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RES 1980-32 - 00006460RESOLUTION NO. 32 - 1980 RESOLUTION AWARDING THE SALE OF $1,755,000 GENERAL OBLIGATION SPECIAL ASSESSMENT FUND BONDS, FIXING THE FORM AND SPECIFICATION, DIRECTING THEIR EXECUTION AND DELIVERY AND PROVIDING FOR THEIR PAYMENT. BE IT RESOLVED By the City Council of the City of Fridley, Minnesota, as follows: 1. The bid of Banc Northwest and Allison Williams Company to purchase $1,755,000 General Obligation Special Assessment Fund Bonds of the City described in the notice of sale thereof is hereby found and determined to be the highest and best bid received pursuant to duly advertised notice of sale and shall be and is hereby accepted, said bid being to purchase bonds bearing interest as follows: 1982 7.25% 1987 7.35% 1992 7.60% 1997 8.00% 1983 7.25% 1988 7.35% 1993 7.70% 1998 8.10% 1984 7.25% 1989 7.40% 1994 7.75% 1999 8.20% 1985 7.30% 1990 7.40% 1995 7.80% 2000 8.30% 1986 7.30% 1991 7.50% 1996 7.90% 2001 8.40% at a price of $1,730,430.00. The sum of $9,830.00, being the amount bid in excess of $1,720,600, shall be credited to the bond sinking fund. The City Treasurer is directed to retain the good faith check of the successful bidder pending completion of the sale and delivery of the bonds, and the City Manager is directed to return the checks of the unsuccessful bidders forthwith. The Mayor and City Manager are directed to execute on behalf of the City the purchase agreement submitted by the purchasers. IA. The award and the sale of these bonds is conditioned upon the Governor of the State of Minnesota signing into law a bill adopted by the 1980 Minnesota legislature. Said bill increases the interest limitation allowed on municipal obligations from 7% to 12 %. The rate authorized by state law must be effective prior to delivery of the bonds or the award shall be null and void. 2. The City shall forthwith issue its negotiable coupon General Obligation Special Assessment Fund Bonds of 1980 in the principal amount of $1,755,000, dated May 1, 1980, being 351 in number and numbered 1 to 351, both inclusive, in the denomination of $5,000 each, all bearing interest payable February 1, 1981, and semiannually thereafter on August 1 and February 1 in each year, and maturing serially on February 1 in the years and amounts as follows: $155,000 in the year 1982; $150,000 in each of the years 1983 through 1990, both inclusive; $100,000 in the year 1991; $50,000 in each of the years 1992 and 1993; and $25,000 in each of the years 1994 to 2001, both inclusive. All bonds maturing in the years 1992 through 2001 are subject to redemption on February 1, 1991 and any interest payment date thereafter at par plus accrued interest. 3. The bonds shall be payable at the main office of the Northwestern National Bank of Minneapolis, in Minneapolis, Minnesota, as designated by the purchaser and the reasonable charge of said bank for services as paying agent shall be paid by the City. 4. It is hereby determined that the sum of $1,720,600 is the amount necessary to finance local improvements as set forth in the City Manager's Statement for Issuance of Special Assessment Fund Bonds dated March 3, 1980, and as approved in a Council resolution adopted March 3, 1980, and additional bonds in the amount of $34,400 represents the higher rate of interest authorized by MSA Section 475.56 and does not exceed two percent (2 %) of the amount authorized by the Home Rule Charter of the City. 5. The bonds and interest coupons to be thereto attached shall be substantially the form attached hereto and made a part hereof and designated as Exhibit A. M, 44 Page 2 -- RESOLUTION NO. 32 - 1980 6. The City Clerk shall obtain a copy of the proposed approving legal opinion of Messrs. LeFevere, Lefler, Pearson, O'Brien & Drawz, which shall be complete except as to dating thereof, and shall cause said opinion to be printed on each bond, together with a certificate to be signed by his facsimile signature, in substantially the following form: I hereby certify that the foregoing is a full, true and correct copy of the legal opinion executed by the above named attorneys, except I as to the dating thereof, which opinion has been handed to me for filing in my office prior to the time of bond delivery. CITY CLERK The Clerk shall obtain a copy of the opinion at the time of bond delivery and execute a separate certificate as to such opinion upon receipt of such opinion and shall file the opinion in his office. 7. The bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the facsimile signature of the Mayor and the manual signature of the City Manager and a facsimile of the City Seal of the City shall be affixed to each thereof, and the interest coupons shall be executed and authenticated by the printed facsimile signatures of the Mayor and City Manager. The said bonds, when so executed, shall be delivered by the City Treasurer to the purchaser thereof upon receipt of the purchase price, and the said purchaser shall not be obligated to see to the proper application thereof. 8. The bonds issued hereunder shall be payable from the Special Assessment Funds, as established by Section 7.12(d) of the City Charter and pursuant to all the provisions of said section provided that if any payment of principal or interest shall become due when there is not sufficient money in siad fund to pay the same, the treasurer shall pay such principal or interest from the general fund of the City and such fund shall be reimbursed for any advances out of proceeds of assessments or special taxes when collected. 9. It is hereby determined that the estimated collections of special assessments which will be available for the payment of said bonds will produce at least five percent in excess of the amounts needed to meet when due the principal and interest payments on the bonds and no ad valorem taxes are required at this time. 10. The City Clerk shall deliver to the county auditor of Anoka Conty a certified copy of this resolution and obtain his certificate in accordance with Section 475.63, Minnesota Statutes. 11. It is hereby determined that the improvements which are financed by the issuance of bonds hereunder will benefit the entire city and the city hereby covenants with the holders from time to time of said bonds as follows: (a) The City will cause the assessments for all improvements to be promptly levied so that the first installment will become collectible not later than 1981 and will take all steps necessary to assure prompt collection. (b) The City will keep complete and accurate books and records showing all receipts and disbursements in connection with said improvements, the assessments levied therefor and other funds appropriated for their payment, and all collections thereof and disbursements therefrom, moneys on hand and balance of unpaid assessments. (c) The City will cause its said books and records to be audited at least annually by qualified public accountants and will furnish copies of such audit reports to any interested person upon request. n Page 3 -- RESOLUTION NO. 32 - 1980 12. The clerk and treasurer of the City is hereby authorized and directed to prepare and furnish to the purchaser of the bonds and to the attorneys approving the same, certified copies of all proceedings and records of the City relating to said bonds and to the financial condition and affairs of the Special Assessment Fund and such certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody or under their control relating to the validity and marketability of bonds and such insturments, including any heretofore furnished, shall be deemed representations of the City as to the facts stated herein. 13. The Mayor and City Manager are hereby authorized and directed to certify that they have examined the official statement or prospectus prepared and circulated in connection with the issuance and sale of the bonds and that to the best of their knowledge and belief said statement is a complete and accurate representation of the facts and representations made therein as of the date of said official statement or prospectus. The motion for the adoption of the foregoing resolution was duly seconded by Barnette, and upon vote being taken theron the following voted in favor thereof: Nee, Barnette, Moses, Fitzpatrick, and Schneider and the following voted against the same: None. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS APRIL 14TH DAY OF APRIL, 1980. WILLIAM J. NEE - M R TEST: CITY nERK - MARVIN 45 Page 3 -- RESOLUTION NO. 32 - 1980 12. The clerk and treasurer of the City is hereby authorized and directed to prepare and furnish to the purchaser of the bonds and to the attorneys approving the same, certified copies of all proceedings and records of the City relating to said bonds and to the financial condition and affairs of the Special Assessment Fund and such certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody or under their control relating to the validity and marketability of bonds and I such insturments, including any heretofore furnished, shall be deemed representations of the City as to the facts stated herein. 13. The Mayor and City Manager are hereby authorized and directed to certify that they have examined the official statement or prospectus prepared and circulated in connection with the issuance and sale of the bonds and that to the best of their knowledge and belief said statement is a complete and accurate representation of the facts and representations made therein as of the date of said official statement or prospectus. The motion for the adoption of the foregoing resolution was duly seconded by Barnette, and upon vote being taken theron the following voted in favor thereof: Nee, Barnette, Moses, Fitzpatrick, and Schneider and the following voted against the same: None. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS APRIL 14TH DAY OF APRIL, 1980. WILLIAM J. NEE - 7R TEST: CITY nERK - MARVIN . UNSELL 45