88-109 A
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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 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, October 10, 1988, commenc-
ing at 7:30 P.M.
The following members of the Council were present: Geving, Horn, Boyt,
and Johnson
and the following were absent: Hamilton
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The following resolution was presented by Councilmember Geving
who moved its adoption:
RESOLUTION NO. 88-109A
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $4,185,000 GENERAL OBLIGATION
IMPROVEMENT BONDS OF 1988
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 following assessable public improvements (the
Improvements) have been made, duly ordered or contracts
let for the construction thereof, by the City pUY3Uant
to the provisions of Minnesota Statutes, Chapter 429
(Act) :
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Project Designation & Description:
Total Project Cost
Improvement Projects 87-2, 87-5,
87-9, 88-2, 86-11
TOTAL
$ 3,580,433
477,414
45,545
$ 4,103,392
81,608
$ 4,185,000
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
$4,185,000 General Obligation Improvement Bonds of 1988
(Bonds) pursuant to the Act to provide financing for
the Improvements.
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2. In order to provide financing for the Improvements, the City
will therefore issue and sell Bonds in the amount of $4,103,392. In
order to provide in part the additional interest required to market
the Bonds at this time, additional Bonds will be issued in the amount
of $81,608. The excess of the purchase price of the Bonds over the
sum of $4,103,392 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 Notice of Sale:
OFFICIAL NOTICE OF SALE
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$4,185,000 General Obligation Improvement
Bonds of 1988
City of Chanhassen
Carver and Hennepin Counties, Minnesota
NOTICE IS HEREBY GIVEN that the City Council of the City of
Chanhassen, Minnesota, will consider sealed bids at the City Hall in
the City of Chanhassen on Monday, November 7, 1988, at 7:30 p.m.,
C.T., for the purchase of the above bonds. The bonds are offered on
the following terms:
Purpose and Security
The purpose of the bonds is to provide funds for the finan-
cing of assessable public improvements in the City. The bonds will be
general obligations of the City, for which its full faith, credit and
taxing powers are pledged together with special assessments against
benefitted properties.
Date and Maturities
The bonds will be issued in fully registered form, will be
dated November 1, 1988, will be in denominations of integral multiples
of $5,000 each and will mature on November 1, in the years and amounts
as follows:
e Year Amount Year Amount
1990 $110,000 1997 $475,000
1991 475,000 1998 400,000
1992 500,000 1999 75,000
1993 500,000 2000 75,000
1994 500,000 2001 75,000
1995 475,000 2002 50,000
1996 475,000
Redemption
The City may elect on November 1, 1995 or on any interest payment
date thereafter to redeem and prepay bonds of this issue maturing on
or after November 1, 1996 at a price of par plus accrued interest to
date of redemption. Prepayment may be in whole or in part and will be
in inverse order of maturities and by lot within maturities.
Interest
Interest on the bonds will be payable on November 1, 1989,
and semiannually thereafter on each May 1 and November 1. Bonds
maturing on the same date must bear interest from date of issue until
paid at a single, uniform rate. Each rate must be in an integral
multiple of 1/20 or 1/8 of 1%.
Registrar
The City will name the Registrar which shall be subject to
applicable SEC regulations. Principal will be payable at the prin-
cipal office of the Registrar and interest will be payable by check or
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draft of the Registrar mailed to the registered holder of a bond. The
City will pay the reasonable and customary charges for the services of
the Registrar.
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
Within 40 days after sale, the City will furnish and deliver
to the office of the purchaser or, at its option, will deposit with a
bank in the United States selected by it 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 in funds available for expenditure by the
City on the day of payment.
Legal Opinion
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An unqualified legal opinion on the bonds will be furnished
by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Associa-
tion, 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 benefitted
properties and that the City is required by law to levy taxes for the
principal and interest thereon as the same become due without limit as
to rate or amount.
Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned
and must be received prior to the time of the meeting. A bid must be
unconditional and must be accompanied by a cashier's or certified
check or bank draft in the amount of $83,700, payable to the City
Treasurer, to be retained by the City as liquidated damages if the bid
is accepted and the bidder fails to comply therewith. The bid author-
izing the lowest net interest cost (total interest from date of bonds
to stated maturities, less any cash premium or plus any amount less
than $4,185,000 bid for principal) will be deemed the most favorable.
No oral bid and no bid of less than $4,103,392 for principal plus
accrued interest on all of the bonds will be considered. The City
reserves the right to reject any and all bids and to waive an infor-
mality in a bid.
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BY ORDER OF THE CITY COUNCIL
/s/ Don Ashworth
City Manager
Dated: October 10, 1988
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3. The City Manager is authorized and directed to advertise the
Bonds for sale in accordance with the foregoing Official Notice of
Sale and to cause the abbreviated notice of sale attached hereto as
Exhibit A to be published in the manner required by law. The City
Council will meet at 7:30 p.m. on Monday, November 7, 1988, to consid-
er 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 Johnson, and upon vote being taken
thereon the following members voted in favor of the motion: Geving,
Horn, Boyt, and Johnson
and the following voted against: None
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whereupon the resolution was declared duly passed and adopted.
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Exhibit A
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NOTICE OF BOND SALE
$4,185,000
GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1988
CITY OF CHANHASSEN,
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the
above bonds will be considered at a meeting of the City Council at
7:30 p.m. on Monday, November 7, 1988, at the City Hall in Chanhassen,
Minnesota. The bonds are offered on the following terms. The bonds
will be dated November 1, 1988, will bear interest payable semian-
nually on each May 1 and November 1, commencing November 1, 1989, and
will mature on November 1 in the years and amounts as follows:
Year Amount Year Amount
1990 $110,000 1997 $475,000
1991 475,000 1998 400,000
1992 500,000 1999 75,000
1993 500,000 2000 75,000
1994 500,000 2001 75,000
1995 475,000 2002 50,000
e 1996 475,000
The City may elect on November 1, 1995 or on any interest payment date
thereafter to redeem and prepay bonds of this issue in whole or in
part, in inverse order of maturities and by lot within maturities,
maturing on or after November 1, 1996 at a price of par plus accrued
interest to date of redemption.
Bidders must specify a price of not less than $4,103,392 plus accrued
interest. A legal opinion on the bonds will be furnished by LeFevere,
Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneap-
olis, Minnesota. 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
/s/ Donald W. Ashworth
City Manager
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Dated: October 11, 1988.
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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,
October 10, 1988, 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 $4,185,000 General Obliga-
tion Improvement Bonds of 1988 of the City.
WITNESS My hand as City Manager and the corporate seal of
the City this 24th day of October
, 1988.
City!:) ():JJJ
City of Chanhassen, Minnesota
(S EAL)
C13:05112D88.RAU