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HomeMy WebLinkAboutApr 12, 1976 (2)OFFICIAL PROCEEDINGS SPECIAL MEETING OF THE CITY COUNCIL APRIL 12, 1976 -172- Meeting was called to order at 7:35 p.m. Roll Call: Logacz, Heintz, Hentges, Nawrocki - present. Motion by Heintz, seconded by Norberg, to name Vicki Maternowsky secretary for the meeting. Roll Call: All Ayes Mayor Nawrocki stated that the purpose of this special meeting was for the opening of bids on $1,020,000 capital improvement bonds. Mr. Watson and. the representatives from Ehlers and Associates opened and read the bids as follows: The First National Bank of St. Paul Certified Check $20,400.00 Net Interest Cost $207,408.75 Net Interest Rate 4.4176 Price $1,012,860 White Weld and Company, Inc. Certified Check $20,400.00 Net Interest Cost $213,827.50 Net Interest Rate 4.5543 Price $1,010,310 Continental Illinois National Bank Certified Check $20,400.00 Net Interest Cost $213,987.25 Net Interest Rate 4.5577 Price $1,010,769 Bancnorthwest Certified Check $20,400.00 Net Interest Cost $214,768.74 Net Interest Rate 4.5744 Price $1,009,800 Dain, Kalman & Quail, Inc. Certified Check $20,400.00 Net Interest Cost $219,068.75 Net Interest Rate 4.6660 Price $1,009,800 At this time, the representatives from Ehlers and the F~nance Director, John Schedler, asked to be excused to tabulate the bids and return with a recom- mendation for award on the bonds. -173- April 12, 1976 The representatives from Ehlers stated that the low bidder was First National Bank of St. Paul with a net interest cost of $207,408.75 and an interest rate of 4.4176. He therefore recommended that the award be made for the same. RESC)LUTION #76-23 AWARDING SALE, AUTHORIZING ISSUANCE~ FIXING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $1,020~000 CAPITAL IMPROVEMENT BONDS BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLd, IA HEIGHTS, MINNESOTA, AS FOLLOWS: 1. The bid of the First National Bank of St. Paul in St. Paul, Minnesota, to purchase $1,020,000 Captial Improvement Bonds of the City to be dated as of April 1, 1976, and to be issued in accordance with the notice of sale here- tofore duly published, is hereby found and declared to be the most favorable bid received pursuant to said notice of sale, and is hereby accepted, said bid being to purchase the bonds at a price of $1,012,860 and accrued inter- est .on all bonds from date thereof to the date of their delivery, the bonds to bear interest at the annual rates shown in paragraph 3. The Mayor and City Manager are authorized and directed to endorse a copy of said bid to show the City's acceptance and to return it to said bidder. The City Trea- surer is directed to retain the good faith check of the successful bidder and to return all other good faith checks forthwith. 2. This Council, by its Ordinance No. 843 adopted March 8, 1976, authorized the issuance and sale of general obligation bonds of the City in the princi- pal amount of $1,000,000 to finance the construction of capital improvements of a lasting character. Ordinance No. 843 is incorporated herein by refer- ence.. Said bonds, together with $20,000 additional bonds authorized pursuant to Minnesota Statutes, Section 475.67, having been sold at public sale, shall be delivered to the purchaser thereof forthwith. 3. The bonds shall be designated general obligation Capital Improvement Bonds, shall be dated April 1, 1976, shall be 204 in number and numbered from 1 to 204, inclusive, each in the denomination of $5,000, shall mature serially, lowest numbers first on October 1 in the years and amounts set forth below, without option of prior payment, and shall bear interest from date of issue until paid at the annual rates set forth opposite such years and amounts as follow: Year Amount Rate Year Amount Rate 1977 $105,000 3.50% 1981 $175,000 4.30% 1978 150,000 3.75% 1982 175,000 4.45% 1979 150,000 4.00% 1983 115,000 4.60% 1980 150,000 4.15% Interest at the rate applicable to each bond from date of issue to maturity shall be represented by appropriate interest coupons. Interest shall be payable semiannually on April 1 and October 1 of each year, commencing October 1, 1976. Both principal and interest shall be payable at First National Bank of St. Paul, in St. Paul, Minnesota, and the City -174- April 12, 1976 hereby agrees to pay the reasonable and customary charges of such paying agent for the receipt and disbursement thereof. 4. The bonds of this issue and the coupons to beappurtentant thereto shall be in substantially the form, a facsimile of which is attached hereto and made of part thereof. 5. The bonds and the interest coupons and the certificate on the reverse side of each bond shall be executed and authenticated in behalf of the City by the signatures of the Mayor and the City Manager, and the corporate seal of the City shall be affixed to each bond. Ail signatures and the seal shall be printed, engraved or lithographed facsimiles except for the manual signa- ture of one of these officers on the face of each bond. When said bonds have been so executed and authenticated, they shall be delivered by the Treasurer to the purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and said purchase shall not be obligated to see to the application of the purchase price. 6. The bonds and the interest thereon shall be payable from the general obligation bond sinking fund of the City; provided, that if any payment of principal or interest shall be come due when there is not sufficient money in said fund to pay the same, the Treasurer shall nevertheless pay such principal or interest from other funds of the City, and such other funds shall be reimbursed for such advances out of the proceeds of the taxes here- inafter levied and the taxes levied for all other bonds made payable from said fund. Into said fund shall be paid the proceeds of all taxes levied pursuant to this resolution, all other taxes and moneys levied or received for or appropriated to the payment of bonds and interest made payable from said fund and any amount in excess of $1,000,000 received from the purchaser upon the delivery of the bonds. 7. The full faith, credit and taxing powers of the City are hereby irre- vocably pledged to the payment of the bonds and the interest thereon. For the purpose of producing sums which will be not less than 5% in excess of the principal of and interest on the bonds when due, there is hereby levied upon all taxable property within the corporate limits of the City, a direct, annual, ad valorem tax to be spread upon the tax rolls of the City in each of the years set forth below, in the amount set forth opposite such years, to be collected in the respective succeeding collection years: Levy Collection Year Year ;~ount 1975 1976 $240,415 1976 1977 $187,900 1977 1978 $182,000 1978 1979 $175,700 1979 1980 $195,400 1980 1981 $187,500 1981 1982 $116,300 -17'5- April 12, 1976 Said tax shall be irrepealable so long as any of said bonds are outstand- ing and unpaid; provided, that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61. 8. The City Manager is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Anoka County, together with such other information as he shall require, and to obtain from said County Auditor a certificate that said bonds have been entered on his bond register and that the tax required for the payment thereof has been levied and filed as required by law. 9. The Mayor and the City Manager, being the officers of the City charged with the responsibility for issuing the obligations pursuant to this resolu- tion, are authorized and directed to execute and deliver to the purchaser a certification in order to satisfy the provisions of Section 1.103-13 of the amended Income Tax Regulations (26 CFR Part 1) published in the Federal Reg- ister, May 5, 1973. Such certification shall state that on the basis of the facts, estimates and circumstances in existence on the date of issue and de- livery of the bonds as therein set forth, it is not expected that the pro- ceeds of the bonds will be used in such a manner that would cause the bonds to be arbitrage bonds or obligations, and the certification shall further state that to the best of the knowledge and belief of the certifying officers there are no other facts, estimates or circumstances that would materially change such expectation. 10. The officers of the City and said County Auditor 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 relating to said bonds and to the financial affairs of the City, and such other affidavits, certificates, and information as may be required to show the facts relating to the legal- ity 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 hereto- fore furnished, shall be deemed representations of the City as to the facts recited therein. Offered by Hentges, seconded by Heintz. Roll Call: Ail Ayes Resolution ~76-23 was adopted. Mayor Nawrocki stated that the bids appeared to be quite favorable with a rel- atively low interest rate. i~otiOnRoll Call: by Heintz,Ai1 Ayes seconded by Logacz, to adjourn the speci/1 meeting at 7:52 p.m. ? Bruce G. Nawrocki, Mayor Secretary </