82-24
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Extract of Minutes of Meeting
of the City Council of the City
of Chanhassen, Carver and Hennepin Counties, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City
Council of the City of Chanhassen, Carver and Hennepin Counties, County,
Minnesota, was held at the City Hall in said City on Monday, May 3, 1982,
commencing at 7:30 o'clock P.M. ,
The following members were present: Acting Mayor Neveaux, Council-
members Geving, Swenson and Horn.
and the following were absent:
Mayor Hamilton.
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The following resolution was presented by Councilmember Geving
who moved its adoption:
RESOLUTION NO. 82-24
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $3,955,000 GENERAL OBLIGATION
IMPROVEMENT BONDS OF 1982
BE IT RESOLVED By the City Council of the City of Chanhassen, Carver
and Hennepin Counties, Minnesota as follows:
1. It is hereby'determined:
(a) That the following assessable public improvements (the
"Improvements") have been made, duly ordered or contracts
let for the construction thereof, by the City pursuant to
the provisions of Minnesota Statutes, Chapter 429:
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Project Designation & Description
Total
Total Project Cost
$ 230,000
38,000
37,000
$ 305,000
$ 1,970
21,500
6,530
$ 335,000
80-4 - Colonial Drive
81-4 - Oien Drainage
81-5 - Legion Drive
Legal, fiscal, and issuance costs
Capitalized interest (7 mos. @ 11%)
Allowance for discount
(b) The City has heretofore issued and sold its $3,300,000
General Obligation Temporary Improvement Bonds of 1979,
dated July 1, 1979 (the "1979 Bonds"), which mature on
July 1, 1982 and must be refinanced as provided by law,
(c) The City has heretofore paid and retired its $990,000
General Obligation Temporary Improvement Bonds of 1978,
dated December 1, 1978 (the "1978 Bonds"), which matured on
December 1, 1981 in part with proceeds of special assess-
ments received by the City from Improvement Projects other
than those financed by the 1978 Bonds, and it is necessary
to restore those funds to the appropriate Construction and
Debt Service Funds.
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(d) The total costs of refinancing the 1978 Bonds and the 1979
Bonds is presently estimated to be as follows:
Refinancing
Accrued Interest
Total
$3,432,250
90,750
$3,523,000
26,410
70,590
$3,620,000
Issuance costs
Allowance for discount
(e) It is necessary and desirable that the city issue its
general obligation improvement bonds to provide funds for
the refinancing and the Improvements.
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2. In order to provide financing for the Improvements and the re-
financing of the 1978 Bonds and the 1979 Bonds, the City shall therefore
issue and sell its General Obligation Improvement Bonds of 1982 (the
"Bonds") in the amount of $3,877 ,880. In order to provide in part the
additional interest required to market the Bonds at this time, additional
Bonds shall be issued in the amount of $77,120, Any excess of the purchase
price of the Bonds over the sum of $3,877,880 shall be credited to the debt
service fund for the Bonds for the purpose of paying interest first coming
due on the Bonds. The Bonds shall be issued and sold in accordance with
the terms of the following Official Notice of Sale:
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OFFICIAL
NOTICE OF SALE
$3,955,000 General Obligation Improvement Bonds of 1982
City of Chanhassen
Carver and Hennepin Counties, Minnesota
NOTICE IS HEREBY GIVEN that the City Council of the City of
Chanhassen, Minnesota, will meet at the City Hall in the City of Chanhassen
on Monday, June 7, 1982, at 7:30 o'clock p.m., C.T., to receive, open and
consider bids for the purchase of $3,955,000 negotiable coupon, general
obligation bonds of the City on the following terms:
Purpose and Security
The purpose of the bonds is to provide funds for the permanent
financing of various assessable public improvements in the City. The bonds
will be general obligations of the issuer, for which its full faith, credit
and taxing powers are pledged together with special assessments against
property benefitted by the improvements.
Date and Maturities
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The bonds will be dated June 1, 1982, will be in denomination of
$5,000 each and will mature on January 1 in the following years and
amounts:
Year Amount Year Amount
1984 $295,000 1990 $315,000
1985 295,000 1991 325,000
1986 285,000 1992 285,000
1987 325,000 1993 285,000
1988 325,000 1994 295,000
1989 315,000 1995 300,000
1996 310,000
Redemption Feature
All bonds of this issue maturing after January 1, 1992, will be
subject to prior redemption at the option of the City in inverse order of
serial numbers on said date and any interest payment date thereafter at a
price of par plus accrued interest to date of redemption.
Interest
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Interest on the bonds will be payable on January 1, 1983, and
semiannually thereafter on each July 1 and January 1. All bonds maturing
on the same date must bear interest from date of issue until paid at a
single, uniform rate, not exceeding the rate specified for bonds of any
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subsequent maturity. Each rate must be in an integral multiple of 5/100 of
1%, and no rate of interest nor the net effective average rate of the issue
may exceed the maximum rate of interest permitted by law on the day of
sale.
Paying Agent
Principal and interest will be made payable at any suitable bank
recommended by the purchaser and approved by the Council, and the City will
pay the customary charges for this service provided that such recommenda-
tion is received within 48 hours after the sale and the Council will select
the paying agent if the recommendation is not approved.
CUSIP Numbers
The City will assume no obligation for the assignment or printing
of CUSIP numbers on the bonds or for the correctness of any numbers printed
thereon, but will permit such numbers to be assigned and printed at the
expense of the purchaser, if the purchaser waives any extension of the time
of delivery caused thereby.
Delivery
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Within 40 days after sale, the City will furnish and deliver to
the office of the purchaser or, at his option, will deposit with a bank in
the United States selected by him and approved by the City as its agent to
permit examination by and to deliver to the purchaser, the printed and
executed bonds, the unqualified opinion thereon of bond counsel, and a
certificate stating that no litigation in any manner questioning their
validity is then threatened or pending. The charge of the delivery agent
must be paid by the purchaser, but all other costs will be paid by the
City. The purchase price must be paid upon delivery of the bonds, or
within five days after deposit with the delivery agent, in funds available
for expenditure by the City on the day of payment.
Legal Opinion
An unqualified legal opinion on the bonds will be furnished by
Messrs. LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Associa-
tion, of Minneapolis, Minnesota. The legal opinion will be printed on the
bonds at the request of the purchaser. The legal opinion will state that
the bonds are valid and binding general obligations of the City, payable
primarily from special assessments against benefited property, and that the
City is obligated and required to levy taxes for the principal and interest
thereon as the same become due without limit as to rate or amount.
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Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned and
must be received prior to the time of said meeting, Each bid must be
unconditional and must be accompanied by a cashier's or certified check or
bank draft in the amount of $40,000, payable to the City Manager, to be
retained by the City as liquidated damages if the bid is accepted and the
bidder fails to comply therewith. The bid authorizing the lowest net
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interest cost (total interest from date of bonds to stated maturities, less
any cash premium or plus any amount less than $3,955,000 bid for principal)
will be deemed the most favorable. No oral bid and no bid of less than
$3,877,880 for principal plus accrued interest on all of the bonds will be
considered, and the City reserves the right to reject any and all bids and
to waive any informality in any bid.
BY ORDER OF THE CITY COUNCIL
/s/ Donald W. Ashworth
City Manager
Dated: May 3, 1982
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3 . The City Manager is authJrized and directed to advertise the Bonds
for sale in accordance with the foregoing notice of sale am to cause ~
abbreviated notice of sale attached hereto as Exhibit "A", to be publisherl
in the manner required by law. The City Council shall meet on Monday, June 7,
1982, at 7:30 olclock p.m. for the purpose of coJ;lsidering sealed bids on the
bonds and taking any other appropriate action.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmember Swenson, and upon vote being taken
thereon, the following voted in favor: Acting Mayor Neveaux,
Councilmembers: Geving, Swenson and Horn
and the following voted against: None
whereupon said resolution was declared duly passed and adopted.
ATTEST:
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Exhibit "A"
NOTICE OF SALE
$3,955,000 General Obligation Improvement Bonds of 1982
City of Chanhassen
Carver and Hennepin Counties, Minnesota
These bonds will be offered on Monday, June 7, 1982, at 7: 30
0' clock p.m., C. T., at the City Hall in Chanhassen, Minnesota. Dated
June 1, 1982, the bonds will mature on January 1 in the years and amounts
as follows:
Year Amount Year Amount
1984 $295,000 1990 $315,000
1985 295,000 1991 325,000
1986 285,000 1992 285,000
1987 325,000 1993 285,000
1988 325,000 1994 295,000
1989 315,000 1995 300,000
1996 310,000
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All bonds maturing after January 1, 1992 are subject to prior redemption on
said date and any interest payment date thereafter at par plus accrued
interest. Interest will be payable on January 1, 1983, and semiannually
thereafter, Each rate must be in an integral multiple of 5/100 of 1% and
no rate may exceed the maximum rate of interest permitted by law on the day
of sale. Minimum price, $3,877,880. An unqualified legal opinion will be
furnished by Messrs. LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Profes-
sional Association, of Minneapolis, Minnesota. The purpose of the bonds is
to permanently finance various assessable public improvements in the City.
BY ORDER OF THE CITY COUNCIL
/s/ Donald W, Ashworth
City Manager
Dated: May 3, 1982.
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STATE OF MINNESOTA
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COUNTIES OF CARVER
AND HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, bei~g the duly qualified and acting City
Manager of the City of Chanhassen, Minnesota do hereby certify that I have
carefully compared the attached and foregoing extract of minutes of a
regular meeting of the City Council of said City held on Monday, May 3,
1982, with the original thereof on file in my office and the same is a
full, true and complete transcript thereof, insofar as the same relates to
the issuance and sale of $3,955,000 General Obligation Improvement Bonds of
1982, of the City.
the City this
WITNESS My hand as such City Manager and the corporate seal of
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day of
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City Manager
City of Chanhassen, Minnesota
1982.
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