91-87 A (4)
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Extract of ~inutes of.Meeting
of the City Council of .the City of Chanhassen,
Carver and Hennepin Counties, Minnesota
Pursuant
to due call and notice thereof a special meeting of the City
Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, was
held at the City Hall in the City on Monday, September 16, 1991, commencing at
6:00 P.M.
The following members of the Council were present: Mayor Chmiel, Dimler,
Mason and Wing
and the following were absent: Workman
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The following resolution was presented by Councilmember Dimler who
moved its adoption:
RESOLUTION NO. 91-87A(4)
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $1,165,000 GENERAL OBLIGATION MUNICIPAL
BUILDING REFUNDING BONDS, SERIES 1991D
BE IT RESOLVED By the City Council of the City of Chanhassen, Carver and
Hennepin Counties, Minnesota (City) as follows:
1. It is hereby determined that:
(a) the City is authorized by Minnesota Statutes, Chapter 475 (Act)
and Section 475.67, Subdivision 3, of the Act to issue and sell
its general obligation bonds to refund obligations and the
interest thereon before the due date of the obligations, if
consistent with covenants made with the holders thereof, when.
determined by the City Council to be necessary or desirable for
the reduction of debt service cost to the City or for the
extension or adjustment of maturities in relation to the
resources available for their payment;
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(b)
subdivision
obligations
which the
redemption;
4 of the Act permits the sale of refunding
during the six month ,period prior to. the date on
obligations to be. refunded may be, called for.
(c) it is necessary and desirable to reduce debt service costs that
the City issue $1,165,000 General Obligation Municipal Building
Refunding Bonds, Series 1991D (Bonds) to refund certain
outstanding general obligations of the City;
(d) the outstanding bonds to be refunded (Refunded Bonds) consist of
the $1,510,000 General Obligation Municipal Building Bonds of
1980, dated June 1, 1980, of which $1,140,000 in principal amount
is currently callable on February 1, 1992.
2. To provide moneys to refund the Refunded Bonds, the City will issue
and sell Bonds in the amount of $1,152,185. To provide in part the additional
interest required to market the Bonds at this time, additional Bonds will be
issued in the amount of $12,815. The excess of the purchase price of the Bonds
over the sum of $1,152,185 will be credited to the debt service fund for the
Bonds for the purpose of paying interest first coming due on the additional
Bonds. The Bonds will be issued, sold and delivered in accordance with the
terms of the following Official Terms of Offering:
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OFFICIAL TERMS OF OFFERING
$1 ~ 165,000.
CIlY OF CHANtiASSEN, MINNESOTA
GENERAL OBUGATlON MUNICIPAL BUILDING REFUNDING BONDS,
SERIES 19910
Sealed bids for the Bonds will be received by the City Manager or his designee on Tuesday,
October 15, 1991, until 12:00 Noon, Central Time, at the offices of SPRINGSTED Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened
and tabulated. Consideration for award of the Bonds will be by the City Council at 5:30 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated November 1, 1991, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1992. Interest will
be computed on the basis of a 360-day year of twelve 3O-day months and will be rounded
pursuant to rules of the MSRB. The Bonds will be issued in the denomination of S5,OOO each.
or in integral multiples thereof, as requested by the purchaser, and fully registered as to
principal and interest. Principal will be payable at the main corporate office of the registrar and
interest on each Bond will be payable by check or draft of the registrar mailed to the registered
holder thereof at the holder's address as it appears on the books of the registrar as of the
close of business on the 15th day of the immediately preceding month.
The Bonds will mature August 1 in the years and amounts as follows:
1992 $ 60,000
1993 $ 95,000
1994 $105,000
1995 $120,000
1996 $130,000
1997 $145,000
1998 $155,000
1999 $170,000
2000 $185,000
* The City reserves the right, after bids are opened 8lJd prior to sward, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reauction will be in 8 tot8I
amount not to exceed $10,000 and will be made in multiples of $5,000 in any of the maturities. In the
event the principal amount of the Bonds is increased or reduced, any premium offered or any
discount taken by the successful bidder will be increased or reduced by 8 percentage equal to the
. percentage by which the principal amount of the Bonds is increased or reduced.
OPTIONAL REDEMPTION
The City may elect on August 1, 1998, and on any day thereafter, to prepay Bonds due on or
after August 1, 1999. Redemption may be in whole or in part and if in part, at the option of the
City and in such manner as the City shall determine and within a maturity by lot as selected by
the registrar. All prepayments shall be at a price of par and accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. The proceeds will be used to refund
the 1992-2000 maturities of the City's $1,510,000 General Obligation Municipal Building Bonds
of 1980, dated June 1, 1980.
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TYPE OF BID
Bids shall be for not less than $1,152,185 and accrued interest on the total principal ~mount of
the Bonds. Bids shall be accompanied by a Good Faith Deposit ("Deposit") ,in the form of a
certified or cashier's check or a Financial Surety Bond in the amount of $11,650, payable to the
order of the City. If a check is used, it must accompany each bid. If a Financial Surety Bond is
used, it must be from an insurance company licensed to issue such a bond in the State of
Minnesota, and preapproved by the City. Such bond must be submitted to Springsted
Incorporated prior to the opening of the bids. The Financial Surety Bond must identify each
bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded
to a bidder using a Financial Surety Bond, then that purchaser is required to submit its Deposit
to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as
instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next
business day following the award. If such Deposit is not received by that time, the Financial
Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit
the check of the purchaser, the amount of which will be deducted at settlement and no interest
will accrue to the purchaser. In the event the purchaser fails to comply with the accepted bid,
said amount will be retained by the City. No bid can be withdrawn after the time set for
receiving bids unless the meeting of the City scheduled for award of the Bonds is adjourned,
recessed, or continued to another date without award of the Bonds having been made. Rates
shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds
of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity.
No conditional bid will be accepted.
AWARD
The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a
true interest cost (TIC) basis. The City's computation of the interest rate of each bid, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any bid or of matters
relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and,
(iii) reject any bid which the City determines to have failed to comply with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the bidder, the purchase of any such insurance policy or the issuance
of any such commitment shall be at the sole option and expense of the purchaser of the
Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
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CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SElTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven,
Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of
customary closing papers, including a no-litigation certificate. On the date of settlement
payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at
the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as
compliance with the terms of payment for the Bonds shall have been made impossible by
action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by
the City by reason of the purchaser's non-compliance with said terms for payment.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement and the Official Bid Form or for any additional information
prior to sale, any prospective purchaser is referred to the Financial Advisor to the City,
Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101,
telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting an Official Bid Form therefor, the City agrees
that, no more than seven business days after the date of such award, it shall provide without
cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 50
copies of the Official Statement and the addendum or addenda described above. The City
designates the senior managing underwriter of the syndicate to which the Bonds are awarded
as its agent for purposes of distributing copies of the Final Official Statement to each
Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with
respect to the Bonds agrees thereby that if its bid is accepted by the City (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship with all Participating
Underwriters of the Bonds for purposes of assuring the receipt by each such Participating
Underwriter of the Final Official Statement.
Dated September 16, 1991
BY ORDER OF THE CITY COUNCIL
/s/ Donald W. Ashworth
City Manage~
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3. The City Manager is authorized and directed to advertise the Bonds for
sale in accordance with the foregoing Official Terms of Offering and to publish
the abbreviated notice of sale attached hereto as Exhibit A in the manner
required by law. The City Council will meet at 5:30 p.m. on Tuesday, October
16, 1991, to consider bids on the Bonds and take any other appropriate action
with respect to the Bonds.
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember Mason, and upon vote being taken thereon the following
members voted in favor of the motion: Mayor Chmiel, Dimler, Mason and Wing
and the following voted against: None
whereupon the resolution was declared duly passed and adopted.
Exhibit A
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NOTICE OF BOND SALE
$1,165,000*
GENERAL OBLIGATION MUNICIPAL
BUILDING REFUNDING BONDS, SERIES 1991D
CITY OF CHANHASSEN,
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds
will be received until 12:00 Noon, Central Time, on Tuesday, October 15, 1991,
in the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, St.
Paul, Minnesota, at which time the bids will be opened and tabulated for
consideration by the City Council at a meeting at 5:30 P.M. on the same day.
The bonds are offered on the following terms. The bonds will be dated November
1, 1991, will bear interest payable semiannually on each February 1 and August
1, commencing August 1, 1992, and will mature on August 1 in the years and
amounts as follows:
Year Amount Year Amount
1992 $ 60,000 1997 $145,000
1993 95,000 1998 155,000
e 1994 105,000 1999 170,000
1995 120,000 2000 185,000
1996 130,000
* The City reserves the right, after bids are opened and prior to award, to
increase or reduce the principal amount of the Bonds offered for sale. Any such
increase or reduction will be in a total amount not to exceed $10,000 and will
be made in multiples of $5,000 in any of the maturities. In the event the
principal amount of the Bonds is increased or reduced, any premium offered or
any discount taken by the successful bidder will be increased or reduced by a
percentage equal to the percentage by which the principal amount of the Bonds is
increased or reduced.
The City may elect on August 1, 1998, and on any day thereafter, to prepay Bonds
due on or after August 1, 1999. Redemption may be in whole or in part and if in
part, at the option of the City and in such manner as the City shall determine
and within a maturity by lot as selected by the registrar. All prepayments
shall be at a price of par and accrued interest.
Bidders must specify a price of not less than $1,152,185 plus accrued interest.
A legal opinion on the bonds will be furnished by Holmes & Graven, Chartered,
Minneapolis, Minnesota. The proceeds of the bonds will be used to refund
certain outstanding general obligations of the City.
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Bidders should be aware that the Official Statement to be distributed for the
bonds may contain additional bidding terms and information' relative to the
bonds. In the event of a variance between statements in this Notice of Bond
Sale and the Official Statement. bidders must comply with the terms of the
latter.
BY ORDER OF THE CITY COUNCIL
/s/ Donald Ashworth
City Manager
Dated: September 16, 1991.
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Bidders should be aware that the Official Statement to be distributed for the
bonds may contain additional bidding terms and inf~rmation' relative to the
bonds. In the event of a variance between statements in this. Notice of Bond
Sale and the Official Statement. bidders must comply with the terms of the
latter.
BY ORDER OF THE CITY COUNCIL
/s/ Donald Ashworth
City Manager
Dated: September 16, 1991.
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STATE OF MI~~ESOTA
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COUNTIES OF CARVER
A1:-,1J) HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting City Manager
of the City of Chanhassen, Minnesota, hereby certify that I have carefully
compared the attached and foregoing extract of minutes of a special meeting of
the City Council of the City held on Monday, September 16, 1991, with the
original minutes on file in my office and the extract is a full, true and
correct copy of the minutes, insofar as they relate to the issuance and sale of
$1,405,000 General Obligation Improvement Refunding Bonds, Series 1991E of the
City.
WITNESS My hand as City Manager and the corporate seal of the City
this
day of
, 1991.
Ll~
City Manager
City of Chanhassen, Minnesota
(SEAL)
C3: CH135RAU. E
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STATE OF MINNESOTA
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COUNTIES OF CARVER
AND HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting City Manager
of the City of Chanhassen, Minnesota, hereby certify that I have carefully
compared the attached and foregoing extract of minutes of a special meeting of
the City Council of the City held on Monday, September 16, 1991, with the
original minutes on file in my office and the extract is a full, true and
correct copy of the minutes, insofar as they relate to the issuance and sale of
$1,165,000 General Obligation Municipal Building Refunding Bonds, Series 1991D
of the City.
WITNESS My hand as City Manager and the corporate seal of the City
this
day of
. 1991.
/ClGSL6
City Manager
City of Chanhassen, Minnesota
(SEAL)
C3:CH135RAU.D