78-21A
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$2~~~o~66bl\RElfUN~iN8J.~iipROVEMENT.LBONDS
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Issuer: City of Chanhassen, Minnesota
c~verning Body: City Council
Kind, date, time and place of meeting: A regular meeting held on
Nonday , May 1 , 1978, at 8:00 o'clock P.M. at the City Hall.
?1.embers present: Hayor Hobbs, Councilmen Dale Geving, John Neveaux
Nick Waritz, and Richard Pearson.
!.lembers absen t:
None
Documents Attached:
Minutes of said meeting (pages):
RESOLUTION PROVIDING FOR PUBLIC SALE OF
$2,390,000 REFUNDING IMPROVEMENT BONDS
AND OFFICIAL NOTICE OF BOND SALE
78....21A
I, the undersigned, being the duly qualified and acting
recording officer of the public corporation issuing the bonds re-
ferred to in the title of this certificate, certify that the docu-
ments attached hereto, as described above, have been carefully
compared with the original records of said corporation in my legal
custody, from which they have been transcribed; that said documents
are a correct and complete transcript of the minutes of a meeting
of the governing body of said corporation, and correct and complete
copies of all resolutions and other actions taken and of all docu- .
ments approved by the governing body at said meeting, so far as
they relate to said bon~s; and that said meeting was duly held by
the governing body at the time and place and was attended through-.
out by the members indicated above, pursuant to call and notice of
such meeting given as required by law.
31st
\"lITNESS my hand
day of
officially as such recording officer this'
May · 1978 "/7 /\ .:..
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. Signature
Donald W. Ashworth, City Manager
Name and Title
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Member
Neveaxu
introduced the following
resolution and moved its adoption:
RESOLUTION PROVIDING FOR PUBLIC SALE OF
$2,390,000 REFUNDING IMPROVEMENT. BONDS
78-21-A
BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota, as follows:
1. The City presently has outstanding $2,225~000
principal amount of bonds of the issue of Improv8ment Bonds
of 1976, Series 1, dated March 1, 1976 and $595~000 principal
amount of bonds of the issue of General Obligation Water and
Sewer Revenue Bonds, dated August 1, 1971, which outstanding ~
bonds bear interest to maturity at an average combined annual'
net interest rate of 5.776 %. The City has been advised by
Juran & Moody, Inc., financial consultants to the City, that
the interest cost to the City could be substantially reduc~d
by refunding in advance of maturity all outstanding bonds of
the above issues, and that the refunding program could, at.
present, be undertaken in such a manner as to comply with
Minnesota Statutes, Section 475.67, and applicable Federal
laws and Internal Revenue Service Regulations relating to
"arbitrage bonds." It is hereby found and determined to be
in the best interests of the City to proceed with the advertise-
ment for sale of $ 2,390,000 Refunding Improvement Bonds for
such purpose.
2. Juran & Moody, Inc. has presented to this Board
a form of the Official Notice of Sale, which is attached hereto;
and which is hereby approved and shall be placed on file by the
Manager. Each and all of the provisions of the Official Notice
of Sale are hereby adopted as the terms and conditions of said
bonds and of the sale thereof; and this Council shall meet at
the time and place specified in the Official Notice of Sale
for the purpose of considering sealed bids for the purchase of
said bonds.
3. The Clerk is authorized and directed to cause the
Official Notice of Sale to be published once in the official news-
paper of the City, and once in the Commercial West, a financial
periodical published in Minneapolis, both publications to be made
at least ten days before the date of said meeting.
Attest:
dl-~ ~.^~
City Manager
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was duly seconded by Member
Geving
The motion for the adoption of the foregoing resolution
, and upon vote
being taken thereon, the following voted in favor thereof: Mayor
Hobbs, Councilmen Geving, Pearson and Neveaux.
and the following voted against the same:
whereupon .said resolution was declared duly passed and adopted.
Councilman Waritz abstained.
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OFFICIAL NOTICE OF BOND SALE
$2,390,000
REFUNDING IMPROVEMENT BONDS
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
These bonds will be offered Monday , June 5 , 1978. Bids
will be opened at 11:00 A.M., Central Time, at the offices of
Juran & Moody, Inc., 114 East Seventh Street, St. Paul,
Minnesota 55101. The City Council will meet at 7:30 P.M.,
Central Time, of the same day at the City Hall to consider the
bids and award the sale. The offering will be upon the following
terms:
DATED AND INTEREST PAYMENTS .
All bonds will be dated June 16, 1978, and will bear interest
payable on each F~bruary 1 and August 1, to maturity, commencing
February 1, 1979.
TYPE AND PURPOSE
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All bonds will be general obligations of the Issuer for which
its unlimited taxing powers will be pledged, in addition to
special assessments and water and sewer connection charges. The
bonds will be in bearer form with interest coupons attached and
will be of the denomination of $5,000 each unless other denomina-
tions are requested by the Purchaser within 24 hours after the
award. The proceeds of the issue will be used to refund in
advance of maturity all of the following outstanding Bonds of the tity:
Bonds Refunded
Amount
Outstanding
General Obligation Water and Sewer Revenue Bonds
Dated August 1, 1971
Improvement Bonds of 1976, Series 1
Dated March 1, 1976
$ 595~000
2,225,000
$2,820,000
All bonds will mature on February 1 in the years and amounts as
follows:
Amount Year Amount Year
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-- $195,000 1980 $215,000 1987
195,000 1981 210,000 1988
205,000 1982 145,000 1989
210',:000 1983 150,000 1990
210,000 1984 125,000 1991
215,000 1985 100,000 1992
215,000 1986
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All dates are inclusive. The City reserves the right to deduct from or
add to the last maturity, in multiples of $5,000, an amount not to exceed
$25,000. The exact amount of the bond issue will be communicated to the
successful bidder within 24 hours after the award. The City also reserves
the right to specify the coupon rate for each maturity and the minimum price
to be paid for the bonds at any time prior to 12:00 noon on June 2, 1978, and
in such event will use its best efforts to notify prospective purchasers.
Any prospective purchaser may register his name and address with Juran & Moody,
Inc., City financial consultants, for the purpose of receiving such notice.
At the option of the City, the bonds maturing after February 1,
1987, shall be subject to redemption prior to maturity in inverse
order of serial numbers on said date, and any interest payment date
thereafter, at a price of par and accrued interest.
PAYING AGENT
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May be named by bidder subject to the City's acceptance which will
be assumed unless the bidder is notified within 24 hours ,.after the
City has been advised of the proposed paying agent. The ~ity will
pay customary charges, and the fee of the paying agent will be paid
in full on the date of delivery of the bonds.
CUSIP NUMBERS
The bonds will be printed without CUSIP numbers unless requested
by the purchaser who must agree in the offer for the bonds to pay
all costs and expenses thereof including printing and.CUSIP Service
Bureau charges. Any failure to print such numbers or errors in
printing shall not be cause for failure or refusal of the Purchaser
to accept delivery of and pay for the bonds in accordance with the
purchase contract, The Purchaser shall waive any extension in
delivery time due to use of the numbers and shall accept all re-
sponsibility in connection with the use of CUSIP numbers.
DELIVERY
Anywhere in the United States within 40 days. It is anticipated
that the bonds will be delivered on June 28 ",1978, subject to
the approving legal opinion of Dorsey, Windhorst, Hannaford,'
Whitney & Halladay of Minneapolis and St~' Paul, Minnesota, and
delivery of customary closing papers, including a statement.of
nonlitigation. Bond printing and the legal opinion will be paid
for by the City. Delivery will be at the place of the Purchaser's
choice. Payment must be made in Federal, or equivalent, funds,
to be immediately available on the day of delivery. The legal
opinion will be printed on the bonds.
TYPE OF BID
Seaied bids for not less than par and accrued interest from the
date of. the bonds to date of delivery must be filed with the
undersigned prior to the time of sale, together with a certified
or cashier's check in the amount of $47,800 , payable to the order
of the Treasurer of the City, to be retained as liquidated damages
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if the City fails to comply with the accepted bid. Bids for
the bonds should be addressed to:
Mr. Donald Ashworth
City Manager
c/o Juran & Moody, Inc.
114 East Seventh Street
St. Paul, Minnesota 55101
and marked on the outside "Proposal for Refunding Improvement
Bonds". No bid may be altered or withdrawn after the time
specified for bid opening.
RATES
All rates must be in integral multiplies of 5/100 of 1%., All
bonds of the same maturity must bear a single rate from the
date of issue to maturity. The maximum spread between the highest and
lowest interest rates is one percent (1%). No bid for less than par plus
accrued interest will be considered. Additional coupons may not be used.
No limitation;is placed upon the number of rates which may be specified.
AWARD
Award will be made on the basis of the low~st dollar interest
cost determined by the deduction of any premium from the total
interest on all bonds from their date to their stated ..maturity
as computed.on the basis of the schedule of bond years in the
Official Statement published for the Offering. The City reserves
the right to reject any and all bids, to waive informalities, and
to adjourn the sale.
Dated: May I I 1978.
BY ORDER OF THE CITY COUNCIL
Donald W. Ashworth
City Manager