90-133
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Extract of Minutes of Meetlnr
of the City Council of the City
of Chanhassen, Carver and Hennepin Counties, Minnesota
Pursuant to due call and notice thereof aspecial meetlnr of the City Council of the
City of Chanhassen, Carver and Hennepin Counties, Minnesota, was held at the City Hall in
the City OnTuesday, October 9, 1990, commencinr at6: 00 P.M.
The foUowlnr members of the Council were present: Thomas Workman, Ursula Dimler,
Jay Johnson and Mayor Donald Chmiel,
and the followlnr were absent: None.
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The followinr resolution was presented by Councilmember Dimler who
moved Its adoption:
RESOLUTION NO. 90-133
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $1,335,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1990B
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 followlnr 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 (Act);
. Project Designation & Description:
Projects '89-10 Frontier Trail and 189-6 Lake
Drive East
TOTAL
Total Project Cost
$1,194,017
106, 633
16, 000
$ 1,316,650
18,350
$ 1,335,000
Construction
Capitalized Interest
Costs of Issuance
Subtotal
Discount
(b) it is necessary and expedient to the sound financial management of the affairs of
the City to issue $1,335,000 General Obligation Improvement Bonds, Series
1990B (Bonds) pursuant to the Act to provide financing for the Improvements.
2. To provide financing for the Improvements, the City will issue and sell Bonds in
the amount of $1,316,650. To provide in part the additional interest required to market the
Bonds at this time, additional Bonds will be issued in the amount of $18,350. The excess of
the purchase price of the Bonds over the sum of $1,316,650 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
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$1,335,000
CITY OF CHANHASSEN, MINNESOTA
GENERAL OBUGATION IMPROVEMENT BONDS, SERIES 1990B
Sealed bids for the Bonds will be received by the City Manager or his designee on Monday,
November 5, 1990, 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 7:30 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS
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The Bonds will be dated December 1, 1990, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1991. Interest will
be computed on the basis of a 36O-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 $5,000 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 February 1 in the years and amounts as follows:
1993 $190,000
1994 $160,000
1995 $160,000
1996 $160,000
1997 $165,000
1998 $165,000
OPTIONAL REDEMPTION
1999 $165,000
2000 $170,000
The City may elect on February 1,1997, and on any day thereafter, to prepay Bonds due on or
after February 1, 1998. Redemption may be In whole or in part and if in part, at the option of
the City and in such order 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. In addition the City will pledge
special assessments against benefited properties. The proceeds will be used' to finance
construction of various improvements within the City.
TYPE OF BID
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Bids shall be for not less than $1,316,650 and accrued interest on the total principal amount of
the Bonds, and shall be accompanied by a certified or cashier's check in the amount of
$13,350, payable to the order of the City. No bid will be considered for which said check has
not been received. The City will deposit the check of the purchaser I 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
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scheduled for award of the bids 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 dollar interest cost to be
determined by the deduction of the premium, if any, from, or the addition of any amount less
than par, to the total dollar interest on the Bonds from their date to their final scheduled
maturity. The City's computation of the total net dollar interest cost 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
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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.
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.
SETTLEMENT
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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 reasons of the purchaser's non-compliance with said terms for payment.
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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 as required by 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 MFinal Official Statemenr 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 60
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 October 9. 1990
BY ORDER OF THE CITY COUNCIL
/s/ Donald W. Ashworth
City Manager
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3. The 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 7:30 p.m. on Monday, November 5, 1990, 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 Workman
, and upon vote being taken thereon the following members
voted in favor of the motion: Thomas Workman, Ursula Dimler, Jay Johnson and Mayor
Donald Chmiel,
and the following voted against: None.
whereupon the resolution was declared duly passed and adopted.
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Exhibit A
NOTICE OF BOND SALE
$1,335,000
GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1990B
CIT Y OF CHAN HASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds wnI
be received until 12:00 noon, C.T. on Monday, November 5, 1990, in the offices of Springsted
Incorporated, 85 East Seventh Place, in St. Paul, MiMesota, at which time the bids will be
opened and tabulated for consideration by the City Council at a meeting at 7:30 p.m. on the
same day. The bonds are offered on the following terms. The bonds wnI be dated December
1, 1990, will bear interest payable semiannually on each February 1 and August 1,
commencing August 1, 1991, and wnI mature on February 1 in the years and amounts as
follows:
~ Amount .!!!!: Amount
1993 $190,000 1997 $165,000
1994 160,000 1998 165,000
1995 160,000 1999 165,000
1996 160,000 2000 170,000
The City may elect on February 1, 1997 or on any date thereafter to redeem and prepay
bonds of this issue in whole or in part, in such order as the City shall determine and by lot
within maturities, maturing on or after February 1, 1998 at a price of par plus accrueO
interest to date of redemption.
Bidders must specify a price of not less than $1,316,650 plus accrued interest. A legal
opinion on the bonds wnI be furnished by Holmes & Graven, Chartered, MiMeapolis,
MiMesota. The proceeds of the bonds will be used to finance a portion of the costs of
various assessable public improvements in the City.
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
/sl Donald W. Ashworth
City Manager
Dated: October 9, 1990.
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STATE OF MINNESOTA
COUNTIES OF CARVER
AND HENNEPIN
CITY OF CHANHASSEN
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I, the undersigned, being the duly qualified and acting 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
Tuesday, October 9, 1990, 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
$1,335,000 General Obligation Improvement Bonds, Series 1990B of the City.
WITNESS My hand as City Manager and the corporate seal of the City this ~d- ^"L-
day of Oc tober
, 1990.
LJ~
City Manager
City of Chanhassen, Minnesota
(SEAL)
RES10.