2009-40
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RESOLUTION 2009-40
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL
CITY OF CHANHASSEN, MINNESOTA
HELD: May 11,2009
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 duly held at the City Hall on
May 11, 2009, at 7 :00 P .M, for the purpose, in part, of considering proposals and awarding the
sale of $6,020,000 General Obligation Improvement Refunding Bonds, Series 2009A.
The following members were present:
Thomas Furlong, Vicki Emst, Bryan Litsey, Jerry McDonald, Bethany Tjornhom
and the following were absent:
None
Member McDonald introduced the following resolution and moved its adoption:
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $6,020,000 GENERAL
OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2009A AND PLEDGING
FOR THE SECURITY THEREOF SPECIAL ASSESSMENTS AND LEVYING A TAX FOR
THE PAYMENT THEREOF
A. WHEREAS, the City of Chanhassen, Minnesota (the "City"), has heretofore
determined and declared that it is necessary and expedient to provide moneys for a current
refunding of the City's (i) $4,067,000 original principal amount of Taxable General Obligation
Improvement Bonds, Series 2005A, dated June 24, 2005 (the "Prior 2005 Bonds"), which mature
on and after July 1, 2010 and (ii) $6,640,000 original principal amount of General Obligation
Improvement Bonds, Series 2006A, dated June 13,2006 (the "Prior 2006 Bonds" and, together
with the Prior 2005 Bonds, the "Prior Bonds"), which mature on and after February 1,2010; and
B. WHEREAS, the Prior 2005 Bonds were purchased by the State of Minnesota,
acting through the Commissioner of Finance ("MnDOT") under the terms and conditions of a
Loan Agreement (the "Agreement") by and between MnDOT and the City, dated April 19, 2005,
wherein the City has the option to prepay the Prior 2005 Bonds under certain terms and
conditions as specified in the Agreement and the City has complied with such terms and
conditions; and
C. WHEREAS, $3,057,124 principal amount ofthe Prior 2005 Bonds which matures
on and after July 1, 2010 (the "Refunded 2005 Bonds"), is callable on July 1, 2009 (the "Call
Date"), at a price of par plus accrued interest, as provided in the Resolution of the City Council,
adopted on April 11, 2005 (the "Prior 2005 Resolution"); and
D. WHEREAS, $5,330,000 principal amount of the Prior 2006 Bonds which matures
on and after February 1,2010 (the "Refunded 2006 Bonds" and, together with the Refunded
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2005 Bonds, the "Refunded Bonds"), is callable on the Call Date, at a price of par plus accrued
interest, as provided in the Resolution ofthe City Council, adopted on May 22, 2006 (the "Prior
2006 Resolution" and, together with the Prior 2005 Resolution, the "Prior Resolutions"); and
E. WHEREAS, the refunding of the Refunded Bonds on the Call Date is consistent
with covenants made with the holders thereof, and is necessary and desirable for the reduction of
debt service cost to the City; and
F. WHEREAS, the City Council hereby determines and declares that it is necessary
and expedient to issue $6,020,000 General Obligation Improvement Refunding Bonds, Series
2009A, pursuant to Minnesota Statutes, Chapter 475, to provide moneys for a current refunding
of the Refunded Bonds; and
G. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville,
Minnesota ("Ehlers"), as its independent financial advisor for the sale of the Bonds and was
therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota
Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been
solicited by Ehlers; and
H. WHEREAS, the proposals set forth on Exhibit C attached hereto were received by
the City Manager, or designee, at the offices of Ehlers, at 11 :00 A.M., this same day pursuant to
the Terms of Proposal established for the Bonds; and
I. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-
entry form as hereinafter provided; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City ofChanhassen,
Minnesota, as follows:
1. Acceptance of Proposal. The proposal of Morgan Keegan & Co., Inc. (the
"Purchaser"), to purchase the Bonds, in accordance with the Terms of Proposal established for
the Bonds, at the rates of interest hereinafter set forth, and to pay therefor the sum of
$6,223,080.31, plus interest accrued to settlement, is hereby found, determined and declared to
be the most favorable proposal received, is hereby accepted and the Bonds are hereby awarded to
the Purchaser. The Manager is directed to retain the deposit of the Purchaser and to forthwith
return to the unsuccessful bidders any good faith checks or drafts.
2. Terms of Bonds.
(a) Original Issue Date: Denominations: Maturities: Term Bond Option. The Bonds
shall be dated June 3, 2009, as the date of original issue and shall be issued forthwith on or after
such date in fully registered form. The Bonds shall be numbered from R-l upward in the
denomination of $5,000 each or in any integral multiple thereof of a single maturity (the
"Authorized Denominations"). The Bonds shall mature on February 1 in the years and amounts
as follows:
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..
'C
Year Amount Year Amount
2010 $215,000 2014 $3,515,000
2011 190,000 2015 550,000
2012 195,000 2016 565,000
2013 200,000 2017 590,000
For the purpose of complying with Minnesota Statutes, Section 475.54, Subdivision 1, the
maturity schedule for the Bonds has been combined with the maturity schedules for the
$2,070,000 General Obligation Bonds, Series 2004A and the $6,095,000 General Obligation
Library Bonds, Series 2002A, as permitted by Minnesota Statutes, Section 475.54, Subdivision
2.
As may be requested by the Purchaser, one or more term Bonds may be issued having
mandatory sinking fund redemption and final maturity amounts conforming to the foregoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
(b) Book Entry Only System. The Depository Trust Company, a limited purpose
trust company organized under the laws of the State of New York or any of its successors or its
successors to its functions hereunder (the "Depository") will act as securities depository for the
Bonds, and to this end:
(i) The Bonds shall be initially issued and, so long as they remain in book entry form
only (the "Book Entry Only Period"), shall at all times be in the form of a separate
single fully registered Bond for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized
Denominations for any Bond shall be deemed to be limited during the Book Entry
Only Period to the outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar (as hereinafter defined) in the name of
CEDE & CO, as the nominee (it or any nominee ofthe existing or a successor
Depository, the "Nominee").
(iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial
institution for which the Depository holds Bonds as securities depository (the
"Participant") or the person for which a Participant holds an interest in the Bonds
shown on the books and records of the Participant (the "Beneficial Owner").
Without limiting the immediately preceding sentence, neither the City, nor the
Bond Registrar, shall have any such responsibility or obligation with respect to
(A) the accuracy of the records of the Depository, the Nominee or any Participant
with respect to any ownership interest in the Bonds, or (B) the delivery to any
Participant, any Owner or any other person, other than the Depository, of any
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notice with respect to the Bonds, including any notice of redemption, or (C) the
payment to any Participant, any Beneficial Owner or any other person, other than
the Depository, of any amount with respect to the principal of or premium, if any,
or interest on the Bonds, or (D) the consent given or other action taken by the
Depository as the Registered Holder of any Bonds (the "Holder"). For purposes
of securing the vote or consent of any Holder under this Resolution, the City may,
however, rely upon an omnibus proxy under which the Depository assigns its
consenting or voting rights to certain Participants to whose accounts the Bonds
are credited on the record date identified in a listing attached to the omnibus
proxy.
(iv) The City and the Bond Registrar may treat as and deem the Depository to be the
absolute owner of the Bonds for the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds, for the purpose of
obtaining any consent or other action to be taken by Holders for the purpose of
registering transfers with respect to such Bonds, and for all purpose whatsoever.
The Bond Registrar, as paying agent hereunder, shall pay all principal of and
premium, if any, and interest on the Bonds only to the Holder or the Holders of
the Bonds as shown on the bond register, and all such payments shall be valid and
effective to fully satisfy and discharge the City's obligations with respect to the
principal of and premium, if any, and interest on the Bonds to the extent of the
sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of written notice to the
effect that the Depository has determined to substitute a new Nominee in place of
the existing Nominee, and subject to the transfer provisions in paragraph 10,
references to the Nominee hereunder shall refer to such new Nominee.
(vi) So long as any Bond is registered in the name of a Nominee, all payments with
respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the
Bond Registrar or City, as the case may be, to the Depository as provided in the
Letter of Representations to the Depository required by the Depository as a
condition to its acting as book-entry Depository for the Bonds (said Letter of
Representations, together with any replacement thereof or amendment or
substitute thereto, including any standard procedures or policies referenced
therein or applicable thereto respecting the procedures and other matters relating
to the Depository's role as book-entry Depository for the Bonds, collectively
hereinafter referred to as the "Letter of Representations").
(vii) All transfers of beneficial ownership interests in each Bond issued in book-entry
form shall be limited in principal amount to Authorized Denominations and shall
be effected by procedures by the Depository with the Participants for recording
and transferring the ownership of beneficial interests in such Bonds.
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(viii) In connection with any notice or other communication to be provided to the
Holders pursuant to this Resolution by the City or Bond Registrar with respect to
any consent or other action to be taken by Holders, the Depository shall consider
the date of receipt of notice requesting such consent or other action as the record
date for such consent or other action; provided, that the City or the Bond Registrar
may establish a special record date for such consent or other action. The City or
the Bond Registrar shall, to the extent possible, give the Depository notice of such
special record date not less than fifteen calendar days in advance of such special
record date to the extent possible.
(ix) Any successor Bond Registrar in its written acceptance of its duties under this
Resolution and any paying agency/bond registrar agreement, shall agree to take
any actions necessary from time to time to comply with the requirements of the
Letter of Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in
paragraph 5, make a notation of the reduction in principal amount on the panel
provided on the Bond stating the amount so redeemed.
(c) Termination of Book-Entry Only System. Discontinuance ofa particular
Depository's services and termination ofthe book-entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its services with respect
to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may
terminate the services of the Depository with respect to the Bond if it determines
that the Depository is no longer able to carry out its functions as securities
depository or the continuation of the system of book-entry transfers through the
Depository is not in the best interests of the City or the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the preceding
paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the
City, is willing and able to assume such functions upon reasonable or customary
terms, or if the City determines that it is in the best interests of the City or the
Beneficial Owners of the Bond that the Beneficial Owners be able to obtain
certificates for the Bonds, the Bonds shall no longer be registered as being
registered in the bond register in the name of the Nominee, but may be registered
in whatever name or names the Holder of the Bonds shall designate at that time,
in accordance with paragraph 10. To the extent that the Beneficial Owners are
designated as the transferee by the Holders, in accordance with paragraph 10, the
Bonds will be delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (d) shall limit or restrict the provisions of paragraph
10.
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(d) Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by reference and made a part of the resolution, and if and to the extent any
such provisions are inconsistent with the other provisions of this resolution, the provisions in the
Letter of Representations shall control.
(e) Purpose: Refunding Findinl;!s. The Bonds shall provide funds for a current
refunding of the Refunded Bonds (the "Refunding"). It is hereby found, determined and declared
that the Refunding is pursuant to Minnesota Statutes, Section 475.67, and shall result in a
reduction of debt service cost to the City.
3. Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2010,
calculated on the basis ofa 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows:
Maturity Year Interest Rate Maturity Year Interest Rate
2010 3.00% 2014 3.00%
2011 3.00% 2015 3.00%
2012 3.00% 2016 3.00%
2013 3.00% 2017 3.00%
4. Redemption. Bonds maturing on February 1,2016, and thereafter, shall be
subject to redemption and prepayment at the option of the City on February 1,2015, and on any
date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of
the Bonds subject to prepayment. If redemption is in part, the maturities and the principal
amounts within each maturity to be redeemed shall be determined by the City; and if only part of
the Bonds having a common maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for
redemption shall be due and payable on the redemption date, and interest thereon shall cease to
accrue from and after the redemption date. Mailed notice of redemption shall be given to the
paying agent and to each affected registered holder of the Bonds at least thirty days prior to the
date fixed for redemption.
To effect a partial redemption of Bonds having a common maturity date, the Bond
Registrar prior to giving notice of redemption shall assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in
its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for
each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected; provided, however,
that only so much of the principal amount of each such Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the
City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
City and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly
authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall
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authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds
having the same stated maturity and interest rate and of any Authorized Denomination or
Denominations, as requested by the Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond so surrendered.
5. Bond Registrar. Bond Trust Services Corporation, in Roseville, Minnesota, is
appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) ofthe Bonds in the manner set forth in the form of Bond and paragraph 12.
6. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
CARVER AND HENNEPIN COUNTIES
CITY OF CHANHASSEN
R-
$
GENERAL OBLIGATION IMPROVEMENT REFUNDING BOND, SERIES 2009A
Interest Rate
Maturity Date
Date of Original Issue
CUSIP
February 1,
June 3, 2009
REGISTERED OWNER:
CEDE & CO.
PRINCIP AL AMOUNT:
The City of Chanhassen, Carver and Hennepin Counties, Minnesota (the "Issuer"),
certifies that it is indebted and for value received promises to pay to the registered owner
specified above, or registered assigns, in the manner hereinafter set forth, the principal amount
specified above, on the maturity date specified above, unless called for prior payment, and to pay
interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest
Payment Date"), commencing February 1,2010, at the rate per annum specified above
(calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is
paid or has been provided for. This Bond will bear interest from the most recent Interest
Payment Date to which interest has been paid or, ifno interest has been paid, from the date of
original issue hereof. The principal of and premium, if any, on this Bond are payable upon
presentation and surrender hereof at the Bond Trust Services Corporation, in Roseville,
Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly
appointed by the Issuer (the "Bond Registrar"), acting as paying agent, or any successor paying
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agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment
Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder"
or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at
the address appearing thereon at the close of business on the fifteenth day of the calendar month
next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so
timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular
Record Date, and shall be payable to the person who is the Holder hereof at the close of business
on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes
available for payment of the defaulted interest. Notice of the Special Record Date shall be given
to Bondholders not less than ten days prior to the Special Record Date. The principal of and
premium, if any, and interest on this Bond are payable in lawful money of the United States of
America. So long as this Bond is registered in the name of the Depository or its Nominee as
provided in the Resolution hereinafter described, and as those terms are defined therein, payment
of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be
made as provided in the Letter of Representations, as defined in the Resolution, and surrender of
this Bond shall not be required for payment of the redemption price upon a partial redemption of
this Bond. Until termination ofthe book-entry only system pursuant to the Resolution, Bonds
may only be registered in the name of the Depository or its Nominee.
Optional Redemption. The Bonds of this issue (the "Bonds") maturing on February 1,
2016, and thereafter, shall be subject to redemption and prepayment at the option of the City on
February 1,2015, and on any date thereafter at a price of par plus accrued interest. Redemption
may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the
maturities and the principal amounts within each maturity to be redeemed shall be determined by
the City; and if only part of the Bonds having a common maturity date are called for prepayment,
the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions
thereof called for redemption shall be due and payable on the redemption date, and interest
thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption
shall be given to the paying agent and to each affected Holder of the Bonds at least thirty days
prior to the date fixed for redemption.
Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed
in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying
the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the
addresses shown on the Bond Register. All Bonds so called for redemption will cease to bear
interest on the specified redemption date, provided funds for their redemption have been duly
deposited.
Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption
of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the principal amount of such
Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall
deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at
$5,000 for each number, shall equal the principal amount of the Bonds to be redeemed. The
Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided,
however, that only so much of the principal amount of Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
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a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the
Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly
authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall
authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds
having the same stated maturity and interest rate and of any Authorized Denomination or
Denominations, as requested by the Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond so surrendered.
Issuance: Purpose: General Obligation. This Bond is one of an issue in the total principal
amount of $6,020,000, all oflike date of original issue and tenor, except as to number, maturity,
interest rate, denomination and redemption privilege, issued pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by
the City Council of the Issuer on May 11,2009 (the "Resolution"), for the purpose of providing
funds for a current refunding of the Issuer's Taxable General Obligation Improvement Bonds,
Series 2005A, dated June 24, 2005 which mature on and after July 1,2010, and the General
Obligation Improvement Bonds, Series 2006A, dated June 13,2006, which mature on and after
February 1,2010. This Bond is payable out of the General Obligation Improvement Refunding
Bonds, Series 2009A Fund of the Issuer. This Bond constitutes a general obligation of the
Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any,
and interest when the same become due, the full faith and credit and taxing powers of the Issuer
have been and are hereby irrevocably pledged.
Denominations: Exchange: Resolution. The Bonds are issuable solely in fully registered
form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully
registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to the limitations
provided in the Resolution. Reference is hereby made to the Resolution for a description of the
rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal
office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in person or the Holder's attorney duly
authorized in writing at the principal office of the Bond Registrar upon presentation and
surrender hereofto the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond
Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and
deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof for the purpose of receiving payment as
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herein provided (except as otherwise provided herein with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond
Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Qualified Tax-Exempt Obligations. The Bonds have been designated by the Issuer as
"qualified tax -exempt obligations" for purposes of Section 265 (b )(3) of the Internal Revenue
Code of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law, and that this
Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof
and the date of its issuance and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City ofChanhassen, Carver and Hennepin Counties,
Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile
signatures of its Mayor and its Manager, the corporate seal of the Issuer having been
intentionally omitted as permitted by law.
Date of Registration:
Registrable by: BOND TRUST SERVICES
CORPORATION
Payable at:
BOND TRUST SERVICES
CORPORATION
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
CITY OF CHANHASSEN,
CARVER AND HENNEPIN COUNTIES,
MINNESOTA
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
Isl Facsimile
Mayor
BOND TRUST SERVICES
CORPORATION
Roseville, Minnesota,
Bond Registrar
Isl Facsimile
Manager
By:
Authorized Signature
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ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though they were written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in common
UTMA - as custodian for
(Minor)
Uniform
(Cust)
under the
(State)
Transfers to Minors Act
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and does hereby
irrevocably constitute and appoint attorney to transfer the Bond
on the books kept for the registration thereof, with full power of substitution in the premises.
Dated:
Notice:
The assignor's signature to this assignment must correspond with
the name as it appears upon the face of the within Bond in every
particular, without alteration or any change whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address:
(Include information for all joint owners if the Bond is held by joint
account. )
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PREPAYMENT SCHEDULE
This Bond has been prepaid in part on the date(s) and in the amount(s) as follows:
DATE
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AMOUNT
12
AUTHORIZED
SIGNATURE
OF HOLDER
7. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the City by the signatures of its Mayor and Manager and be sealed with the seal of the City;
provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate
seal has been omitted. In the event of disability or resignation or other absence of either officer,
the Bonds may be signed by the manual or facsimile signature of the officer who may act on
behalf of the absent or disabled officer. In case either officer whose signature or facsimile of
whose signature shall appear on the Bonds shall cease to be such officer before the delivery of
the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if the officer had remained in office until delivery.
8. Authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this resolution unless a Certificate of Authentication on
the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an
authorized representative of the Bond Registrar. Certificates of Authentication on different
Bonds need not be signed by the same person. The Bond Registrar shall authenticate the
signatures of officers of the City on each Bond by execution of the Certificate of Authentication
on the Bond and by inserting as the date of registration in the space provided the date on which
the Bond is authenticated, except that for purposes of delivering the original Bonds to the
Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue of
June 3, 2009. The Certificate of Authentication so executed on each Bond shall be conclusive
evidence that it has been authenticated and delivered under this resolution.
9. Registration: Transfer: Exchange. The City will cause to be kept at the principal
office of the Bond Registrar a bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds
and the registration of transfers of Bonds entitled to be registered or transferred as herein
provided.
Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the
City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee
or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a
like aggregate principal amount, having the same stated maturity and interest rate, as requested
by the transferor; provided, however, that no Bond may be registered in blank or in the name of
"bearer" or similar designation.
At the option ofthe Holder, Bonds may be exchanged for Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever
any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the
Holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall
be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City.
2345503\'1
13
All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the City evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or
be accompanied by a written instrument oftransfer, in form satisfactory to the Bond Registrar,
duly executed by the Holder thereof or his, her or its attorney duly authorized in writing
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to
close its transfer books between record dates and payment dates. The Manager is hereby
authorized to negotiate and execute the terms of said agreement.
10. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
11. Interest Payment: Record Date. Interest on any Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth day of the calendar
month next preceding such Interest Payment Date (the "Regular Record Date"). Any such
interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of
the Regular Record Date, and shall be payable to the person who is the Holder thereof at the
close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever
money becomes available for payment of the defaulted interest. Notice of the Special Record
Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the
Special Record Date.
12. Treatment of Registered Owner. The City and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, ifany, and interest (subject to the payment
provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not
such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by
notice to the contrary.
13. Delivery: Application of Proceeds. The Bonds when so prepared and executed
shall be delivered by the Manager to the Purchaser upon receipt of the purchase price, and the
Purchaser shall not be obliged to see to the proper application thereof.
14. Fund and Accounts. For the convenience and proper administration of the
moneys to be borrowed and repaid on the Bonds, and to make adequate and specific security to
the Purchaser and holders from time to time of the Bonds, there is hereby created a special fund
to be designated the "General Obligation Improvement Refunding Bonds, Series 2009A Fund"
2345503vl
14
(the "Fund") to be administered and maintained by the Manager as a bookkeeping account
separate and apart from all other funds maintained in the official financial records of the City.
The Fund shall be maintained in the manner herein specified until all of the Bonds and the
interest thereon shall have been fully paid. There shall be maintained and created in the fund the
"Payment Account" and a "Debt Service Account".
(a) Payment Account. The proceeds ofthe Bonds, less accrued interest, if any, shall
be deposited in the Payment Account. On or prior to the Call Date, the Manager shall transfer
Bond proceeds from the Payment Account in the amounts of$3,057,123.79 for the Prior 2005
Bonds to MnDot and $5,413,979.17 to the paying agent for the Prior 2006 Bonds. The sums are
sufficient, together with other funds on deposit in debt service funds for the Refunded Bonds, to
pay the principal and interest due on the Refunded Bonds due after the Call Date, including the
principal of the Refunded Bonds called for redemption on the Call Date. The remainder of the
monies in the Payment Account shall be used to pay the costs of issuance of the Bonds. Any
monies remaining in the Payment Account after payment of all costs of issuance and payment of
the Refunded Bonds shall be transferred to the Debt Service Account.
(b) Debt Service Account. To the Debt Service Account there is hereby pledged and
irrevocable appropriated and there shall be credited: (1) accrued interest; (2) any balance
remaining after the Call Date, in the Prior Bonds Debt Service Accounts created by the Prior
Resolutions; (3) any uncollected special assessments which were heretofore pledged for the
payment of the Refunded Bonds and are herein pledged to the payment of the Bonds; (4) all
investment earnings on funds in the Debt Service Account; (5) any taxes herein or hereafter
levied for the payment of the Bonds; (6) any and all other moneys which are properly available
and are appropriated by the governing body of the City to the Debt Service Account. The
amount of any surplus remaining in the Debt Service Account when the Bonds and interest
thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except (1) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bonds were issued and (2) in addition to the above in an
amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To
this effect, any proceeds of the Bonds and any sums from time to time held in the Debt Service
Account (or any other City account which will be used to pay principal or interest to become due
on the bonds payable therefrom) in excess of amounts which under then applicable federal
arbitrage regulations may be invested without regard to yield shall not be invested at a yield in
excess of the applicable yield restrictions imposed by the arbitrage regulations on such
investments after taking into account any applicable "temporary periods" or "minor portion"
made available under the federal arbitrage regulations. Money in the Fund shall not be invested
in obligations or deposits issued by, guaranteed by or insured by the United States or any agency
or instrumentality thereof if and to the extent that such investment would cause the Bonds to be
"federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of
1986, as amended (the "Code").
2345503vl
15
15. Assessments. The City has heretofore levied special assessments pursuant to the
Prior Resolutions, which have been pledged to the payment of the principal and interest on the
Prior Bonds. All uncollected special assessments are now pledged to the payment of principal of
and interest on the Bonds. The balance of the special assessments shall be payable in equal,
consecutive, annual installments with general taxes for the years shown below and with interest
on the declining balance of all such installments as follows:
Improvement Designations Levy Years Collection Years
Amount
Rate
(Prior 2005 Bonds) 2009-2015 2010-2016
Project Nos. 03-09-3, 04-05 and
04-06
(Prior 2006 Bonds) 2009- 2012 2010- 2013
Bluff Creek Boulevard
Improvements,
Project No. 06-05
(Prior 2006 Bonds) 2009-2011 2010-2012
2005 Water and Sewer
Assessments
6.00%
See attached
tax levy
computation
6.50%
6.00%
16. Tax Levy: Coverage Test. To provide moneys for payment of the principal and
interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct
annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of
other general property taxes in the City for the years and in the amounts as follows:
Levy Years
Collection Years
Amount
2009-2015
2010-2016
See attached schedules
The tax levies are such that if collected in full they, together with estimated collections of
special assessments herein pledged for the payment of the Bonds, will produce at least five
percent in excess of the amount needed to meet when due the principal and interest payments on
the Bonds. The tax levies shall be irrepealable so long as any of the Bonds are outstanding and
unpaid, provided that the City reserves the right and power to reduce the levies in the manner and
to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3.
Upon payment of the (i) Refunded 2005 Bonds, the taxes levied by the Prior 2005
Resolution in the years 2009 to 2014 shall be canceled and (ii) Refunded 2006 Bonds, the taxes
levied by the Prior 2006 Resolution in the years 2009 to 2011 shall be canceled.
17. General Obligation Pledge. For the prompt and full payment ofthe principal and
interest on the Bonds, as the same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt
Service Account is ever insufficient to pay all principal and interest then due on the Bonds and
any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds
of the City which are available for such purpose, and such other funds may be reimbursed with
or without interest from the Debt Service Account when a sufficient balance is available therein.
2345503vl
16
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18. Prior Bonds; Security and Prepayment. Until retirement of the Prior Bonds, all
provisions for the security thereof shall be observed by the City and all of its officers and agents.
The Refunded Bonds shall be redeemed and prepaid on the Call Date in accordance with the
terms and conditions set forth in the Notices of Call for Redemption attached hereto as Exhibits
A and B, which terms and conditions are hereby approved and incorporated herein by reference.
The previous actions taken on the City's behalf by Ehlers in notifying MnDOT about the
prepayment of the Refunded 2005 Bonds on the Redemption Date are hereby approved.
19. Supplemental Resolution. The Prior Resolutions authorizing the issuance of the
Prior Bonds are hereby supplemented to the extent necessary to give effect to the provisions
hereof.
20. Certificate of Registration. The Manager is hereby directed to file a certified copy
of this resolution with the County Auditor of Carver County and Director of Property Tax and
Public Records of Hennepin County, together with such other information as the County Auditor
and Director shall require, and to obtain the County Auditor's and Director's certificate that the
Bonds have been entered in the County Auditor's and Director's Bond Registers and that the tax
levy required by law has been made.
21. Records and Certificates. The officers of the City are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are required to show the facts relating to the legality and marketability of the
Bonds as the same appear from the books and records under their custody and control or as
otherwise known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts recited therein.
22. Negative Covenant as to Use of Bond Proceeds and Proiect. The City hereby
covenants not to use the proceeds of the Bonds or to use the improvements refinanced by the
Prior Bonds (the "Project"), or to cause or permit them to be used, or to enter into any deferred
payment arrangements for the cost of the Project, in such a manner as to cause the Bonds to be
"private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
23. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(i) requirements relating to temporary periods for investments, (ii) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment
earnings to the United States. The City expects to satisfy the six month expenditure exemption
from gross proceeds of the Bonds as provided in Section l.l48-7(c) of the Regulations. The
Mayor and or Manager are hereby authorized and directed to make such elections as to arbitrage
and rebate matters relating to the Bonds as they deem necessary, appropriate or desirable in
connection with the Bonds, and all such elections shall be, and shall be deemed and treated as,
elections of the City
2345503vl
17
24. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds
as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the
City hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as "qualified tax exempt obligations" for
purposes of Section 265(b )(3) of the Code;
(d) the reasonably anticipated amount of tax exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will
be issued by the City (and all entities treated as one issuer with the City, and all subordinate
entities whose obligations are treated as issued by the City) during this calendar year 2009 will
not exceed $30,000,000;
(e) not more than $30,000,000 of obligations issued by the City during this calendar
year 2009 have been designated for purposes of Section 265(b)(3) of the Code; and
(f) the aggregate face amount ofthe Bonds does not exceed $30,000,000.
Furthermore:
(g) each ofthe Refunded Bonds was designated as a "qualified tax exempt
obligation" for purposes of Section 265(b)(3) of the Code;
(h) the aggregate face amount of the Bonds does not exceed $30,000,000;
(i) the average maturity ofthe Bonds does not exceed the remaining average maturity
ofthe Refunded Bonds;
G) no part of the Bonds has a maturity date which is later than the date which is
thirty years after the date the Refunded Bonds were issued; and
(k) the Bonds are issued to refund, and not to "advance refund" the Prior Bonds
within the meaning of Section 149( d)( 5) of the Code, and shall not be taken into account under
the $30,000,000 issuance limit to the extent the Bonds do not exceed the outstanding amount of
the Prior Bonds.
The City shall use its best efforts to comply with any federal procedural requirements which may
apply in order to effectuate the designation made by this paragraph.
25. Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond
2345503vl
18
should not be paid when due, it may nevertheless be discharged by depositing with the Bond
Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such
deposit. The City may also at any time discharge its obligations with respect to any Bonds,
subject to the provisions of law now or hereafter authorizing and regulating such action, by
depositing irrevocably in escrow, with a suitable banking institution qualified by law as an
escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67,
Subdivision 8, bearing interest payable at such times and at such rates and maturing on such
dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to
become due thereon to maturity or, if notice of redemption as herein required has been duly
provided for, to such earlier redemption date.
26. Official Statement. The Official Statement relating to the Bonds prepared and
distributed by Ehlers is hereby approved and the officers of the City are authorized in connection
with the delivery of the Bonds to sign such certificates as may be necessary with respect to the
completeness and accuracy of the Official Statement.
27. Continuing Disclosure. The City is the sole obligated person with respect to the
Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"),
promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the
Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the
"Undertaking") hereinafter described to:
(a) Provide or cause to be provided to each nationally recognized municipal securities
information repository ("NRMSIR") and to the appropriate state information depository ("SID "),
if any, for the State of Minnesota, through and including June 30, 2009, and thereafter to the
Electronic Municipal Market Access system at www.emma.msrb.org ("Emma"), in each case as
designated by the Commission in accordance with the Rule, certain annual financial information
and operating data in accordance with the Undertaking. The City reserves the right to modify
from time to time the terms of the Undertaking as provided therein.
(b) Provide or cause to be provided, in a timely manner, (i) through and including
June 30, 2009 to each NRMSIR or to the Municipal Securities Rulemaking Board ("MSRB") and
any SID, and (ii) thereafter to EMMA, notice of the occurrence of certain material events with
respect to the Bonds in accordance with the Undertaking.
(c) Provide or cause to be provided, in a timely manner, (i) through and including
June 30, 2009 to each NRMSIR or to the MSRB and any SID, and (ii) thereafter to EMMA,
notice of a failure by the City to provide the annual financial information with respect to the City
described in the Undertaking.
(d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph
and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the City's obligations under
the covenants.
2345503v1
19
The Mayor and Manager of the City, or any other officer ofthe City authorized to act in their
place (the "Officers") are hereby authorized and directed to execute on behalf of the City the
Undertaking in substantially the form presented to the City Council subject to such modifications
thereof or additions thereto as are (a) consistent with the requirements under the Rule, (b)
required by the Purchaser of the Bonds, and (c) acceptable to the Officers.
28. Payment of Issuance Expenses. The City authorizes the Purchaser to forward the
amount of Bond proceeds allocable to the payment of issuance expenses to U.S. Trust Company,
N.A., in Greenwich, Connecticut, on the closing date for further distribution as directed by
Ehlers.
29. Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
30. Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
The motion for the adoption ofthe foregoing resolution was duly seconded by member
Litsey and, after a full discussion thereof and upon a vote being taken thereon, the following
voted in favor thereof:
Furlong, Ernst, Litsey, McDonald, Tjomhom
and the following voted against the same:
None
Whereupon the resolution was declared duly passed and adopted.
2345503vl
20
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified Manager of the City ofChanhassen,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and
complete transcript of the minutes of a meeting of the City Council of the City, duly called and
held on the date therein indicated, insofar as such minutes relate to considering proposals and
awarding the sale of $6,020,000 General Obligation Improvement Refunding Bonds, Series
2009A.
WITNESS my hand on May If , 2009.
-1.+14 >>-
~
Manager
2345503vl
21
EXHIBIT A
NOTICE OF REDEMPTION
TAXABLE GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2005A
CITY OF CHANHASSEN, CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that by order ofthe City Council of the City of
Chanhassen, Carver and Hennepin Counties, Minnesota, there have been called for redemption
and prepayment on July 1,2009, the Taxable General Obligation Improvement Bonds, Series
2005A, dated as of June 24, 2005, issued under the terms and conditions of a Loan Agreement by
and between the MnDOT and the City, dated April 19, 2005, having a stated maturity date of
July 1 in the years 2010 through 2017, inclusive, and totaling $3,057,124 in principal amount.
Dated: May 11, 2009
BY ORDER OF THE CITY COUNCIL
Isl . Manager
2345503vl
A-I
..
EXHIBIT B
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGA nON IMPROVEMENT BONDS, SERIES 2006A
CITY OF CHANHASSEN, CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council ofthe City of
Chanhassen, Carver and Hennepin Counties, Minnesota, there have been called for redemption
and prepayment on
July 1,2009
those outstanding bonds of the City designated as General Obligation Improvement Bonds,
Series 2006A, dated as of June 13,2006, having stated maturity dates in the years 2010 through
2014, inclusive, and totaling $5,330,000 in principal in principal amount and having CUSIP
numbers listed below:
Year CUSIP
2010 1591055H4
2011 159105 5JO
2012 1591055K7
2013 1591055L5
2014 1591055M3
The bonds are being called at a price of par plus accrued interest to July 1, 2009, on which date
all interest on the bonds will cease to accrue. Holders of the bonds hereby called for redemption
are requested to present their bonds for payment, at Bond Trust Services Corporation, 3060
Centre Point Drive, Roseville, Minnesota 55113.
Dated: May 11, 2009
BY ORDER OF THE CITY COUNCIL
/s/ . Manager
*The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any
representation made as to their correctness indicated in the notice. They are included solely for
the convenience of the holders.
2345503vl
B-1
BID TABULATION
$6,265,000* General Obligation Improvement Refunding Bonds, Series 2009A
CITY OF CHANHASSEN, MINNESOTA
SALE: May 11, 2009
AWARD: MORGAN KEEGAN & CO., INC.
RATING: Standard & Poor's Credit Markets "AAA"
BBI: 4.62%
NET TRUE
MATURITY RATE REOFFERING PRICE INTEREST INTEREST
(February 1) YIELD COST RATE
2010 3.000% 1.000% $6,476,740.45 $706,915.38 2.2612%
2011 3.000% 1.100%
2012 3.000% 1.350%
2013 3.000% 1.600%
2014 3.000% 2.000%
2015 3.000% 2.300%
2016 3.000% 2.500%
2017 3.000% 2.700%
2010 2.500% $6,362,805.95 $710,232.66 2.2940%
2011 2.500%
2012 2.500%
2013 2.500%
2014 2.500%
2015 2.500%
2016 3.000%
2017 3.000%
2010 2.500% $6,446,666.95 $728,012.22 2.3345%
2011 2.500%
2012 2.500%
2013 2.500%
2014 3.000%
2015 3.000%
2016 3.000%
2017 3.000%
NAME OF BIDDER
MORGAN KEEGAN & CO., INC.
Memphis, Tennessee
HUTCHINSON, SHOCKEY, ERLEY & CO.
Chicago, Illinois
ROBERT W. BAIRD & CO.
Milwaukee, Wisconsin
*Subsequent to bid opening the issue size was decreased to $6,020,000 with the 2010 maturity decreased $10,000 to $215,000, the
2011 maturity decreased $10,000 to $190,000, the 2012 maturity decreased $10,000 to $195,000 the 2013 maturity decreased
$10,000 to $200,000 the 2014 maturity decreased $160,000 to $3,515,000, the 2015 maturity decreased $15,000 to $550,000, the
2016 maturity decreased $15,000 to $565,000 and the 2017 maturity decreased $15,000 to $590,000 in maturity value.
Adjusted Price - $6,223,080.31
Adjusted Net Interest Cost - $681,616.36
Adjusted TIC - 2.2640%
WWN.ehlers-inc.com
e ~D~J~U~C~A~
Minnesota
Offices also in Wisconsin and Illinois
phone 651-697-8500
fax 651 -697 -8555
3060 Centre Pointe Drive
Roseville, MN 55113-1122
$6,265,000 General Obligation Improvement Refunding Bonds, Series 2009A
City of Chanhassen, Minnesota
Page 2
NET TRUE
NAME OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTEREST
. (February 1) YIELD COST RATE
UBS FINANCIAL SERVICES INC. 2010 2.000% $6,406,082.90 $766,191.41 2.4660%
New York, New York 2011 2.000%
2012 2.500%
2013 2.500%
2014 3.000%
2015 3.000%
2016 3.000%
2017 3.000%
UMB BANK, N.A. 2010 1.000% $6,232,234.05 $771,637.20 2.5206%
Kansas City, Missouri 2011 1.200%
2012 1.500%
2013 1.900%
2014 2.200%
2015 2.500%
2016 2.850%
2017 3.100%
WELLS FARGO BROKERAGE SERVICES, LLC 2010 2.000% $6,353,209.73 $816,336.94 2.6405%
Minneapolis, Minnesota 2011 2.000%
2012 2.000%
2013 2.500%
2014 3.000%
2015 3.000%
2016 3.000%
2017 3.000%