RES 1970-79 - 0000972292
RESOLUTION NO. 79 -1970
A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $460,000
WATERWORKS BONDS
WHEREAS, the City of Fridley owns and operates a waterworks plant
and system for the purpose of supplying water to the inhabitants of the
City, and
WHEREAS, the City Council has employed engineers who have submitted
a report, recommending improvement to the water plant and sustem at an
estimated cost of $758,000, including wells, water treatment plant iron
removal, well house and connecting pipes and appurtenances of which
$309,000 will be paid from cash on hand, and,
WHEREAS, Under Section 7.15 (b) of the home rule charter of the City,
the Council is empowered by a vote of at least four of its members to authorize
the issuance of bonds to provide funds for any public purpose not prohibited
by law, and
WHEREAS, the Council has determined that the provision of funds to
construct the necessary improvements to the water plant and system is such
a public purpose and that the reasonable life expectance of the improvement
is 25 years,
NOW, THEREFORE, BE IT RESOLVED By the Council.of the City of Fridley
as follows:
1. It is hereby determined that-it is necessary and expedient to
authorize the issuance of bonds in the amount of $451,000 for the
purpose of providing money for water improvements, by vote of the Council
without submitting the proposition to the voters.
2. It is further determined that it is necessary to issue and sell
additional bonds to represent in part the higher interest presently
required to market bonds as authorized by Minnesota Statutes, Section 475.56.
Said bonds shall be in amount of $9,000. Bidders shall be authorized to
submit bids for bonds in total amount of $460,000 at a price not less than
$451,000 and any amount received by the City in excess of $451,000 shall be
credited to the debt service fund for payment of interest first accruing
on bonds issued hereunder.
3. The bonds shall be issued in accordance with the terms of the notice
of sale hereto attached.
4. The Council shall meet at the City Hall on Monday, the 1st day of
June, 1970, at 7:30 o'clock P.M. for the purpose of receiving
and considering bids for said bonds and taking such action as may be
required to effect the sale of said bonds. The City Manager shall cause
notice to be given of such sale as required by law, which shall state that
the City will furnish bonds and approving legal opinion of Messrs. Howard,
LeFevere, Lefler, Hamilton and Pearson, shall require a good faith deposit
in the amount of 20 of the par value; provided, however, that the notice
of sale of said bonds shall be incorporated in the notice of sale of
$1,330,000 assessment bonds and bidders shall be required to bid for all or
none of both issues in accordance with the notice of sale, a copy of which
is attached.
S. This resolution shall be published in full in the official news-
paper but shall take effect upon passage.
ATTEST:
E/ / I CZ%fM^ �tiul
CITV C ER = MARVIN C. BRUNSELL
MAYOR - JACK 0. KIRKHAM
I
LoW
NOTICE OF SALE
$1,330,000 Special Assessment Fund Bonds
$460,000 Waterworks Bonds
City of Fridley, Minnesota
NOTICE IS HEREBY GIVEN THAT The Council of the City of Fridley will
meet at the City Hall in the said City on Monday, June 1, 1970 at 7:30
o'clock P.M. to receive, open and consider bids for the purchase of
' $1,330,000 Special Assessment Fund Bonds and $460,000 Waterworks Bonds on
the following terms:
Date and Maturities
The bonds will be dated July 1, 1970, will be in denomination of $1,000 or
$5,000 each (bidder's option) and will mature on January 1 in the following
years and amounts:
1991 $15,000
Waterworks Bonds
Year
Amount
Year
Special Assessment Fund
Bonds
Amount
1973
$35,000
Year
Amount
Year
Amount
Year
Amount
Year
Amount
1971
75,000
1976
$95,000
1981
$45,000
1986
40,000
- 1972
$95,000
1977
$95,000
1982
$45,000
1987
$40,000
1973
$95,000
1978
$95,000
1983
$45,000
1988
$40,000
1974
$95,000
1979
$95,000
1984
$45,000
1989
$40,000
1975
$95,000
1980
$85,000
1985
$40,000
1990
$15,000
1991 $15,000
Waterworks Bonds
Year
Amount
Year
Amount
Year
Amount
1973
$35,000
1976
$45,000
1979
$50,000
1974
$40,000
1977
$45,000
1980
$55,000
1975
$40,000
1978
$50,000
1981
$55,000
1982 $45,000
Redemption Feature
Bonds maturing in the years 1983 through 1991 will each be subject to
redemption and prepayment at the option of the City and in inverse numerical
order, on January 1, 1982, and any interest payment date thereafter, at
101% par plus accrued interest.
Interest
Interest on the bonds will be payable on January 1, 1971, and semi - annually
thereafter on each January 1, and July 1. All 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.
Not more than 5 interest rates may be specified for the issue. Each rate
must be in an integral multiple of 5 /100 of 1 %, and no rate may exceed 7%.
No supplemental of "B" coupons will be permitted.
Paying Agent
Principal and interest will be made payable at any suitable bank in the
United States designated by the successful bidder within 48 hours after
award of sale, subject to approval by the City, and the City will pay the
reasonable and customary paying agency charges.
Delivery
The City will furnish, without cost to the purchaser and within forty days
after award of sale, the printed and executed bonds, the usual form of
no- litigation certificate, and the unqualified approving legal opinion of
bond counsel designated below. Delivery will be made without cost to the
purchaser anywhere in the continental United States. Payment by the
purchaser must be in immediately available funds on date of delivery.
Leeal Ooinion
An unqualified legal opinion on the bonds will be furnished by Messrs.--
Howard, Lefevere, Lefler, Hamilton and Pearson, of 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 the City is obligated and required to levy
taxes for the principal and interest thereon as the same become due without
limit as to rate or amount.
Tyne of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned and must be
received prior to the time of said meeting. Each bid must be unconditional
and must be accompanied by a cashier's or certified check or bank draft in
the amount of $35,800, payable to the City Treasurer, to be retained by the
City as liquidated damages if the bid is accepted and the bidder fails to
comply therewith. The bid authorizing the lowest net interest cost (total
interest from date of bonds to stated maturities, less any cash premium or
plus any amount less than $1,790,000 bid for principal) will be deemed the
most favorable. No oral bid and no bid of less than $1,755,000 for princi-
pal 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 COUNCIL
Homer R. Ankrum
City Manager
Fridley, Minnesota