86-35
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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 said City on Monday, June 9, 1986, commencing
at 7:30 o'clock P.M.
The following members were present:
Mayor Hamilton, Councibuembers
Horn, Watson and Geving.
and the following were absent:
Councilwoman Swenson
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The following resolution was presented by Councilmember Hamilton
who moved its adoption:
RESOLUTION NO. 86-35
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $195,000 GENERAL OBLIGATION
EQUIPMENT CERTIFICATES OF INDEBTEDNESS
OF 1986
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) The City is authorized by Minnesota Statutes, Section
412.301 to issue and sell its general obligation
equipment certificates of indebtedness (Certificate) to
finance the cost of street maintenance and construction
equipment, fire equipment and police and fire equip-
ment;
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(b) The City has duly authorized, contracted for or pur-
chased the following equipment items (Equipment) at the
costs indicated:
1985 Utility vacuum truck (delivered)
1985 Rear Mount Paver (delivered)
1985 Fire Dept. Tanker (delivered)
1985 Sedan
1986 Street Sweeper (delivered)
1986 Dump Truck (June delivery)
Lawn Mower (April delivery)
$ 45,267
11,698
19,687
9,946
64,613
36,616
9,533
(c) The costs of issuing the Certificates for the Equipment
is estimated to be:
Certificate Counsel
Registrar & Paying Agent (1st year)
Financial Printing
Moody's Rating
Financial Advisor
Underwriting Discount
Capitalized Interest (net)
$ 500
800
400
400
2,500
3,803
5,902
and the City has heretofore appropriated the sum of
$2,360 toward the cost of the Equipment.
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(d) That it is necessary and expedient to the sound finan-
cial management of the affairs of the City to issue
$195,000 General Obligation Equipment Certificates of
Indebtedness of 1986 to provide financing for the
Equipment.
2. In order to provide financing for the Improvements, the City
shall therefore issue and sell Certificates in the amount of $191,197.
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 $3,803. Any excess of the purchase price of the
Certificates over the sum of $191,197 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 and sold in accordance with the terms of the following
Official Notice of Sale:
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OFFICIAL
NOTICE OF SALE
$195,000 General Obligation Equipment Certificates
of Indebtedness of 1986
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 for the purchase of
$195,000 General Obligation Equipment Certificates of Indebtedness of
the City at a regular Council meeting on Monday, July 21, 1986, at
7:30 o'clock p.m., C.T. on the following terms.
Purpose and Security
The purpose of the certificates is to provide funds for the
financing the purchase of various items of capital equipment by the
City. The certificates will be general obligations of the City, for
which its full faith, credit and taxing powers are pledged.
Date and Maturities
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The certificates will be issued in fully registered form,
will be dated July 1, 1986, will be in integral multiples of $5,000
each and will mature on January 1 in the following years and amounts;
Year
Amount
1988
1989
1990
1991
$45,000
50,000
50,000
50,000
Redemption
The City may elect on January 1, 1990 and any interest
payment date thereafter, to prepay in whole or in part in inverse
order of maturity, certificates due on or after January 1, 1991 at a
price of par plus accrued interest. If prepayment is in part the
specific certificates to be prepaid will be selected by lot by the
Registrar.
Interest
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Interest on the certificates will be payable on January 1,
1987, and semiannually thereafter on each July 1 and January 1. All
certificates maturing on the same date must bear interest from date of
issue until paid at a single, uniform rate, and no rate for any
maturity may exceed the rate specified for any subsequent maturity by
more than one percent. Each rate must be in an integral multiple of
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1/20 or 1/8 of 1%, and no rate of interest nor the net effective
average rate of the issue may 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
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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 of Minneapolis, Minnesota. The legal opinion will be
printed on the certificates at the request of the purchaser. The
legal opinion will state that the certificates are valid and binding
general obligations of the City, 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
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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 $3,900, 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
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certificates to stated maturities, less any cash premium or plus any
amount less than $195,000 bid for principal) will be deemed the most
favorable. No oral bid and no bid of less than $191,197 for principal
plus accrued interest on all of the certificates will be considered,
and the City reserves the right to rej ect any and all bids and to
waive any informality in any bid.
BY ORDER OF THE CITY COUNCIL
/s/ Donald Ashworth
City Manager
Dated: June 9, 1986.
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EXHIBIT A
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NOTICE OF SALE
$195,000
GENERAL OBLIGATION
EQUIPMENT CERTIFICATES OF
INDEBTEDNESS OF 1986
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES,
MINNESOTA
These certificates will be offered for sale on sealed bids on Monday,
JULY 21, 1986
Bids will be opened and tabulated for consideration and award by the
City Council at 7:30 p.m., C.T., a regular meeting of the Council on
that date. The Certificates will be dated July 1, 1986, will bear
interest payable semiannually on each January 1 and July 1 to maturi-.
ty, commencing January 1, 1987, and will mature on January 1 in the
amounts and years as follows:
Year
Amount
1988
1989
1990
1991
$45,000
50,000
50,000
50,000
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The City may elect on January 1, 1990 to prepay in whole or in part
certificates due on January 1, 1991 at a price of par plus accrued
interest. If prepayment is in part the specific certificates to be
prepaid will be selected by lot by the Registrar.
No rate of interest nor the net effective rate of the issue may exceed
the maximum rate permitted by law. Bidders must specify a price of
not less than $191,1970 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 the costs of
various items of capital equipment for the City.
Bidders should be aware that the Official Statement to be published
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 said Official Statement, the
provisions of the latter shall be those to be complied with.
BY ORDER OF THE CITY COUNCIL
/s/ Donald Ashworth
City Manager
Dated: June 9, 1986.
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3. The 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 on Monday, July 21, 1986, 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 Watson and upon vote being taken
thereon, the following voted in favor of the motion:
Mayor Hamilton,
councilrnernbers Horn and Watson.
and the following voted against:
Councilman Geving
whereupon said resolution was declared duly passed and adopted.
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e STATE OF MINNESOTA )
)
COUNTIES OF CARVER )
AND HENNEPIN )
)
CITY OF CHANHASSEN )
It the undersignedt being the duly qualified and acting City
Manager of the City of Chanhassent Minnesotat do hereby certify that I
have carefully compared the attached and foregoing extract of a
special meeting of the City Council of said City held on MondaYt June.
9t 1986t with the original thereof on file in my office and the same
is a fullt true and correct copy thereoft insofar as the same relates
to the issuance and sale of $195tOOO General Obligation Equipment
Certificates of Indebtedness of 1986t of the City.
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WITNESS My hand as such City Manager and the corporate seal
of the City this 12th day of
Jrme
t 1986.
~{j~
City Manager
City of Chanhassent Minnesota
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05110686.RAU