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1989-103 I . .~ Extract of Minutes of Meeting of the City Council of the City of Hopkins, Hennepin County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Hopkins, Hennepin County, Minnesota, was held at the City Hall in the City on Tuesday, November 7, 1989, commencing at 8:30 P.M. The following members of Councilmember Anderson Councilmembet Shirley Councilmember Kritzler the Council were present: Councilmember Redepenning Mayor Berg and the following were absent: *** *** *** The following written resolution was presented by Councilmember Shirley who moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 89-103 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $2,790,000 GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1989 BE IT RESOLVED By the City Council of the City of Hopkins, Hennepin County, Minnesota (City) as follows: 1. It is determined that: . (a) the City is authorized by Minnesota Statutes, Section 444.075 (Act) to issue and sell its general obligation bonds (Bonds) to finance all or a portion of the cost of the construction, enlargement and other improvements to its storm sewer system including mains, holding areas and ponds, and other appurtenances and related facilities for the collection and disposal of storm water (Facilities); .! (b) the Bonds may be general obligations of the City if the City Council in the resolution awarding the sale of the Bonds covenants that it will impose rates and charges for the use of the Facilities at the times and in the amounts required to produce, together with an other revenues pledged for payment of theBonds, net revenues (as defined by the Act) adequate to pay all principal and interest when due on the Bonds; (c) the City has duly adopted providing for a system of rates and charges for the use of the Facilities; (d) the City Engineer has informed this Council that contracts for the construction and related costs of construction and improvements to the Facilities (Projects) have been or will be incurred as follows: Project Designation & Description: Total Project Cost Construction Costs of Issuance Subtotal Discount Total $2,725,000 21,640 $2,748,150 41,850 $2,790,000 (e) it is necessary and expedient to the sound financial management of the affairs of the City to issue $2,780,000 General Obligation Storm Sewer Revenue Bonds, Series 1989 (Bonds) pursuant to the Act to provide financing for th Project; (f) the Nine Mile Watershed Dis~rict has approved the Project to be financed by the Bonds; 2. In order to provide financing for the Project, the City will therefore issue and sell Bonds in the amount of $2,746,640. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $33,360. The excess of the purchase price of the Bonds over the sum of $2,746,640 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Notice of Sale: OFFICIAL NOTICE OF SALE $2,790,000 General Obligation Storm Sewer Revenue Bonds, Series 1989 City of Hopkins Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 11:00, a.m., C.T. on Tuesday, December 5, 1989, at Hopkins Tech Center, 1600 Second Street South in Hopkins, Minnesota, at which time the bids will be opened and tabulated for consideration by the City Council at a meeting at 7=. 30 - p.m. on the same day. The bonds are offered on the following terms. Purpose and Security The purpose of the bonds is to provide funds for financing the cost of improvements to the storm sewer system of the City. The bonds will be general obligations of the City, for which its full faith, credit and taxing powers are pledged together with net revenues of the storm sewer system of the City. Date and Maturities The bonds will be issued in fully registered form, will be dated December 1, 1989, will be in denominations of integral multiples of $5,000 each and will mature on February 1, in the years and amounts as follows: Year Amount Year Amount 1991 $ 70,000 2001 $135,000 1992 75,000 2002 140,000 1993 80,000 2003 150,000 1994 85,000 2004 165,000 1995 90,000 2005 175,000 1996 95,000 2006 185,000 1997 100,000 2007 200,000 1998 110,000 2008 215,000 1999 115,000 2009 230,000 2000 125,000 2010 250,000 Redemption The City may elect on February 1, 1997 or on any interest payment date thereafter to redeem and prepay bonds of this issue maturing on or after February 1, 1998 at a price of par plus accrued interest to date of redemption. Prepayment may be in whole or in part and will be in inverse order of maturities and by lot within maturities. Interest Interest on the bonds will be payable on August 1, 1998, and semiannually thereafter on each February 1 and August 1. Bonds maturing on the same date must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for bonds of any subsequent maturity. Each rate must be in an integral multiple of 1/100 of 1%. Registrar The City will name the bond Registrar which will be subject to applicable SEC regulations. Principal will be payable at the principal office of the Registrar and interest will be payable by check or draft of the Registrar mailed to the registered holder of a bond. The City will pay the reasonable and customary charges for the services of the Registrar. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the bonds or for the correctness of any numbers printed thereon but will permit such numbers to be assigned and printed at the expense of the purchaser if the purchaser waives any extension of the time of delivery caused thereby. Delivery Within 40 days after sale, the City will furnish and deliver to the office of the purchaser or, at purchaser's option, will deposit with a bank in the United States selected by it and approved by the City as its agent to permit examination by and to deliver to the purchaser, the printed and executed bonds, the unqualified opinion thereon of bond counsel, and a certificate stating that no litigation in any manner questioning their validity is then threatened or pend- ing. The charge of the delivery agent must be paid by the purchaser but all other costs will be paid by the City. The purchase price must be paid upon delivery of the bonds in funds available for expenditure by the City on the day of payment. Legal Opinion An unqualified legal opinion on the bonds will be furnished by Holmes & Graven, Chartered, Minneapolis, Minnesota. The legal opinion will be printed on the bonds at the request of the purchaser. The legal opinion will state that the bonds are valid and binding general obligations of the City payable primarily from net storm sewer system revenues, and that the City is required by law to levy taxes for the principal and interest thereon as the same become due without limit as to rate or amount. Type of Bid - Amount Sealed bids must be mailed or delivered to the undersigned and must be received prior to the time specified above for the opening of bids. A bid must be unconditional and must be accompanied by a cashier's or certified check or bank draft, payable to the City, or by wire transfer after bid opening in the amount of $55,800 to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The good faith check will be deposited by the City and deducted from the settlement amount at the delivery of the bonds. The bid authorizing the lowest net interest cost (total interest from date of bonds to stated maturities, less any cash premium or plus any amount less than $2,790,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $2,748,150 for principal plus accrued interest on all of the bonds will be considered. The City reserves the right to reject any and all bids and to waive an informality in a bid. BY ORDER OF THE CITY COUNCIL /s/ Patricia Gisborne City Clerk Dated: November 7, 1989. 3. The Clerk is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Notice of Sale and to publish the abbreviated notice of sale attached hereto as Exhibit A in the manner required by law. The City Council will meet at 12:01 p.m. on Tuesday, December 5, 1989, to consider bids on the Bonds and take other appropriate action with respect to the Bonds. 4. In the resolution awarding the sale of the Bonds the City Council will set forth the covenants and undertakings required by the Act. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Anderson , and upon vote being taken thereon the following members voted in favor of the motion: Councilmember Anderson Councilmember Shirley and the following voted against: Councilmember Kritzler Councilmember Redepenning Mayor Berg whereupon the resolution was declared duly passed and adopted. Exhibit A NOTICE OF BOND SALE $2,790,000 GENERAL OBLIGATION STORM [SEWER] REVENUE BONDS, SERIES 1989 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 11:00, a.m., C.T. on Tuesday, December 5, 1989, at Hopkins Tech Center, 1600 Second Street South in Hopkins, Minnesota, at which time the bids will be opened and tabulated for consideration by the City Council at a meeting at 7-: -~' p.m. on the same day. The bonds are offered on the following terms. The Bonds will be dated December 1, 1989, will bear interest payable semiannually on each February 1 and August 1, commencing August 1, 1990, and will mature on February 1 in the years and amounts as follows: Year Amount Year Amount 1991 $ 70,000 2001 $135,000 1992 75,000 2002 140,000 1993 80,000 2003 150,000 1994 85,000 2004 165,000 1995 90,000 2005 175,000 1996 95,000 2006 185,000 1997 100,000 2007 200,000 1998 110,000 2008 215,000 1999 115,000 2009 230,000 2000 125,000 2010 250,000 The City may elect on February 1, 1997 or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1998 at a price of par plus accrued interest to date of redemption. Bidders must specify a price of not less than $2,748,150 plus accrued interest. A legal opinion on the bonds will be furnished by Holmes & Graven, Chartered, Minneapolis, Minnesota. The proceeds of the bonds will be used to finance the costs of improvements to the storm sewer system of the City. Bidders should be aware that the Official Statement to be distributed for the bonds may contain additional bidding terms and information relative to the bonds. In the event of a variance between statements in this Notice of Bond Sale and the Official Statement bidders must comply with the terms of the latter. BY ORDER OF THE CITY COUNCIL /s/ Patricia Gisborne City Clerk Dated: November 7, 1989. STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) ) CITY OF HOPKINS ) I, the undersigned, being the duly qualified and acting Clerk of the City of Hopkins, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Tuesday, November 7, 1989, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of $2,790,000 General Obligation Storm Sewer Revenue Bonds, Series 1989 of the City. WITNESS My hand as City Clerk and the corporate seal of the City this ---25h day of November , 1989. Clerk of Hopkins, Minnesota (SEAL) H6:00202D89.RAU '. . /'" .. ? . HOLMES & GRAVEN CHARTERED 470 Pillsbury Center, Mmneapohs, Mmnesota 55402 (612) 337-9300 $2,790,000 General Obligation Storm Sewer Revenue Bonds, Series 1989 City of Hopkins Hennepin County, Minnesota We have acted as bond counsel in connection with the issuance by the City of Hopkins, Hennepin County, Minnesota, of its General Obligation Storm Sewer Revenue Bonds, Series 1989, originally dated as of December 1, 1989, in the total principal amount of $2,790,000. For the purpose of ren~ering this opinion, we have examined certified copies of certain proceedings taken by the City in the authorization, sale and issuance of the Bonds, including the form of the Bonds, and certain other proceedings and documents furnished by the City. From our examination of such proceedings and other documents, asuming the genuineness of the signatures thereon and the accuracy of the facts stated therein and continuIng compliance by the City with its covenants to comply with the Internal revenue Code of 1986, as amended, and based upon laws, regulations, rulings and decisions in effect on the date hereof, it is our opinion that: 1. The Bonds are in due form, have been duly executed and delivered, and are valid and binding general obligations of the C i t Y , en for c e a b lei n a c cor d a n c e wit h the i r t e r ms, ex c e p t ass u c h enforcement may be I imi ted by Minnesota or Uni ted States laws relating to bankruptcy, reorganization, moratorium or creditors' rights. 2. The principal of and interest on the Bonds are payable from net revenues of the storm sewer system of the City, but if necessary for the payment thereof, ad valorem taxes are required by law to be levied on all taxable property in the City, which taxes are not subject to any limitation as to rate or amount. 3. The interest to be paid on. the Bonds is not includable in gross income of the recipient for United States or Minnesota income tax purposes, but is subject to federal alternative minimum taxes and environmental surtaxes on corporations, foreign corporation branch profIts taxes and Minnesota taxes on banks and corporations measured by income. We express no opinion regarding other federal or state tax consequences arising with respect to the Bonds. The Bonds are not arbitrage bonds and are not private activity bonds. $2,790,000 General Obligation Storm Sewer Revenue Bonds, Series 1989 City of Hopkins, Minnesota Page Two We have not been asked and have not undertaken to review the accuracy, completeness or sufficiency of the offering material relating to the Bonds and accordingly we express no opinion with respect thereto. Dated at Minneapolis, Minnesota, Hopkins 1. OFFICIAL NOTICE OF SALE $2,790,000 General Obligation Storm Sewer Revenue Bonds, Series 1989 City of Hopkins Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 11:00, a.m., C.T. on Tuesday, December 5, 1989, at Hopkins Tech Center, 1600 Second Street South in Hopkins, Minnesota, at which time the bids will be opened and tabulated for consideration by the City Council at a meeting at 7:30 p.m. on the same day. The bonds are offered on the following terms. Purpose and Security The purpose of the bonds is to provide funds for financing the cost of improvements to the storm sewer system of the City. The bonds will be general obligations of the City, for which its full faith, credit and taxing powers are pledged together with net revenues of the storm sewer system of the City. Date and Maturities The bonds will be issued in fully registered form, will be dated December 1, 1989, will be in denominations of integral multiples of $5,000 each and will mature on February 1, in the years and amounts as follows: Year Amount Year Amount 1991 $ 70,000 2001 $135,000 1992 75,000 2002 140,000 1993 80,000 2003 150,000 1994 85,000 2004 165,000 1995 90,000 2005 175,000 1996 95,000 2006 185,000 1997 100,000 2007 200,000 1998 110,000 2008 215,000 1999 115,000 2009 230,000 2000 125,000 2010 250,000 Redemption The City may elect on February 1, 1997 or on any interest payment date thereafter to redeem and prepay bonds of this issue maturing on or after February 1, 1998 at a price of par plus accrued interest to date of redemption. Prepayment may be in whole or in part and will be in inverse order of maturities and by lot within maturities. Interest Interest on the bonds will be payable on August 1, 1998, and semiannually thereafter on each February 1 and August 1. Bonds maturing on the same date must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for bonds of any subsequent maturity. Each rate must be in an integral multiple of 1/100 of 1%. Registrar The City will name the bond Registrar which will be subject to applicable SEC regulations. Principal will be payable at the principal office of the Registrar and interest will be payable by check or draft of the Registrar mailed to the registered holder of a bond. The City will pay the reasonable and customary charges for the services of the Registrar. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the bonds or for the correctness of any numbers printed thereon but will permit such numbers to be assigned and printed at the expense of the purchaser if the purchaser waives any extension of the time of delivery caused thereby. Delivery Within 40 days after sale, the City will furnish and deliver to the office of the purchaser or, at purchaser's option, will deposit with a bank in the United States selected by it and approved by the City as its agent to permit examination by and to deliver to the purchaser, the printed and executed bonds, the unqualified opinion thereon of bond counsel, and a certificate stating that no litigation in any manner questioning their validity is then threatened or pend- ing. The charge of the delivery agent must be paid by the purchaser but all other costs will be paid by the City. The purchase price must be paid upon delivery of the bonds in funds available for expenditure by the City on the day of payment. Legal Opinion An unqualified legal opinion on the bonds will be furnished by Holmes & Graven, Chartered, Minneapolis, Minnesota. The legal opinion will be printed on the bonds at the request of the purchaser. The legal opinion will state that the bonds are valid and binding general obligations of the City payable primarily from net storm sewer system revenues, and that the City is required by law to levy taxes for the principal and interest thereon as the same become due without limit as to rate or amount. , J Type of Bid - Amount Sealed bids must be mailed or delivered to the undersigned and must be received prior to the time specified above for the opening of bids. A bid must be unconditional and must be accompanied by a cashier's or certified check or bank draft, payable to the City, or by wire transfer after bid opening in the amount of $55,800 to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The good faith check will be deposited by the City and deducted from the settlement amount at the delivery of the bonds. The bid authorizing the lowest net interest cost (total interest from date of bonds to stated maturities, less any cash premium or plus any amount less than $2,790,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $2,748,150 for principal plus accrued interest on all of the bonds will be considered. The City reserves the right to reject any and all bids and to waive an informality in a bid. BY ORDER OF THE CITY COUNCIL /s/ Patricia Gisborne City Clerk Dated: November 7, 1989. .