HomeMy Public PortalAbout1992-007Extract of Minutes of Meeting
of the City Council of the City
of Medina, Hennepin County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council
of the City of Medina, Hennepin County, Minnesota, was held at the City Hall in the
City on Tuesday, February 4, 1992, commencing at 7:30 P.M.
The following members of the Council were present:
Robert Mitchell, Ann C. Thies and Philip Zietlow
Council Members
and the following were absent: Mayor Gary Acromite and Council Member
Wilfred Scherer
* * * * * * * * *
The following resolution was presented by Councilmember Thies who
moved its adoption:
RESOLUTION NO. 92-7
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $870, 000 GENERAL OBLIGATION REFUNDING
IMPROVEMENT BONDS, SERIES 1992
BE IT RESOLVED By the City Council of the City of Medina, Hennepin
County, Minnesota (City) as follows:
1. It is hereby determined that:
(a) the City is authorized by Minnesota Statutes, Chapter 475 (Act)
and Section 475.67, Subdivision 3, of the Act to issue and sell its general
obligation bonds to refund obligations and the interest thereon before the due
date of the obligations, if consistent with covenants made with the holders
thereof, when determined by the City Council to be necessary or desirable for
the reduction of debt service cost to the City or for the extension or
adjustment of maturities in relation to the resources available for their
payment;
DJR28798
ME230-146
(b) subdivision 4 of the Act permits the sale of refunding obligations
during the six month period prior to the date on which the obligations to be
refunded may be called for redemption;
(c) it is necessary and desirable to reduce debt service costs that the
City issue $870,000 General Obligation Refunding Improvement Bonds, Series
1992 (Bonds) to refund certain outstanding general obligations of the City;
(d) the outstanding bonds to be refunded (Refunded Bonds) consist
of (i) the $725,000 General Obligation Improvement Bonds, Series 1984, dated
December 1, 1984 (1984 Bonds) , of which $400,000 in principal amount is
currently callable on March 1, 1992; and (ii) the $450,000 General Obligation
Temporary Improvement Bonds, Series 1991A (Temporary Bonds), of which
$450,000 in principal amount is currently callable on any date and the 1984
Bonds and the Temporary Bonds have been duly called for redemption.
(e) the proceeds of the Bonds will finance the following costs:
Refund 1984 Bonds
Principal $400 000
Legal, fiscal, administrative 9, 200
Discount 5, 800
Subtotal $415,000
Refund Temporary Bonds
Principal $450,000
Less: Prepaid assessments 8,632
legal, fiscal, administrative 9,500
Discount 4,132
Subtotal $455 , 000
TOTAL $870,000
2. To provide moneys to refund the Refunded Bonds, the City will issue
and sell Bonds in the amount of $860,000. To provide in part the additional interest
required to market the Bonds at this time, additional Bonds will be issued in the
amount of $10,000. The excess of the purchase price of the Bonds over the sum of
$860,000 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
$870, 000 General Obligation Refunding
Improvement Bonds, Series 1992
City of Medina
Hennepin County, Minnesota
DJE28798
?SE230-136
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above
bonds will be received until 12 : 00 noon, C.T. on Tuesday, February 18, 1992, in the
offices of Ehlers and Associates in Minneapolis, 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 refunding certain general
obligation improvement bonds 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 special assessments against benefitted property.
Date and Maturities
The bonds will be issued in fully registered form, will be dated March 1, 1992,
will be in denominations of integral multiples of $5,000 each and will mature on March
1, in the years, and in the amounts as follows:
Year Amount Year Amount
1993 $ 70,000 1998 $115,000
1994 95,000 1999 115,000
1995 100,000 2000 115,000
1996 110,000 2001 50,000
1997 100,000
Redemption
The City may elect on March 1, 1998 or on any interest payment date
thereafter to redeem and prepay bonds of this issue maturing on or after March 1,
1999 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 September 1, 1992, and semiannually
thereafter on each March 1 and September 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 / 20 or 1/8 of 1 % .
Registrar
The City will name the 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.
DJK28798
ME230-146
CUSIP Numbers
The City assumes 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 its 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 pending. 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, 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.
Official Statement
The City has authorized the preparation of an Official Statement containing
pertinent information relative to the Bonds, and said Official Statement will serve as
a nearly -final Official Statement as required by Rule 15c2-12 of the Securities and
Exchange Commission. The Official Statement, when further supplemented by an
addendum or addenda specifying the interest rates of the Bonds, together with any
other information required by law, shall constitute a Final Official Statement of the
City with respect to the Bonds, as that term is defined in Rule 15c2-12. By
awarding the Bonds to any underwriter or underwriting syndicate submitting an
official Bid Form therefor, the City agrees that, no more than seven business days
after the date of such award, it shall provide without cost to the senior managing
underwriter of the syndicate to which the Bonds are awarded 25 copies of the Official
Statement and the addenda described above. The City designates the senior
managing underwriter of the syndicate to which the Bonds are awarded as its agent
for purposes of distributing copies of the Final Official Statement to each
Participating Underwriter. Any underwriter executing and delivering an Official
Bid Form with respect to the Bonds agrees thereby that if its bid is accepted by the
City (i) it shall accept such designation and (ii) it shall enter into a contractual
relationship with all Participating Underwriters of the Bonds for purposes of
assuring the receipt by each such Participating Underwriter of the Final Official
Statement .
DJK28798
KE230-146
Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned and must be
received prior to the time established above for the opening of bids. Each bid must
be unconditional. A good faith deposit in the amount of $17,400 must be submitted
with each bid. The good faith deposit must be in the form of a certified or cashiers
check or bank draft or a wire transfer of funds to Resource Bank & Trust Company,
ABA #09-10-0550-6 for further credit to Ehlers and Associates, Inc. , Bond Issue
Escrow Account #850-788-1, attention Molly Majerle, or a financial surety bond. If
a financial surety bond is used, it must be from an insurance company licensed to
issue such bond in the State of Minnesota, and preapproved by the City. Such
financial surety bond must be submitted to Ehlers and Associates, Inc. prior to the
opening of bids and must identify each bidder whose good faith deposit is guaranteed
by such financial surety bond. If the Bonds are awarded to a bidder using a
financial surety bond, then that original purchaser is required to submit its good
faith deposit in the form of a certified or cashiers check, bank draft or wire transfer
as instructed by Ehlers and Associates, Inc., not later than 3:00 p.m. Central Time
on the next business day following the award. If such good faith deposit is not
received by that time, the financial surety bond may be drawn by the City to satisfy
such good faith deposit requirement and such amount will be deducted form the
purchase price at the closing and no interest will accrue to the original purchaser.
The good faith deposit will be retained by the City as liquidated damages if the bid
is accepted and the bidder fails to comply therewith. The good faith deposit will be
returned to the purchaser at the closing for 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 discount) will be deemed the most favorable. No oral
bid and no bid of less than $860,000 plus accrued interest on all of the bonds will be
considered and the City reserves the right to reject any and all bids and to waive
any informality in any bid.
BY ORDER OF THE CITY COUNCIL
/ s / Donna Roehl
City Clerk -Treasurer
Dated: February 4, 1992.
3. The Clerk -Treasurer 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 7:30 p.m. on Tuesday, February 18, 1992, to
consider bids on the Bonds and take any other appropriate action with respect to the
Bonds.
DJK28798
ME230-146
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember
zietlow , and upon vote being taken thereon the
following members voted in favor of the motion: Mitchell, Thies and Zietlow
and the following voted against: None
whereupon the resolution was declared duly passed and adopted.
DJK28798
ME230-146
" E x h i b i t A
N O T I C E O F B O N D S A L E
$ 8 7 0 , 0 0 0
G E N E R A L O B L I G A T I O N R E F U N D I N G
I M P R O V E M E N T B O N D S , S E R I E S 1 9 9 2
C I T Y O F M E D I N A ,
H E N N E P I N C O U N T Y , M I N N E S O T A
N O T I C E I S H E R E B Y G I V E N t h a t s e a l e d b i d s f o r t h e p u r c h a s e o f t h e a b o v e
b o n d s w i l l b e r e c e i v e d u n t i l 1 2 : 0 0 N o o n , C . T . o n T u e s d a y , F e b r u a r y 1 8 , 1 9 9 2 , i n t h e
o f f i c e s o f t h e E h l e r s a n d A s s o c i a t e s i n M i n n e a p o l i s , M i n n e s o t a , a t w h i c h t i m e t h e b i d s
w i l l b e o p e n e d a n d t a b u l a t e d f o r c o n s i d e r a t i o n b y t h e C i t y C o u n c i l a t a m e e t i n g a t
7 : 3 0 p . m . o n t h e s a m e d a y . T h e b o n d s a r e o f f e r e d o n t h e f o l l o w i n g t e r m s . T h e
b o n d s w i l l b e d a t e d M a r c h 1 , 1 9 9 2 , w i l l b e a r i n t e r e s t p a y a b l e s e m i a n n u a l l y o n e a c h
M a r c h 1 a n d S e p t e m b e r 1 , c o m m e n c i n g S e p t e m b e r 1 , 1 9 9 2 , a n d w i l l m a t u r e o n M a r c h
1 i n t h e y e a r s a n d a m o u n t s a s f o l l o w s :
Y e a r A m o u n t Y e a r A m o u n t
1 9 9 3 $ 7 0 , 0 0 0 1 9 9 8 $ 1 1 5 , 0 0 0
1 9 9 4 9 5 , 0 0 0 1 9 9 9 1 1 5 , 0 0 0
1 9 9 5 1 0 0 , 0 0 0 2 0 0 0 1 1 5 , 0 0 0
1 9 9 6 1 1 0 , 0 0 0 2 0 0 1 5 0 , 0 0 0
1 9 9 7 1 0 0 , 0 0 0
T h e C i t y m a y e l e c t o n M a r c h 1 , 1 9 9 8 o r o n a n y i n t e r e s t p a y m e n t d a t e t h e r e -
a f t e r t o r e d e e m a n d p r e p a y b o n d s o f t h i s i s s u e i n w h o l e o r i n p a r t , i n i n v e r s e o r d e r
o f m a t u r i t i e s a n d b y l o t w i t h i n m a t u r i t i e s , m a t u r i n g o n o r a f t e r M a r c h 1 , 1 9 9 9 a t a
p r i c e o f p a r p l u s a c c r u e d i n t e r e s t t o d a t e o f r e d e m p t i o n .
B i d d e r s m u s t s p e c i f y a p r i c e o f n o t l e s s t h a n $ 8 6 0 , 0 0 0 p l u s a c c r u e d i n t e r e s t .
A l e g a l o p i n i o n o n t h e b o n d s w i l l b e f u r n i s h e d b y H o l m e s & G r a v e n , C h a r t e r e d ,
M i n n e a p o l i s , M i n n e s o t a . T h e p r o c e e d s o f t h e b o n d s w i l l b e u s e d t o r e f u n d c e r t a i n
o u t s t a n d i n g g e n e r a l o b l i g a t i o n s o f t h e C i t y .
B i d d e r s s h o u l d b e a w a r e t h a t t h e O f f i c i a l S t a t e m e n t t o b e d i s t r i b u t e d f o r t h e
b o n d s m a y c o n t a i n a d d i t i o n a l b i d d i n g t e r m s a n d i n f o r m a t i o n r e l a t i v e t o t h e b o n d s .
I n t h e e v e n t o f a v a r i a n c e b e t w e e n s t a t e m e n t s i n t h i s N o t i c e o f B o n d S a l e a n d t h e
O f f i c i a l S t a t e m e n t b i d d e r s m u s t c o m p l y w i t h t h e t e r m s o f t h e l a t t e r .
B Y O R D E R O F T H E C I T Y C O U N C I L
/ s / D o n n a R o e h l
C i t y C l e r k - T r e a s u r e r
D a t e d : F e b r u a r y 4 , 1 9 9 2 .
D J K 2 8 7 9 8
M E 2 3 0 - 1 4 6
Extract of Minutes of Meeting
of the City Council of the City
of Medina, Hennepin County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council
of the City of Medina, Hennepin County, Minnesota, was held at the City Hall in the
City on Tuesday, February 4, 1992, commencing at 7:30 P.M.
The following members of the Council were present:
Robert Mitchell, Ann C. Thies and Philip Zietlow
Council Members
and the following were absent: Mayor Gary Acromite and Council Member
Wilfred Scherer
* * * * * * * * *
The following resolution was presented by Councilmember Thies who
moved its adoption:
RESOLUTION NO. 92-7
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $870,000 GENERAL OBLIGATION REFUNDING
IMPROVEMENT BONDS, SERIES 1992
BE IT RESOLVED By the City Council of the City of Medina, Hennepin
County, Minnesota (City) as follows:
1. It is hereby determined that:
(a) the City is authorized by Minnesota Statutes, Chapter 475 (Act)
and Section 475.67, Subdivision 3, of the Act to issue and sell its general
obligation bonds to refund obligations and the interest thereon before the due
date of the obligations, if consistent with covenants made with the holders
thereof, when determined by the City Council to be necessary or desirable for
the reduction of debt service cost to the City or for the extension or
adjustment of maturities in relation to the resources available for their
payment;
DJR28798
)O230-146
" E x h i b i t A
N O T I C E O F B O N D S A L E
$ 8 7 0 , 0 0 0
G E N E R A L O B L I G A T I O N R E F U N D I N G
I M P R O V E M E N T B O N D S , S E R I E S 1 9 9 2
C I T Y O F M E D I N A ,
H E N N E P I N C O U N T Y , M I N N E S O T A
N O T I C E I S H E R E B Y G I V E N t h a t s e a l e d b i d s f o r t h e p u r c h a s e o f t h e a b o v e
b o n d s w i l l b e r e c e i v e d u n t i l 1 2 : 0 0 N o o n , C . T . o n T u e s d a y , F e b r u a r y 1 8 , 1 9 9 2 , i n t h e
o f f i c e s o f t h e E h l e r s a n d A s s o c i a t e s i n M i n n e a p o l i s , M i n n e s o t a , a t w h i c h t i m e t h e b i d s
w i l l b e o p e n e d a n d t a b u l a t e d f o r c o n s i d e r a t i o n b y t h e C i t y C o u n c i l a t a m e e t i n g a t
7 : 3 0 p . m . o n t h e s a m e d a y . T h e b o n d s a r e o f f e r e d o n t h e f o l l o w i n g t e r m s . T h e
b o n d s w i l l b e d a t e d M a r c h 1 , 1 9 9 2 , w i l l b e a r i n t e r e s t p a y a b l e s e m i a n n u a l l y o n e a c h
M a r c h 1 a n d S e p t e m b e r 1 , c o m m e n c i n g S e p t e m b e r 1 , 1 9 9 2 , a n d w i l l m a t u r e o n M a r c h
1 i n t h e y e a r s a n d a m o u n t s a s f o l l o w s :
Y e a r A m o u n t Y e a r A m o u n t
1 9 9 3 $ 7 0 , 0 0 0 1 9 9 8 $ 1 1 5 , 0 0 0
1 9 9 4 9 5 , 0 0 0 1 9 9 9 1 1 5 , 0 0 0
1 9 9 5 1 0 0 , 0 0 0 2 0 0 0 1 1 5 , 0 0 0
1 9 9 6 1 1 0 , 0 0 0 2 0 0 1 5 0 , 0 0 0
1 9 9 7 1 0 0 , 0 0 0
T h e C i t y m a y e l e c t o n M a r c h 1 , 1 9 9 8 o r o n a n y i n t e r e s t p a y m e n t d a t e t h e r e -
a f t e r t o r e d e e m a n d p r e p a y b o n d s o f t h i s i s s u e i n w h o l e o r i n p a r t , i n i n v e r s e o r d e r
o f m a t u r i t i e s a n d b y l o t w i t h i n m a t u r i t i e s , m a t u r i n g o n o r a f t e r M a r c h 1 , 1 9 9 9 a t a
p r i c e o f p a r p l u s a c c r u e d i n t e r e s t t o d a t e o f r e d e m p t i o n .
B i d d e r s m u s t s p e c i f y a p r i c e o f n o t l e s s t h a n $ 8 6 0 , 0 0 0 p l u s a c c r u e d i n t e r e s t .
A l e g a l o p i n i o n o n t h e b o n d s w i l l b e f u r n i s h e d b y H o l m e s & G r a v e n , C h a r t e r e d ,
M i n n e a p o l i s , M i n n e s o t a . T h e p r o c e e d s o f t h e b o n d s w i l l b e u s e d t o r e f u n d c e r t a i n
o u t s t a n d i n g g e n e r a l o b l i g a t i o n s o f t h e C i t y .
B i d d e r s s h o u l d b e a w a r e t h a t t h e O f f i c i a l S t a t e m e n t t o b e d i s t r i b u t e d f o r t h e
b o n d s m a y c o n t a i n a d d i t i o n a l b i d d i n g t e r m s a n d i n f o r m a t i o n r e l a t i v e t o t h e b o n d s .
I n t h e e v e n t o f a v a r i a n c e b e t w e e n s t a t e m e n t s i n t h i s N o t i c e o f B o n d S a l e a n d t h e
O f f i c i a l S t a t e m e n t b i d d e r s m u s t c o m p l y w i t h t h e t e r m s o f t h e l a t t e r .
B Y O R D E R O F T H E C I T Y C O U N C I L
/ s / D o n n a R o e h l
C i t y C l e r k - T r e a s u r e r
D a t e d : F e b r u a r y 4 , 1 9 9 2 .
D J K 2 8 7 9 8
M E 2 3 0 - 1 4 6