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HomeMy WebLinkAbout1974.03.18 RESO 1974-06�2`" EXTRACT OF MINUTES OF MEETING OF THE CITY COU14CIL OF THE CITY OF HUG 0, MINNESOTA HELD: March 18, 1974 Pursuant to due call and notice thereof, a S ecia meeting of the City Council of the City of Hugo, Washington County, Minnesota, was duly held at the City Hall in said City on the 18th day of March, 1974, at 8:00 o'clock P.M., C.D.S.T., for the purpose of opening and considering bids for and awarding the sale of $850,000 General Obligation Sani- tary Sewer Improvement Bonds of 1974 of said City, as one of two issues of the City offered for sale as one package and totaling $906,000. The following member s were present: "ayor rrever, C'oundlmen: Martin, LaValle, Lease, Leroux and the following were absent: none The Clerk presented affidavits showing publication of notice of call for bids on $850,000 General Obligation Sanitary Sewer Improvement Bonds of 1974 and $56,000 General Obligation Fire Equipment Bonds of 1974 of the City, for which bids were to be received at this meeting, in accordance with the resolution adopted by the City Council on February 11, 1974. Said affidavits were examined, 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 Interest Rate Net Interest Cost See pane 1.1 The net effective average rate of interest of the $850,000 General Obligation Sanitary Sewer Improvement Bonds of 1974, after allocating to'this bond issue p�o rata share of the discount for the two bond issues, is 3• %. BID TABULATION $906,000 GENERAL OBLIGATION BONDS CITY OF HUGO, MINNESOTA SALE: MONDAY, MARCH 18, 1974 A14ARD: ALLISON-14ILLIAMS COMPANY, MINNEAPOLIS, MINNESOTA & ASSOCIATES NAME OF BIDDER ALLISON-WILLIAMS COMPANY Dain, Kalman & Quail, Inc. Piper, Jaffray & Hopwood Inc. Minneapolis, Minnesota Juran & Moody, Inc. St. Paul, Minnesota Paine, Webber, Jackson & Curtis E. J. Prescott & Company Minneapolis, Minnesota ST NATIONAL BANK OF ST. PAUL St. Paul, Minnesota First National Bank of Minneapolis Miller & Schroeder Municipals Inc. Moore, Juran & Company Minneapolis, Minnesota RATES 4.80% 5.00% 5.20% 5.40% 5.50% 5.60% 5.70% 5.20% 5.30% 5.40% 5.50% 5.60% 5.70% 5.75% YEARS 1976/80 1981/84 1985/86 1987/89 1990/91 1992/93 1994/95 1976/85 1986 1987 1988/89 1990/91 1992/93 1994/95 Mood_y's Rating: Baa -1 INTEREST C & RATE $646,518.54 5.5438% $654,883.90 5.6155% EHLERS AND ASSOCIATES, INC. Financial Consultants to the City First National -Soo Line Concourse 507 Marquette Avenue Minneapolis, Minnesota 55402 Telephone: 339-8291 Area Code: 612 PRICE $891,875.4E C The Council. then proceeded to consider Isuch bids. After the bids had been considered and discussed, member Lease introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BID ON SALE OF GENERAL OBLIGATION SANITARY SEWER IMPROVEMENT BONDS OF 1974 PROVIDING FOR THEIR ISSUANCE BE IT RESOLVED by the Council of the City of Hugo, Minnesota, as follows: 1. That the bid of Allison -Williams Company to purchase $850,000 General Obligation Sanitary Sewer Improvement Bond: of 1974 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 $ 636,757.56 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_, in St. Paul, Minnesota , or any successor Paying Agent duly appointed by the City. 2. The $850,000 negotiable coupon general obliga- tion bonds of the City shall be dated April 1, 1974 and shall be issued forthwith. Said bonds shall be 170 in number and numbered from 1 to 170, both inclusive, in the denomination of $5,000 each. Said bonds shall mature serially, lowest numbers first, on April 1 in the years and amounts as follows: $ 25,000 in each of the years both inclusive; $ 30,000 in each of the years both inclusive; $ 35,000 in each of the years $ 40,000 in each of the years both inclusive; $ 45,000 in each of the years $ 50,000 in each of the years $ 55,000 in the year 1991; $ 60,000 in each of the years $ 65,000 in each of the years -2- 1976 to 1978, 1979 to 1981, 1982 and 1983; 1984 to 1986, 1987 and 1988; 1989 and 1990; 1992 and 1993; and 1994 and 1995. C 3. Said bonds shall provide funds to defray the expense of variou3 sanitary sewer improvements in the City. The total cost of said improvements, including the cost of construction under the terms of the lowest bid received, engineering, legal and other professional charges, publica- tion and printing costs, -interest accruing on money borrowed for the improvements before the collection of special assess- ments levied therefor, and all other costs necessarily incurred and to be incurred from the inception to the comple- tion of the improvements, is estimated to be at least equal to the amount of the bonds herein authorized. Work on the improvements shall proceeds with due diligence to completion. 4. The bonds of said issue maturing in the years and bearing the serial numbers set forth below shall bear interest, payable October 1, 19711 and semiannually there- after on April 1 and October 1 of each year, at the,respec- tive rates per annum set opposite said maturity years and serial numbers: Maturity Years Serial Numbers Interest Rate 1976/00 1 - 27 4.80% 1981/84 28 - 55 5,00" 1935/36 56 - 71 5.20` 1937/89 72 - 99 5.40% 1990/91 100 -120 5.50% 1992/93 121 -144 5.60: 1994/95 145 -170 5.70% 5.- All bonds of this issue maturing in the years 1985 to 1995, both inclusive (bonds numbered 56 to 170, both inclusive), shall be subject to. redemption and prepayment at the option of the City in inverse order of serial numbers, on April 1, 1984 and on any interest payment date thereafter at par and accrued interest. Published notice of redemption shall in each case be given in accordance with law, and at least thirty days prior mailed notice of redemption shall be given to the bank where said bonds are payable and to the last known -3- holders, provided that published notice alone shall be effective without mailed notice. Holders desiring to receive mailed notice must register their names, addresses and bond numbers with the City Clem:. 6. The bonds and interest coupons to be issued hereunder shall be in substantially the following form. t No. U11I7ED STATES OF AMERICA STATE OF 14INNESOTA WASHINGTON COUNTY CITY OF HUGO GENERAL OBLIGA`T'ION SANITARY SEWER IMPROVEMENT BOND OF 19 7 4 KNOW ALL MEN BY THESE PRESENTS that the City of Hugo, Washington County, Minnesota, certifies that it is indebted and for value received promises to pay to bearer the sum of THOUSAND DOLLARS on the first day of April, 19 and -to pay interest thereon from the date hereof until tie principal is paid at the rate of per cent ( o) per annum, payable on the first day of October, 197- and semiannually thereafter on the first day of April and the first day of October 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 the !American National Bank & Trust Company, in St. Paul, tlinnesota , 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. All bonds of this issue maturing in the years 1985 to 1995, both inclusive (bonds numbered 56 to 170,b oth inclusive), are subject to redemption and pre- payment at the option of the City in inverse order of serial numbers, on April 1, 1984 and' on any interest payment date thereafter at par and accrued interest. Published notice of redemption shall in each case be given in accord- ance with law, and at least thirty days prior mailed notice of redemption shall be given to the bank where said bonds are payable and to the last known holders, provided that published notice alone shall be effective without mailed notice. Holders desiring to receive mailed notice must register their names, addresses and bond numbers with the City Clerk. -5- 1 #x. This bond is one of an issue in the total principal amount of $850,000 all of like date and tenor, except as to serial number, maturity, interest rate and redemption privi- lege, which bond has been issued pursuant to and in full conformity with thc� Constitution and laws of the State of Minnesota for the>ur ose of � A providing money to defray the cost of various sanitary sel„er improvements, and is payable out of the General Obliga,ion Sanitary Sewer Improvement Bonds of 1974 Fund of the City. This bond constitutes a general 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 faith 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 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 Hugo, Washington County, Minnesota, by its City Council, has caused this bond to be executed in its behalf by the printed facsimile signature of its Mayor and the manual signature of its City Clerk, and by a printed facsimile of its corporate seal, has caused the interest coupons appurtenant hereto and the certificate as to opinion of bond counsel on the reverse side hereof to be executed and authenticated by the facsimile signatures of said officers, and has caused this bond to be dated as of April 1, 1974. City Clerk Mayor (Form of Coupon) . No. On the first day of October (April), 19 , unless the bond described below is called for earlier redemption, the City of Hugo, Washington County, Minnesota, will pay to bearer at or any successor aying gent duly appointed y the ity, ' Minnesota the sum sho:•:n hereon for interest then due on its General Obli- gation Sanitary Sevier Improvement Bond of 1974 No. dated April 1, 1974. /s/ Facsimile /s/ Facsimile City Clerk Mayor C 7. The bonds shall be executed on behalf of the City by the signature of its Mayor and the signature of its Clerk and be ,3-2aled 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 there- to shall be executed by the printed, engraved or lithographed facsimile signatures of the Mayor and Clerk. 8. The said bonds when so prepared and executed shall be deliverer: 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. 9. There is hereby created a special fund to be designated "General Obligation Sanitary Sewer Improvement Bonds of 1974 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 accrued interest received thereon, and less any amount paid for said bonds in excess of $833,600, and less capitalized interest in the amount of $70,125, 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 improvements there shall remain any unexpended balance 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, a pro rata share of all accrued interest received upon delivery of the two sets of bonds, all funds paid for the bonds in excess of $833,600, capitalized.interest in the amount of $70,125, and -7- all funds remainin-, in said Construction Account after completion of the improvement_ and payment of the costs thereof, not so transferred to the fund of another improvement. The Sinking Fund Account shal-' 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. Any (a) earnings or net profits derived from investment or deposit of the proceeds of said bonds not expended for said improvements, (b) accrued interest and premium received upon the sale of said bonds, and (c) any other bond proceeds not expended for said improvements will be applied against interest and/or principal due on said bonds within three years of their date of'issue. 10. It is hereby determined that no less than $ 576,250 of the cost of improvements shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefited by said improvements. 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 Council or 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 7 % per annum: Improvement Designation Amount Levy Years Sanitary Sewer Improvement 1973-1 $576,250 1974-93 Said special assessments are such that if collected in full they, together with estimated collections of other revenues pledged for the payment of said bonds, will produce at least five per cent 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 become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. 11. The City Clerk is hereby directed to file a certified copy of this resolution with the County Auditor of Washington County, Minnesota, together with such other infor- mation 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 author- ized 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, in- cluding any heretofore furnished, shall be deemed represen- tations of the City as to the facts recited therein. The motion for the adoption of the foregoing resolution was duly seconded by member Leroux and upon vote being taken thereon, the following voted in favor thereof: Crever, Martin, LaValle, Lease, Leroux and the following voted against the same:none Whereupon said resolution was declared duly passed and adopted. 0 STATE OF MINNESOTI� COUNTY OF WASHING`CON CITY OF HUGO I, the undersigned, being the duly qualified and acting Clerk of the City of Hugo, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City. Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the opening and considering of bids for, and awarding the sale of $850,000 General Obligation Sanitary Sewer Improvement Bonds of 1974 of said City. WITNESS my hand and the seal of said City this hath day of March , 1974. S City lerk (SEAL)