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03-24-1941 VCM SpecialVILLAGE OF ELK RIVER COUNCIL MEETING March 24, 1941 Pursuant to due call and notice thereof, a Special meeting of the Village Council of the Village of Elk River, Sherburne County, Minnesota was duly held in the Village Hall in said Village on the 24th day of March, 1941 at 7:30 o'clock p.m.Members present: M.C. Tesch, Pres; Frank Nickerson, E.L. Shadick, and G.A. Bailey, Trustees; J.Clinton Walker, ClerkTrustee G.A. Bailey introduced the following resolution and moved its adoption: A Resolution providing for the creation of a waterworks and sewer utility plant, the construction of sanitary sewers and treatment plant, and the issuance of waterworks and sewer utility revenue bonds for the purpose of providing money for the construction thereof. Be it resolved by the Village Council of the Village of Elk River as follows: 1.It is hereby determined that it is necessary and expedient to construct and complete awaterworks and sewer system and disposal plant as a combined utility to be known as theWaterworks and Sewer Utility of the Village of Elk River.2.It is hereby determined that it is necessary to proceed with the construction of sanitarysewers and sewage disposal plant and system at an estimated cost of $144,952.00, of which$30,000 is to be provided by the issuance of waterworks and sewer utility revenue bonds,and the remainder is to be furnished out of other funds of the Village and by the issuance ofsewer warrants, and by a grant from the Works Progress Administration of the United Statesof America.3.For the purpose of providing money for the construction of sanitary sewer and sewagedisposal plant, the Village shall issue negotiate, and sell its waterworks and sewer utilityrevenue bonds in the amount of $30,000. Said bonds shall be 30 in number and numberedconsecutively from 1 to 30, both __ , in the denomination of $1,000 each dated April 1,1941, shall bear interest at the rate of 3 percent per annum, payable semi-annually on the l'tday of April and the 1st day of October in each year. Shall be payable at the main office ofNorthwestern National Bank and Trust Company of Minneapolis, Minnesota and shallmature serially on April 1, in the amount of $1000 in each of the years 1943 to 1956, both in__ , and $2000 in each of the years 1957 to 1964, both inclusive, bonds Nos 13 to 30being those maturing on and after April 1, 1955, all being subject to redemption at theoption of the Village on any interest payment date on or after April 1, 1947 at par andaccrued interest upon thirty (30) days written notice of such prior payment to the bank atwhich the bonds are payable.4.The bonds and interest coupons to be issued hereunder shall be in substantially thefollowing forms:United States of AmericaState of MinnesotaCounty of SherburneVillage of Elk RiverWaterworks and Sewer Utility Revenue BondNo._ $1,000.00 Know allmen by these presents that the Utility ofElk River, Sherburne County, Minnesota, hereby promises to pay to bearer out of the Waterworks and Sewer Utility Revenue Bondst Special Redemption Fund ofthe Village on the 1 day of April 19, the sum of One thousand dollars and to pay interest thereon out of said fund at the semiannually on the 1st day ofst April on the 1 day of October in each year until paid interest tomaturity being payable in accordance with and upon presentation and surrender of the interest coupons hereto attached as they severely become due. Both principal and interest are payable at the main office ofNorthwestern National Band and Trust Company ofMinneapolis, in the city of Minneapolis, Minnesota in any coin for currency of the United States of America, which on the date ofpayment is legal tender for public and private debts. All bonds of this issue maturing on and after April 1, 1955 are subject to redemption on April 1, 1947, or on any interest payment date thereafter, at par and accrued interest to date of such prior redemption upon thirty days prior notice of such redemption. Notice of redemption shall be given by mail to the bank at which said bonds are payable. Holders desiring to receive such notice may register their names and addresses with the Village Clerk. This bond is one of an issue of bonds in the total principal amount of $30,000, all of like date and tenor except as to denomination and maturity, which bonds have been issued for the purpose ofconstructing a sewer and disposal plant as an addition to the waterworks and sewer system as authorized byChapter ___, Laws of Minnesota for 1941. This bond and the interest thereon is payable only out of the revenue of the utility in the Waterworks and Sewer Utility Revenue Bond Special Redemption Fund of the Village and does not constitute a general indebtedness in the fun herein above provided to pay principal and interest when due, all moneys therein shall be first used and applied in pro rate payment of interest on all outstanding bonds and the balance in payment of principal of bonds in order of serial number and maturity. It ishereby certified and recited that all acts, conditions and things required by the Constitution and Laws of the Sate of Minnesota tobe done, to happen, and to be performed precedent to and in the issuance of this bond have been done, have happened, and have been performed in due form and manner as required by law; that to Village has by ordinance duly adopted provided for rates and charges sufficient to maintain the special fund; and that the Village will collect such revenues as provided bylaw and will pay the same into the said special fund. The Village further covenants and agrees that itwill at all times charge rate at least sufficient to product net revenue to pay when due the principal of and interest on this bond inso far as permitted by law. In witness whereof the Village of Elk River, Sherburne County, Minnesota by its Village Council has caused this bond to be executed in its behalf by the signature of the President of the Village Council and Village Clerk and the corporate seal to be hereunto affixed and has caused the intrust coupons to be executed and authenticated by the facsimile signatures of said offices, all as of April 1, 1941. Attest: Village Clerk President of Village Council, Elk River, Minnesota Form of Coupon) No. ____ $____ On the last day of April (October) 19__, the Village of Elk River, Sherburne County, Minnesota, will pay to bearer solely out of the Waterwork and Sewer Utility Revenue Bond Special Redemption Fund of the Village, at the main office of Northwestern National Bank and Trust Company of Minneapolis, Minneapolis, Minnesota, the sum of ______ dollars for interest then due on its Waterworks and Sewer Utility Revenue Bond dated April 1, 1941. No. ______ Village Clerk ___Pres of Village Council 5. The said bonds as herein provided shall be prepared under the direction of the Village Clerk and shall be executed on behalf of the Village be the signature of the President of the Village Council and Village Clerk, and its corporate seal shall be affixed thereto, and the interest coupons shall be executed and authenticated by the printed, engraved or lithographed facsimile signatures of said official. 6. There ishereby created aspecial redemption fund tobe known as the Waterworks and Sewer Utility Revenue Bond Special Redemption Fund of the Village for the purpose of providing money for the payment of the waterworks and sewer utility revenue bonds to be issued hereunder. There is hereby pledged to said fund as payment of the bonds herein provided and the interest thereon, the net income and revenue of the waterworks plant and system and the sewage disposal plant and system and all additions thereto, replacements and improvements thereon, after paying all necessary expenses of operation, repair, and maintenance of the plant and the Village Council shall hereafter by ordinance provide for rates and charges sufficient to maintain such fund. 7. The Village hereby covenants and agrees with the holders from time to time ofany and all of the bonds issued hereunder as follows: A) It will cause the sewer system and disposal plant to be completed, free from all liens, substantially in accordance with plans and specifications therefore heretofore adopted and approved by the Village Board with the proceeds of this issue supplemented by funds allotted therefore by the United States Works Progress Administration, and will thereafter adequately maintain and efficiently operate the same as a municipal water and sewer system and utility. B) It will not issue any other bonds for any purpose or at any time which will be payable out of the revenue of the utility and constitute a lien or charge thereon, unless paid bonds are expressly made subject to the lien and charge of all bonds issued hereunder, provided that if the principal of any bonds issued hereunder shall become due at any time when there is no money in the special fund herein provided for the payment thereof, such bonds may be refunded or the time of payment thereof may be extended to atime beyond the last maturity of the bonds issued hereunder, and such extended bonds or refunding bonds shall share on a parity with the bonds issued hereunder as to interest payments. C) It will keep and maintain proper books ofaccount separate from allother records of the Village in which complete and correct entries will bemade of all transactions relating to the waterworks and sewer plant and system which shall be subject to inspection and copying at all reasonable times and that it will furnish certified times and that it will furnish certified transcripts there from on payment of areasonable fee therefore (D)It will keep and maintain responsible rates and charges for water furnished by thewaterworks plant and system to the Village and to all other parties who may be servedthereby in accordance wit the provisional hereof and for sewage disposal services andwill make all reasonable efforts to collect such charges and will apply the moneys soreceived as herein provided(E)It will cause all persons handling such moneys to be bonded in reasonable amounts forthe protection of the Village and through a bank or banks whose deposits are guaranteedunder the Federal Deposit Insurance law.(F)It will keep the waterworks plant and disposal plant insured at all times against loss ordamage by fire, tornado, or other risks customarily insured against in such amounts asare customary for like plants to protect the holders from time to time of the bondsissued hereunder as well as the Village and the cost of such insurance shall be paid andexpense of operation.(G) The Village and each and all of its officers will punctually perform all duties withreference to the waterworks plant and sewer of the State of Minnesota.8.In event that any of the principal of or interest on the bonds issued hereunder shall becomedue and remain unpaid for more than thirty days, such nonpayment shall constitute a defaulthereunder and shall entitle the holders of a majority of the principal amount of theoutstanding bonds to declare all bonds then outstanding to be due and payable with theconsent of the Village Council and to enter into any plan for removing such default. Saidbond holders shall have all other rights granted by the Laws of The State of Minnesota forthe enforcement of the obligations hereunder.9.The offer of Juran, Moody and Rice and Allison Williams Company to purchase bondsissued hereunder, and $25,000 Sewer Warrants issued under Sections 1880 to 1893, Mason'sMinnesota Statues at par and accrued interest in accordance with their letter dated JanuarySt\ 1941 is hereby accepted and the Village Treasurer shall deliver all of said obligation onreceipt of the purchased price.The motion for the adoption of the foregoing resolution was duly seconded by Trustee E.L. Shadick and upon vote being taken thereon the following voted in favor thereof: E.L. Shadick, Frank Nickerson, G.A. Bailey, J. Clinton Walker, M.C. Tesch, and the following voted against the same: None, whereupon said resolution was declared duly passed and adopted and was declared to be in full force and effect.