HomeMy WebLinkAboutResolution 3650 4' ���} �
' RESOLUTION. # �3 6 5 0 .
� Extract of Minutes of Meeting of the
. City Council of the City of Orono
Hennepin-County, Minnesota •
Pursuant to due call and notice thereof, a regular meeting of the City Council of the
City of Orono, Minnesota, was duly held at the City Hall in the City, on Monday,
December 11, 1995 at 7:05 o'clock P.M.
The following members°were present:
Mayor Callahan, Councilmembers Hurr, Goetten and Jabbour.
and the followin�were absent: �
Councilmember Kelley �
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The Mayor announced that the meeting was convened for the purpose of considering
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proposals for the purchase of$1,910,000 General Obligation Refunding Bonds of 199�.
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The City Clerk then presented the proposals received prior to 12:00 o'clock Noon
pursuant to the Terms of Proposal for the General Obligation Refunding Bonds of 199�.
These were examined and found to be as follows:
Name of Bidder Interest Rates Purchase Price
(See following)
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BID TABULATION �
� $1,910,000 General Obligation Refunding Bonds, Series 1995
City of Orono, Minnesota
SALE: December 11, 1995
AWARD: PIPER JAFFRAY INC.
RATING: Moody's"Aa1" BBI:5.35%
NET TRUE
NAME OF BIDDER RATE YEAR PRICE INTEREST INTEREST
COST RATE
PIPER JAFFRAY INC. . 3.85% 1997 $1,907,899.00 $282,353.47 4.1150%
Minneapolis, Minnesota 3.95% 1998
4.05% 1999
4.10% 2000
' 4.125% 2001
4.15% 2002 �
DAIN BOSWORTH, INC. 4.00% 1997-2000 $1,903,769.92 $284,098.14 4.1476%
Minneapolis, Minnesota 4.10% 2001-2002
�OUNTRY CLUB BANK, N.A. 3.70% 1997 $1,901,214.00 $285,034.96 4.1620%
Kansas City, Missouri 3.80% 1998
3.90% 1999
4.00% 2000
4.10% 2001
� 420% 2002
FBS INVESTMENT SERVICES, INC. 3.70% 1997 $1,900,450.00 $284,945.35 4.1623%
Minneapolis, Minnesota 3.80% 1998
NORWEST INVESTMENT SERVICES, INC. 3.90% 1999
Minneapolis, Minnesota 4.00% 2000
4.10% 2001
4.15% 2002
HARRIS TRUST AND SAVINGS BANK 3.85% 1997 $1,900,927.50 $285,264.48 4.1675%
Chicago, Illinois 3.90% 1998
3.95% 1999
4.00% 2000
4.05% 2001
4.15% 2002
JOHN G.KINNARD&COMPANY 3.75% 1997 $1,900,259.00 $286,139.78 4.1806%
Minneapolis, Minnesota 3.85% 1998
AMERICAN BANK NATIONAL ASSOCIATION 3.95% 1999
St. Paul, Minnesota 4.00% 2000
j�OUGHERTY DAWKINS, INC. 4.10% 2001
��Minneapolis, Minnesota 4.15% 2002
JURAN&MOODY, INC.
St. Paul, Minnesota
2950 Norwest Center
Ehlers and Associates��nri. 90 South Seventh Street
Minneapolis,MN 55402-4100
L E A D E R S I N P U B L I C F I N A N C E (612)339-8291 FAX(612)339-0854
S1,910,000 Generai Obligation Refunding Bonds, Series 1995
City of Orono, Minnesota Page .
•` NET TRUE
NAME OF BIDDER RATE YEAR PRICE INTEREST INTEREST
COST RATE
MILLER&SCHROEDER FINANCIAL, INC. 3.75% 1997 $1,900,48820 $287,128.40 4.1949%
Minneapolis, Minnesota 3.85% 1998
EVEREN SECURITIES, INC. 4.00% 1999 �
Chicago, Illinois 4.05% 2000
FIRST OF AMERICA SECURITIES, INC. 4.10% 2001
Kalamazoo, Michigan 4.15% 2002
SMITH BARNEY, INC. 3.70% 1997 $1,897,241.20 �287,727.24 4.2081%
Chicago, Illinois 3.80% 1998
CRONIN&COMPANY, INC. 3.90% 1999
Minneapolis, Minnesota 4.00% 2000
4.10% 2001
4.125% 2002
UMB BANK, N.A. 3.90% 1997-1998 $1,901,042.10 �288,255.16 4.2108%
Kansas City, Missouri 4.00% 1999
4.05% 2000
4.10% 2001
4.20% 2002
COMMERCE BANK, N.A. 3.90% 1997 $1,902,360.00 $288,835.63 4.2i74%
�'Cansas City,Missouri 3.95% 1998
4.00% 1999
4.10% 2000
4.15% 2001
4.20% 2002
PRINCIPAL FINANCIAL SECURITIES, INC. 3.75% 1997 $1,902,360.00 5289,728.72 4.2290%
Dallas,Texas 3.90% 1998
4.00% 1999
4.10% 2000
4.20% 2001
' 4.25% 2002
FIRSTAR BANK MILWAUKEE, N.A. 3.80% 1997 $1,898,349.00 $290,613.60 • 4.2491%
Milwaukee, Wisconsin. 3.90% 1998
`-;,�. 4.00% 1999 .
4.05% 2000
4.10% 2001
420% 2002
GRIFFIN, KUBIK, STEPHENS 4.00% 1997-1999 $1,897,230.00 �295,478.96 4.3225%
&THOMPSON, INC. 4.10% 2000
Chicago, Illinois 4.15% 2001
4.25% 2002 .
�'1YBANK 4.30% 1997-1998 $1,910,000.00 �300,374.72 4.3755%
oston, Massachusetts 4.35% 1999
4.40% 2000-2002 �
Member Callahan introduced the following written resolution and
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moved its adoption: � � 5 0
RESOLUTION AWARDING SALE OF $1,910,000 GENER.AL
OBLIGATION REFUNDING BONDS OF 1995,
FIXING THE FORM AND SPECIFICATIONS
THEREOF, PROVIDING FOR THEIR EXECUTION AND
DELIVERY, AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED by the City Council of the City of Orono, Minnesota, as follows:
1. The proposal of piper Jaf frav znc.(the"Purchaser") to purchase the
$1,910,000 General Obligation Refunding Bonds of 1995 of the City is hereby found and
determined to be the best proposal received pursuant to the Terms of Proposal, and shall be
and is hereby accepted, said offer being to purchase Bonds bearing interest according to year
of maturity as follows:
� Maturity Interest Maturity Interest
� (Februarv 1) Rate (Februarv 1) Rate
, ' 1997 3.85% 2000 4.10%
1998 3.95% 2001 4.125%
1999 4.�5% 2�02 4.15/
2. To provide funds for refunding in advance of maturity the redeemable portions
of its outstanding General Obligation Improvement Bonds of 1985 (the "Series 1985 Bonds")
and its outstanding General Obligation Water and Sewer Bonds of 1989 (the"Series 1989
Bonds" and together with the Series 1985 Bonds, the"Prior Bonds"), the City hereby ,
determines that it is necessary and expedient to issue pursuant to Minnesota Statutes, Section
475.67, its negotiable General Obligation Refunding Bonds of 1995 (the"Bonds") in the
aggrejate principal amount of$1,910,000, dated December 26, 1995, which Bonds shall bear
interest at the rates above set forth, computed on the basis of a 360-day yeaz of twelve 30-day
months, payable August 1, 1996 and semiannually thereafter on February 1 and August 1 in
each year, and shall mature serially on February 1 in the years and amounts as follows:
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� Ye�' Amount Year Amount
1997 $305,000 2000 $345,000
1998 310,000 2001 340,000
1999 . 330,000 2002 280,000
a11 Bonds without option of prior payment. The Bonds shall be numbered R-1 upwards in
order of issuance or in such other order as the Registrar may determine and shall be in the
denomination of$5,000 each or any integral multiple thereof not exceeding the amount
maturing in any year. �
3. 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
CITY OF ORONO
No. $
GENERAL OBLIGATION
REFUNDING BOND OF 1995
Interest Rate Maturi Date of Ori�inal Issue CUSIP
December 26, 1995
Registered Owner:
Principal Amount:
The City of Orono, Hennepin County, Minnesota, for value received, hereby promises
to pay to the Registered Owner specified above, or registered assigns, without option of prior
payment, 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 December 26, 1995, 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 each year, commencing August 1, 1996, until said �
principal amount is paid. Principal is payable in lawful money of the United States of
America at the office of , in , 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 shall 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.
[Additional provisions of this Bond are contained on the reverse side hereof and such
provisions shall for all purposes have the same effect as if set forth here.]
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� <
During such time as this Bond is registered in the name of Cede& Co., as nominee of
� the Depository Trust Company of New York, New York ("DTC"), the method of payment,
notice of redemption and certain other matters are subject to the terms of the Operational
Arrangements of DTC as of the date of issuance of the Bonds as such Operational
Arrangements may be amended from time to time.
This Bond is one of an issue of Bonds in the aggregate principal amount of
$1,910,000, all of like date and tenor except as to maturity and interest rate, issued pursuant to
and in full conformity with the Constitution and Laws of the State of Minnesota, including '
Section 475.67, Minnesota Statutes, for the purpose of providing funds to refund the
redeemable portions of the City's outstanding General Obligation Improvement Bonds of
1985 (the"Series 1985 Bonds") and its outstanding General Obligation Water and Sewer
Bonds of 1989 (the"Series 1989 Bonds" and together with the Series 198� Bonds, the "Prior
Bonds"); and this Bond is payable primarily from and is secured by a lien on and pledge of the
net revenues of the Water and Sewer System of the City and from special assessments levied
for Improvement Project No. 85-1; but this Bond constitutes a general obli�ation of the City,
and to provide moneys for the prompt and full payment of said principal and interest as the
same become due the full faith and credit of the City is hereby irrevocably pled�ed, and the
City will levy ad valorem taxes on all 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 Cit�• Council
authorizing the issuance of the Bonds of this series adopted December 11; 1995 (the
"Resolution") only upon books of the City kept at the office of the Bond Re�istrar 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
attorney, 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 aggre�ate 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 RECITED 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 a11 other indebtedness of the City outstanding on the date of its
issuance, does not exceed any constitutional or statutory limitation of indebtedness.
This Bond shall 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 WITNESS 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, all as of the Date of Original Issue specified above.
Dated:
(Facsimile Si�nature)
Mayor
�
(Facsimile Si.�nature)
City Clerle
Bond Registrar's Certificate of Authentication and Registration
This is one of the Bonds described in the within mentioned Resolution and this Bond
has been registered as to principal and interest in the name of the Re�istered Owner identified
above on the registration books of the City of Orono, Minnesota.
as Bond Registraz
By
Authorized Signature .
. �
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. � ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
(Please
Print or Typewrite Name and Address of Transferee) the within Bond and all rights thereunder,
and hereby irrevocably constitutes and appoints attorney to transfer the
within Bond on the books kept for registration thereof, with full power of substitution in the
' premises.
Dated:
Please Insert Social Security Notice: The signature to this assignment
Number or Other ldentifying must correspond with the name as it appears
Number of Assignee on the face of this Bond in every particular,
Assignee �vithout alteration or any change whatever.
Signature Guaranteed:
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Signatures must be guaranteed by a
national bank or trust company or by
a brokerage firm having membership
in one of the major stock exchanges.
4. The Bonds shall be payable upon presentation at the ofFice of , in
, as Registrar and Paying Agent, or at the offices of such other
successor ajents as the City may hereafter designate upon 60 days' mailed notice to the
registered owners at their registered addresses. Interest shall be paid by check or draft of the
Registrar mailed to the registered owners at their addresses shown on the registration books on
each interest payment date unless other arrangements satisfactory to the Bond Registrar the City
and the registered owners of Bonds are made. The City shall deposit funds with the Bond
Registrar at the time and in the manner necessary to provide for the full and prompt payment of
such principal and interest.
5. The Series 1985 Bonds maturing on or after January 1, 1997 shall be called for
prior redemption on January 1, 1996 in accordance with their terms. The City Clerk has caused
contingent notice thereof to be given as provided by law and the terms of the Series 1985
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• Bonds, which action is hereby approved and ratified. The City Clerk shall cause confirming
- notice of such redemptiori to be provided promptly after the adoption of this Resolution. The
Series 1989 Bonds maturing on or after February 1, 1997 shall be called for prior redemption
on February 1, 1996 in accordance with their terms. The City Clerk shall cause notice thereof
to be given as provided by iaw and the terms of the Series 1989 Bonds.
6. � The Bonds shall be prepared in typewritten or printed form under the direction of
the City Clerk and when so prepared shall be executed on behalf of the City by the facsimile
signature of the Mayor and by the facsimile signature of the City Clerk. The Bonds sha11 not be
valid for any purpose until authenticated by the Bond Registra.r. The Bond Registrar is
' authorized and directed to register the Bonds initially issued hereunder in such names as the
Purchaser may direct. The Bonds initially issued hereunder shall be registered as of December
26, 1995, and a11 Bonds issued in exchange therefor shall be registered as of such date, or, if
issued after the first payment date, as of the most recent interest payment date on which interest
was paid or duly provided for. When the Bonds shall have been so prepared and executed, they
sha11 be delivered by the City Clerk in exchange for the purchase price and upon receipt of the
signed legal opinion of Faegre& Benson Professional Limited Liability Partnership, as Bond
Counsel, and the Purchaser shall not be required to see to the proper application of the
proceeds.
7. (a) For purposes of this paragraph 7, the following terms shall have the �
• following meanings:
"Beneficial Owner" shall mean, whenever used with respect to a Bond, the
person recorded as the beneficial owner of such Bond by a Participant on the records of such
Participant, or such person's subrogee.
"Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor
nominee of DTC with respect to the Bonds.
"DTC" shall mean the Depository Trust Company of New York, New York.
"Participants" sha11 mean those broker-dealers, banks and other financial
institutions for which DTC holds Bonds as securities depository.
"Representation Letter" shall mean the Representation Letter from the City to
DTC, substantially in the form presented to this meeting; unless a Blanket Letter of
Representations has previously been filed with DTC, in which event"Representation Letter"
shall mean such Blanket Letter of Representations as filed.
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� (b) The Bonds shall be initially issued as separate authenticated fully
registered bonds, and one Bond sha11 be issued in the principal amount of each stated maturity
of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the
bond register of the City kept by the Registrar in the name of Cede & Co., as nominee of
DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive
owner of the Bonds registered in its name for the purposes of payment of the principal of or
interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, giving any
notice permitted or required to be given to registered owners of Bonds under this Resolution,
registering the transfer of Bonds, and for all other purposes whatsoever; and neither the
Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor
the City shall have any responsibility or obligation to any Participant, any person claiming a
beneficial ownership interest in the Bonds under or through DTC or any Participant, or any
other person which is not shown on the registration books of the Registrar as being a
registered owner of any Bonds, with respect to the accuracy of any records maintained by
� DTC or any Participant, with respect to the payment by DTC or any Participant of any amount
with respect to the principal of or interest on the Bonds,with respect to any notice which is
permitted or required to be given to owners of Bonds under this Resolution,with respect to
the selection by DTC or any Participant of any person to receive payment in the event of a
partial redemption of the Bonds, or with respect to any consent given or other action taken by
DTC as registered owner of the Bonds. The Registrar shall pay a11 principal of and interest on
the Bonds only to Cede & Co. in accordance with the Representation Letter, and all such �
• payments shall be valid and effective to fully satisfy and discharge the City's obligations with
respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid.
No person other than DTC shall receive an authenticated Bond for each separate stated
maturity evidencing the obligation of the City to make payments of principal and interest.
Upon delivery by DTC to the Registrar of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede & Co., the Bonds��ill be
transferable to such new nominee in accordance with subparagraph (fl hereof.
� (c) In the event the City determines that it is in the best interest of the
Beneficial Owners that they be able to obtain Bond certificates, the City may notify DTC and
the Registrar, whereupon DTC shall notify the Participants, of the availability throu�h DTC of
Bond certificates. In such event, the Bonds will be transferable in accordance with
subparagraph (� hereof. DTC may determine to discontinue providing its services with
respect to the Bonds at any time by giving notice to the City and the Registrar and dischar�ing
its responsibilities with respect thereto under applicable law. In such event the Bonds will be
transferable in accordance with subparagraph (fl hereof.
(d) Notwithstanding any other provision of this Resolution apparently to the
contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC,
all payments with respect to the principal of and interest on such Bond and all notices with
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• respect to such Bond shall be�rnade and given, respectively, to DTC as provided in the
Representation Letter.
' (e) The execution and delivery of the Representation Letter to DTC by the �
Mayor or the City Clerk, in the form presented, with such changes, omissions, insertions and ,
revisions as the officer executing the same shall deem advisable, is hereby authorized and
execution of the Representation Letter by the Mayor or the Clerk shall be conclusive evidence
of such approval. The Representation Letter(or the Operational Arrangements referenced
therein) shall set forth certain matters with respect to, among other things, notices, consents
and approvals by registered owners of the Bonds and Beneficial Owners and payments on the
Bonds. The Registrar shall have the same rights with respect to its actions thereunder as it has
with respect to its actions under this Resolution.
(fl In the event that any transfer or exchange of Bonds is permitted under
subparagraph (b) or(c) hereof, such transfer or exchange shall be accomplished upon receipt
by the Registrar from the registered owners thereof of the Bonds to be transferred or
exchanged and appropriate instruments of transfer to the permitted transferee in accordance
with the provisions of paragraph 8 hereof.
8. As long as any of the Bonds issued hereunder shall remain outstanding, the City
shall maintain and keep at the office of the Bond Registrar an office or agency for the payment
iof the principal of and interest on such Bonds, as in this Resolution provided, and for the
registration and transfer of such Bonds, and shall also keep at said office of the Bond Registrar
books for such registration and transfer. Upon surrender for transfer of any Bond at the office
of the Bond Registrar with a written instrument of transfer satisfactory to the Bond Re?istrar,
duly executed by the registered owner or the owner's duly authorized attorney, and upon
payment of any tax, fee or other governmental charge required to be paid ��ith respect to such
transfer, the City shall execute and the Bond Registrar shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more fully registered Bonds of the
same series, of any authorized denominations and of a like aggregate principal amount, interest
rate and maturity. The Bonds, upon surrender thereof at the office of the Bond Re�istrar, may,
at the option of the registered owner thereof, be exchanged for an equal a�gregate principal
amount of Bonds of the same maturity and interest rate of any authorized denominations. In all
cases in which the privilege of exchanging Bonds or transferring fully registered Bonds is �
exercised, the City shall execute and the Bond Registrar sha11 deliver Bonds in accordance with
the provisions of this Resolution. For every such exchange or transfer of Bonds, whether
temporary or definitive, the City or the Bond Registrar may make a charge sufficient to �
reimburse it for any tax, fee or other governmental charge required to be paid with respect to
such exchange or transfer, which sum or sums shall be paid by the person requestinj such
exchange or transfer as a condition precedent to the exercise of the privilege of makin� such �
exchange or transfer. Notwithstanding any other provision of this Resolution, the cost of �
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• preparing each new Bond upon each exchange or transfer, and any other expenses of the City
or the Bond Registrar incurred in connection therewith (except any applicable tax, fee or other
governmental charge) shall be paid by the City. The City and the Bond Registrar sha11 not be
obligated to make any such exchange or transfer of Bonds during the fifteen (15) days next
preceding the date of redemption in the case of a proposed redemption of Bonds or to make any
transfer during the fifteen (15) days next preceding any February 1 or August 1 interest
payment date.
, 9. Interest on any Bond which is payable, and is punctually paid or duly provided
for, on any interest payment date sha11 be paid to the person in whose name that Bond (or one
or more Bonds for which such Bond was exchanged) is registered at the close of business on
the 15th day of the month preceding such interest payment date. Any interest on any Bond
which is payable, but is not punctually paid or duly provided for, on any interest payment date
shall forthwith cease to be payable to the registered holder on the relevant regular record date
solely by virtue of such holder having been such holder; and such defaulted interest may be
paid by the City in any lawful manner, if, after notice given by the City to the Bond Registrar of
the proposed payment pursuant to this paragraph, such payment shall be deemed practicable by
the Bond Registrar. Subject to the foregoing provisions of this paragraph, each Bond delivered
under this Resolution upon transfer of or in exchange for or in lieu of any other Bond shall
carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Bond and each such Bond shall bear interest from such date such that neither gain nor
iloss in interest shall result from such transfer, exchange or substitution.
10. As to any Bond, the City and the Bond Registrar and their respective successors,
each in its discretion, may deem and treat the person in whose name the same for the time
being shall be registered as the absolute owner thereof for all purposes and neither the City nor
the Bond Registrar nor their respective successors shall be affected by any notice to the
contrary. Payment of or on account of the principal of any such Bond shall be made only to or
upon the order of the registered owner thereof, but such registration may be changed as'above
provided. All such payments shall be valid and effectual to satisfy and discharge the liability
upon such Bond to the extent of the sum or sums so paid.
11. (a) The proceeds of the Bonds herein authorized, together with amounts on
deposit in the debt service accounts for the Prior Bonds, are hereby appropriated and shall be
applied to the redemption of the Series 1989 Bonds on February l, 1996 and the Series 1985
Bonds on January 1, 1996. All future collections of special assessments for Improvement
Project No. 85-1 (the"Improvement") are hereby irrevocably appropriated and pledged to the
payment of principal of and interest on the Bonds herein authorized and shall be deposited
when collected in the Water and Sewer Bond Account described below.
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• (b) The City has heretofore established a Water and Sewer System Fund (the
"Water and Sewer Fund") together with certain accounts therein, includinj a Water and Sewer
Bond Account, for the purpose of accounting`for revenues of the Water and Sewer System,
expenses of operation, and the payment of bonds heretofore issued. From the net revenues of
the Water and Sewer System, there shall be credited to the Water and Sewer Bond Account
amounts su�cient, together with collections of special assessments for the Improvement, to
pay principal of and interest on the Bonds when due and payable.
(c) After making the required payments into the Water and Sewer Bond
Account, all remaining net revenues in the Water and Sewer Fund shall be used for
improvements, extensions, reconstruction or additions to the Water and Sewer System, and to
redeem outstanding obligations payable from the net revenues of the Water and Sewer System,
or to the extent authorized by the City Council for any other lawful purpose; provided that the
City Council shall first determine that the moneys and investments remainin� in said fund and
net revenues from collections of such charges and special assessments for the Improvement in
succeeding years will be in amounts and available at times sufficient to provide for all
remaining installments of principal and interest on the Bonds and any additional obligations
payable therefrom and a sum at least 5% in excess thereof. If the moneys and investments
credited to the Water and Sewer Bond Account shall be or become insufficient to pay principal
and interest on the Bonds (and any additional obligations authorized hereby), any moneys in the
General Fund of the City shall be credited to the Water and Sewer Bond Account to the extent .
. of such deficiency and the amount so credited shall thereafter be reimbursed first from special
assessments for the Improvement, and next from the net revenues of the Water and Sewer
System.
(d) It is hereby estimated, found and determined that the said collections of
net revenues derived from the Water and Sewer System, together with the special assessments
for the Improvement, will be sufficient to pay when due principal of and interest on the Bonds
and a sum at least 5% in excess thereof, and no tax levy will be required for such payment; but
the said Bonds shall be the general obligation of the City, and the City will levy a general ad
valorem tax for the payment of the principal thereof and interest thereon whenever it may
appear necessary in order to provide for the full and timely payment thereof.
12. The Bonds and any obligations hereafter issued payable from the special
assessments for the Improvement and the net revenues of the Water and Sewer System, to the
extent authorized by this paragraph 12, shall be equally and ratably secured by a first lien on
and pledge of the net revenues of the Water and Sewer System and the special assessments for
the Improvement, without regard to Bond series, serial numbers, order of execution or
otherwise. The City shall have the right to issue additional obligations to be secured by a parity
lien on and ratably payable from the net revenues of the Water and Sewer System and the
special assessments for the Improvement for the purpose of providing money for improvements
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� or extensions to the Water and�Sewer System of the City. Without regard to the limitations
provided by paragraph 11 the City may issue bonds payable from the net revenues of the Water
and Sewer System and the special assessments for the Improvement:
(a) for the purpose of refunding the principal of all Bonds outstanding; or
� (b) for the purpose of refunding the principal of and interest on outstanding
Bonds not paid when due for lack of available net revenues.
13. So long as any of the Bonds are outstanding, the City covenants with and for the
benefit of each Bond holder that:
(a) . The City will establish, maintain and collect such charges of the nature
authorized by Section 444.075, Minnesota Statutes, at the times and in the amounts
� necessary so that the net revenues of the Water and Sewer System will be sufficient,
together with the special assessment for the Improvement to make the required
payments into the Water and Sewer Bond Account.
(b) The City will continue to own, operate and maintain the Water and Sewer
System of the City as a revenue-producing utility free from all liens on the property
thereof and income therefrom other than the liens herein described or provided.
� (c) The City will use its best efforts to comply with all a licable laws and
PP
regulations of the United States of America and the State of Minnesota and each
' department and agency thereof, including laws and regulations relating to public health
and water and sewer quality. The City will continue to use and operate the System to
the extent such use and operation is not prohibited by court order or regulation, but the
City may contest the validity or applicability of any law or regulation so long as the
System is not thereby subject to unreasonable penalties or risk of damage or forfeiture.
The City shall construct any improvements or extensions ultimately determined to be
necessary to comply with applicable laws or regulations so that the System may be used
and operated as a revenue-producing utility, and the City may issue additional
obligations secured by a parity lien on and ratably payable from the net revenues of the
System, as provided in paragraph 12 hereof, for the purpose of providing money for said
necessary improvements or extensions. �
14. The City Clerk is authorized and directed to prepaze and furnish to the purchaser
and to the attorneys approving the Bonds, certified copies of all proceedings and records
relating to the issuance of said General Obligation Refunding Bonds of 1995 and to the right,
power and authority of the City and its officers to issue the same, and said certified copies and
certificates shall be deemed the representations of the City as to a11 matters stated therein.
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• 15. The Official Statement relating to the Bonds, on file with the Clerk and
presented to this meeting, is hereby approved and its designation as a"near final" Official
Statement for purposes of Rule 15c2-12 promulgated by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended, and the furnishing
thereof to prospective purchasers of the Bonds are hereby ratified and confirmed, insofar as the
same relates to the Bonds and the sale thereof. �
16. The officers of the City are hereby authorized and directed to prepare and furnish
to the Secretary of the Treasury a statement meeting the information reporting requirements of
Section 149(e) of the Internal Revenue Code of 1986, as amended (the "Code"), by the 15th �
day of the second calendar month after the close of the calendar quarter in which the Bonds are
issued.
17. The City sha11 not take or permit any action that would cause the Bonds to be
"private activity bonds"within the meaning of Section 141 of the Code. The City shall comply
with the rebate requirements imposed under Section 148(fl of the Code and regulations
thereunder, including (if applicable) the requirement to make periodic calculations of the
amount subject to rebate thereunder and the requirement to make a11 required rebates to the
United States. The City expects to be exempt from the rebate requirements by reason of
Section 148(�(4)(D) of the Code. The City Clerk of the City is hereby authorized to make on
• behalf of the City all elections that he may deem necessary and expedient under Section 148 of
the Code. In addition, the City shall make no investment of funds that would cause the Bonds
to be"arbitrage bonds"within the meaning of Section 148 of the Code and regulations
thereunder. All terms used in this paragraph 17 shall have the meanings provided in the Code
and regulations thereunder.
18. The Bonds are hereby designated "qualified tax exempt obligations" for
purposes of Section 265(b)(3) of the Internal Revenue Code of 1986. �
19. ' The City Clerk shall furnish a certified copy of this resolution to the County
Auditor of Hennepin County, and obtain the County Auditor's certificate as required by law.
The motion for the adoption of the foregoing resolution was duly seconded by Member
Hurr upon vote being taken thereon the following voted in favor thereof:
Callahan, Hurr, Goetten and Jabbour
and the following voted against the same:
None
whereupon said resolution was declared duly passed and adopted.
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. STATE OF MINNESOTA j �
COUNTY OF HENNEPIN ) SS.
. �
CITY OF ORONO )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Orono,
Minnesota, hereby certify that I have carefully compared the attached and forejoing extxact of
minutes of a meeting of the City Council of said City held December 11, 1995 with the original
. thereof on file and of record in my office and the same is a full, true and complete transcript
therefrom insofar as the same relates to the issuance and sale of�1,910,000 General Obligation
Refunding Bonds of 1995 of said City.
WITNESS My hand officially and the seal of the City this l lth of �
� December, 1995.
— � r 1 .
� City Clerk
City of Orono, innesota
(Seal)
M1:0079194.01
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