HomeMy WebLinkAboutResolution 3924 , *.�'_-�,,�r
� Member Flint introduced the following written resolution and
� moved its adoption:
RESOLU'TION NO. 3924
RESOLUTION AWARDING SALE OF $1,760,000 GENERAL
OBLIGATION IMPROVEMENT BONDS, SERIES 1997,
FIXING TI�FORM AND SPECIFICATIONS
THEREOF, PROVIDING FOR THEIR EXECUTION AND
DELNERY, AND PROVIDING FOR TF�IR PAYMENT
� BE TT RESOLVED by the City Council of the City of Orono, Minnesota, as .
follows:
1. The proposal of Piper Jaffray Inc. (the"Purchaser")to purchase the
$1,760,000 General Obligation Improvement Bonds, Series 1997 of the City at a price of
$1,750,360.55 plus accrued interest is hereby found and determined to be the best proposal
received pursuant to the Terms of Proposal, and sha11 be and is hereby accepted, said offer
being to purchase Bonds beazing interest according to year of maturity as follows:
� Maturity Interest Maturity Interest .
(Februarv 11 Rate (Februarv 1) Rate
1999 4.20% 2007 4.75%
2000 4.25 2008 4.875
2001 4.45 2009 4.95
2002 4.50 � 2010 5.05
2003 4.55 2011 5.10
2004 4.60 2012 5.15
2005 4.625 2013 5.20 �
2006 � 4.65 �
2. To provide funds for the City's 1997 Improvement Projects as described
in paragraph 3 (the "Improvements"), the City hereby determines that it is necessary and
expedient to issue pursuant to Minnesota Statutes, Chapter 429, its negotiable General �
Obligation Improvement Bonds, Series 1997 (the"Bonds") in the aggregate principal amount �
of$1,760,000, dated July 1, 1997,which Bonds sha11 bear interest at the rates above set forth,
computed on the basis of a 360-day year of twelve 30-day months, payable February 1, 1998
and semiannually thereafter on February 1 and August 1 in each year, and shall mature serially
on February 1 in the yeazs and amounts as follows:
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� Year Amount Year Amount
1999 $85,000 2007 $120,000
2000 85,000 2008 125,000
2001 90,000 2009 130,000
2002 95,000 2010 140,000
2003 100,000 2011 145,000 �
2004 � 105,000 2012 155,000
2005 110,000 2013 160,000
2006 115,000 .
All Bonds maturing on or after February 1, 2006, are subject to redemption and prior payment
� in whole or in part in such order as the City may determine and by lot within a maturity at the
option of the City on February 1, 2005, and any date thereafter at par and accrued interest. In
the event of redemption by lot of Bonds of like maturity,the Bond Registrar shall assign to
each Bond of such maturity then outstanding a distinctive number for each$5,000 of the
principal amount of such Bonds and shall select by lot in the manner it determines the order of
numbers, at$5,000 for each number, for all outstanding Bonds of like maturity. The order of
. selection of Bonds to be redeemed shall be the Bonds to which were assigned numbers so
selected, but only so much of the principal amount of each Bond of a denomination of more
than$5,000 shall be redeemed as sha11 equal $5,000 for each number assigned to it and so
. selected. The Bonds shall be numbered R-1 upwards in order of issuance or in such other
order as the Registrar may determine and sha11 be in the denomination of$5,000 each or any
integral multiple thereof not exceeding the amount maturing in any year.
3. The Bonds are being issued to provide financing of estimated costs in
the minimum amount of$1,735,360, including contract price, constxuction interest and legal,
fiscal and miscellaneous costs for certain local improvements of the City pursuant to the
authority of Chapter 429, Minnesota Statutes, refened to as North Long Lake and Long Lake
County Club Sanitary Sewer Improvements, Bay Ridge/Hartwood and Brackett's Point �
Sanitary Sewer and Orono Ice Arena Sewer and Water, and also to provide additional interest
in the amount of$34,640 in the form of obligations as authorized in Section 475.56,
Minnesota Statutes, consisting of bonds maturing in 1999. The City Council has made all
necessary investigation and hereby finds and determines as follows:
a. The City Council has held a public hearing after due notice regazding
each such unprovement(except Orono Ice Arena which was initiated by petition) and
has ordered in each such improvement
b. Contract for the construction of each such improvement will be entered �
int�within the time prescribed by law. -
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� c. Each such improvement will be a special benefit to property in the City
and that the total cost of such improvements is at least the amount set forth above.
d. Special assessments for each such improvement may and will be levied
on the benefited property in an amount equal to at least 20% of the cost thereof.
4. The Bonds, the Registrar's Authentication Certificate and the form of
' assignment shall be in substantially the following form:
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� UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CTTY OF ORONO
No. �
GENERAL OBLIGATION
IMPROVEMENT BOND, SERIES 1997
Interest Rate Maturi Date of Ori�inal Issue CUSIP
July l, 1997
Registered Owner:
Principal Amount:
The City of Orono, Hennepin County, Minnesota, for value received, hereby
promises to pay to the Registered Owner spec�ed above, or registered assigns,the Principal
Amount specified above on the maturity date specified above, upon the presentation and
surrender hereof, and to pay to the Registered Owner hereof interest on such Principal
• � Amount at the Interest Rate specified above from July l, 1997, or the most recent interest
payment date to which interest has been paid or duly provided for as specified below, on
February 1 and August 1 of eachyear, commencing February 1, �T998T until said principal
amount is paid. Principal is payable in lawful money of the United States of America at the
office of Firstar Bank of Minnesota,N.A., in Minneapolis, Minnesota, as Bond Registrar or of
its successor as Bond Registrar designated by the City upon 60 days' notice to the registered
owners at their registered addresses. Interest sha11 be paid on each February 1 and August 1
interest payment date by check or draft mailed to the person in whose name this Bond is
registered at the close of business on the 15th day of the month preceding each interest
payment date(whether or not a business day) at said person's address set forth on the
registration books maintained by the Bond Registrar. Any such interest not punctually paid or
provided for will cease to be payable to the owner of record as of such regular record dates
and such defaulted interest may be paid to the person in whose name this Bond shall be
registered at the close of business on a special record date for the payment of such defaulted
interest established by the Bond Registrar.
The Bonds of this series maturing on or after February 1, 2006, are subject to
redemption at the option of the City, in whole or in part in such order as the City may
determine and by lot within a maturity, on February 1, 2005 and any date thereafter at par and
accrued interest. Thirty days' notice of prior redemption will be given by mail to the bank
� where the Bonds are payable and to the registered owners in the manner provided by Chapter
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475, Minnesota Statutes. Any defect in mailing notice of redemption shall not affect the
� validity of the proceedings for redemption. Any Bond called for redemption, and for the
payment of which moneys are set aside by the City on the redemption date, shall not bear
interest after the redemption date, regardless of any delay in its presentation.
During such time as this Bond is registered in the name of Cede& Co., as
nominee of Depository Trust Company("DTC"), the method of payment, notice of �
redemption and certain other matters are subject to the terms of a Blanket Letter of
Representations executed by the City and DTC prior to the date of issuance of the Bonds as
such Blanket Letter of Representations may be amended from time to time.
This Bond is one of an issue of Bonds in the aggregate principal amount of
� $1,760,000, all of like date and tenor except as to maturity, interest rate and redemption
privilege, issued pursuant to and in full conformity with the Constitution and Laws of the
State of Minnesota, including Chapter 429, Minnesota Statutes, for the purpose of providi.ng
funds for various sewer and water improvements identified in the Resolution described below;
and this Bond is payable primarily from taxes levied and special assessments levied or to be
levied from its Improvement Bonds of 1997 Fund, but this Bond constitutes a general
obligation of the City and to provide moneys for the prompt and full payment of said pri.ncipal
and interest as the same become due the full faith and credit of the City is hereby irrevocably
pledged, and the City will levy additional ad valorem taxes on a11 taxable property in the City,
• if required for such purpose,without limitation as to rate or amount.
This Bond is transferable, as provided by the Resolution of the City Council
authorizing the issuance of the Bonds of this series adopted June 23, 1997 (the"Resolution")
only upon books of the City kept at the office of the Bond Registrar by the Registered Owner
hereof in person or by the Registered Owner's duly authorized attorney, upon surrender of this
Bond for transfer at the office of the Bond Registrar, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Bond Registrar duly executed by,the
Registered Owner hereof or the Registered Owner's duly authorized attomey, and,upon
payment of any tax, fee or other governmental charge required to be paid with respect to such
transfer, one or more fully registered Bonds of the series of the same principal amount,
maturity and interest rate will be issued to the designated transferee or transferees. The
Registered Owner of this Bond may be treated as the absolute owner hereof for all purposes.
The Bonds of this series are issuable only as fully registered bonds without
coupons in denominations of$5,000 or any integral multiple thereof not exceeding the
principal amount maturing in any one year. As provided in the Resolution and subject to
certain limitations therein set forth, the Bonds of this series are exchangeable for a like
aggregate principal amount of Bonds of this series of a different authorized denomination, as
requested by the Registered Owner or the owner's duly authorized attorney upon surrender
thereof to the Bond Registrar.
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• IT IS HEREBY CERTIFIED AND RECTTED that all acts, conditions 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 regular and due form,time and manner as required by
law and that this Bond, together with all other indebtedness of the City outstanding on the
date of its issuance, does not exceed any constitutional or statutory limitation of indebtedness.
This Bond sha11 not be valid or become obligatory for any purpose until the
Certificate of Authentication and Registration hereon shall have been signed by the Bond
Registrar.
� IN WTINESS WHEREOF,the City of Orono, Minnesota, by its City Council,
has caused this Bond to be executed in its behalf by the facsimile signature of the Mayor and
by the facsimile signature of the City Clerk, a11 as of the Date of Original Issue specified
above.
Dated: o�.�
4
• �Facsimile Si�naturel
Mayor
,.
(Facsimile Si�nature)
City Clerk
Bond Registrar's Certificate of Authentication and Registration
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