87-38 C
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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 adop~ion:
RESOLUTION NO. 87-38C
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $200,000 GENERAL OBLIGATION EQUIPMENT
CERTIFICATES OF INDEBTEDNESS 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 City is authorized by Minnesota Statutes,
Section 412.301 (the Act) to issue its certificates of
indebtedness on such terms and in such manner as the
City determines to finance the purchase of items of
capital equipment (Equipment), subject to certain
limitations contained in the Act.
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(b) It is hereby determined that the City has purchased and
acquired various items of Equipment, which items and
the cost thereof, are listed on Exhibit B, attached
hereto and made a part hereof.
(c) That as required by the Act,
(i) the expected useful life of each item of Equipment
is or will be at least as long as the term of the
certificates; and
(ii) the principal amount of certificates to be issued
in the year 1987 will not exceed one-tenth of the
assessed value of the City for the year 1987.
(d) It is determined that it is necessary and expedient for
the City to issue its certificates of indebtedness for
the purchase of Equipment and related expenses as
follows:
Purchase Price
Capitalized Interest
Costs of Issuance
Subtotal
Discount
Total
$.178,941
11,659
5,500
$196,100
3,900
$200,000
(e) That it is necessary and expedient to the sound finan-
cial management of the City to issue its $200,000
General Obligation Equipment Certificates of Indebted-
ness of 1987 (Certificates) pursuant to the Act to
provide financing for the Equipment.
2. In order to provide financing for the Equipment, the City
shall therefore issue and sell Certificates in the amount of $196,100.
In order to provide in part the additional interest required to market
the Certificates at this time, additional Certificates shall be issued
in the amount of $3,900. Any excess of the purchase price of the
Certificates over the sum of $196,100 shall be credited to the debt
service fund for the Certificates for the purpose of paying interest
first coming due on such additional Certificates. The Certificates
shall be issued, sold and delivered in accordance with the terms of
the following Official Notice of Sale:
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OFFICIAL NOTICE OF SALE
$200,000 General Obligation Equipment Certificates
of Indebtedness 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 $200,000 General Obligation Equipment
Certificates of Indebtedness of the City on the following terms:
Purpose and Security
The purpose of the certificates is to provide funds for the
financing of the acquisition of various items of capital equipment for
the City. The certificates will be general obligations of the City,
for which its full faith, credit and taxing powers are pledged and
will be payable from general ad valorem taxes.
Date and Maturities
The certificates will be issued in fully registered form,
will be dated July 1, 1987, will be in integral multiples of $5,000
each and will mature on February 1, in the years and amounts as
follows:
Year
Amount
1989
1990
1991
1992
$50,000
50,000
50,000
50,000
Redemption
The City may elect on February 1, 1991 or on any interest payment
date thereafter to redeem and prepay certificates of this issue in
whole or in part, in inverse order of maturities and by lot within
maturities, maturing on or after February 1, 1992 at a price of par
plus accrued interest to date of redemption.
Interest
Interest on the certificates will be payable on February 1,
1988, and semiannually thereafter on each February 1 and August 1.
All certificates 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 certificates of any subsequent maturity. Each rate
must be in an integral 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
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exceed the maximum rate of interest permitted by law on the day of
sale.
Paying Agent
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
draft of the Registrar mailed to the registered holder of a certifi-
cate. 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 certificates 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 certificates, 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 certificates in funds available for expenditure
by the City on the day of payment.
Legal Opinion
An unqualified legal opinion on the certificates will be
furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Profession-
al Association, Minneapolis, Minnesota. The legal opinion will be
printed on the certificates at the request of the purchaser. The
legal opinion will state thRt the certificates are valid and binding
general obligations of the City, payable primarily from general ad
valorem taxes 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.
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 $2,000, 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
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authorizing the lowest net interest cost (total interest from date of
certificates to stated maturities, less any cash premium or plus any
amount less than $200,000 bid for principal) will be deemed the most
favorable. No oral bid and no bid of less than $196,100 for principal
plus accrued interest on all of the certificates 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/ Donald Ashworth
City Manager
Dated: May 4, 1987.
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3. The City Manager is authorized and directed to advertise the
Certificates 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 Certificates 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 SALE
$200,000
GENERAL OBLIGATION EQUIPMENT CERTIFICATES
OF INDEBTEDNESS OF 1987
CITY OF CHANHASSEN,
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the
above certificates 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 Certificates are offered on the following
terms. The Certificates will be dated July 1, 1987, will bear inter-
est 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
1989
1990
1991
1992
$50,000
50,000
50,000
50,000
The City may elect on February 1, 1991 or on any interest payment date
thereafter to redeem and prepay Certificates of this issue in whole or
in part, in inverse order of maturities and by lot within maturities,
maturing on or after February 1, 1992 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 $196,100 plus accrued interest. A legal
opinion on the Certificates will be furnished by LeFevere, Lefler,
Kennedy, O'Brien & Drawz, a Professional Association, Minneapolis,
Minnesota. The proceeds of the certificates will be used to finance a
portion of the costs of acquisition of various items of capital
equipment for the City.
Bidders should be aware that the Official Statement to be distributed
for the Certificates may contain additional bidding terms and informa-
tion relative to the Certificates. In the event of a variance between
statements in this Notice of Sale and the Official Statement the
provisions of the latter shall be those with which to comply.
BY ORDER OF THE CITY COUNCIL
/s/ Donald Ashworth
City Manager
Dated: May 4, 1987.
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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 City
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 $200,000 General Obligation
Equipment Certificates of Indebtedness of 1987 of the City.
WITNESS My hand as such City Manager and the corporate seal
of the City this 02'~ day
(SEAL)
C5: 05114D87 . RAU
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City Manager
City of Chanhassen, Minnesota
, 1987.
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LIST OF CAPITAL EQUIPMENT
EQUIPMENT
1986 DELIVERED
Two cars and radios for building inspectors
Pick-up truck and radio
Snowplow
Sander and dump box
1987 DELIVERED
Payloader
Tractor
Truck for dog catcher with radio and topper
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Engine hoist
Road roller
Police car and radio
Subtotal
FINANCING
Capitalized interest
Costs of issuance
Underwriter's discount
Subtotal
City cash contributions
Total Issue
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EXHIBIT B
$ 15,190
21,400
4,071
8,495
$ 81,103
15,925
11,383
9,809
8,880
11,500
$186,756
11,659
5,500
3,900
$207,815
(7,815)
$200,000