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HomeMy WebLinkAbout08-07-61 . August 7, 19b1. Regular Monthly Heating of the Village Council of the Village of Lakeville was held in the Village Hall at S P. All members present except Roy Kuehn. t_~inutes of last regular and four. special meetings read ~,sid approved. Liquor Store Merchandise bills reviewed and approved. i•iotion by LeRoy Kehrer seconded by Arthur Heinz for permit by Central Telephone Co. for installation of Telephone Hooth. ?Motion carried. z~~otion by Arthur Heinz to hire Clarence Gor~.o11 far dump job starting Aug. 7, 1961, seconded by LeRoy Kehrer. ~~iotion carried. 2~iotion by Arthur Heinz seconded by Amelia Sauser to grant building permit to Richard Cross. ?~?otion carried. 1~2otion` y Kehrer seconded by Arthur Heinz. that P~oody and Spri_ngsted be inst to proceed with X165,000.00 revenue bond issue. P?otion carried.. t I~~iotion by Arthur Heinz seconded by LeRoy Kehrer to pay bills. ~~iotion carried. G~,AT; FfJND Niek ~~ahowald Policing ~ car expense X292.20 Stanley 0. Stevens Policing ~ labor 137.59 Victor Wick Labor _ dump 75.00 Peoples' Natural Gas Oo. Gas _ hall' 4.10 Central Telephone Co. Fire _ Hall _ Police 49.66 Northern States Power Go. Lights ~_Siren 169.52 Lakeville Nb for Express Freight Playground Equip. 5.17 First Nattl Bank Royal -Globe Ins. Co. 227..67 Leo.gue of T~inn. _ icipalities Piembership dues 72.00 Weyerhaeuser Co. Cement. 3.10 PtLi.nnesota Fire Extinguisher Co. b Hydrant Wrenches 33.00 Wagnerts b6 Station Gas & Oil .1.19 R. Zi. C. Products Co. Rat Pellets 200,00 Kuehn Hardware Supplies 17.92 A. E. Sorensen Supplies 3.15 Gopher Stamp ~C Die Co. Signs 103.50 Aronsonfs Implement Supplies l1.25 Trojan Playground Equipment 330.00 Mullett Construction Building R. R. Crossing St.237.50 WATER FUND Nick 2~.ahowald Care of Disp. Plant g ~1ater100.00 Manley 0.. Stevens Later 21.'75 Peoples: I~Tatuz'al Gas Co. Gas - Disp. Plant 1.40 Northern States Power Co. Power Pump Disp. Pimp 121..01 Bones~troo Rosene & Assn. Inc. Engineering June 1-30,1961 23.00 Palmer Hammer Water Dieter 5.00 V. E. Lorentson Labor- Disp. Plant 12.00 Nick P~Sahowald Labor ~~.50 ~z S. B. 59 FUND First Nat11 Bank Int. on Bonds X562.50 Motion by LeRoy Kehrer,seconded by Arthur Heinz `adjourn, I~~otion carried. ~ J~~_ CLBRK 1,OR 'f { :..2:-r.~ ,w. ~ ~ v~-~~ r pt~, Aug. 23, 1961. Special Meeting of the Village Council of the Village of Lakeville was held in the Village Hall at ~ P, l~i. All members present also ~'ir. S~rngsted T>'FUnicipal Consultant, Mr. ~leichselbaurz Architect and I•?r Benson. Village Attorney. ~iee~ting called to order by Mayor Leo Aronson. A resolution Authorizing issuance of t~-Municipal Liquor Revenue Bonds of 1961. Arthur Heinz moved we ~@@~pt the resolution, seconded bar Roy Kuehn. Plotion carried. A motion by LeRoy Kehrer to adjourn,. seconded y Kuehn. Potion carried. CL ~1AYOR ~ • RESOLUTION AUTHORIZING ISSUANCE OF MUNICIPAL LIQUOR REVENUE .BONDS OF 1961 BE LT RESOLVED By the Village Council of the Village of Lakeville, Minnesota, as follows: 1. It is hereby found, determined and declared that the Village has by Ordinance No. , duly adopted, authorized the establishment of, and has established and is operating a municipal liquor dispensary for the sale of intoxicating liquors as authorized by and in accordance with Chapter 3~0, Minnesota Statutes, and that it is necessary and expedient to provide funds for the construction of a suitable building therefor by the issuance of Revenue Bonds and that the receipts reasonably anticipated from the operation of the dispensary will be sufficient to provide net revenues in the amount required to meet payments of principal and .interest on such obligations when due and that it is for the best interests of the Village that Revenue Bonds be issued payable solely from the net revenues from the Municipal Liquor Dispensary. 2. In order to provide for the proper administration. of all funds which will be derived from the operation of the dis- pensary and in order to provide security for the bonds to be issued hereunder, the Village Treasurer shall maintain a separate Liquor Dispensary Municipal Building Fund with the following sub- accounts (A) A Building Construction Account to which shall be credited all proceeds received from the sale of the bonds issued hereunder and any other amounts which may be appropriated for the purpose of constructing a municipal building to house the liquor dispensary. The moneys therein shall be used solely for the purpose of paying for the costs of construction of such building, and any surplus shall be transferred to the sinking and interest account hereinafter provided for. (B) An Operation and Maintenance Account to which shall be credited, as received, all receipts from the operation of the Municipal Liquor Dispensary. There shall be charged against such account all items of disbursement which by sound accounting practices constitute normal and reasonable costs of current opera- tion and maintenance of the dispensary. .Such costs shall include compensation for the manager and other necessary employees, in- surance, utility services, costs of replacement of merchandise sold and similar expense items. There shall be retained in ..said account an amount which will be sufficient to pay all anticipated expenditures for such current operation and maintenance for one month in advance. Any balance therein shall be deemed net revenue. (C~ A Sinking and Interest Account to which shall be credited on the first secular day of each calendar month, com- mencing on October 1, 1861, the amount of one-twelfth of the total amount of principal and interest due for said bonds issued .pursuant to this resolution for. the period from October 1, last, to October 1, next, from the net revenues in the Operation and Maintenance Account to pay principal and interest on the bonds until said bonds and interest have been fully paid. In addition, commencing with November 1, 1961, there. shall be credited to a surplus account from the net revenues in the Operation and Mainten- ance Account the sum of $300 on the lst day of each month until a reserve of $3,000 has been accumulated over and above the amount required to pay principal and interest coming due within the next year. The monies constituting the13,000 reserve shall be used only to the extent necessary for the payment of principal and interest on said revenue bonds whenever other monies in the Sinking and Interest .Account are insufficient thereof, and whenever so used said balance shall be restored by the transfer of additional monies from the net revenues in the Operation and Maintenance Account. All said monthly credits shall be cumulative and in the event the earnings are insufficient to make the credits required herein, the difference between the amount in fact credited and the amount required hereunder shall be made up out of the net revenue for the following period or periods. Provided, however, that the monies constituting the ~~.3,000 reserve maybe used to prepay bonds, when such prepayment will retire all bonds of this issue then out- , standing. 3. The Village Clerk .shall .maintain two separate bank accounts, each separate from all other accounts of the Village. .The funds of the Sinking and.Interest Account and Surplus Account shall be deposited in a bank mutually acceptable to the. Council and the successful bidder for the bonds. All funds may be invested in all legal investments for Villages. The Village reserves the right and privilege of issuing and selling refunding bonds if and to the extent needed to refund maturing bonds of the issue herein authorized, if monies in the Sinking and Interest Account and Surplus Account are at any time insufficient for the payment in full of the principal and interest due thereon, which refunding bonds shall be payable from said fund on a parity with this issue as to interest, but shall mature sub- sequent to all of the bonds payable from said fund which are to remain outstanding upon the completion of such refunding. 5. The Village also reserves the right and privilege of issuing bonds payable from .surplus net revenues of the liquor dispensary, without regard to the limitations set forth in Para- graph provided that such bonds are expressly made subject and junior to the lien and charge on the net revenues in favor of bonds payable from the Sinking and Interest Account and Surplus Account. • .Provided, however, that the Village may authorize the issuance of additional .Municipal Building Revenue Bonds or other obliga- tions payable from the revenues of the liquor dispensary and on a parity as to lien upon the earnings of such dispensary with the bonds authorized to be issued hereunder if, but only if, the net revenues derived from the ownership. and operation of said dispensary, after provision for the payment of the necessary expenses for current operation, maintenance and ordinary repairs, shall have been, for each of the two calendar years immediately preceding the date of such additional issue in an amount at least one and one-half times the average annual interest and principal requirements of the. bonds issued hereunder and such additional bonds, during the then remaining life of the bonds issued hereunder. 6. The Village of Lakeville hereby certifies and re- presents to, and covenants and agrees with, the purchaser and holders from time to time of each bond issued hereunder as followse 6.1. As long as any of said bonds are outstanding, the Village will continue its ownership and operation of said dis- pensary as a revenue producing utility and convenience, in the manner authorized and subject to the restrictions imposed by .the Statutes and Laws of the State of Minnesota including sec- . tions 30.20 and 30.25, Minnesota Statutes relating to elections on the licensing of intoxicating liquors, and will not authorize the establishment or operation of any other establishment within the Village for the on-sale or off-sale of intoxicating. liquors at retail, and the Village will maintain the dispensary building, furnishings, equipment and merchandise in good condition, and free from all liens, provided that purchase money liens may be created on merchandise acquired for resale, or such .merchandise may be acquired subject to liens existing at the time of acquisition. 6.2. If any properties constituting capital assets of the dispensary shall be sold and disposed of, it shall be only at their fair market value, and the proceeds of such sale or disposition .shall be used either to procure other capital assets or applied to pay principal of and interest on bonds issued hereunder. No such sale or-sales shall be made at times or prices such as to .imperil the prompt and full payment of the bonds issued hereunder and the interest thereon. 6.3. .The Village will procure and keep in force insurance on the dispensary building and the equipment and furnishings thereof and all stocks of merchandise, protecting against loss or damage by fire, tornado, windstorm, flood, theft and all other causes customarily insured against for like properties, in amounts sufficient to cover t • • total loss thereof, and will procure and keep in force suitable. fidelity bonds covering all employees handling monies of the dispensary. The bond of the liquor store manager, and bonds of other employees shall be in such amounts as the council shall determine will be adequate to protect the Village and the holders of bonds issued hereunder. In the event of loss covered by said insurance policies or bonds the proceeds shall be used to repair or restore the damage or to retire bonds payable from the revenues of said dispensary. The Village will further keep in force a liability insurance policy (covering its operation of said dispensary) in the maximum amount possible. .Said policy shall specifically provide for the payment by the insurance company on behalf of the insured of all sums which the Village shall be obligated to pay by reason of liability imposed upon it by law for injuries or damage to persons, other than employees, including liability imposed by reason of M.S.A. 30.95. 6.~+. The Village will continue its "Liquor Dispensary Funds" and establish and continue therein the accounts specified in paragraph 2 hereof and its subdivisions, and will cause proper and adequate books and records of account to be kept separate from all other records of the Village, reflecting all receipts and dis- bursements relating to said dispensary and its operation. .All of said books and records shall be open to inspection and copying at all reasonable times by the holder of any of said bonds or his agent or attorney, and the Village will, without cost, furnish copies of any portions thereof reasonably requested by any bond- holder. .The Village will cause annual operating statements to be prepared and an independent audit of books of the dispensary to be made by a competent public accountant, within ninety days after the close of such fiscal year, and will furnish a copy thereof without cost to the purchaser of said bonds, and, upon request, to any bondholder. 6.5. The gross and net revenues of the dispensary will be used and applied only as prescribed in paragraph 2 hereof and its subdivisions. .The Village will at all times maintain operating policies concerning the purchase and sale of merchandise and do and perform all other acts and things necessary to assure that the net revenues collected will be at least sufficient to meet all payments of principal and interest on the bonds and to establish and main- tain the reserve therefor above defined. 6.6. In the event that monies in said "Liquor Dispensary Fund" shall at any time be insufficient to pay principal and interest then due on bonds issued hereunder, said monies shall first be ap- plied to pay the accrued interest on all such bonds then outstanding, and the balance shall be applied in payment of maturing principal, in order of the serial numbers,;;Lowe°st numbers first,. of the bonds which are then due and payable. ~ • 6.7. .The appropriation and pledge of revenues herein- above made to the Liquor Dispensary Municipal Building Fund and its sub-accounts shall at all times constitute an irrevocable pledge and appropriation for the benefit and security of the holders of bonds issued hereunder, and the Village will not issue any additional bonds or other evidences of indebtedness or incur or suffer to be incurred any obligation payable from said revenues., except as expressly authorized in paragraphs ~ and 5. 6.8. Each and all of the foregoing provisions of this resolution, which in any wise tend to secure or assure prompt and .full payment of the principal of and interest on bonds issued hereunder will be promptly and faithfully performed and carried out by the Village-and its officers and agents. 6.g. The holders of 20 percent or more in .aggregate principal amount of bonds under this resolution and at any time. outstanding may, either at law or in equity, by suit, action or other proceedings protect and enforce the rights of all holders of bonds issued hereunder and then outstanding, or enforce and compel the performance of any and all of the covenants and duties herein specified to be performed by the Village or its officers and agents. 6.10. The Village further covenants and agrees that as long as any of the bonds issued hereunder or any bonds issued to refund the same remain outstanding, all real and personal propert~~s~' acquired by the Village from the proceeds of bonds issued hereunder or from revenues derived from such properties or from the operation .thereof shall be and are hereby irrevocably appropriated to be used only for the liquor dispensary purposes of the Village, including payment of the principal of and interest on said bonds, and shall not be devoted to any other use or purpose; that upon any discon- tinuance of the operation of the liquor dispensary as a municipally owned revenue producing convenience or utility, while any of said bonds remain outstanding, all of the bonds then outstanding shall forthwith be and become, immediately due and payable, notwithstanding any provisions therein or herein to the contrary, and all such real and personal property, including the stock of merchandise, shall be sold and disposed of as specified in part 6.2 hereof, and the net proceeds thereof and any working capital then on hand are hereby irrevocably appropriated to be used so far as need for the prorata payment of the outstanding bonds and interest thereon. 1-. . ~ . , • 7. ..The officers of the. Village are hereby authorized and directed to prepare and furnish to the purchaser of said bonds and to the attorneys approving the legality thereof certified copies of such proceedings and records of the Village relating to the authorization and issuance of said bonds and the_establishment of said dispensary, and affidavits and certificates as to all other matters appearing in their official records or otherwise known to them which shall be reasonably necessary to evidence the validity and marketability of said bonds and all such certified copies, certificates and affidavits, including any heretofore Furnished, shall constitute the representations of said Village as to the truth of the statements contained therein. 8. This Council shall meet at the time and place specified in the form of notice hereinafter contained for the purpose of receiving and considering bids for and awarding the sale of 1.65,000 Municipal Liquor Revenue Bonds. of 1861. 9. The Clerk is hereby authorized and directed to cause notice of the time, place and purpose of said meeting to be published at least 10 days in advance of said meeting in the official news- - paper of the Village and the Commercial West published at Minneapolis, Minnesota, which notices shall be in substantially the following form: Si.,. 10. ..The terms and provisions of the foregoing form of notice are hereby adopted as the terms and conditions of said bonds and of the sale thereof. Member $uehn seconded the motion for the adoption of said resolution, and upon a vote being taken thereon. the following voted in favor thereof: AranSan Sauser Heinz $ehrer $ue hn and the following voted .against the same: NOAe Whereupon said resolution was declared duly passed .and adopted.