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76-19 and 76-20 /J ~-1J'-f..{ r-{r<yv /~' 'vi J [! '. 7 <c EHLERS AND ASSOCIATES, INC. FINANCIAL CONSULTANTS FIRST NATIONAL-SOO LINE CONCOURSE 507 MARQUETTE AVE. MINNEAPOLIS, MINNESOTA 55402 339-8291 (AREA COOE 6121 ,.,......, February 24, 1976 Mr. Gerald Schlenk City Clerk-Administrator 7610 Laredo Drive Chanhassen, Minnesota 55317 RE: $2,400,000 G.O. Improvement Bonds Dear Mr. Schlenk: Enclosed for your files is the original copy of the minutes of February 18 awarding the sale and setting the form and details of the above bonds. ,... A copy of the minutes has been forwarded to the Carver County Auditor and Hennepin County Auditor for bond registration purposes, and the bonds are being printed. We will notify you as soon as printing has been completed so that arrange- ments can be made for the signing and delivery of the bonds. Very truly yours, EHLERS AND ASSOCIATES, INC. ,U/ l ' C /J / --L I V~cl0j9 &. C vMn()L(jY:~E-~ Philip E. Chenoweth ~. PEC:ce Enclosure cc: Russell H. Larson - City Attorney "" CER'I'IFICATION OF MINUTES RELATING TO $2,400,000 IMPROVEMENT BONDS OF 1976., SERIES 1 Issuer: City of Chanhassen, Minnesota """" Governing Body: City Council Kind, date, time and place of mee~ing: A special meeting held on Wednesday, February 18, 1976 at 6:00 P.M. at the City Hall Members present: Mayor Klingelhutz, Councilmen Hobbs, Neveaux, and Kurvers. Members absent: Councilman Shulstad. Documents Attached: Minutes of said meeting (pages): 1 though 10 ".... RESOLUTION NO. 7f.-i9 RESOLUTION AWARDING SALE OF $2,400,000 IMPROVEMENT BONDS OF 1976, SERIES 1 RESOLUTION NO. 76-20 RESOLUTION AUTHORIZING THE ISSUANCE OF $2,400,000 IMPROVEMENT BONDS OF' 1976, SERIES 1, PRESCRIBING THEIR TERMS AND FORH, AND PROVIDING FOR THEIR PAY}'lENT X, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bond~ re- ferred to in tte title of this certificate, c~rtify that the docu- ments attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said ~orporation, and correct and complete copies of all resolutions and other actions taken and.of all docu- ments approved by the go':erning body at said meet~.ng, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was atte~ded through- out by the members indicated above, pursuant to call and notice of such meeting given as required by law. 18th WITNESS my hand officially as such recording officer this day of February , 19 76 . "" .//~~~ , Signature Gerald W. Schlenk, City Clerk-Administrator Name and Title I"" The City Clerk-A.dministrator presented affidavits of publication in the Commercial West and in the official news- paper of a notice of sale of $2,400,000 Improvement Bonds of 1976, Series 1 of the City, for which bids were to be received at this meeting, in accordance \o,i th Resolution No. 76-07 adopted by the City Council on January 19, 1976, which affidavits were approved and ordered placed on file. The Clerk-Administrator then announced that sealed bids for the purchase of the bonds had been received prior to the time specified in the notice of sale. The bids were thereupon opened, read and tabulated, and the best bid of each bidder was found to be as follows: "..... Name of Bidder Bid For Principal .. Interest Rates Total Interest Cost Net Average Rate (See attached bid tabulation). r- BID TAB U L A T ION $2,400,000 G.O. IMPROVEMENT BONDS OF 1976, SERIES I CHANHASSEN, MINNESOTA SALE: WEDNESDAY, FEBRUARY 18, 1976 AWARD BANCNORTHWEST, MINNEAPOLIS, MINNESOTA FIRST NATIONAL BANK OF MINNEAPOLIS, MINNESOTA CO-MANAGERS ,... Moody's Rating: "A" NAME OF BIDDER BANCNORTHWEST Minneapolis, Minnesota FIRST NATIONAL BANK OF MINNEAPOLIS Minneapolis, Minnesota American National Bank & Trust Co. St. Paul, Minnesota Cronin & Marcotte, Inc. Minneapolis, Minnesota ".... DAIN, KALMAN & QUAIL, INC. Minneapolis, Minnesota THE FIRST NATIONAL BANK OF ST. PAUL St. Paul, Minnesota Allison-Williams Company Minneapolis, Minnesota Juran & Moody, Inc. St. Paul, Minnesota Merrill Lynch, Pierce, Fenner & Smith Minneapolis, Minnesota Miller & Schroeder Municipals, Inc. Minneapolis, Minnesota Paine, Webber, Jackson & Curtis, Inc. Minneapolis, Minnesota Piper, Jaffray & Hopwood, Inc. Minneapolis, Minnesota ReynOlds Securities, Inc. ~inneapolis, Minnesota . Jert W. Baird & Company, Inc. Minneapolis, Minnesota Robert S. C. Peterson & Company, Inc. Minneapolis, Minnesota NET INTEREST COST RATES YEARS & RATE PRICE 4.50% 1978/79 $1,187,952.50 $2,358,060.00 4.60% 1980 4.80% 1981 5.8161% 5.00% 1982 5.10% 1983 5.20% 1984 5.30% 1985 5.50% 1986 5.70% 1987 5.90% 1988 6.00% 1989 6.10% 1990 6.25% 1991 6.40% 1992 4.75% 5.00% 5.10% 5.25% 5.40% 5.60% 5.75% 5.90% 6.00% 6.20% 6.40% 6.50% $1,207,687.75 5.9127% $2,357,737.25 1978 1979/82 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 EHLERS AND ASSOCIATES, INC. Financial Consultants to the City 507 Marquette Avenue Minneapolis, Minnesota 55402 Telephone: (612) 339-8291 Hobbs After consideration o~ the fore9ojng bids, Councilman ;introduced the follo\'ring resolution and moved its "... adoption: RESOLUTION NO. 76-19 P.ESOLUTION ANl'J:WING SALE OF' $ 2,400,000 IMPROVE~1ENT BONDS OF 1976, SE:~IES 1 BE IT FESOLVED hy the City Council of the City of Chan- hassen, Minnesota, that the bid of BancNorthwest, of Minneapolis, Minnesota, and the First* , to purchase $2,400,000 general obligation Improvement Bonds of 1976, Series 1 of the City to be dated March 1, 1976, in accordance with the notice of sale hereto- fore duly published by the City, is herehy fOtmd and declared to be the best bid received for the purchase of said bonds, and should be and is hereby accepted, said bid being to purchase said bonds at a price of $2,358,060 plus accrued interest, the bonds to bear interest at the following respective rates per annum, from date of issue until padi: """'" Maturity Years Interest Rates Maturity Years Interest R?~~s 1978/19- 4.50% 1986 5.50% 1980 4.60% 1987 5.70% 1981 4.80% 1988 5.90% 1982 5.00% 1989 6.00% 1983 5.10% 1990 6.10% 19840 5.20% 1991 6.25% 1985 5.30% 1992 6.40% The Mayor and Ci ty Clerk-.~.dministrator are 'hereby authorized and directed to endorse the successful bid to shmv its acceptance. The Clerk-Administrator is directed to retain the good faith check of said successful bidder and to return all other good faith checks forthl1Ttih. q/ Jh 7~'- r~avor ~4~~ " City Clerk-Administrator . Attest: The motion for the adoption of the foregoing resolution was duly seconded by Councilman Neveaux" , "and upon vote being taken thereon, the following voted in favor thereof: Mayor Klingelhutz, Councilmen Hobbs, Neveaux and Kurvers. and the following voted against the same: None. ,..., whereupon said resolution was declared duly passed and adotped, and ,-ras signed by the Hayor ana. attested by the Clerk-Administrator. *National Bank of Minneapolis, Minnesota, -2- Councilman Kurvers then introduced the following reso- ,.... lution and moved its adoption: RESOLUTION NO. 76- 20 PESOLUTION AUTHO'R.IZING THE ISSUANCF OF $2,400,000 IHPROVEHENT BONDS OF 1976, SERIES 1, PRESCRIBING THEIR TEPJ"lS ANn FORB, AND PROVIDING FOR THEIR PAYMENT BE IT RESOL\~D by the City Council of the City of Chan- hassen, Minnesota, as follows: 1. In accordance with the provisions of Chapter 429, Minnesota Statutes, b~is Council by its Resolution No. 76-07 adopted January 19, 1976, authorized the issuance of $2,400,000 principal amount of general obligation Imnrovement Bonds of the Ci ty, ,.,hich honds have nm'1 heen duly sold. It is hereby determined to be in t~e best interests of the City to issue said bonds to the purchaser thereof forth,.;i th. -. 2. The bonds shall be designated as Improvement Bonds of 1976, Series 1, shall be in the total principal amount of $2,400,000, shall be dated March 1, 1976, shall be 480 in number and numbered from 1 through 480, each in the denomination of $5,000, shall mature in order of serial numbers on March 1 in the years and ~ amoQ~ts set forth below, shall bear interest from date of issue until paid or until duly called for redemption at the rates per annum set forth below opposite the year and amounts, as follows: Year Amount Rate Year Amount Rate 1978 $175,000 4.50% 1986 $175,000 5.50% 1979 175,000 4.50% 1987 150,000 5.70% 1980 175,000 4.60% 1988 150,000 5.90% 1981 175,000 4.80% 1989 150,000 6.00% 1982 175,000 5.00% 1990 150,000 6.10% 1983 175,000 5.10% 1991 125,000 6.25% 1984 175,000 5.20% 1992 100,000 6.40% 1985 175,000 5.30% Interest shall he payable on ~~arch 1 and September 1 of each year, commencing on September I, 1976. Bonds maturing in 1987 and earlier years shall be payable on their stated maturity dates without option of prior payment, but bonds having stated naturity dates in 1988 and later years shall each be subject to redemption and prepayment at the option of the City and in inverse order of serial nurobers on March 1, 1987, and any interest payment date thereafter, at par and accrued interest. Not less than"30 days before the date specified for redemption, the Ci ty C1erk-A.dmini- strator shall cause notice of call for redemption to he pw)lished ~ in a daily or weekly periocica1 published in a Minnesota city of the first class, or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its -3- ,.... service. He shall also mail such notice to the bank at which princinal and interest of t~e bonds is then payable, but pub- lished notice shall be effective without mailing. Both prin- cipal and interest shall be payable at the main office of the Northwestern National Bank,in Minneapolis, Minnesota The City hereby agrees to pay reasonahle and customary charges of said paying agent for the receipt and disbursement of such principal and interest moneys. 3. The bonds, the interest coupons appurtenant there- to, and the legal opinion certificate on the reverse side thereof shall be printed in substantially the following form: "'" ,... -4- ....-.- " m~ITED STATES OF N.lliRICA STATE OF MINNESOTA COUNTIES OF CARVER lu~D HENNEPIN CITY OF CHfu~HASSEN IMPROVE~~NT BOND OF 1976, SERIES 1 No. $5,000 KNOW ALL ~ffiN BY THESE PRESENTS that the City of Chan- hassen, Carver and Hennepin Counties, r/linnesota, acknmvledges itself to be indebted and for value received hereby promises to pay to bearer the sum of FIVE THOUSAND DOLLARS on the 1st day of March, 19 , or if this bond is prepayable cs stated below, on a date on which it shall have been duly called for earlier redemp- tion, and to pay interest on said principal sum from the date hereof until said principal sum is paid, or until this bond, if prepayable, has been duly called for redemption, at the rate of per cent ( %) per annum, payable semi- annually on March 1 and September 1 of each year, commencing on September 1, 1976, in accordance with and upon presentation and surrender of the interest coupons appurtenant hereto. Both prin- cipal and interest are payable at the main office of the Northwestern National Bank , in Minneapolis , Minnesota , in any coin or currency of the United States of America Nhich on the respective " dates of payment is legal tender for payment of public and pri- vate debts. For the prompt and full payment of such principal and interest as the same become due, the full faith, credit and taxing powers of the City have been and are hereby irrevocably pledged. This bond is one of an issue in the total principal amount of $2,400,000, all of like date and tenor except as to serial number, maturity date, interest rate and redemption privi- lege, issued for the purpose of defraying expenses incurred and to be incurred in construction of local improvements, and is issued pursuant to and in full conformitv with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapter 429, and pursuant to resolutions duly adopted by the City Council. This bond is payable primarily from the Improvement Bond Account in the Sinking Fund of the City, but the Council is requried by law to pay maturing principal and in- terest out of any fund in the treasury if moneys on hand in said Account are insufficient therefor. ~ Bonds of this issue maturing in 1987 and earlier years are payable on their stated maturity da tes ~'7i thout option of prior payment, but bonds having stated maturity dates in 1988 and later years are each subject to redemption and prepayment at the option of the City and in inverse order of serial numbers on Harch 1, 1987, and any interest payment date thereafter, at par and accrued in- terest. Notice of call for redemption of any bond will be pub- lished not less than 30 days before the date specified for redemption in a financial periodical published in a Minnesota city of the first class, or its metropolitan area. -5... ,... ,... IT IS EF.P.EBY CE'RTIPIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constituion and la~ls of the State of Hinnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this bond in order to make it a valid and binding general obligation of said City according to its terms, have been done, do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has covenanted and agreed to levy special o.ssess- ments upon property benefited by said improvements, ~"hich special assessments ,.,ill be collectible ,.,i th interest in the years and in aggregate amounts not less than 5% in excess. of sums sufficient to pay Lhe principal of aDd interest on the bonds of this issue as they respectively become due, and has irrevocably pledged and appropriated such assessments to said Improvement Bond Account; that if necessary to pay such principal 2nd interest ad valorem taxes may be levied, and are required 0Y law to be levied, upon all taxable property in L~e City, without limitation as to rate or amount; and that the issuance of this bond does not cause the indebtedness of said City to exceed any constitutional or statu- tory limitation of indebtedness. IN WITNESS mIEREOF the City of Chanhassen, Carver and Hennepin Counties, }1innesota, by its City Council, has caused this bond to be executed in its behalf by a printed facsimile of the signature of the Mayor, attested by the manual signature of the City Clerk-Administrator, and by a printed facsimile of its offi- cial seal, has caused the interest coupons hereto appurtenant and the certificate appearing on the reverse side hereof to be executed and authenticated by the facsimile signatures of said officers, and has caused this bond to be dated March 1, 1976. Attest: ~~4I2d~-/ i'! I; .Ci ty Clerk-Administrator (Facsimile signature) Mayor " ,. I f'i! , ' (pJlAL)),) " \ \ . I \ ,) , \.\ \ ,/ , . i , \ ~ \ " i' L"" (Form of Coupon) No.: $ on the first day of March (September), 19 , unless the bond described belm., is subject to and has been duly called for earlier redemption, the City of Chanhassen, Carver and Hennepin Counties, Minnesota, will pay to bearer at the main office of the Northwestern National Bank7 in Minneapolis, Minnesota , the amount shown hereon in lawful money of the United States of America, for interest then due on its Improvement Bond of 1976, Series 1 dated ~ March 1, 1976, No. (Facsimile signature) City Clerk-Administrator (Facsimile signature) Mayo r -6- ,... (Form of certificate to be printed on the reverse side of each bond, following a full copy of the legal opinion on the issue) We certify that the above is a full, true and correct copy of the legal opinion rendered hy bond counsel on the issue of bonds of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, which includes the ~vithin bond, dated as of the date of delivery of and payment for the bonds. (Facsimile signature) City Clerk-Administrator (Facsimile signature) Hayor ",... 4. The bonds shall be prepared under the direction of the Clerk-Administrator and shall be executed on behalf of the City by a printed facsimile of the signature of the Hayor, attested by the manual signature of the Clerk-Administrator, and by a printed facsimile of the official seal of the City. On the re- verse side of each bond shall be printed a copy of the legal opinion rendered by bond counsel and the certificate of the Mayor and Clerk-Administrator relating thereto. The certificates as to opinion of bond counsel and the apDurtenant interest coupons shall be executed and authenticated by the facsimile signatures of said Mayor and Clerk-Ad~inistrator. When said bonds have been so exe- cuted and authenticated, they shall be delivered by L~e Treasurer to the purchaser thereof upon payment fo the purchase price in accordance with the contract of sale heretofore made and executed, and said purchaser shall not be obligated to see to the application of the purchase price. I""" 5. The Treasurer shall establish and maintain a separate and special fund of the City designated as the "1976 Improvement Construction Fund," until payment of all costs and expenses incurred. in construction of the improvements 'vi th respect to which the bonds herein authorized are to be issued. In said pund there shall be maintained a separate sub fund or account for each improvement fi- nanced by the bonds herein authroized. To each subfund or account there shall be credited from the ~roceeds of the bonds herein auth- orized an amount sufficient to pay the cost of the improvement with respect to which it is established. From each of said sub- funds or accounts shall be paid all costs and expenses of the improvement for Nhich it ViaS created, and, until discontinuance of such subfund or account, a proportionate amount of the principal of and interest on the bonds herein authorized as they become due. There shall also be credited to each such subfund or account all special assessments collected with respect to such improvement to which the subfund or account pertains, until all costs of such improvement have been fully paid. After nayment of all costs in- curred with respect to such improvement, the account therefor shall be discontinued and any bond proceeds remaining therein, mav be transferred by action of this-Council to the other accounts-or the fund established for construction of any other improvement instituted pursuant to Chapter 429, Minnesota Statutes. All -7- ,..... special assessments on hand in each account tt.Jhen terminated or thereafter received, and any bond proceeds not so transferred, shall be credited to the Improvement Bond Account in the Sinking Fund of the City. 6. The bonds herein authorized to be issued shall be payable from the Improvement Bond Account in the Sinking Fund of the City, ~'lhich Account and Pund the City agrees to maintain until said bonds have been paid in full. There shall be credited to said Account all hond proceeds received from the purchaser in excess of $2,357,600, and" the excess bond proceeds, if any, and remaining collections of special assessments referred to in section 5. If the moneys in said Account should at any time be insuffi- cient to pay principal and interest due on said bonds, such amounts shall be paid from moneys on hand in other funds of the City, and such other funds shall he rei~ryursed therefor when sufficient money becomes available in said Improvement Bond Account. 7. The City hereby covenants and agrees that, for the payment of the cost of said improvements financed by the issuance of the bonds herein authorized, it has done or will do and perform all acts and things necessary for the final and valid levy of special assessments for said improvements in the principal amount of $2,400,000 , with interest on unpaid in- I"'" stallments thereof from time to time at the rate of 8 % per annum. It is presently estimated that the principal of and interest on such assessments will be received in the following years and amounts: Year Amount Year A.rnoun t (No tax levy, 100% assessed.) """ In the event that any such assessment shall be at any time held invalid ,,,i th respect- to any lot or tract of land, due to any error, defect or irregularity in any action or proceedings taken or to be taken by the City or by this Councilor hy any of the officers or employees of the City, either in the making of such assessment or in the performance of any condition precedent there- to, the Ci ty hereby covenants and agrees that it ,..,ill forthwith do all such further things ann take all such further proceedings as shall he required by law to make such assessment a valid and binding lien upon said property. 8. The full faith, credit and taxing powers of the City are pledged to the Payment of the principal of and interest on the bonds when due, and the City recognizes its obligation' to make good any deficiency for the payment of such principal/and -8- ,..... interest in the Improvement Bond Account by the levy of general ad valorem taxes on all taxable property within its corporate limi ts, wi thout limi tation as to rate or arnOlLTlt. HOvTever, it is presently estimated that payments and nrepayments of special assessments plus interest to accrue thereon \'Till produce aggregate amounts not less than 5% in excess of the amounts needed to meet. when due the principal and interest payments on each and all of the bonds herein authorized, and accordingly no tax is levied at tJIis time. 9. The Clerk-Administrator is hereby authorized and dir~cted to file with the County Auditors of Carver and Hennepin Counties a certified copy of this resolution and to obtain from each of said County Auditors a certificate stating that said bonds have been entered upon his bond register. 10. When all bonds issued pursuant to this resolution, and all coupons appertaining thereto, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the bonds shall cease. The City may discharge all bonds and coupons which are due on any date by depositing with the paying agent or agents for such bonds on or before that date a sum sufficient for the payment thereof in full; or if any bond or coupon should not be paid \<Then due, it may nevertheless be dischargp-d by depositing ''li th the paying agent a sum sufficient for ~~e payment thereof in full II"'" ''lith interest accrued to the date of such deposit. The City may also discharge any prepayable bonds according to their terms, by depositing with the paying agent or agents on or before that date an amount equal to the principal, interest and redemption premium if any,' which are then due: ?rovided that notice of such redemption has been duly given as provided herein. The City may also at any time discharge a~y issue of such bonds in its entirety, subject to the provisions of law now or hereafter authorizing and regulating such action, by calling all prepayable bonds of such issue for redemption on the next date \<men they may be prepaid in accordance with their terms, by giving the notice required for such redemption, and by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities of United States agencies ,vhich are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required to pay all principal, interest and redempiton premiums to become due on all bonds of the issue on and before said redemption date. 11. The officers of the City and said County Auditors are hereby authorized and directed to prepare and furnish to the purchaser of said bonds and to the attorneys approving the lega- lity of the issuance thereof, certified copies of all proceedings and records relating to said bonds and to the financial affairs of the City, and such other affidavits, certificates and information ,..... as may be required to show the facts relating to the legality and marketability of said bonds as the same appear from the books and records under their custodv and control or as othenvise known to -9- ,.... them, and all such certified copies, certificates and affi~avits including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 12. The Mayor and the City Clerk-Administrator, being the officers of the City charged with the responsibility for . issuing the obligations pursuant to this resolution, are author~ ized and directed to execute and deliver to the purchaser a certification in order to satisfy the provisions of Section 1.103-13 of the amended Income Tax Regulations (26 CFR Part 1) published in the Federal Register, Hay 5,.1973. Such certifica- tion shall state that on the basis of the facts, estimates and circumstances in existence on the date of issue end delivery of the bonds :as therein set forth, it is not expected that the pro- ceeds of the bonds ~vill be used in such a manner that ""ould cause the bonds to be arbitrage bonds or obligations, and the certifica- tion shall further state ~~at to the best of the knowledge and belief of the certifying officers there are no other facts, estimates or circumstances that \vould materially change sud: expectation. Attest: 4~1J.~ Clty Clerk-Administrator "... The motion for the adoption of the foregoing resolu- tion was duly seconded by Councilman Hobbs , and upon vote being taken thereon, the following voted in favor thereof: Mayor Klingelhutz, Councilmen Hobbs, Neveaux and Kurvers. and the following voted against the same: None. whereupon said resolution was declared duly passed and adopted and was signed by the !'1ayor and attested by the Clerk-Administrator. "" -10- ,""~",,""....---._'- '-. j