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90-134 ': . e e 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 sp~cia1 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 Tuesday, October9, 1990, at 6:00P.M. The following members of the Council were present: Thomas Workman, Ursula Dimler, Jay Johnson and Mayor Donald Chmiel, and the following were absent: None. ... ... ... The following resolution was presented by Councilmember Dimler who moved its adoption: RESOLUTION NO. 90-134 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $830,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1990C BE IT RESOLVED By the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota (City) as follows: 1. It is determined that: (a) the City engineer has recommended the construction of various improvements to the City's water supply and distribution system (Project). the City is authorized by Minnesota Statutes, Section 444.075 (Act) to finance all or a portion of the cost of the Project (Project Costs) by the issuance of general obligation bonds of the City payable from the net revenues of the water system. The Project Costs are presently estimated by the engineer to be as follows: (b) 1 e Project Designation & Description: Construction Costs of Issuance Total Project Cost $800,000 18,600 $818,600 11,400 $830,000 Subtotal Discount Total (c) it is necessary and expedient to the sound financial management of the affairs of the City to issue $830,000 General Obligation Water Revenue Bonds, Series 1990C (Bonds) pursuant to the Act to provide financing for the Project. 2. In order to provide financing for the Proje~t, the City will therefore issue and sell Bonds in the amount of $818,600. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $11,400. The excess of the purchase price of the Bonds over the sum of $818,600 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: e e 2 A OFFICIAL TERMS OF OFFERING . $830,000 CITY OF CHANHASSEN, MINNESOTA GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1990C 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 e 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 360-day year of twelve 30-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: 1992 $55,000 1993 $75,000 1994 $90,000 1995 $100,000 1996 $110,000 1997 $120,000 OPTIONAL REDEMPTION 1998 $135,000 1999 $145,000 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 net revenues of the City's water system, including user fees and connection charges. The proceeds will be used to finance improvements to the City's water system. TYPE OF BID e Bids shall be for not less than $818,600 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 $8,300, 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, 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 - i - '. e 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 e 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 e 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. - ii - e e e 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 "Final 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 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 October 9, 1990 BY ORDER OF THE CITY COUNCIL /s/ Donald W. Ashworth City Manager -iii- e e e 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 other appropriate action with respect to the Bonds. 4. In the resolution awarding the sale of the Bonds the City Council will set forth the covenants and undertakings required by the Act. 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. 3 e e e . . Exhibit A NOTICE OF BON D SALE $830,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1990C 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, 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 will be dated December 1, 1990, will bear interest payable semiannually on each February 1 and AugtSt 1, commencing August 1, 1991, and will mature on February 1 in the years and amounts as follows: ~ Amount Year Amount 1992 $55,000 1996 $110,000 1993 75,000 1997 120,000 1994 90,000 1998 135,000 1995 100,000 1999 145,000 The City may elect on February 1, 1997 or on any date thereafter to redeem and preoav 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 accrued interest to date of redemption. Bidders must specify a price of not less than $818,600 plus accrued interest. A legal opinion on the bonds will be furnished by Holmes & Graven, Chartered, MiMeapolis, MiMesota. The proceeds of the bonds will be used to finance the costs of improvements to the water supply and distribution system of 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 mtSt comply with the terms of the latter. BY ORDER OF THE CITY COUNCIL /s/ Donald W. Ashworth City Manager 4 Dated: October 9., 1990. e e . STATE OF MINNESOTA COUNTIES OF CARVER AND HENNEPIN ) ) ) ) ) ) CITY OF CHANHASSEN 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 specialmeeting of the City Council of the City held on Tuesday, October 9, 1990, with the original minutes on file in my offic~ and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of $830,000 General Obligation Water Revenue Bonds, Series 1990C of the City. WITNESS My hand as City Manager and the corporate seal of the City this.;l.~ ~ay of October , 1990. <0. va _CL6 City Manager City of Chanhassen, Minnesota (SEAL) RES04 5