereupon said resolution was declared duly passed and adopted.
ATTEST:J, Lvi _~~
City Clerk
Ac ting Mayor
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