78-70
LL~{'i'JLlU\TJON OF I'iINUTES REL.\'i'HIC 't'O
$990,000 GENERAL OBLIGATION TEMPORARY
~ ~ ' IMPROVEMENT BONDS OF 19 78
I,;suer: City of Chanhassen, Minnesota
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City Council
:' i.:!d, date, time Clnd place of meeting: A regular meeting,
held on Monday, December 11, 1978, at 7:30 P.M., at the City Hall
::_~nb2rs present: Mayor Hobbs, Councilmen Pearson, Neveaux & - Geving.
nembers absent: Councilman Waritz
Docu..rnents A-ttached:
Minutes of said meeting (pages): 1 and 2
RESOLUTION NO. 78-70
:RESOLUTION AWARDING SALE OF $990,000
GENERAL OBLIGATION TEMPORARY
IMPROVEMENT BONDS OF 1978
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RESOLUTION NO. 78-71
RESOLUTION AUTHORIZING THE ISSUANCE, FIXING
THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $990,000 GENERAL OBLIGATION
TEMPORARY IMPROVEMENT BONDS OF 1978
I ,the undersigned, being the duly qualified CLDd 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 \-Thich they have been transcribed; tha-t said docllillents
are a correct and complete transcript of the minutes of a meeting
of the governing body of said corporation, and correct and cOJ;1plete
copies of all resolutions and other actions taken and of all docu-
m::~nts approved by the governin~1 body at seid mee ting 1 so far as
they relate to said bonds; 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 cctll and notice of
such r.1eeting given as requirec1 by 12.'.-1.
18th
\\IITNESS
day of
my hand officially as such recording officer this
December 'm, ,'.
~' QfLo~,
Signature
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Donald W. Ashworth, City Manager
Name and 'l'i tle
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The City Manager presented to the Council affidavits
showing publication in the official newspaper and the
Commercial West of notice of sale of $990,000 General Obligation
Temporary Improvement Bonds of 1978 of the City, for which
sealed bids were to be received and considered at this meeting
in accordance with Resolution No. 78-68 adopted by the City
Council on November 20, 1978. Said affidavits were examined
and found satisfactory and directed to be placed on file.
The City Manager then announced that ~e
sealed
bids had been received at his office prior to 7:30 P.M.
pursuant to said notice of call for bids. The bids were
Name of Bidder
Bid For
Principal
Interest
Rates
Total Interest Cost
- Net Average Rate
BIDDER
NET INfEREST .RA1E
(RATE)
INTEREST RATE
TIlE FIRST NATIONAL PAN[{ 5.00% - 1981
OF SAINI' PAUL PURCHASE PRICE: $972,001.80 $166,498.20
Robert W. Baird & Canpany, (5 . 6060'7..)
Inc.
PANCl'ORTIiWEST 5.4C17. - 1981
Cronin & Marcotte, Inc. PURCHASE PRICE: $980,100.00 $170,280.00
(5.7333%)
FIRST NATIONAL BAN<. OF 5.507.. - 1981
MINNEAPOUS PURCHASE PRICE: $983,070.00 $170,280.00
M. H. Novick & Canpany (5. 7333'7..)
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Councilperson Pearson
then introduced the
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following resolution and moved its adoption:
RESOLUTION NO. 78-70
RESOLUTION AWARDING SALE OF $990,000.
GENERAL OBLIGATION TEMPORARY
IMPROVEMENT BONDS OF 1978
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BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota., that the bid\ of 'IheFirstNational Bank
of Sairrt: Paul , of
Saint Paul , Minnesota, and associates, to purchase the
$990,000 General Obligation Temporary Improvement Bonds of
1978, to be dated December 1, 1978, and to be issued in
accordance with the notice of sale heretofore duly published,
is hereby found and declared to be the most favorable bid,
received pursuant to said notice of sale, and is hereby
accepted, said bid being to purchase the bonds at a price
of $ 972 001.80 and accrued interest on all bonds from date
thereof to the date of their ma turi ty ,the bonds to bear
interest at the rate of 5.00% per annum. The Mayor and
City Manager are authorized and directed to endorse a copy of
said bid to show the City's acceptance and to return it to
said bidder. The City Treasurer is directed to retain the
good faith check of the successful bidder and to return all
other good faith checks forthwith-
~~~
Jf7 (J(L~ Mayor ----
~nager
Attest:
The motion for the adoption of the foregoing
resolution was duly seconded by Councilperson Geving
and upon vote being taken thereon, the following voted in
favor" thereof: Mayor Hobbs, Councilmen Pearson, Neveaux and Geving.
and the following voted against the same:
None
whereupon the resolution was declared duly passed and
e adopted, and was signed by the Mayor and attested by
the City Manager.
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Councilperson Geving
then introduced the
following resolution and moved its adoption:
RESOLUTION NO. 78- 71
RESOLUTION AUTHORIZING THE ISSUANCE, FIXING
THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $990,000 GENERAL OBLIGATION
TEMPORARY IMPROVEMENT BONDS OF 1978
BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota, as follows:
1. Bonds Authorized and Sold. This Council, by
its Resolution No. 78- 68, adopted November 20, 1978, authorizing
the issuance of $990,000 General Obligation Temporary Improvement
Bonds of 1978 of the City to finance various local improvement
designated in the resolution. All of the provisions of said
resolution are incorporated herein and made a part hereof.
Said bonds having been sold at public sale in accordance
with law shall be prepared and delivered to the purchaser
thereof forthwith.
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2. Bond Terms. The bonds shall be designated
General Obligation Temporary Improvement Bonds of 1978,
shall be dated December 1, 1978, shall be 198 in number
and numbered from 1 to 198, inclusive, lowest numbers
first, shall mature on December 1, 1981, and shall bear
interest from datepf issue until paid or duly called for
redemption at the rate of5.606(\ per annum, represented by
appropriate interest coupons, and payable semiannually
on June 1 and December 1 of each year, commencing December
1, 1979. All of the bonds shall be subject to redemption
and prepayment at the option of the City, in inverse order
of serial numbers, on December 1, 1979 and any interest
payment date thereafter, at par plus accrued interest.
Notice of call for redemption shall be mailed to the
Bank at which principal and interest are then payable, not
less than 30 days prior to the date specified for redemption
in a daily or weekly periodical published in a Minnesota
city of the first class or its metropolitan area, which
circulates throughout the state and furnishes financial
news..as part of its service. Published notice shall be
effective without mailing. Both principal and interest
shall be payable at The First National Bank of Saint Paul
, iri Saint Paul , Minnesota, and the
City hereby agrees to pay the reasonable and customary
charges of such paying agent for the receipt and disburse-
ment thereof.
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3. Bond and Coupon Forms. The bonds of this
issue and the coupons to be appurtenant thereto shall
be in substantially the following form:
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
GENERAL OBLIGATION TEMPORARY
IMPROVEMENT BOND OF 1978
No.
$5,000
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KNOW ALL MEN BY THESE PRESENTS that the City of
Chanhassen, a duly organized and existing municipal
corpori;ition of Carver and Hennepin Counties, Minnesota,
acknowledges itself to be indebted and for value received
promises to pay to bearer the sum of FIVE THOUSAND DOLLARS
on the 1st day of December, 1981, or on a date prior thereto
on which this bond shall have been duly called for redemption,
and to pay interest thereon at the rate of
percent ( %) per annum from the date
hereof until said principal sum is paid or until this bond
is duly called for redemption, payable semiannually on each
June 1 and December 1, commencing December 1, 1979, in accordance
with and upon presentation and surrender of the interest coupons
appurtenant hereto. Both principal and interest are payable
at , in
, Minnesota, in any coin or currency of the
United States of America, which on the respp-ctive dates of
payment is legal tender for public and private debts. For the
prompt and full payment of such principal and interest as the
same respectively become due, the full faith and credit and taxing
powers of the City are hereby irrevocably pledged.
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This bond is one of an issue in the aggregate
principal amount of $990,000, all of like date and tenor
except as to serial number, all issued for the purpose of
defraying expenses incurred and to be incurred in construct-
ing local improvements in said City heretofore duly ordered
and contracted to be made in accordance with the provisions
of Minnesota Statutes, Chapter 429, and is issued pursuant
to and in full conformity with the Constitution and laws of
the State of Minnesota thereunto enabling, and pursuant to
resolutions duly adopted by the City Council. This bond is
payable primarily from the 1978 Temporary Improvement Bond
Fund of said City, to which fund there has been irrevocably
appropriated the general ad valorem taxes and the special
assessments to be levied in respect to the improvements
financed by this issue, and into which fund there are to be
paid the proceeds of definitive improvement bonds which the
City is required by law to issue at or prior to the maturity
of this bond for the purpose of refunding the same to the
extent that the same cannot be paid from assessments and
taxes theretofore collected and from other municipal funds
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which are properly available and are appropriated by the
Council for that purpose.
The bonds of this issue are each subject to
redemption and prepayment at the option of the City and
in inverse order of serial numbers on December 1, 1979 and
any interest payment date thereafter, at a price of par plus
accrued interest. Not less than 30 days before the date
specified for redemption, the City Manager will cause notice
of call for redemption to be published in a Minnesota city
of the first class, or its metropolitan area, which
circulates throughout the state and furnishes financial
news as part of its service.
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IT IS CERTIFIED AND RECITED that all acts,
conditions and things required by the Constitution and laws
of the State of Minnesota to be done, to exist, to happen
and to be performed preliminary to and in the issuance of
this bond in order to make it a valid and binding obligation
of the City in accordance with its terms, have been done, do
exist, have happened and have been performed as sorequiredi that
the Council is required by law to pay the principal of and
interest on the bonds of this issue, and on definitive improvement
bonds issued to refund such bonds or to complete payment of the
cost of the improvements financed hereby, out of any fund of the
City if the amount credited to the fund specified for that
purpose is insufficient, and to levy each year an ad valorem tax
sufficient to take care of any accumulated or anticipated
deficiency, which tax is not subject to any constitutional
or statutory tax limitation; and that the issuance of this
bond did not cause the indebtedness of the City to exceed
any constitutional or statutory limitation.
IN WITNESS WHEREOF the City of Chanhassen, Carver
and Hennepin Counties, Minnesota, by its City Council, has
caused this bond to be executed in its behalf by the facsimile
signatures of the Mayor and City Manager, has caused the
interest coupons appurtenant hereto and the certificate
appearing on the reverse side hereof to be executed and
authenticated by the facsimile signatures of said officers,
has caused a facsimile of the City seal to be affixed
hereto, has caused this bond to be duly authenticated by
The First National Bank of Saint Paul, and has caused
this bond to be dated as of December 1, 1978.
THE FIRST NATIONAL BANK
OF SAINT PAUL
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By
Authorized Signature
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(Form of Coupon)
No.
$
Unless this bond has been duly called for earlier
redemption, on the 1st day of June (December), 19 , the City
of Chanhassen, Carver and Hennepin Counties, Minnesota, will
pay to bearer at
, in , Minnesota, the sum shown hereon
in lawful money of the United States of America for interest
then due on its General Obligation Temporary Improvement Bond
of 1978 dated December 1, 1978, No.
(Facsimile signature)
City Manager
(Facsimile signature)
Mayor
(Form of certificate to be printed on the
reverse side of each bond, following a full
copy of the legal opinion on the issue.)
We certify that the above is a full, true and
correct copy of the legal opinion rendered by bond counsel
on the issue of bonds of the City of Chanhassen, Carver and
Hennepin Counties, Minnesota, which includes the within
bond, dated as of the date of delivery of and payment for
the bonds.
(Facsimile signature)
City Manager
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(Facsimile signature)
Mayor
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4. Execution and Delivery. The Bonds shall be prepared
under the direction of the City Manager, in substantially the form
attached to this resolution, and shall be executed in behalf of the
City by the facsimile signatures of the Mayor and the City Manager,
and authenticated by The First National Bank of Saint Paul which
is hereby appointed authenticating agent. The interest coupons
thereto attached shall be executed and authenticated by the
printed, engraved or lithographed facsimile signatures of said
Mayor and Manager. On the reverse side of each Bond will be
printed a copy of the approving opinion to be rendered by
bond counsel certified by the facsimile signatures of the
Mayor and Manager. After the Bonds have been so signed and
certified, the City Treasurer shall thereupon deliver the same
to the purchaser thereof upon receipt of the purchase price
heretofore agreed upon, and the purchaser shall not be obligated
to see to the application of said purchase price.
5. Construction Funds. A separate fund shall be
provided by the City Treasurer for each of the local improvements
described in Resolution No. 78-6~ The bond proceeds appropriated
to these funds shall be credited thereto in the amounts deter-
mined to be necessary for payment of the cost of the improvements,
respectively, and each fund shall be used solely to defray
expenses of the improvement for which it is created, including
payment of a proportionate share of interest and principal, if
any, due upon the bonds issued hereunder, until all the improve-
ments have been completed and the cost thereof has been paid.
Thereupon these funds shall be discontinued, and any balance
of the proceeds of the bonds remaining therein, and all sub-
sequent collections of special assessments and taxes levied
for the improvements, shall be credited and paid and are
irrevocably appropriated to the bond fund referred to in
Section 6.
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6. Bond Fund. So long as any of the bonds issued
hereunder are outstanding and unpaid, the Treasurer shall
maintain a separate and special 1978 General Obligation
Temporary Improvement Bond Fund on the official books
and records of the City, to be used for no purpose other
than the payment of the principal of and interest on these
bonds and on such other temporary improvement bonds of the
City as may be directed to be paid from that Fund. If the
balance in the Bond Fund is at any time insufficient to pay
all interest and principal then due on such bonds, the payment
shall be made from any fund of the City which is available
for that purpose, subject to reimbursement from the Bond
Fund when the balance therein is sufficient, and the Council
covenants and agrees that it will each year levy a sufficient
amount to take care of any such accumulated or anticipated
deficiency, which levy is not subject to any constitutional
or statutory tax limitation.
7. Appropriations; Definitive Bonds. The City
irrevocably pledges and appropriates to the Bond Fund (a)
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any amount of bond proceeds received from the purchaser in
excess of $972,000 (b) the balances in the improvement
funds and subsequent collections of taxes and assessments
referred to in Section 5, and (c) an amount of the proceeds
of definitive improvement bonds which the City is required,
under the provisions of Minnesota Statutes, Section 429.091,
Subdivision 3, to issue and sell at or prior to the maturity
of the temporary bonds issued hereunder, to the extent that
the same cannot be paid from the assessments and taxes
theretofore collected, or out of any other municipal funds
which may be properly available and are appropriated by the
Council for that purpose, which amount shall be sufficient,
with all other cash then on hand in the improvement funds
and Bond Fund, to pay all fees and 'expenses incurred in
connection with the improvements and the financing thereof,
including but not limited to the entire principal amount of
the temporary bonds issued hereunder and all interest
accrued thereon. Under the provisions of Section 429.091,
Subdivision 3, in the event that definitive bonds have not
been issued and sold at the time so required, the holders of
the temporary bonds may require the City to issue definitive
bonds in exchange therefor, on a par for par basis, bearing
interest at the maximum rate permitted by law, and maturing
serially at such times and in such amounts that the principal
and interest can be paid when due by the collections of taxes
and assessments referred to in Section 8 below.
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8. Special Assessments. The City further covenants
and agrees that it will do and perform all acts and things
necessary for the final and valid levy of special assessments
upon the properties benefited by each of the improvements referred
to in Resolution No. 78-6~ in amounts proportionate to and not
exceeding the special benefits received by the respective
properties, and in an aggregate principal amount not less than
20% of the cost of each improvement, and will levy a tax upon
all taxable property within its corporate limits for the pay-
ment of any part of such cost to be paid by the City, and
will cause such taxes and assessments, and interest on deferred
installments of the assessments, to be certified for collection
in the years and amounts such that, if collected in full, they
will produce sums which, together with the proceeds of the
definitive improvement bonds to be,issued as herein provided,
are not less than 5% in excess of the amount needed to meet
when due the principal and interest payments on the General
Obligation Temporary Improvement Bonds issued hereunder.
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9. Pledge of Full Faith and Credit. The full
faith and credit and taxing powers of the City are
irrevocably pledged for the prompt and full payment of
the principal of and interest on the bonds issued hereunder
and on all other bonds made payable from the 1978 General
Obligation Temporary Improvement Bond Fund, in accordance
with the provisions of this resolution. It is estimated that
the collections or assessments, tax levies and revenues derived
from the issuance and sale of definitive improvement bonds as
herein provided will produce sums available for the payment
of the bonds at the times and in amounts required by Minnesota
Statutes, Section 475.61, and therefore no tax is levied for
this purpose at the present time. It is recognized, however,
that the City's liability on the bonds issued hereunder is not
limited to the provision of these funds, and that the City Council
is required by Section 475.61 to levy and cause to be extended,
assessed and collected any additional taxes found necessary
for full payment of the principal and interest on the bonds.
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10. Registration of Bonds. The City Manager is
hereby authorized and directed to file a certified copy of
this resolution with the County Auditors of Carver and
Hennepin Counties, together with such other information
as they shall require, and to obtain from said County
Auditors a certificate that said bonds have been entered
on their bond register.
11. Authentication of Transcript. The City
Manager and other officers of the City and Counties are
also authorized and directed to prepare and furnish to
the purchaser of the bonds and to the attorneys approving
the legality thereof, certified copies of this resolution
and of all other resolutions, proceedings and records of
the City relating to the authorization and issuance of the
bonds, and all other proceedings and records reasonably
required to show the validity or marketability of the
bonds; and all statements contained in such documents shall
be deemed representations and recitals by the City.
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12. CoVenant Relating to Tax Exemption. The City
covenants and agrees with the holders from time to time of
the bonds herein authorized, that it will not take, or permit
to be taken by any of its officers, employees or agents, any
action which would cause the interest payable on the bonds to
become subject to taxation under the United States Internal
Revenue Code; and that it will take, or it will cause its
officers, employees or agents to take, all affirmative
actions within its powers which may be necessary to insure
that such interest will not become subject to taxation under
the Internal Revenue Code. Internal Revenue Code "as used
herein includes the Code and all regulations, amended regulations
and proposed regulations issued thereunder, as now existing
or as hereafter amended or proposed.
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13. Arbitrage. The Mayor and City Manager, being
the officers of the City charged with the responsibility for
issuing the obligations pursuant to this resolution, are
authorized and directed to execute and deliver to the
purchaser a certificate in order to satisfy the provisions
of Section 103(c) of the Internal Revenue Code and Section
1.103-13 of the Proposed Income Tax Regulations published
in the Federal Register, May 31, 1977, as amended effective
May 3, 1978. Such certification shall state that on the
basis of fhe facts, estimates and circumstances in existence
on the date of issue and delivery of the bonds as therein
set forth, it is not expected that the proceeds of the bonds
will be used in such a manner that would cause the bonds to
be arbitrage bonds or obligations, and the certification
shall further state that to the best of the knowledge and belief
of the certifying officers there ar 0 other facts, estimates
or circumstances that would materially c e such exp tation.
Attest:
42ana(l.,~- -
The motion for the adoption of the foregoing
resolution was duly seconded by Councilperson Pearson
and upon vote being taken thereon, the following voted in
favor thereof: Mayor Hobbs, Councilmen Pearson, Neveaux and Geving.
and the following voted against the same: None
whereupon the resolution was declared duly passed and
adopted, and was signed by the Mayor and attested by the
City Manager.
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