86-36
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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, Councilmembers
Horn, Watson and Geving.
and the following were absent:
Councilwanan SWenson.
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The following resolution was presented by Councilmember Hamilcon
who moved its adoption:
RESOLUTION NO. 86-36
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $4,615,000 GENERAL OBLIGATION
IMPROVEMENT BONDS 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:
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(a) That the following assessable public improvements (the
"Improvements") have been made, duly ordered or con-
tracts let for the construction thereof, by the City
pursuant to the provisions of Minnesota Statutes,
Chapter 429:
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Project Designation & Description
Total Project Cost
Water Improvements
Storage Reservoir
County Road 17
Interconnect
$1,280,964
418,274
$1,561,642
13,935
97,062
Creekwood Drive (Streets)
South Lotus Lake (Street, Water & Sewer)
Lake Drive East, Phase 3 (Street &
Storm Sewer)
Lake Lucy Road (Streets)
Park One Development, Phases 1 & 2 (Streets,
Water, Sanitary & Storm Sewer)
Business Park 5th Addition (Streets, Water,
Sanitary & Storm Sewer)
Subtotal
Lake Ann Interceptor
Net to City for Construction Costs,
Engineering, Local Legal &
Administrative
Bond Counsel
Registrar & Paying Agent (1st Year)
Financial Printing
Moody's Rating
Financial Advisor
~Undeiwriting Discount
Capitalized Interest (net)
365,184
632,512
857,413
240,253
$3,768,000
482,000
$4,250,000
5,000
3,000
4,000
3,000
34,613
89,993
225,395
Total $4,615,000
(b) That it is necessary and expedient to the sound finan-
cial management of the affairs of the City to issue
$4,615,000 General Obligation Improvement Bonds of 1986
(Bonds) 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 $4,525,007. 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 $89,993. Any excess of the purchase price of the Bonds over the
sum of $4,525,007 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 and sold in accordance
with the terms of the following Official Notice of Sale:
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OFFICIAL
NOTICE OF SALE
$4,615,000 General Obligation Improvement Bonds 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
$4,615,000 General Obligation Improvement Bonds of the City at a
regular Council meeting on Monday, July 21, 1986, at 7 :30 0' clock
p.m., C.T. on the following terms.
Purpose and Security
The purpose of the bonds is to provide funds for the finan-
cing of various 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 property.
Date and Maturities
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The bonds will be issued in fully registered form, will be
d<'-t.~d_Jul~ 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 Year Amount
1989 $1,525,000 1997 $150,000
1990 175,000 1998 150,000
1991 175,000 1999 150,000
1992 175,000 2000 175,000
1993 175,000 2001 200,000
1994 175,000 2002 425,000
1995 200,000 2003 500,000
1996 200,000 2004 65,000
Redemption
The City may elect on January 1, 1996 and any interest
payment date thereafter, to prepay in whole or in part in inverse
order of maturity, bonds due on or after January 1, 1997 at a price of
par plus accrued interest. If prepayment is in part the specific
bonds to be prepaid will be selected by lot by the Registrar.
Interest
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Interest on the bonds will be payable on January 1, 1987,
and semiannually thereafter on each July 1 and January 1. All bonds
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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 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 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.
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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 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 of 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
Ci ty, payable primarily from special assessments against benefited
property, 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 $92,300, 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 $4,615,000 bid for principal) will be deemed the most favorable.
No oral bid and no bid of less than $4,525,007 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 infor-
mality in any bid.
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
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 on Monday, July 21, 1986, 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 Hatson and upon vote being taken
thereon, the following voted in favor of the motion:
Mayor Hamil ton,
Councilmernbers Horn and Watson.
and the following voted against:
Councilman Geving.
whereupon said resolution was declared duly passed and adopted.
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EXHIBIT A
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NOTICE OF BOND SALE
$4,615,000
GENERAL OBLIGATION
IMPROVEMENT BONDS OF 1986
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES
MINNESOTA
These bonds 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 Bonds will be dated July 1, 1986, will bear interest
payable semiannually on each January 1 and July 1 to maturity, com-
mencing January 1, 1987, and will mature on January 1 in the amounts
and years as follows:
Year Amount Year Amount
1989 $1,525,000 1997 $150,000
1990 175,000 1998 150,000
1991 175,000 1999 150,000
1992 175,000 2000 175,000
1993 175,000 2001 200,000
e " ~ 1994 175,000 2002 425,000
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1995 200,000 2003 500,000
1996 200,000 2004 65,000
The City may elect on January 1, 1996 to prepay in whole or in part
bonds due on or after January 1, 1997 at a price of par plus accrued
interest. If prepayment is in part the specific bonds 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 $4,525,007 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 improvement projects in and for the City.
Bidders should be aware that the Official Statement to be published
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 said Official Statement, the provi-
sions of the latter shall be those to be complied with.
BY ORDER OF THE CITY COUNCIL
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/s/
Donald Ashworth
City Manager
Dated: June 9,1986.
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 City
Manager of the City of Chanhassen, Minnesota, 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 Monday, June
9, 1986, 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 $4,615,000 General Obligation Improvement
Bonds of 1986, of the City.
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'-- 'WITNESS My hand as such City Manager and the corporate seal
of the City this /:i"^ day of ~oct) . 1986.
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L! (1 a, "C;CO
City Manager
City of Chanhassen, Minnesota
(SEAL)
05112D86.RAU
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