HomeMy WebLinkAboutResolution 2691 .�
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RESOLUTZON #2691.
� Member Grabek introduced the following written
resolution and moved its adoption:
RESOLUTION AWARDING SALE OF GENERAL OBLIGATION
,. WATER AND SEWER REVENUE BONDS, SERIES 1989,
� FIXING THE FORM AND SPECIFICATIONS THEREOF, PROVIDING
FOR THEIR EXECUTION AND DELIVERY AND PROVIDING FUNDS FOR
THEIR PAYMENT
BE IT RESOLVED by the City Council of the City of
Orono, Minnesota, as follows :
SECTION 1 . AUTHORIZATION
1. 01. The City Council is authorized by Section
444 . 075 and Chapter 475, Minnesota Statutes, to issue its
General Obligation Water and Sewer Revenue Bonds, Series 1989
(the "Bonds") , in order to provide funds for improvements to
the Water and Sewer System of the City (the "Water and Sewer
System" ) , and it is necessary and expedient to issue the Bonds
for such purpose.
1. 02 . The Bonds are issued for the purposes of a
• water and sewer system and are not subject to any provisions of
law prescribing requiring an election or referendum therefor
under Section 444 . 075, Minnesota Statutes.
SECTION 2 . TERMS AND FORM OF THE BONDS. '
2 • 0].. 1 . The bid of Dean Witter Reynol ds. Inc. � to
purchase the $2 ,300, 000 General Obligation Water and Sewer
Revenue Bonds, Series 1989 of the City is hereby found and
determined to be the best bid received pursuant to advertised
notice of sale and shall be and is hereby accepted, said bid
being to purchase the Bonds bearing interest as follows
according to year of maturity: .
Year Interest Rate
1993 6.10 0
1994 6.20%
� 1995 6.25%
• 1996 6.25%
1997 6.25 0
1998 6.35 0
1999 6.45%
2000 6.50 0
2001 6.50%
2002 6.60 0
• at a price of $ 2.283,070.00 plus accrued interest. .
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• The good faith check of the successful bidder shall be applied
as provided in the Official Notice of Bond Sale pending
delivery of and payment for the Bonds .
2 2 . The Bonds shall be in the aggregate principal
amount, of $2, 300, 000, shall be dated September 16, 1989 , shall
be issued in denominations of $5, 000 or any integral multiple
thereof not exceeding the principal amount of Bonds maturing in
�any year, shall be numbered from R-1 upwards in order of
issuance or such other order as the Bond Registrar shall
determine and shall bear interest at the rates set forth above,
payable August 1, 1990 and semiannually thereafter on August 1
and February 1 of each year, and shall mature serially on
February 1 in the years and amounts as follows :
Year mo n Year Amo n
1993 $175, 000 1998 $225, 000
1994 $175, 000 1999 $250, 000
1995 $200, 000 2000 $275, 000
, 1996 � $200, 000 2001 $275, 000
1997 $225, 000 2002 $300, 000
• All Bonds maturing on or after February 1, 1997 are subject to
redemption in whole or in part at the option of the City in
inverse order of maturity and by lot within a maturity on
February 1, 1996 and any interest payment 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 o.f 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 shall
equal $5, 000 for each number assigned to it and so selected.
2 . 03 . The Bonds shall be payable as to principal upon
presentation at the main office of American National Bank & Trust Company
in St. Paul , Minnesota as Registrar and Paying Agent, or at
the offices of such other successor agents 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 . The City shall deposit immediately available funds with
the Bond Registrar sufficient for the payment of principal and
• interest when due. The reasonable charges of said bank for its
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• services as Bond Registrar shall be paid by the City Clerk as
an expense of the improvements .
2 . 04 . The Bonds shall be in substantially the
following form, with the necessary variations as to number,
. � interest rate and denomination, the blanks therein to be
properly� filled in, to-wit:
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(Form of Bond)
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
� CITY OF ORONO
No. R $
GENERAL OBLIGATION
WATER AND SEWER REVENUE BOND, SERIES 1989
Interest
Rate Maturity Date of Original Issue CUSIP
September 16, 1989
REGISTERED OWNER:
PRINCIPAL AMOUNT:
The City of Orono in the State of Minnesota, for
value received, hereby certifies that it is indebted and hereby
promises to pay to the registered owner specified above or
• registered assigns, the principal sum 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 sum at the interest rate specified
above from September 16, 1989 , 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 l, 1990, until said principal sum is
paid. Principal and the redemption price is payable in lawful
money�,o,f. the United States of America at the office of
in Minneapolis, Minnesota as Registrar and
Paying Agent, or at the offi.ces of such successor agents as the
City may designate 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 next preceding each interest payment date (whether or not
a business day) at the registered owner ' 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 person in whose name this Bond is registered .
on 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.
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• ADDITIONAL PROVISIONS OF THIS BOND ARE SET FORTH ON
THE REVERSE SIDE HEREOF WHICH ARE INCORPORATED HEREIN AS IF SET
FORTH HERE.
All Bonds maturing on or after February 1, 1997 are
subject to redemption and prior payment in whole or in part at
the option of the City, in inverse order of maturity and by lot
within a maturity, on February 1, 1996 and any interest payment
date thereafter at par and accrued interest. Thirty days '
prior notice will be given by mail to the registered owner
hereof and published notice of redemption will be given in the
manner provided by Minnesota Statutes, Chapter 475 .
This Bond is one of a series of Bonds in the
aggregate principal amount of Two Million Three Hundred
Thousand Dollars ($2, 300, 000) , all of like date and tenor
except for number, maturity, interest rate, redemption
privilege and denomination and is issued pursuant to and in
full conformity with the Constitution and Laws of the State of
Minnesota, including Section 444 . 075 and Chapter 475, Minnesota
Statutes, for the purpose of providing funds for the costs of
constructing improvements to the Water and Sewer System of the
City (the "Water and Sewer System") , as set forth and described
in the resolution of the City Council relating to the issuance
• of the Bonds of this series adopted September 11, 1989 (the
"Bond Resolution" ) .
The principal of and interest on the Bonds of this
series, are payable primarily from and are secured by a lien' on.
and pledqe of the net revenues of the Water and Sewer System,
but the full faith and credit of the City is hereby pledged to
the prompt payment of the principal of and interest on the
Bonds, and the City Council is obligated to levy ad valorem
taxes .on all taxable property in the City, if necessary for
. such purpose, without limitation as to rate or amount .
Reference is hereby made to Section 444 . 075, Minnesota
Statutes, and Chapter 475 , Minnesota Statutes, and to the Bond
Resolution for a description of the covenants of the City as to
the application of the proceeds of the Bonds of this series and
the moneys pledged to the payment of the Bonds and interest
thereon.
This Bond is transferable, as provided in the Bond
Resolution, only upon books of the City kept at the offices of
the Bond Registrar by the registered owner hereof in person or
by his 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 his 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
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� fully registered Bonds of the series of the same maturity,
principal amount and interest rate will be issued to the
designated transferee or transferees . . �
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 Bond
Resolution and subject to certain limitations therein set
forth, the Bonds of this series are exchangeable for a like
aggregate principal amount, maturity and interest rate of Bonds
of this series of a different authorized denomination, as
requested by the registered owner or his duly authorized
attorney, upon surrender thereof to the Bond Registrar.
It is Hereby Certified, Recited and Declared that all
acts, conditions and things required to exist, happen and be
performed precedent to and in the issuance of this Bond do
exist, have happened and have been performed in regular and due
time, form and manner as required by law; and that this Bond,
and the series of which it is a part, is within every debt and
other limit prescribed by the Constitution and laws of the
State of Minnesota.
. This Bond shall not be valid or become obligatory for
any purpose until the Authentication Certificate hereon shall
have been signed by the Bond Registrar. �
. In Witness Whereof, the City of Orono, Minnesota, �
acting by and through its City Council, has caused this Bond to
be executed with �he facsimile signature of its Mayor and
attested with the facsimile signature of the City Clerk and a
facsimile of the corporate seal of the City to be imprinted
hereon,,..�all as of the Date of Original Issue specified above.
Dated:
CITY OF ORONO
By
(Facsimile) (Facsimile)
City Clerk Mayor .
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Bond Registrar s Authentication Certificate
This is one of the Bonds described in the within
mentioned Bond Resolution.
Bond Registrar
By
Authorized Signature
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto
(Please Print or Typewrite Name and Address of assignee) 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 Notice: The signature to this
Security Number or Other assignment must correspond
wi�th t�he
Identifying Number of name as it appears on the face of
Assignee this Bond in every particular,
without alteration or any change
whatever .
Signature Guaranteed:
Signatures must be quaranteed by a national
bank or trust company or by a brokerage _
firm having membership in one of the major
stock exchanges .
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• (Form of Certificate)
CERTIFICATE AS TO LEGAL OPINION
I, Dorothy Hallin, City Clerk of the City of Orono,
Minnesota, hereby certify that except for the date line, the
above is a full, true and compared copy of the legal opinion of
Faeqre & Benson, of Minneapolis, Minnesota, which was delivered
to me upon delivery of the bonds and is now on file in my
office.
(Facsimile)
City Clerk
2 . 06 . 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 of 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. The Bond
• Registrar shall be a bank or trust company which is subject to
or who agrees to comply with the United States Securities
Exchange Commission' s transfer turnaround rules, which in
general presently require an agent to complete normal transfers
in 72 hours . Upon surrender for transfer of any Bond at the �
office of Bond Registrar with a written instrument of transfer
satisfactory to the Bond Registrar, duly executed by the
registered owner or the owner ' s duly authorized attorney, and
upon payment of any tax, fee or other governmental charge
re�uir.ed to be paid with 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. Any Bonds, upon
surrender thereof at the office of a Registrar may, at the
option of the registered owner thereof, be exchanged for an
equal aggregate 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 Bonds is exercised, the City shall execute and the
Bond Registrar shall deliver Bonds in accordance with the _
provisions of this Resolution. All Bonds originally issued
hereunder or issued pursuant to a transfer or exchange prior to
the first interest payment date shall be registered as of and
bear interest from September 16 , 1989 and all Bonds
t subsequently issued shall be registered as of and bear interest
from the last interest payment date to which interest was paid
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• or dul rovided for . For ever such exchange or transfer of
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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 requesting such exchange or transfer as a
condition precedent to the exercise of the privilege of making
such exchange or transfer. Notwithstanding any other provision
of this Resolution, the cost of preparing each new Bond upon
� each exchange or transfer, and any other expenses of the City
or the Bond Registrar incurred in connection therewith (e�cept
any applicable tax, fee or other governmental charge) shall be
paid by the City. The City and the Bond Registrar shall not be
obligated to make any such exchange or transfer of Bonds during
the fifteen (15) days next preceding the date of the first
publication or the mailing (if there is no publication) of
notice of redemption of Bonds . The City and the Bond Registrar �
shall not be required to make any transfer or exchange or any
Bonds called for redemption for which notice was published or
mailed.
2 . 07 . Interest on any Bond which is payable, and is
punctually paid or duly provided for, on any interest payment
date shall 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 have 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 that neither gain nor
loss in interest shall result from such transfer, exchange or
substitution. .
2 • O8 . 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
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• registered owner thereof, but such registration may be changed
as above provided. Al1 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.
SECTION 3 . EXECUTION AND DELIVERY.
3 . 01. The Bonds shall be prepared under the direction
of the City Clerk and when so prepared shall be executed by the
respective facsimile signatures of the Mayor and City Clerk and
facsimile of the corporate seal of the City as set forth in the
form of Bond. The text of the approving legal opinion of
Faegre & Benson, of Minneapolis, Minnesota, as bond counsel,
shall be printed on the reverse side of each Bond and shall be
certified by the facsimile signature of the City Clerk. When
said Bonds shall have been duly executed and authenticated by
the Bond Registrar in accordance with this Resolution, the same
shall be delivered to the purchaser upon payment of the
purchase price, and the receipt of the Finance Director to the
purchaser shall be a full acquittance; and the purchaser shall
not be bound to see to the application of the purchase money.
The Bonds shall not be valid for any purpose until
authenticated by the Registrar . Bonds initially issued
hereunder shall be issued in such authorized denominations and
• registered in such names as shall be designated by the �
Purchaser to the Bond Registrar.
3 • 02 . The Official Statement relating to the Bonds,
on file with the City Clerk and presented to this meeting, is .
hereby approved, and the furnishing thereof to prospective
purchasers of the Bonds is hereby ratified and confirmed,
insofar as the same relates to the Bonds and the sale thereof .
3 . 03 . If such officer finds the same to be accurate,
the Mayor or the City Clerk is authorized and directed to
furnish to the purchaser at the closing a certificate that, to
the best of the knowledge of such officer, the Official
Statement does not, at the date of closing, and did not, at the
time of sale of the Bonds, contain any untrue statement of a
material fact or omit to state any material fact necessary in
order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading .
Unless litigation shall have been commenced and be pending
questioning the Bonds, proceedings for the improvements to be
financed with the proceeds of the Bonds, or the organization of
the City or incumbency of its officers, at the closing, the _
Mayor and City Clerk shall also execute and deliver to the
successful bidder a suitable certificate as to absence of
material litigation, and the City Clerk shall also execute and '
deliver his certificate as to payment for and delivery of the
� Bonds , together with the arbitrage certificate referred to
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below and the signed approving legal opinion of Faegre &
Benson.
3 . 04 . The City Clerk is authorized and directed to
prepare and furnish to the purchaser and bond counsel approving
� the issue certified copies of this Resolution and all
ordinances, resolutions and proceedings relating to the Water
and Sewer System and the Bonds and such other proceedings or
records as may be required to show the right, power and
authority of the City to issue the Bonds and to impose charges
and provide covenants for its payment and security, and such
certified copies and certi�ficates shall be deemed
representations of the City as to all facts stated therein.
SECTION 4 . APPLICATION OF PROCEEDS.
4 . 01. The proceeds of the Bonds after payment of
issuance costs of the Bonds shall be used for improvements to
the Water and Sewer system and any remaining moneys and funds
shall be deposited in and credited to the Water and Sewer Bond
Account of the Water and Sewer Fund.
SECTION 5 . WATER FUND.
• 5 . 01. There is hereby established a Water and Sewer
Fund (herein the "Water and Sewer Fund" ) , within which fund the
following accounts :
a . Operation and Maintenance Account, to which has �
been and shall be credited the gross revenues of
the Water and Sewer System; and
b. Water and Sewer Bond Account (the "Water and
. Sewer Bond Account") , to which shall be credited
' the net revenues of the Water and Sewer System
after payment of operation and maintenance
expenses .
5 • 02 . Al1 revenues of the Water and Sewer System
shall be promptly deposited when received and credited to the
Operation and Maintenance Account, and the operation and
maintenance expenses shall be payable as a first charge from
such revenues of the Water and Sewer System and be payable from
the Operation and Maintenance Account of the Water and Sewer
Fund. The City may retain from the net revenues of the Water
and Sewer System a reasonable amount as a maintenance and _
operation reserve for the purpose of paying anticipated
maintenance and operation expenses .
• 5 . 03 . From the net revenues of the Water and Sewer
System, there shall be credited to the Water and Sewer Bond
Account on the first day of each month an amount not less than
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� one-twelfth of the total amount of principal of and interest on
the Bonds due and payable during the following year. Amounts
credited and to be credited to the Water and Sewer Revenue Bond
Account shall be used only for payment of principal of and
interest on the Bonds .
5 . 04 . 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 remaining in said fund and net revenues
from collections of such charges 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 from the net
revenues of the Water and Sewer System. It is hereby
estimated, found and determined that the said collections of
net revenues derived from the Water and Sewer System 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 .
5 . 05 . Moneys on deposit to the credit of the
Operation and Maintenance Account and the Water and Sewer Bond
Account may be invested in any obligations eligible for the
investment of municipal debt service funds . Obligations so
purchased shall be deemed at all times to be part of said
Accounts and any interest accruing thereon and profit realized
from such investments shall be credited to such Accounts . The
City shall sell, at the best price obtainable, any obligations
so purchased whenever it shall be necessary to do so in order _
to provide moneys to meet any payment of principal or interest
on the Bonds or other obligations payable from the revenues of
the Water and Sewer System and authorized hereby. Amounts on .
deposit in the Operation and Maintenance Account and the Water
• and Sewer Bond Account shall be limited as to amount an� yield
of investment to the extent necessary to prevent the Bonds from
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• becoming arbitrage bonds under Section 148 of the Internal
Revenue Code of 1986 and regulations thereunder.
SECTION 6 . PRIOR AND PARITY LIEN.
6 . 01. The Bonds and any additional obligations, to
the extent authorized by this Section 6, shall be equally and
ratably secured by a first lien on and pledge of the net
revenues of the Water and Sewer System, without regard to Bond
series, serial numbers, or'der of execution or otherwise.
6 . 02 . 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 for the purpose of providing money for improvements or
extensions to the Water and Sewer System of the City.
6 • 03 . Without regard to the limitations provided by
paragraph 6 . 02 the City may issue bonds payable from the net
revenues of the Water and Sewer System:
(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 .
SECTION 7 . FURTHER COVENANTS. So long as any of the •
Bonds are outstanding, the City covenants with and for the
benefit of each Bond holder that :
7 . 01. The City will establish, maintain and collect
su�h 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 to make the required payments into the Water and
Sewer Bond Account . �
7. 02 . 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.
7 . 03 . The City will use its best efforts to comply _
with all applicable laws and 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,
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• but the Cit ma contest the validit or a licabilit of an
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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 the 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 Section 6
hereof, for the purpose of providing money for said necessary
improvements or extensions .
SECTION 8 . MISCELLANEOUS.
8 . 01. The City covenants and agrees with the owners
of the Bonds that the investments of proceeds of the Bonds,
including the investment of any revenues pledged pursuant to
Section 6 hereof, any grant proceeds or any other revenues
pledged to the Bonds which are considered proceeds under the
applicable regulations, and accumulated sinking funds , if any,
shall be limited as to amount and yield in such manner that the
Bonds shall not be arbitrage bonds within the meaning of
Section 148 of the Internal Revenue Code of 1986 (the "Code" ) ,
and regulations thereunder. On the basis of the existing
• facts, estimates and circumstances, including the foregoing
findings and covenants, the City Council hereby certifies that
it is not expected that the proceeds of the Bonds will be used
in such manner as to cause the Bonds to be arbitrage bonds
under Section 148 of the Code and regulations thereunder . The .
City Council also finds that the e�ception for small
governmental units available under Section 148(f) (4) (C) is
applicable to the Bonds because (i) the City has general taxing
powers, (ii) the Bonds are not private activity bonds under
Section ,.141(a) of the Code, (iii) ninety-five percent or more
of the' net proceeds of the Bonds are to be used for local
governmental activities of the City and (iv) the aggregate face
amount of all tax-exempt bonds (other than private activity
bonds) during the current calendar year is not reasonably
expected to exceed $5, 000, 000 . The City Clerk shall furnish an
arbitrage certificate to the Purchaser embracing or based on
the foregoing certification at the time of delivery of the
Bonds to the Purchaser .
8 • 02 . The City Council hereby designates the Bonds to
be "qualified tax-exempt obligations" for the purposes of
Section 265 of the Code and finds that the reasonably .
anticipated amount of qualified tax-exempt obligations (other
than private activity bonds) which will be issued by the City
during the current calendar year does not exceed $10, 000, 000 .
• � 8 . 03 . The City Clerk is hereby authorized and
directed to certify a copy of this Resolution and to cause the
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• same to be filed in the office of the County Auditor under
Section 475 . 63, Minnesota Statutes , and to obtain a certificate
as to registration of the Bonds .
8 . 04 . The City Clerk and other officers and employees
of the City are hereby authorized and directed to furnish to
the attorneys approving the Bonds, on behalf of the Purchaser
of the Bonds, certified copies of all proceedings and
certificates as to facts as shown by the books and records of
the City, to show the proceedings taken in connection with the
improvements to be financed and the Bonds, and the right and
authority of the City to issue the Bonds, and all such
certified copies and certifications shall be deemed
representations of fact on the part of the City.
� The motion for the adoption of the foregoing
resolution was duly seconded by Member Goetten and upon vote
being taken thereon the following voted in favor thereof:
Grabek, Goetten, Peterson, Callahan, Nettles
and the following voted against the same:
• None
whereupon said resolution was declared duly passed and .
adopted.
•
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�w 4 r
• STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
. 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 .
foregoing extract of minutes of a meeting of the City Council
of said City held September 11, 1989 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 $ 2,300, 000 General Obligation
Water and Sewer Revenue Bonds, Series 1989 , of said City.
� WITNESS My hand officially and the seal of the City
this llth day of September, 1989 .
' �PI,�"i
� - . � - City k
- ' City of Orono, Minnesota
__ �
- �`.
r,-
(Seal)`
2758e
i �
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