01-0557R

RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $4,800,000 GENERAL OBLIGATION STREET IMPROVEMENT BONDS, SERIES 2001D AND $615,000 GENERAL OBLIGATION TRANSIT BONDS, SERIES 2001E.

BY COUNCILOR HOGG:

        BE IT RESOLVED, by the city council of the city of Duluth, Minnesota (the "City"), as follows:
                (a)     Authorization of bonds. It is hereby found, determined, and declared to be necessary, and in the best interests of the City and its residents, that the City should issue its general obligation bonds for the following purposes:
                        (1)    $4,800,000 General Obligation Street Improvement Bonds, Series 2001D, are hereby authorized and shall be issued for the purpose of financing the 2001 street improvement program, including payment of part of the interest cost of such bond issue and expenses incurred in the issuance of the bonds, pursuant to Minnesota Statutes, Chapter 475 and the City Charter; and
                        (2)    $615,000 General Obligation Transit Bonds, Series 2001E, are hereby authorized and shall be issued for the purpose of financing costs of the Duluth Transit Authority to purchase 30 new transit buses, Stride vehicles and a replacement service vehicle and through facilities improvements and renovations, as authorized by Laws of Minnesota 1974, Chapter 130, and Ordinance No. 9499, adopted July 23, 2001;
                (b)    Issuance and sale of bonds. The terms and conditions of the bonds and the sales thereof are set forth in the official terms of offering on file with the city clerk as Public Document No. _______. Each and all of the terms and provisions set forth in the official terms of offering are adopted and confirmed as the terms and conditions of the bonds and the sale thereof, and the City Council shall meet at the time and place fixed herein to consider bids for the purchase of the Bonds;
                (c)    Competitive sale of bonds. Evensen Dodge, Inc., independent financial advisor to the city, is hereby authorized to provide the notice of the sale of the bonds in accordance with Minnesota Statutes, Section 475.60, subdivision 3, and in accordance with the official terms of offering;
                (d)    Subsequent resolution. The form, specifications and provisions for repayment of the bonds shall be set forth in subsequent resolutions of this City Council.



STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize the issuance of (i) $4,800,000 General Obligation Street Improvement Bonds to provide funds necessary to finance the 2001 street improvement program, and(ii) $615,000 General Obligation Transit Bonds to provide the local match for federal and state grants for the Duluth Transit Authority to purchase 30 new transit buses and Stride vehicles and through facilities improvements and renovations authorized pursuant to Ordinance No. 9499.