76-73 and 76-74
,
. ..
~ ," CERTIFICATION OF MINUTES RELATING TO
$1,960,000 IMPROVEMENT BONDS OF 1976, SERIES 2
,...
Issuer: City of Chanhassen, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held on
Monday, October 4, 1976, at 7:30 P.M. at the City Hall
Members present: Mayor Al Klingelhutz, Councilman Walter Hobbs,
Councilman Frank Kurvers, and Councilman Nick Waritz
Members absent: Councilman John Neveaux
Documents Attached:
Minutes of said meeting (pages): 1 through 10
RESOLUTION NO. 76-73
RESOLUTION AWARDING SALE OF $1,960,000
IMPROVEMENT BONDS OF 1976, SERIES 2
"..
RESOLUTION NO. 76-74/
RESOLUTION AUTHORIZING THE ISSUANCE OF
$1,960,000 IMPROVEMENT BONDS OF 1976,
SERIES 2, PRESCRIBING THEIR TERMS AND
FORM, AND PROVIDING FOR THEIR PAYMENT
I, the undersigned, being the duly qualified and acting
recording officer of the public corporation issuing the bonds re-
ferred to in the title of this certificate, certify 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 corporation, and correct and complete
copies of all resolutions and other actions taken and of all docu-
ments approved by the governing body at said meeting, 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 attended through-
out by the members indicated above, pursuant to call and notice of
such meeting given as required by law.
4th
WITNESS my hand officially as such recording officer this
day of October , 1976 .
dJ~~
Signature
"....
Donald Ashworth, City Clerk-Administrator
Name and Tltle
,....
The City Clerk-Administrator presented affidavits
of publication in the Commercial West and in the official news-
paper of a notice of sale of $1,960,000 Improvement Bonds of
1976, Series 2 of the City, for which bids were to be received
at this meeting, in accordance Resolution No. 76-
adopted
by the City Council on August 30, 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
Dain, Kalman,
& Quail
$ 39,200.
$ 39,200
5.3404
903,599.38
Juran & Moody
5.4467
921,591. 88
First National
Bank of Mpls.
$ 39,200.
5.2942
895,789.38
I"'"
After consideration of the foregoing bids, Councilman
,...
Kurvers
introduced the following resolution and moved its
adoption:
RESOLUTION NO. 76-1~
RESOLUTION AWAFDING SALE OF $1,960,000
IMPROVEMENT BONDS OF 1976, SERIES 2
BE IT RESOLVED by the City Council of the City of Chan-
,hassen ,Minnesota, that the bid of First National Bank of
Mlnneapotu; of Mpls. , Minnesota, to purchase $1,960,000 general
obligation Improvement Bonds of 1976, Series 2 of the City to be
dated November 1, 1976, in accordance with the notice of sale here-
tofore duly published by the City, is hereby found 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 $895,789.38 plus accrued interest, the bonds to bear
interest at the following respective rates per annum, from date
of issue until paid:
Maturity Years
Interest Rates
""
The Mayor and City Clerk-Administrator are hereby authorized and
directed to endorse the successful bid to show 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 forthwith. .
Attest:
;:o~ ~
City Clerk-Administrator
The motion for the adoption of the foregoing resolution
was duly seconded by Councilman Waritz
, and upon vote being
taken thereon, the following voted in favor thereof: Hayor
Klingelhutz, Councilman Hobbs, Kurvers and Waritz.
and the following voted against the same:
None
"
whereupon said resolution was declared duly passed and adopted, and
was signed by the Mayor and attested by the Clerk-Administrator.
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Councilman Hobbs
then introduced the following reso-
""'"
lution and moved its adoption:
RESOLUTION NO. 76-1~
RESOLUTION AUTHORIZING THE ISSUANCE OF $1,960,000
IMPROVEMENT BONDS OF 1976, SERIES 2, PRESCRIBING
THEIR TERMS AND FORM, AND PROVIDING FOR THEIR
PAYMENT
BE IT RESOLVED by the City Council of the City of Chan-
hassen, Minnesota, as follows:
1. In accordance with the provisions of Chapter 429,
Minnesota Statutes, this Council by its Resolution No. 76-
adopted August 30, 1976, authorized the issuance of $1,960,000
principal amount of general obligation Improvement Bonds of the
City, which bonds have now been duly sold. It is hereby determined
to be in the best interests of the City to issue said bonds to the
purchaser thereof forthwith.
"
2. The bonds shall be designated as Improvement Bonds
of 1976, Series 2, shall be in the total principal amount of
$1,960,000, shall be dated November 1, 1976, shall be 392 in number
,and numbered from 1 through 392, each in the denomination of $5,000,
shall mature in order of serial numbers on February 1 in the years
and amounts 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 years and amounts, as follows:
Year Amount Rate Year Amount Rate
1979 $150,000 1987 $125,000
1980 150,000 1988 125,000
1981 150,000 1989 125,000
1982 150,000 1990 110,000
1983 150,000 1991 100,000
1984 150,000 1992 100,000
1985 125,000 1993 100,000
1986 125,000
"...
Interest shall be payable on Februarv 1 and August 1 of each year,
commencing on August 1, 1976. Bonds maturing in 1988 and earlier
years shall be payable on their stated maturity dates without
option of prior payment, but bonds having stated maturity dates
in 1989 and later years shall each be subject to redemption and
prepayment at the option of the City and in inverse order of
serial numbers on February 1, 1988, and any interest payment date
thereafter, at par and accrued interest. Not less than 30 days
before the date specified for redemption, the City Clerk-Admini-
strator shall cause notice of call for redemption to be published
in a daily or weekly periodical 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
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,.....
service. He shall also mail such notice to the bank at which
principal and interest of the bonds is then payable, but pub-
lished notice shall be effective without mailing. Both prin-
cipal and interest shall be payable at
, in ,
reasonable and customary
receipt and disbursement
The City
charges of said
of such principal
hereby agrees to pay
paying agent for the
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:
,....
"...
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,....,
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
IMPROVEMENT BOND OF 1976, SERIES 2
No.
$5,000 .
KNOW ALL MEN BY THESE PRESENTS that the City of Chan-
hassen, Carver and Hennepin Counties, Minnesota, acknowledges
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
February, 19 , or if this bond is prepayable as stated below, on a
date prior thereto on which it shall have been duly called for
earlier redemption, 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
semiannually on February 1 and August 1 of each year, commencing on
August 1, 1977, in accordance with and upon presentation and
surrender of the interest coupons appurtenant hereto. Both prin-
cipal and interest are payable at
, in , , in any coin or
currency of the United States of America which 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 $1,960,000, 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 conformity 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 1988 and earlier years
are payable on their stated maturity dates without option of prior
payment, but bonds having stated maturity dates in 1989 and later
years are each subject to redemption and prepayment at the option
of the City and in inverse order of serial numbers on February 1,
1988, and any interest payment date thereafter, at par and accrued
interest. 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.
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fI"""
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that all acts, conditions and things required by the Constituion
and laws of the State of Minnesota 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 assess-
ments upon property benefited by said improvements, which special
assessments will be collectible with interest in the years and in
aggregate amounts not less than 5% in excess of sums sufficient
to pay the principal of and 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 and interest ad valorem
taxes may be levied, and are required by law to be levied, upon
all taxable property in the 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.
IfI"'<
IN WITNESS WHEREOF the City of Chanhassen, Carver and
Hennepin Counties, Minnesota, 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 November 1, 1976.
Attest:
)a_. ru.~
City Clerk-Administrator
(Facsimile signature)
Mayor
(SEAL)
(Form of Coupon)
No.
$
on the first day of February (August), 19 ,unless the
bond described below 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
, in ., , the amount
shown hereon in lawful money of the United States of America, for
interest then due on its Improvement Bond of 1976, Series 2 dated
November 1, 1976, No.
,...
(Facsimile signature)
City Clerk-Administrator
(Facsimile signature)
Mayor
-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 by bond counsel on the issue
of bonds of the City of Chanhassen, Carver and Hennepin Counties,
Minnesota, which includes the within bond, dated as of the date
of delivery of and payment for the bonds.
(Facsimile signature)
City Clerk-Administrator
(Facsimile signature)
Mayor
"
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 Mayor, 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 appurtenant interest coupons shall
be executed and authenticated by the facsimile signatures of said
Mayo~ and Clerk-Administrator. When said bonds have been so exe-
'cuted and authenticated, they shall be delivered by the 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.
,....
5. The Treasurer shall continue to 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 with respect to which the bonds
herein authorized are to be issued. In said Fund there shall be
maintained a separate subfund or account for each improvement fi-
nanced by the bonds herein authorized. To each subfund or account
there shall be credited from the proceeds 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 which it was 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 sub fund or account pertains, until all costs of such
improvement have been fully paid. After payment of all costs in-
-curred with respect to such improvement, the account therefor shall
be discontinued and any bond proceeds remaining therein, may 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
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"'"
special assessments on hand in each account when 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, which Account and Fund the City agrees to maintain
until said bonds have been paid in full. There shall be credited
to said Account all bond proceeds received from the purchaser in
excess of $1,931,000, 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 be reimbursed 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 $ , with interest on unpaid in-
'stallments thereof from time to time at the rate of %
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
Amount
In the event that any such assessment shall be at any time held
invalid with 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 by 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 City hereby covenants and agrees that it will forthwith
do all such further things and take all such further proceedings
as shall be 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 amount. HOv1ever, 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
thi s time.
"
r
9. The Clerk-Administrator is hereby authorized and
directed 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 ~ave been entered upon his bond register.
10. ~fuen all bonds issued pursuant to this resolution,
and all coupons appertaining thereto, have been discharged as
provided in this section, all pledg~s, 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 de~ositing 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 when
due, it may nevertheless be discharged by depositing with the
paying agent a sum sufficient for the payment thereof in full
with interest accrued to the date of such deposit. The City may
also discharge any prepayable bonds according to their terms, by
deposi ting \id th 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 any 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 vmen they may be prepaid in
accordance with their terms, by giving the notice required for
such redemption, and by depositing irrevocably in escrow', ,.,i th
a bank qualified by law as an escrow agent for this purpose, cash
or securities of United States agencies which 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 custody and control or as othenvise known to
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"
.
,...
them, and all such certified copies, certificates and affinavits
including any heretofore furnished, shall be deem~d reprp-sentations
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, r~ay 5, 1973. Such certifica-
tion shall state that on the basis of the facts, estimates and
circumstances in existence on the date of issue and 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 \Arould cause
the bonds to be arbitrage bonds or obligations, and the certifica-
tion shall further state L~at to the best of the knowledge and
belief of the certifying officers there are no other facts,
estimates or circumstances that wou:d materially change such
expectation.
I
I
Attest:
~o~~
city Clerk-Adminlstrator
,...
The motion for the adoption of the foregoing resolu-
tion was duly seconded by Councilman Kurvers
, and upon
vote being taken thereon, the following voted in favor thereof:
Mayor Klingelhutz, Councilmen Hobbs, Kurvers and Waritz.
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted
and was signed by the Mayor and attested by the Clerk-Administrator.
~
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