87-38 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 regular meeting of the City
Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota,
was held at the City Hall in said City on Monday, May 4, 1987, commencing
at 7:30 o'clock P.M.
The following members were present: Mayor Hamilton, Horn, Geving,
Johnson
and the following were absent: Boyt
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The following resolution was presented by Councilmember
Hamilton who moved its adoption:
RESOLUTION NO. 87-38A
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $4,685,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1987
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:
(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
(Act):
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Project Designation & Description:
Project Cost
$4,149,457
405,253
38,932
$4,593,642
91,358
$4,685,000
Construction
Capitalized Interest
Costs of Issuance
Subtotal
Discount
Total
(b) That it is necessary and expedient to the sound finan-
cial management of the affairs of the City to issue
$4,685,000 General Obligation Improvement Bonds of 1987
(Bonds) pursuant to the Act to provide financing for
the Improvements.
2. In order to provide financing for the Improvements, the City
shall therefore issue and sell Bonds in the amount of $4,593,642. 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 $91,358. Any excess of the purchase price of the Bonds over the
sum of $4,593,642 shall be credited to the debt service fund for the
Bonds for the purpose of paying interest first coming due on such
additional Bonds. The Bonds shall be issued, sold and delivered in
accordance with the terms of the following Official Notice of Sale:
OFFICIAL NOTICE OF SALE
$4,685,000 General Obligation Improvement Bonds of 1987
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, June 15, 1987, at 7:30 o'clock p.m.,
C. T ., for the purchase of $4,685,000 General Obligation Improvement
Bonds of the City 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.
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Date and Maturities
The bonds will be iHsu~d ~n fully registered form, will be
dated July 1, 1987, will be in iri~~gral m~ltiples.of $5,OOO.each and
will mature on February I, in (;h.e y~aT.El ,and. amounts' dB follows:
Year Amount Y~ar. Amount
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1989 $660,000 1997 $200,000
1990 200,000 1998 200,000
1991 400,000 1999 200,000
1992 400,000 2000 200,000
1993 400,000 2001 200,000
1994 400,000 2002 200,000
1995 425,000 2003 200,000
1996 400,000
Redemption
The City may elect on February 1, 1996 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 February, 1, 1997 at a price of par plus accrued
interest to date of redemption.
Intarest
Interest on the bonds will be payable on February I, 1988,
and semiannually thereafter on each February 1 and August 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 subsequent maturity. Each rate must be in an inte-
gral multiple of 5/100 or 1/8 of 1%, and no rate of interest nor the
net effective average interest rate of the issue may exceed the
maximum rate of interest permitte~ by law on the day of sale.
Paying Agent
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The City will name the Regist7;ar which' shall be subj ect to
applicable SEC regulations. Prindpal'''will be payable at the prin-
cipal office of the Registrar and interest will be payable by check or
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 numbeT.s 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 dRlivery'caused thereby.
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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
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 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 $46,850, 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 interest cost (total interest from date of
bonds to stated maturities, less any cash premium or plus any amount
less than $4,685,000 bid for principal) will be deemed the most favo-
rable. No oral bid and no bid of less than $4,593,642 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/ Don Ashworth
City Manager
Dated: May 4, 1987.
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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 shall meet at 7:30 p.m. on Monday, June 15, 1987, to consider
bids on the Bonds and take any other appropriate action.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmember Horn and upon vote being taken thereon,
the following voted in favor of the motion: Hamilton, Horn, Geving,
Johnson
and the following voted against: None
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whereupon said resolution was declared duly passed and adopted.
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EXHIBIT A
NOTICE OF BOND SALE
$4,685,000
GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1987
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 regular meeting of the City
Council at 7:30 p.m. on Monday, June 15, 1987, at the City Hall in
Chanhassen, Minnesota. The Bonds are offered on the following terms.
The Bonds will be dated July 1, 1987, will bear interest payable
semiannually on each February 1 and August 1, commencing February 1,
1988, and will mature on February 1 in the years and amounts as
follows:
Year Amount Year Amount
1989 $660,000 1997 $200,000
1990 200,000 1998 200,000
1991 400,000 1999 200,000
1992 400,000 2000 200,000
1993 400,000 2001 200,000
1994 400,000 2002 200,000
1995 425,000 2003 200,000
1996 400,000
The City may elect on February 1, 1996 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 February 1, 1997 at a price of par plus accrued
interest to date of redemption.
No rate of interest nor the net effective interest rate of the issue
may exceed the maximum rate permitted by law. Bidders must specify a
price of not less than $4,593,642 plus accrued interest. A legal
opinion on the Bonds will be furnished by LeFevere, Lefler, Kennedy,
O'Brien & Drawz, a Professional Association, Minneapolis, 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 the provisions
of the latter shall be those with which to comply.
BY ORDER OF THE CITY COUNCIL
/s/ Don Ashworth
City Manager
Dated: May 4, 1987.
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e STATE OF MINNESOTA )
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COUNTIES OF CARVER )
AND HENNEPIN )
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CITY OF CHANHASSEN )
I, the undersigned, being the duly qualified and acting
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 4, 1987, with the original thereof on file in my office and the
same is a full, true and correct copy thereof, insofar as the same
relates to the issuance and sale of $4,685,000 General Obligation
Improvement Bonds of 1987 of the City.
4It WITNESS My hand as such City Manager and the corporate seal
of the City this ;L~~ day of ~ ' 1987.
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City Manager
City of Chanhassen, Minnesota
(SEAL)
C5:05110587.RAU
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