1k. 2002A GO Library Bonds
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
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Phone: 952.227.1100
Fax: 952.227.1110
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Web Site
WNW,ci. chanhassen. mn, us
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MEMORANDUM
TO: Mayor & City Council Members
FROM:
Greg Sticha, Finance Direc;U A
December 14, 2009 ~\P'
DATE:
SUBJ:
2002A GO Library Bonds
PROPOSED MOTION
"The City Council approves the attached Resolution Amending the
Resolution Accepting the Proposal on the Sale of General Obligation
Library Refunding Bonds, Series 2010A and Levying a Tax for the
Payment Thereof."
Approval of this resolution requires a simple majority vote of those City
Council members present.
BACKGROUND
Earlier in 2009, the City Council established a pricing committee to allow for
quick execution of an advance refunding of the 2002A GO Library Bonds. This
flexibility would allow the city to take advantage of ever-changing market
conditions. The original resolution is set to expire on December 31,2009. The
attached resolution extends the pricing committee and gives it authority to
execute an advance refunding as long as the criteria of a 4% net present value
savings is attained, through December 31,2010.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution
Amending the Resolution Accepting the Proposal on the Sale of General
Obligation Library Refunding Bonds, Series 2010A and Levying a Tax for the
Payment Thereof and establishing a pricing committee to execute that sale.
ATTACHMENT
1. Resolution.
2. Terms of Proposal
f:\gregs\bonding\2009 bonding\trigger res memo extension.docx
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL
CITY OF CHANHASSEN, MINNESOTA
HELD: December 14, 2009
Pursuant to due call and notice thereof, a regular or special meeting ofthe City Council
of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, was duly held at the City
Hall on December 14,2009, at o'clock p.m.
The following members were present:
and the following were absent:
Member
introduced the following resolution and moved its adoption:
RESOLUTION AMENDING RESOLUTION ACCEPTING PROPOSAL ON THE SALE OF
GENERAL OBLIGATION LIBRARY REFUNDING BONDS, SERIES 2009A AND
LEVYING A TAX FOR THE PAYMENT THEREOF
A. WHEREAS, by resolution duly adopted by the City Council on March 9, 2009
(the "Resolution"), the City Council ofthe City of Chanhassen, Minnesota (the "City"),
authorized the issuance of General Obligation Library Refunding Bonds, Series 2009A (the
"Bonds") to provide funds for a crossover refunding ofthe City's General Obligation Library
Bonds, Series 2002A dated March 1, 2002; and
B. WHEREAS, in the Resolution the City Council designated the Mayor, the City
Manager and Ehlers & Associates, Inc. as a "Pricing Committee" and the Pricing Committee
may set the date and time to receive proposals pursuant to the Terms of Proposal established for
the Bonds as long as the date is no later than December 31, 2009; and
C. WHEREAS, the City proposes that the Resolution be amended to extend the date
by which proposals for the sale of the Bonds may be received by the Pricing Committee to
December 31,2010; and
D. WHEREAS, the Terms of Proposal has been revised to reflect a potential sale
date in the year 2010.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota, as follows:
1. The Resolution is amended to provide that the Pricing Committee may accept
proposals for the sale ofthe Bonds in accordance with the Terms of Proposal attached hereto as
long as such date is no later than December 31,2010.
2. The Resolution is amended to reflect that the terms of the Bonds as set forth in the
Terms of Proposal including the series designation, the dated date ofthe Bonds, the first interest
payment date and the call feature, are attached hereto.
2434415vl
3. Except as hereby amended, all other terms and conditions ofthe Resolution shall
remain in full force and effect.
The motion for the adoption of the foregoing resolution was duly seconded by Member
and, after full discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
Whereupon the resolution was declared duly passed and adopted.
2434415vl
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
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 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 ofthe City Council, duly called and held on
the date therein indicated, insofar as such minutes relate to amending the resolution adopted on
March 9, 2009, relating to the issuance of General Obligation Library Refunding Bonds, Series
2009A.
WITNESS my hand on December _,2009.
City Manager
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Terms of Proposal
DATE:
November 23, 2009
ISSUER:
City of Chanhassen, Minnesota
BOND NAME:
$3,700,000 General Obligation Library Refunding Bonds, Series 2010
BOND ATTORNEY:
Mary Ippel; Briggs & Morgan, P.A.
PURPOSE:
Advance crossover refunding of the 2013 through 2022 maturities of the
$6,095,000 General Obligation Library Bonds, Series 2002A, dated March
1,2002, which are callable on August 1,2012
Sale Date:
The City Council will meet on December 14, 2009 to authorize a Pricing
Committee to consider the award of the sale of Bonds.
To be determined by Pricing Committee
Time and date to be determined by Pricing Committee
Independent Financial Advisory Provision.
To be determined by Pricing Committee
February 1,2013 - 2022 (See attached preliminary schedule)
Estimated Closing Date:
Proposal Opening:
Type of Sale (MN only):
Dated Date:
Maturity:
Maturity Adjustments:
* The City reserves the right to increase or decrease the principal amount of the Bonds on the day of sale,
in increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal
amounts are adjusted, the purchase price proposed will be adjusted to maintain the same gross spread per
$1,000.
Term Bond Option:
All dates are inclusive. Bids for the Bonds may contain a maturity schedule
providing for any combination of serial bonds and term bonds, subject to
mandatory redemption, so long as the amounts of principal maturing or
subject to mandatory redemption in each year conforms to the maturity
schedule set forth above.
First Interest:
To be determined by Pricing Committee. Preliminarily assume August 1,
2010 and semiannually thereafter. Interest will be computed on the basis
of a 360-day year of twelve 30-day months and will be rounded pursuant
to rules of the MSRB.
Call Feature:
Bonds maturing on February 1,2020 and thereafter shall be subject to call
and prior payment on February 1,2019 or any date thereafter at par plus
accrued interest. Notice of such call shall be given by mailing a notice
thereof by first class mail at least thirty (30) days prior to the date fixed for
redemption to the registered owner of each bond to be redeemed at the
address shown on the registration books.
Minimum Proposal:
$3,670,400.
Good Faith:
$74,000, payable to the City (Cashiers or Certified Good Faith Check or
wire transfer of funds to Ehlers Good Faith Escrow or financial surety
bond).
Paying Agent:
Bond Trust Services Corporation, Roseville, Minnesota.
Escrow Agent:
U.S. Bank National Association, St. Paul, Minnesota
Registration!
Book Entry Only:
This offering will be issued as fully registered Bonds and, when issued, will
be registered in the name of Cede & Co., as nominee of The Depository
Trust Company, New York, New York.
Financial Advisor:
Mark Ruff and Dave Callister; Ehlers & Associates, Inc.
Rating Requested:
Standard & Poor's
Qualified Tax-Exempt
Obligations:
The Bonds (WILL) be designated as qualified tax-exempt obligations.
Arbitrage Rebate:
The City will pay arbitrage rebate, if any earned.
Continuing Disclosure:
This issue will be subject to: Full Disclosure requirements
Full Continuous Disclosure Undertaking: The City will file the Annual Financial Information and Audited
Financial Statements on or before December 31,2011. The City will update the following sections of the
Official Statement in their annual updates:
Current Property Valuations
Direct Debt
Tax Levies & Collections
Population Trend
Employment/Unemployment
PLEASE NOTE: Include provisions in the sale resolution for the payment of issuance expenses on
the date of closing.