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HomeMy WebLinkAboutResolution 84-37COLUMBIA HEIGHTS RESOLUTION N.O. 84-3? MOTION PROVIDING FOR THE ISSUANCE AND SALE OF $2,600,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT FUND BONDS, SERIES~1984 OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA Be it resolved by the City Couneil of the City of Columbia Heights (the '~issuer") as follows: 1. Findings~ Authorization. 1.1 It is hereby found and determined that it is necessary and expedient to the sound financial management of the Issuer for the Issuer to issue its general obligation permanent improvement fund bonds in order to provide funds to provide definitive financing for certain local improvements in the City of Columbia Heights which improvements (the 'rimprovements") were initially financed with the General Obligation Permanent Improvement Fund Bonds of 1982 of the Issuer in the aggregate outstanding principal amountof $2,550,000 (the '~Femporary Issue") by refunding the Temporary Issue. 1.2 The Issuer is authorized by Minnesota Statutes, Section 475.67 and by Section 72 of its Home Rule Charter, as amended (the "Charter"), to issue its general obligation bonds to refund its outstanding general obligation bonds. 1.3 The Issuer is further authorized by Minnesota Statutes, Section 475.56, to issue additional bonds in an amount not exceeding two percent of the amount otherwise authorized to be issued, representing interest to assist in marketing its bonds. 2. Sale of Bonds. 2.1 In order to provide funds to refund the Temporary Bonds, the Issuer shall issue its General Obligation Permanent Improvement Fund Bonds, Series 1984 (the 'q3onds") in the principal amount of $2,550,000 and shall issue Bonds representing additional interest in the amount of $50,000 for an aggregate principal amount of Bonds equal to $2,600,000. Any excess of the purchase price of the Bonds over the sum of $2,550,000 shall be credited to the debt service fu~d for the Bonds to pay interest first due on the Bonds. 2.2 The Bonds shall be issued, sold and delivered in accordance with the following Official Terms of Bond Offering: OFFICIAL TERMS OF OFFERING $2,600,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT FUND BONI~, SERIES 1984 CITY OF COLUMBIA ~IEIGHTS, MINNESOTA Sealed bids for the Bonds will be opened on Monday, June 11, 1984, at 11:00 o'clock a.m., Central Time, at the City Offices, 590 40th Avenue N.E., Columbia Heights, Minnesota 55421. Consideration of the award of the Bonds will be by the City Council on the same day, at 7:30 o'clock p.m. Central Time. DETAILS OF THE BONDS The Bonds will be dated June 1, 1984 and will bear interest payable March 1 and September 1 of each year commencing on March 1, 1985. Interest will be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to the rules of the MSRB. The Bonds will be issued in registered form in denominations of $5,000 and integral multiples thereof not exceeding a single maturity. The Bonds will mature on March I in the following years and amounts: Year A mount 1985 $140,000 1986 $150,000 1987 $160,000 1988 $170,000 1989 $185,000 1990 $195,000 1991 $215,000 1992 $230,000 1993 $250,000 1994 $275,000 1995 $300,000 1996 $330,000 Bonds maturing on or after March 1, 1989 are subject to redemption on March 1, 1988 and any interest payment date thereafter at a price equal to par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge certain collections of special assessments and its full faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to refund the Issuer's $2,550,000 General Obligation Permanent Improvement Fund Bonds of 1982 in the outstanding principal amount of $2,550,000, and to pay the costs of issuing the Bonds. TYPE OF BID A sealed bid for not less than $2,550,000 and accrued interest on the total principal amount of the Bonds to the date of delivery shall be filed with the undersigned prior to the time set for the~)pening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $26,000 payable to the order of the City shall have been filed with the undersigned or Miller & Sehroeder Municipals, Inc., the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. No bid shall be withdrawn after the time set for opening bids, unless the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. The rates offered by bidders shall be in integral multiples of 5/100 or 1/8 of 1%. No rate shall exceed, nor shall the net effective rate for the entire Issue of the Bonds exceed the maximum rate permitted by law. Obligations of the same maturity shall bear the same rate from the date of the Bonds to the date of maturity, not exceeding the rate specified for any subsequent maturity by more than 1%, and additional coupons shall not be used. AWARD The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to, the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, determined in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. RE GIST RA R The City shall name the Registrar and paying agent for the Bonds, which shall be subject to appreciable SEC Regulations. The City shall pay the customary charges for the service. CUSIP N UMBERS 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 assignment and printing to be done at the expense of the purchaser, if the purchaser waives any extension of the time of delivery caused thereby. SETTLE ME NT On or about forty days from the sale of the Bonds, the Bonds will be delivered without cost to the Purchaser at a place mutually satisfactory to the City and the Purchaser. Delivery will b~ subject to receipt by the Purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which OPinion will be printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 1:00 P.M., Central Time of the date of settlement. At settlement the Purchaser will be furnished with a certificate signed by appropriate officers of the City to the effect that the Official Statement did not as of the date of the Official Statement, and does not as of the date of settlement, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. OFFICIAL STATE MENT Upon request to the City's Financial Advisor, Miller & Schroeder Municipals, Inc., 7900 Xerxes Avenue South, Minneapolis, Minnesota 55431, prior to the bid opening underwriters may obtain a copy of the Official Statement. Dated ., 1984 BY ORDER OF THE CITY COUNCIL City Manager Award of Bonds, Advertisement~ Meeting. The City Manager of the Issuer is authorized and directed to cause advertisement for sealed bids for the purchase of the Bonds to be published in the manner required by Minnesota Statutes, Chapter 475, and in any additional publications as the City Manager may determine to be suitable. Such advertisement for sealed bids shall be in substantially the following form: OFFICIAL NOTICE OF SALE $2,600,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT FUND BONEI6, SERIES 1984 CITY OF COLUMBIA HEIGHTS, MINNESOTA Notice is hereby given that the City of Columbia Heights, Minnesota (the "County") will receive sealed bids at the City officers at 590 40th Avenue N.E., Columbia Heights, Minnesota on Monday, June 11, 1984, until 11:00 a.m., Central Time, for the purchase of its $2,600,000 General Permanent Improvement Fund Bonds, Series 1984 (the '~onds'9. The City Manager will then open and record the bids. The City Council will consider the award of the Bonds at 7:30 p.m. Central Time the same day. The Bonds will be dated June 1, 1984, will bear interest payable on March 1 and September I of each year, commencing March 1, 1985. The Bonds will be issued in integral multiples of $5,000 as requested by the Purchaser, and will be fully registered as to principal and interest. The Bonds will mature March I in the amounts and years as follows: Year A mount 1985 $140,000 1986 $150,000 1987 $160,000 1988 $170,000 1989 $185,000 1990 $195,000 1991 $215,000 1992 $230,000 1993 $250,000 1994 $275,000 1995 $300,000 1996 $330,000 Bonds due on or after March 1, 1989 will be subject to redemption, in whole or in part at par plus accrued interest, at the City's option on March 1, 1988, and on any interest payment date thereafter. If less than all of the Bonds are redeemed, Bonds will be redeemed in reverse order of maturity and by lot within a single maturity. The City will furnish the approving legal opinion of Holmes & Graven, Chartered, of Minneapoli% Minnesota. A copy of the legal opinion will be reproduced on the printed Bonds. Copies of the detailed Official Terms of Offering and additional information may be obtained from the City Manager of the City or from Miller & Schroeder Municipals, Inc., 7900 Xerxes Avenue South, Minneapolis, Minnesota 55431. Dated: HAY 21 , 1984 BY ORDER OF THE CITY COUNCIL 3.2. City Manager is directed to open bids for the Bonds at 11:00 a.m. Central Time on June 11, 1984. The Issuer will meet at 7:30 p.m. on the same day, to consider the award of the sale of the Bonds. Adopted by the City Council of the City of Columbia Heights this 21st day of May, 1984. Offered by: Hovl and Seconded by: Peterson Roll Call: AIl ayes Jo-Anne Student, Co~/nc~l Secretary