HomeMy WebLinkAbout5836 - ADMIN Resolution - City Council - 1977/09/19September 19, 1977
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RESOLUTION NO. 5836
A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE
OF $200,000 GENERAL OBLIGATION BUILDING BONDS OF
1977 AND AUTHORIZING ADVERTISEMENT FOR BIDS
WHEREAS, this Council has the authority to issue general
obligation bonds under the provisions of Section 6.15 (b) of the City
Charter by a vote of at least six members for any public purposes not
prohibited by law; and
WHEREAS, during budget discussions in September of 1976,
discussion was held and the need investigated and determined to expand
City garage facilities to store and protect the public's investment
in capital equipment and this Council confirmed this need on September 6,
1977 (M & C No. 77-79); and
WHEREAS, it is necessary that the City now borrow the sum of
$197,500 to finance construction of an addition to the City's Municipal
Service Center (City Garage) to provide the needed storage facilities
for City equipment, and that the issuance of general obligation building
bonds is authorized by Chapter 475 of the Minnesota Statutes and the
aforementioned Section 6.15 (b) of the Home Rule Charter of the City of
St. Louis Park;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of St. Louis Park as follows:
1. It is hereby determined that it is necessary to sell bonds
to provide funds for the purpose of financing the aforedescribed building
expansion, and that the sum of $197,500 is necessary to defray the
expenses of said project.
2. It is further determined that the amount of $197,500 should
be supplemented by the issuance of additional bonds as authorized by
Minnesota Statutes Section 475.56 and that the City shall sell and issue
$200,000 of general obligation building bonds of 1977 with $2,500 of
said bonds being considered as additional interest. The sale resolution
selling these bonds shall contain a statement indicating that the bonds
of this series sold in the amount of $197,500 shall be the sum considered
necessary to finance the building expansion and further indicating that
the City is selling additional bonds to represent the higher rate of 3
interest as authorized by Minnesota Statutes and that said additional
bonds in the amount of $2,500 do not exceed two percent (2%) of the
amount otherwise authorized. That bids submitted to purchase bonds for
the total amount of $200,000 shall be at a price of not less than
$197,500 and that all amounts received by the Treasurer in excess of
$197,500 shall be credited to a sinking fund for the payment of interest
on these obligations.
3. That the City Clerk is hereby directed to cause notice
of sale to be given by publication, at least ten days in advance of
the sale, in the official newspaper, the St. Louis Park Sun, a
regular newspaper having general circulation in the City of St. Louis
Park, and in Commercial West, a financial paper published at Minneapolis,
Minnesota, with general circulation throughout the State of Minnesota,
and in the Bond Buyer, a financial newspaper published in New York City,
New York, which notice shall recite that the City of St. Louis Park
proposes to issue and sell its bonds, in denominations of $5,000 or
such higher denominations as requested by the successful bidder within
48 hours after sale of bonds, shall be numbered consecutively commencing
with number 1, shall be dated November 1, 1977, to bear interest payable
on November 1, 1978, and semiannually thereafter on the 1st day of May
and November of each year, maturing serially on November 1 in the years
and amounts as follows: $25,000 in each of the years 1978 to 1985,
both inclusive. All bonds are issued without option of prior payment.
Said notice shall recite that the City, within 40 days from
date of sale, will furnish the printed bonds and approving legal
opinion of Messrs. LeFevere, Lefler, Pearson, O'Brien and Drawz,
1100 First National Bank Building, Minneapolis, Minnesota, both
without cost to the purchaser, and that the bonds will be made payable
at any suitable bank or trust company designated by the successful
bidder, all bids to be accompanied by a good faith check in the
amount of at least $4,000 to be forfeited as liquidated damages in
the event the bid is accepted by the City and the bidder fails to
comply therewith; that no bid of less than $197,500 will be accepted;
the Council reserves the right to reject any and all bids, to waive
any informalities, and to adjourn the sale if deemed expedient.
4. That on the 20th day of October, 1977, at 1:00 o'clock
P.M. (C.T.) at a special meeting of the City Council, the Council will
open and consider sealed bids for award and sale of said $200,000
building bonds and take such other action in respect thereto as may
be found necessary or expedient.
5. The City Clerk is further authorized to combine the notice
of sale of these general obligation building bonds with the notice
of sale of $3,800,000 General Obligation Improvement Bonds of 1977,
which are authorized for sale on the same date and to provide that
the City will accept one bid for both issues.
6. The Mayor, City Clerk and City Manager are hereby authorized
and directed to review the official statement prepared to advertise
the sale of these bonds and 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.
Adopted by the City Council September 19, 1977.
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May r
Attest:
,o1A4,4,E..a_iLl
City Clerk
Reviewed for administration:
Approved as to form and legality:
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NOTICE OF BOND SALE
$3,800,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1977
and
$200,000 GENERAL OBLIGATION BUILDING BONDS OF 1977
CITY OF ST. LOUIS PARK
HENNEPIN COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council of the City of
St. Louis Park, Minnesota will meet in the Council Chambers in the City
Hall of said City on Thursday, the 20th day of October, 1977, at 1:00
P.M. (CT) for the purpose of receiving and considering sealed bids
for the purchase of $3,800,000 General Obligation Improvement Bonds
and $200,000 General Obligation Building Bonds, all bonds being dated
November 1, 1977, bearing interest payable November 1, 1978, and
semiannually thereafter on May 1 and November 1 and maturing serially
on November 1 in the years and amounts as follows:
Year
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
Improvement Bonds
$175,000
175,000
175,000
175,000
175,000
175,000
200,000
200,000
275,000
275,000
300,000
300,000
300,000
300, 000
300, 000
150,000
150, 000
Building Bonds Total
$25,000
25,000
25,000
25,000
25,000
25,000
25,000
25,000
$200, 000
200,000
200,000
200,000
200,000
200, 000
225,000
225,000
275,000
275,000
300,000
300,000
300,000
300,000
300,000
150,000
150, 00 0
All bonds maturing after November 1, 1989 shall be subject to
redemption in inverse numerical order on said date and any interest
payment date thereafter at par and accrued interest. The bonds of the
city are to be issued pursuant to Chapters 429 and 475, Minnesota
Statutes, and Section 6.15 of the City Charter of the City of St. Louis
Park. Bonds will be in ,the denomination of $5,000 each unless the
purchaser within 48 hours after award specifies a higher denomination
in multiples of $5,000.
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The bonds will bear interest at the rate or rates specified
by the successful bidder, subject to the limitations stated below.
Principal and interest will be made payable at any suitable banking
institution designated by the successful bidder within 48 hours after
bid opening subject to the approval of the City or otherwise to be
designated by the City, and the City will pay reasonable and customary
paying agency charges. Within 40 days after award of the sale and
without cost to the purchaser, the City will furnish and deliver to
the successful bidder anywhere in the Continental United States the
printed and executed bonds and the unqualified approving legal opinion
of Messrs. LeFevere, Lefler, Pearson, O'Brien and Drawz of Minneapolis,
Minnesota, and the customary final delivery papers, including a cer-
tificate showing absence of litigation. Payment must be made in
federal or other immediately available funds.
Split rate bids may be submitted stating the same rate or
rates of interest from date of issue to maturity for all ponds having
a common maturity, but rates shall not be split more than ten ways.
No basic rate applicable to bonds maturing in any one year may be
lower than the basic rate applicable to bonds maturing in any earlier
year. Each interest rate must be expressed in an integral multiple
of 1/20th of one percent (1%). No rate may exceed seven percent (7%)
per annum on any bond for any portion of its term. Additional interest
coupons may not be used. Bidders are also requested to state total
interest cost and average interest rate.
All bids must be in writing, enclosed in a sealed envelope,
be unconditional except as to the above opinion, be addressed to and
left with the City Clerk prior to the above time, be for all or none
of the $4,000,000 worth of bonds, must be accompanied by a certified
check, bank draft or cashier's check in the amount of at least $80,000
payable to the order of the City of St. Louis Park to be forfeited as
liquidated damages in the event the bid is accepted and the bidder
fails to comply therewith.
Comparison of bids will be made on the basis of total interest
cost combining both issues. No bid of less than $3,950,000 plus
accrued interest on the combined issues of $4,000,000 of General Obli-
gation Bonds at the coupon rates specified to the date of delivery will
be considered. Oral bids will not be accepted. The bid offering the
lowest total interest cost (total interest from November 1, 1977 to
stated maturities, plus any discount below par, less any cash premium
offered) on the combined issues will be deemed to be the most favorable.
The City reserves the right to waive any informality in any
bid, to reject any and all bids, and to adjourn the sale. The issuer
will assume no obligation for assignment or printing of CUSIP numbers
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on the bonds or for the correctness of any numbers printed thereon,
but will permit such printing to be done at the expense of the pur-
chaser, if the purchaser waives any extension of the time of delivery
caused thereby.
BY ORDER OF THF CITY COUNCIL
Oe:AAI gr.
Earl 1#/Hanson
City Clerk
City of St. Louis Park