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HomeMy Public PortalAbout1981-034gi_34 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MEDINA HENNEPIN COUNTY, MINNESOTA Pursuant to due call and notice hereof, a regular meeting of the City Council of the City of Medina, was duly held on Tuesday, the 4th day of August, 1981, commencing at 7:30 o'clock p.m., C.T. present: The meeting was called to order by the Mayor. Upon roll call, the following members of the Council were Mayor Anderson; Councilmembers, Lutz, Scherer, Crosby, Reiser and the following were absent: None Councilmember Crosby introduced the following resolution and moved its adoption. A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $90,000 GENERAL OBLIGATION WATER REVENUE BONDS FOR THE PURPOSE OF PROVIDING MONEY TO ACQUIRE A WATER SYSTEM FOR THE CITY IT IS HEREBY RESOLVED by the City Council of the City of Medina, Minnesota, as follows: 1. The City Council has determined that it is necessary for the City to acquire, and the City has duly entered into a contract for the acquisition of, a municipal well and water system (the "proj- ect"), the Medina Mornin.gside Water System (the "water system" or "water plant and system"). 2. It is necessary to the sound financial management of the City that the City borrow funds to finance the following project costs: Contract Costs $90,000 3. It is hereby determined that it is necessary and expe- dient to finance the project by the issuance of the ty's Generala Obligation Water Revenue Bonds of 1981 (the "Bonds"), asend y Minnesota Statutes, Chapter 475, and Minnesota Statutes, Section 444.075. 4. The City is authorized by the provisions of Minnesota Statutes, Section 475.60, Subdivision 2 (1), to negotiate the sale of the Bonds, there having been no negotiated sale of the City's bonds within the past 90 days. 5. The bid of the Farmers State Bank of Hamel, the State Bank of Loretto, and the State Bank of Long Lake to purchase the $90,000 General Obligation Water Revenue Bonds of 1981 of the City is hereby found and determined to be a reasonable offer and shall be and is hereby accepted, such bid being to purchase the Bonds at a price of $90,000 par, for the Bonds bearing interest at the rate of eleven percent (11.00%) per annum. The Mayor and City Clerk -Treasurer are directed to enter into a purchase contract for the Bonds with the Purchasers. 6. The City of Medina shall forthwith issue and sell its General Obligation Water Revenue Bonds of 1981 in the principal amount of $90,000, dated as of date of delivery, the Bonds being 3 in number, and numbered 1 to 3, inclusive, and in the denomination of $30,000 each, and bearing interest as above set forth, all interest payable March 1, 1982, and semiannually thereafter on March 1 and September 1 in each year, and each of which Bonds shall mature in installments due on September 1 in the years and amounts as follows: YEAR AMOUNT YEAR AMOUNT 1982 $3,000 1986 $4,667 1983 3,334 1987 5,333- 1984 3,666 1988 6,000 1985 4,000 On any installment maturity date, the City may prepay, in $1,000 multiples, the principal installments on any of the Bonds, beginning with the latest then outstanding installment. 7. Both principal and interest on the Bonds shall be payable at the offices of each of the respective purchasers thereof. 8. The Bonds to be issued hereunder shall be in substantially the following form: No. $30,000 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF MEDINA GENERAL OBLIGATION WATER REVENUE BOND OF 1981 KNOW ALL MEN BY THESE PRESENTS that the City of Medina, Hennepin County, Minnesota, hereby acknowledges that it is obligated and, for value received, promises to pay to bearer, out of its General Obligation Water Revenue Bonds Sinking Fund, the principal sum hereof on September 1 in the respective years and installments as follows: YEAR INSTALLMENT 1982 $3,000 1983 3,334 1984 3,666 1985 4,000 1986 4,667 1987 5,333 1988 6,000 and to pay interest on the outstanding principal installments hereof, or portions thereof, at the rate of elevent percent (11.00%) per annum, interest to maturity payable March 1, 1982, and semiannually thereafter on the 1st day of March and the 1st day of September in each year. Both principal and interest are payable at (the offices of the 3 purchasers, respectively) 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. The principal installments hereof are subject to prepayment in whole or in part at the option of the City in multiples of $1,000 on any installment payment date, and any such prepayments shall be applied to the latest principal installment then outstanding. This bond has been issued for the purpose of providing money to aid in financing the acquisition of a municipal well and water system for the City, as authorized by Minnesota Statutes, Section 444.075, and the principal installments hereof and the interest hereon are payable primarily from the net revenues of said water plant and system, which funds are provided in a special sinking fund of the City, as set forth in a resolution adopted on August 4, 1981, en- titled, "A Resolution Providing for the Issuance and Sale of $90,000 General Obligation Water Revenue Bonds for the Purpose of Providing Money to Acquire a Water System for the City" (the "authorizing reso- lution"), to which reference is made for a full statement of rights and powers hereby conferred. The full faith and credit of the City is pledged for the payment hereof and the City Council has obligated itself to levy taxes on all of the taxable property in the City in the event of any deficiency, which taxes may be levied without limitation as to rate or amount. IT IS HEREBY CERTIFIED AND RECITED that in and by the auth- orizing resolution, the City has covenanted and agreed that it will continue to own and operate the water system free from competition by other lice utilities; that adequate insurance on said plant and system and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and disbursements relating to the Water System Fund, into which it will pay all of the gross revenues from the water system; that it will also create and maintain a General Obligation Water Revenue Bonds Sinking Fund, into which it will pay, out of the net revenues from the water system, a sum sufficient to pay the principal installments hereof and interest hereon when due; and that it will provide, by ad valorem tax levies, for any deficiencies in net revenues of the water system. IT IS FURTHER CERTIFIED AND RECITED that all acts, con- ditions 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 due form, time and manner as required by law. IN WITNESS WHEREOF, the City of Medina, Hennepin County, Minnesota, by its City Council, has caused this bond to be executed in its behalf by the manual signatures of the Mayor and City Clerk - Treasurer and the corporate seal of the City to be hereto affixed, all as of Autust 4 , 1981. (manual signature) Mayor (manual signature) City Clerk -Treasurer (City Seal) 9. The Bonds shall be reproduced under the direction of the City Clerk -Treasurer and when so prepared shall be executed on behalf of the City by the manual signatures of the Mayor and the City Clerk - Treasurer, and the seal of the City shall be affixed thereto. When the Bonds have been so executed, they shall be delivered by the Clerk - Treasurer to the purchasers thereof, upon receipt of the purchase price, and the purchasers shall not be obligated to see to the proper application of the proceeds thereof. 10. The City shall establish and continue to operate its Medina Morningside Water System Fund to which shall be credited all gross revenues of the water system and out of which shall be paid all normal and reasonable expenses of current operations of the water system. Any balance therein shall be deemed net revenues and shall be transferred, from time to time, to a General Obligation Water Revenue Bonds Sinking Fund hereby created, which fund shall be used to pay the Bonds issued hereunder and any other bonds similarly authorized. There shall always be retained in such fund a sufficient amount to pay principal of and interest on all the bonds payable from said fund, and the City Clerk -Treasurer shall report any current or anticipated deficiency in such fund to the Council. 11. The City Council covenants and agrees with the holders of the Bonds issued hereunder that so long as any installment of the Bonds remains outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) The City will continue tc maintain and efficiently operate the water plant and system as a public utility and convenience and will cause all reve- nues therefrom to be deposited in a bank account and credited to the Water System Fund as herein - above provided, and will make no expenditures from said account except for a duly authorized purpose and in accordance with this resolution. (b) The City will also maintain a separate account for the General Obligation Water Revenue Bonds Sinking Fund and will cause money to be credited to said account, from time to time, out of net revenues from the water plant and system, in sums suffi- cient to pay principal of and interest on all Bonds issued hereunder when due. (c) The City will keep and maintain proper and ade- quate books of record and account separate from all other records of the City in which will be complete and correct entries as to all transac- tions relating to the water plant and system and which shall be open to inspection and copying by any bondholder, his agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon pay- ment of a reasonable fee therefor, and said ac- counts shall be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all bond- holders upon request. (d) The City Council will cause all persons handling revenues of the water plant and system to be bonded in reasonable amounts for the protection of the City and the bondholders and will cause the funds collected on account of the operations of the water plant and system to be deposited in a bank or banks whose deposits are guaranteed under the Federal Deposit Insurance Law, (e) The Council will keep the water plant and system insured at all times against loss by fire, tornado and other risks customarily insured against, with an insurer or insurers in good standing, in such amounts as are customary for like plants, to protect the holders, from time to time, of the Bonds issued hereunder and the City from any loss due to any such casualty and will apply the pro- ceeds of such insurance to make good any such loss. (f) The City and each and all of its officers will punctually perform all duties with reference to the water plant and the system as required by the laws of the State of Minnesota. (g) The City will impose and collect charges of the nature authorized by Minnesota Statutes, Section 444.075, at the times and in the amounts required to produce net revenues adequate to pay all prin- cipal and interest when due on the Bonds and to create and maintain such reserves securing said payments as are provided in this resolution. (h) The City Council will levy general ad valorem taxes on all taxable property in the City when the net revenues of the water system are insufficient to meet the principal and interest payments on the Bonds. 12. It is hereby determined that the estimated net revenues of the water system will produce at least 5% in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. The City Clerk - Treasurer is directed to file a certified copy of this resolution with the Assistant Director of Property Taxation of Hennepin County and to obtain the certificate required by Minnesota Statutes, Section 475.63. 13. The officers of the City are hereby authorized and directed to prepare and furnish to the purchasers of the Bonds and to the attorneys approving the same, Messrs. LeFevere, Lefler, kennedy, O'Brien & Drawz, A Professional Association, of Minneapolis, Minne- sota, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity of the Bonds, and such instruments, including any heretofore furnished, shall be deemed representations of the City as to the facts stated therein. 14. It is hereby determined that no official statement or prospectus has been prepared or circulated by the City in connection with the sale of the Bonds and that the purchasers have made their own investigation concerning the City. 15. A11 the terms and provisions of this resolution shall be and constitute a covenant on the part of the City to and with each and every holder from time to time of the Bonds issued hereunder. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lutz , and upon vote being taken thereon the following voted in favor thereof: Anderson, Lutz, Crosby, Reiser, Scherer and the following voted in opposition thereto: one whereupon said resolution was declared duly passed and adopted.