93-96 C Extract of Minutes of Meeting
of the City Council of the City of
Chanhassen, Carver and Hennepin Counties, Minnesota
Pursuant to due call and notice thereof, a special meeting of the City Council
of the City of Chanhassen, Minnesota, was duly held in the City Hall in said City on
Monday, October 4, 1993, commencing at 5: 00 P.M.
The following members were present: Donald J. Chmiel, Colleen C. Dockendorf,
Michael Mason, Mark Senn and Richard Wing
and the following were absent: None
The Mayor announced that the next order of business was consideration of the
proposals which had been received for the purchase of the City's $1,635,000 General
Obligation Improvement Bonds, Series 1993C.
The City Manager presented a tabulation of the proposals which had been
received in the manner specified in the Terms of Proposal of the Bonds. The
proposals were as follows:
SEE ATTACHMENT
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'~ SPRINGSTED
· ~,~ PUBLIC FINANCE ADVISORS
Home Office
85 East Seventh Place
Suite 100
Saint Paul, MN 55101-2143
(612) 223-3000
Fax: (612) 223-3002
120 South S~xth Stree~.
Suite 2507
Minneapolis, MN 55402-1800
(612) 333-9177
Fax: (612) 349-5230
16655 West Bluemound Road
Suite 290
Brookfield, WI 53005-5935
(414) 782-8222
Fax: (414) 782-2904
6800 College Boulevard
Suite 600
Overland Park, KS 66211-1533
(913) 345-8062
Fax: (913) 345-1770
$1,635,OOO 1800 K Street NW
Suite 831
Washington. DC 20006-2200
CITY OF CHANHASSEN, MINNESOTA (202) 466-3344
Fax:_(202) 223-1362
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1993C
AWARD:
FBS INVESTMENT SERVICES, INC.
NORWEST INVESTMENT SERVICES, INC.
-And Associates-
SALE:
October 4, 1993
Moody's Rating: Baal
Bidder
FBS INVESTMENT SERVICES, INC.
NORWEST INVESTMENT SERVICES, INC.
Cmnin & Company, Incorporated
Juran & Moody, Incorporated
Dougherty, Dawkins, Strand &
Bigelow, Incorporated
American National Bank Saint Paul
Park Investment Corporation
National City Bank
Peterson Financial Corporation
FIRSTAR BANK MILWAUKEE, N.A.
PAINEWEBBER INCORPORATED
DEAN WI'FI'ER REYNOLDS INCORPORATED
Prudential Securities, Inc.
ROBERT W. BAIRD & COMPANY,
INCORPORATED
MABON, NUGENT & CO.
GRIFFIN, KUBIK, STEPHENS &
THOMPSON, INC.
Interest
Rates
3.00% 1995
3.20% 1996
3.4O% 1997
3.60% 1998
3.80% 1999
4.00% 2000
4.15% 2001
4.30% 2002
4.40% 2003
4.60% 2004
3.875% 1995-1997
4.00% 1998-2001
4.15% 2O02
4.30% 2003
4.50% 2004
4.00% 1995-2001
4.10% 20O2
4.25% 2OO3
4.3O% 2OO4
3.50% 1995
4.00% 1996-1997
4.10% 1998-2002
4.20% 2003
4.4O% 2004
Net Interest True Interest
Price Cost Rate
$1,61 7,015.00 $394,238.33 4.2271%
$1,618,361.75 $398,849.08 4.2854%
$1,61 7,015.00 $399,076.67 4.2930%
$1,617,015.00 $402,740.00 4.3327%
These Bonds are being reoffered at par.
BBI: 5.30
Average Maturity: 5.72 Years
After due consideration of the proposals, Member
introduced the following resolution and moved its adoption:
Mason
then
RESOLUTION NO. 93-96C
A RESOLUTION AWARDING THE SALE OF $1,635,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1993C;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Chanhassen, Carver and
Hennepin Counties, Minnesota (City) as follows:
Section 1. Sale of Bonds.
1.01. The proposalof FBS Investment Services, Inc. (Purchaser)
to purchase $1,635,000 General Obligation Improvement Bonds, Series 1993C (Bonds)
of the City described in the Terms of Proposal thereof is hereby found and
determined to be a reasonable offer and is hereby accepted, the proposal being to
purchase the Bonds at a price of $1,617,015.00 plus accrued interest to date of
delivery, for Bonds bearing interest as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1995 3.00 % 2000 4.00 %
1996 3.20 2001 4.15
1997 3.40 2002 4.30
1998 3.60 2003 4.40
1999 3.80 2004 4.60
Trust Interest Rate: 4.2271%
1.02. The sum of $ -0- being the amount proposed by the Purchaser
in excess of $1,~.17,015 will be credited to the Debt Service Fund hereinafter
created. The City Manager is directed to deposit the good faith check of the
Purchaser, pending completion of the sale of the Bonds, and to return the good faith
checks of the unsuccessful proposers forthwith. The Mayor and City Manager are
directed to execute a contract with the Purchaser on behalf of the City.
1.03. The City will forthwith issue and sell the Bonds in the total principal
amount of $1,635,000, originally dated October 1, 1993, in the denomination of $5,000
each or any integral multiple thereof, numbered No. R-l, upward, bearing interest
as above set forth, and which mature serially on February 1 in the years and
amounts as follows:
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Year Amount Year Amount
1995 $ 60,000 2000 $185,000
1996 210,000 2001 185,000
1997 195,000 2002 185,000
1998 195,000 2003 180,000
1999 190,000 2004 50,000
1.04. Optional Redemption. The City may elect on February 1, 2002, and on
any day thereafter to prepay Bonds due on or after February 1, 2003. Redemption
may be in whole or in part and if in part at the option of the City and in such order
as the City shall determine and within a maturity by lot as selected by the registrar.
All prepayments shall be at a price of par plus accrued interest.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered
form. The interest thereon and, upon surrender of each Bond, the principal amount
thereof, is payable by check or draft issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last-
interest payment date preceding the date of authentication to which interest on the
Bond has been paid or made available for payment, unless (i) the date of
authentication is an interest payment date to which interest has been paid or made
available for payment, in which case such Bond will be dated as of the date of
authentication, or (ii) the date of authentication is prior to the first interest
payment date, in which case such Bond will be dated as of the date of original issue.
The interest on the Bonds is payable on February 1 and August 1 of each year,
commencing August 1, 1994, to the owner of record thereof as of the close of
business on the fifteenth day of the immediately preceding month, whether or not
such day is a business day.
2.03. Registration. The City will appoint, and will maintain, a bond
registrar, transfer agent, authenticating agent and paying agent (Registrar). The
effect of registration and the rights and duties of the City and the Registrar with
respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate
trust offic~ a bond register in which the Registrar provides for the
registration of ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly
endorsed by the registered owner thereof or accompanied by a written
instrument of transfer, in form satisfactory to the Registrar, duly executed
by the registered owner thereof or by an attorney duly authorized by the
registered owner in writing, the Registrar will authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Bonds
of a like aggregate principal amount and maturity, as requested by the
transferor. The Registrar may, however, close the books for registration of
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any transfer after the fifteenth day of the month preceding each interest
payment date and until such interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the
registered owner for exchange the Registrar will authenticate and deliver one
or more new Bonds of a like aggregate principal amount and maturity, as
requested by the registered owner or the owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon any transfer or exchange
will be promptly cancelled by the Registrar and thereafter disposed of as
directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented
to the Registrar for transfer, the Registrar may refuse to transfer the Bond
until the Registrar is satisfied that the endorsement on the Bond or separate
instrument of transfer is valid and genuine and that the requested transfer
is legally authorized. The Registrar will incur no liability for the refusal, in
good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat
the person in whose name a Bond is registered in the bond register as the
absolute owner of the Bond, whether the Bond is overdue or not, for the
purpose of receiving payment of, or on account of, the principal of and
interest on the Bond and for all other purposes and payments so made to
registered owner or upon the owner's order will be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent of the sum or
sums so paid.
(g) Taxes, Fees and Charges. For a transfer or exchange of Bonds,
the Registrar may impose a charge upon the owner thereof sufficient to
reimburse the Registrar for any' tax, fee or other governmental charge
required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes
mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond
of like amount, number, maturity date and tenor in exchange and substitution
for and upon cancellation of the mutilated Bond or in lieu of and in
substitution for a Bond destroyed, stolen or lost, upon the payment of the
reasonable .expenses and charges of the Registrar in connection therewith;
and, in the case of a Bond destroyed, stolen or lost, upon filing with the
Registrar of evidence satisfactory to it that the Bond was destroyed, stolen
or lost, and of the ownership thereof, and upon furnishing to the Registrar
of an appropriate bond or indemnity in form, substance and amount
satisfactory to it and as provided by law, in which both the City and the
Registrar must be named as obligees. Bonds so surrendered to the Registrar
will be cancelled by the Registrar and evidence of such cancellation must be
given to the City. If the mutilated, destroyed, stolen or lost Bond has
already matured or been called for redemption in accordance with its terms it
is not necessary to issue a new Bond prior to-payment.
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(i) Redemption. In the event any of the Bonds are called for
redemption, notice thereof identifying the Bonds to be redeemed will be given
by the Registrar by mailing a copy of the redemption notice by first class mail
(postage prepaid) not more than 60 and not less than 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 kept by the Registrar and by
publishing the notice in the manner required by law. Failure to give notice
by publication or by mail to any registered owner, or any defect therein, will
not affect the validity of any proceeding for the redemption of Bonds. Bonds
so called for redemption will cease to bear interest after the specified
redemption date, provided that the funds for the redemption are on deposit
with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints
American National Bank and Trust Company, St. Paul , Minnesota, as the initial
Registrar. The Mayor and the City Manager are authorized to execute and deliver,
on behalf of the City, a contract with the Registrar. Upon merger or consolidation
of the Registrar with another corporation, if the resulting corporation is a bank or
trust company authorized by law to conduct such business, such corporation is
authorized to act as sucCessor Registrar. The City agrees to pay the reasonable and
customary charges of the Registrar for the services performed. The City reserves
the right to remove the Registrar upon 30 days' notice and upon the appointment
a successor Registrar, in which event the predecessor Registrar must deliver all
cash and Bonds in its possession to the successor Registrar and must deliver the
bond register to the successor Registrar. On or before each principal or interest
due date, without further order of this Council, the City Manager must transmit to
the .Registrar moneys sufficient for the payment of all principal and interest then
due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared
under the direction of the City Manager and executed on behalf of the City by the
signatures of the Mayor and the City Manager, provided that all signatures may be
printed, engraved or lithographed facsimiles of the originals. In case any officer
whose signature or a facsimile of whose signature appears on the Bonds ceases to be
such officer before the delivery of any Bond, such signature or facsimile will
nevertheless be valid and sufficient for all purposes, the same as if the officer had
remained in office until delivery. Notwithstanding such execution, a Bond will not
be valid or obligatory for any purpose or entitled to any security or benefit under
this Resolution unless and until a certificate of authentication on the Bond has been
duly executed by Ihe manual signature of an authorized representative of the Regis-
trar. Certificates of authentication on different Bonds need not be signed by the
same representative. The executed certificate of authentication on each Bond is
conclusive evidence that it has been authenticated and delivered under this Resolu-
tion. When the Bonds have been so prepared, executed and authenticated, the
Treasurer will deliver the same to the Purchaser upon payment of the purchase price
in accordance with the contract of sale heretofore made and executed, and the
Purchaser is not obligated to see to the application of the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed
definitive Bonds one or more typewritten temporary Bonds in substantially the form
set forth in Section 3 with such changes as may be necessary to reflect more than one
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maturity in a single temporary bond. Upon the execution and delivery of definitive
Bonds the temporary Bonds will be exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed in substantially the follow~.'ng form:
[Face of the Bond]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1993C
Date of
Rate Maturity Original Issue CUSIP
October 1, 1993
No. $
The City of Chanhassen, Minnesota, a duly organized and existing municipal
corporation in Carver and Hennepin Counties, Minnesota (City), acknowledges itself
to be indebted and for value received hereby promises to pay to'
or registered assigns, the principal sum of $ on the maturity date
specified above, with interest thereon from the date hereof at the annual rate
specified above, payable February 1 and August 1 in each year, commencing August
1, 1994, to the person in whose name this Bond is registered at the close of business
on the fifteenth day (whether or not a business day) of the immediately preceding
month. The interest hereon and, upon presentation and surrender hereof, the
principal hereof are payable in lawful money of the United States of America by check
or draft by , Minnesota, as Bond
Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its
designated successor under the Resolution described herein. For the prompt and
full payment of such principal and interest as the same respectively become due, the
full faith and credit and taxing powers of the City have been and are hereby irrevo-
cably pledged.
The City may elect on February 1, 2002, and on any day thereafter to prepay
Bonds due on or after February 1, 2003. Redemption may be in whole or in part and
if in part at the option of the City and in such order as the City shall determine and
within a maturity by lot as selected by the registrar. All prepayments shall be at a
price of par plus accrued interest.
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The City Council has designated the Bonds as "qualified tax exempt obliga-
tions'' within the meaning of Section 265 (b) (3) of the Internal Revenue Code of 1986,
as amended (the Code) relating to disallowance of interest expense for financial
institutions and within the $10 million limit allowed by the Code for the calendar year
of issue.
Additional provisions of this Bond are contained on the reverse hereof and
such provisions for all purposes have the same effect as though fully set forth in
this place.
This Bond is not valid or obligatory for any purpose or entitled to any
security or benefit under the Resolution until the Certificate of Authentication
hereon has been executed by the Bond Registrar by manual signature of one of its
authorized representatives.
IN WITNESS WHEREOF, the City of Chanhassen, Carver and Hennepin
Counties, Minnesota, by its City Council, has caused this Bond to be executed on
its behalf by the facsimile signatures of the Mayor and City Manager and has caused
this Bond to be dated as of the date set forth below.
Dated:
CITY OF CHANHASSEN, MINNESOTA_
(Facsimile)
City Manager Mayor
(Facsimile)
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned
within.
By
Authorized Representative
[ Reverse of the Bond ]
This Bond is one of an issue in the aggregate principal amount of $1,635,000
all of like original issue date and tenor, except as to number, maturity date, redemp-
tion privilege, anti interest rate, all issued pursuant to a resolution adopted by the
City Council on October 4, 1993 (the Resolution), for the purpose of providing
money to defray the expenses incurred and to be incurred in making local
improvements, pursuant to and in full conformity with the Constitution and laws of
the State of Minnesota, including Minnesota Statutes, Chapter 429, and the principal
hereof and interest hereon are payable primarily from special assessments against
property specially benefited by local improvements and ad valorem taxes, as set
forth in the Resolution to which reference is made for a full statement of rights and
powers thereby conferred. The full faith and credit of the City are irrevocably
pledged for payment of this Bond and the City Council has obligated itself to levy
additional ad valorem taxes on all taxable property in the City in the event of any
deficiency in special assessments and taxes pledged, .which taxes may be levied
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without limitation as to rate or amount. The Bonds of this series are issued only as
fully registered Bonds in denominations of $5,000 or any integral multiple thereof of
single maturities.
As provided in the Resolution and subject to certain limitations set forth
therein, this Bond is transferable upon the books of the City at the principal office
of the Bond Registrar, by the registered owner hereof in person or by the owner's
attorney duly authorized in writing upon surrender hereof together with a written
instrument of transfer satisfactory to the Bond Registrar, duly executed by the
registered owner or the owner's attorney; and may also be surrendered in exchange
for Bonds of other authorized denominations. Upon such transfer or exchange the
City will cause a new Bond or Bonds to be issued in the name of the transferee or
registered owner, of the same aggregate principal amount, bearing interest at the
same rate and maturing on the same date, subject to reimbursement for any tax, fee
or governmental charge required to be paid with respect to such transfer or
exchange.
The City and the Bond Registrar may deem and treat the person in whose name
this Bond is registered as the absolute owner hereof, whether this Bond is overdue
or not, for the purpose of receiving payment and for all other purposes, and neither
the City nor the Bond Registrar will be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all
acts, conditions and things required by the Constitution 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 the City in accordance with its terms, have been done, do exist, have happened
and have been performed as so required, and that the issuance of this Bond does not
cause the indebtedness of the City to exceed any constitutional or statutory
limitation of indebtedness.
(Form of certificate to be printed on the reverse side of each Bond, following
a full copy of the legal opinion. )
I 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, Minne-
sota, which includes the within Bond, dated as of the date of delivery of and
payment for the t~onds.
( Facsimile Signature)
City Manager
The following abbreviations, when used in the inscription on the face of this
Bond, will be construed as though they were written out in full according to
applicable laws or regulations:
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TEN COM -- as tenants
in common
TEN ENT -- as tenants
by entireties
JT TEN --
UNIF GIFT MIN ACT Custodian
(Cust)
as joint tenants with
right of survivorship and
not as tenants in common
under Uniform Gifts or
Transfers to Minors
(Minor)
Act ...........
(State)
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 all rights
thereunder, and does hereby irrevocably constitute and appoint
attorney to transfer the said Bond on the books kept for
registration of the within Bond, 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.
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the assignee requested below is provided.
Name and Address:
..
(Include information for all joint owners if
this Bond is held by joint account. )
Please insert social security or other
identifying number of assignee
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3.02. The City Manager is directed to obtain a copy of the proposed approving
legal opinion of Holmes & Graven, Chartered, Minneapolis, Minnesota, which is to be
complete excep, t as to dating thereof and to cause the opinion to be printed on each
Bond, together with a certificate to be signed by the facsimile signature of the City
Manager in substantially the form set forth in the form of Bond. The City Manager
is authorized and directed to execute such certificate in the name of the City upon
receipt of such opinion and to file the opinion in the City offices.
Section 4. Payment: Security: Pledges and Covenants.
4.01. The Bonds are payable from the Improvement Bonds, Series 1993C Debt
Service Fund (Debt Service Fund) hereby created, and the proceeds of general
taxes hereinafter levied (Taxes), and special assessments (Assessments) levied or
to be levied for the improvements (Improvements) financed by the Bonds are hereby
pledged to the Debt Service Fund. If anY payment of principal or interest on the
Bonds will become due when there is not sufficient money in the Debt Service Fund
to pay the same, the Treasurer is directed to pay such principal or interest from the
general fund of the City, and the general fund will be reimbursed for such advances
out of the proceeds of Assessments and Taxes when collected. There is appropriated
to the Debt Service Fund all capitalized interest financed from Bond proceeds, i~
any, any amount over the minimum purchase price paid by the Purchaser and the
accrued interest paid by the Purchaser upon closing and delivery of the Bonds.
4.02. It is hereby determined that the Improvements to be financed by the
Bonds will directly and indirectly benefit abutting property, and the City hereby
covenants with the holders from time to time of the Bonds as follows:
(a) The City has caused or will cause the Assessments for the Im-
provements to be promptly levied so that the first installment will be
collectible not later than 1994 and will take all steps necessary to assure
prompt collection, and the levy of the Assessments is hereby authorized. The
City Council will cause to be taken with due diligence all further actions that
are required for the construction of each Improvement financed wholly or
partly from the proceeds of the Bonds, and will take all further actions
necessary for the final and valid levy of the Assessments and the
appropriation of any other funds needed to pay the Bonds and interest
thereon when due.
(b) -- In the event of any current or anticipated deficiency in Assess-
ments and Taxes, the City Council will levy additional ad valorem taxes in the
amount of the current or anticipated deficiency.
(c) The City will keep complete and accurate books and records
showing: receipts and disbursements in connection with the Improvements,
Assessments and Taxes levied therefor and other funds appropriated for their
payment, collections thereof and disbursements therefrom, moneys on hand
and, the balance of unpaid Assessments.
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(d) The City will cause its books and records to be audited at least
annually and will furnish copies of such audit reports to any interested person
upon request.
4.03. It is determined that at least 20% of the cost of the Improvements will be
specially assessed against benefitted properties. For the purpose of paying the
principal of and interest on the Bonds, there is levied a direct ahnual irrepealable
ad valorem tax (Taxes) upon all of the taxable property in the City, which will be
spread upon the tax roils and collected with and as part of other general taxes of the
City. The taxes will be credited to the Debt Service Fund above provided and will
be in the years and amounts as follows (year stated being year of levy for collection
the following year):
Year Levy
(See Attachment A)
4.04. It is hereby determined that the estimated collections of Assessments
and foregoing Taxes 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
levy herein provided is irrepealable until all of the Bonds are paid, provided that the
City Manager annually, at the time the City makes its tax levies, may certify to the-
County Auditor of Carver County and the Director of Property Taxation of Hennepin
County the amount available in the Debt Service Fund to pay principal and interest
due during the ensuing year, and the County Auditor and Director of Property
Taxation will thereupon reduce the levy collectible during such year by the amount
so certified.
4.05. The City Manager is authorized and directed to file a certified copy of
this resolution with the County Auditor of Carver County and the Director of
Property Taxation of Hennepin County and to obtain the certificate required by
Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcript.
5.01. The officers of the City are authorized and directed to prepare and
furnish to the Purchaser and to the attorneys approving the Bonds, certified copies
of proceedings and records of the City relating to the Bonds and to the financial
condition and affairs of the City, and such other certificates, affidavits and
transcripts as may. be required to show the facts within their knowledge or as shown
by the books and records in their custody and under their control, relating to the
validity and marketability of the Bonds and such instruments, including any
heretofore furnished, may be deemed representations of the City as to the facts
stated therein.
5.02. The Mayor and City Manager are authorized and directed to certify that
they have examined the Official Statement prepared and circulated in connection with
the issuance and sale of the Bonds and that to the best of their knowledge and belief
the Official Statement is a complete and accurate representation of the facts and
representations made therein as of the date of the Official Statement.
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Section 6. Tax Covenant.
6.01. The City covenants and agrees with the holders from time to time of the
Bonds that it will not take or permit to be taken by any of its officers, employees or
agents any action which would cause the interest on the Bonds to become subject to
taxation under the Internal Revenue Code of 1986, as amended (the Code), and the
Treasury Regulations promulgated thereunder, in effect at the time of such actions,
and that it will take or cause its officers, employees or agents to take, all affirmative
action within its power that may be necessary to ensure that such interest will not
become subject to taxation under the Code and applicable Treasury Regulations, as
presently existing or as hereafter amended and made applicable to the Bonds.
6.02. The City will comply with requirements necessary under the Code to
establish and maintain the exclusion from gross income of the interest on the Bonds
under Section 103 of the Code, including without limitation requirements relating to
temporary periods for investments, and limitations on amounts invested at a yield
greater than the yield on the Bonds.
6.03. The City further covenants not to use the proceeds of the Bonds or to
cause or permit them or any of them to be used, 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.
6.04. In order to qualify the Bonds as "qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Code, the City makes the following
factual statements and representations:
(a) the Bonds are not "private activity bonds" as defined in Section
141 of the Code;
(b) the City hereby designates the Bonds as "qualified tax-exempt
obligations" for purposes of Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations
(other than any private activity bonds other than qualified 501 (c)(3) bonds)
which will be issued by the City (and all subordinate entities of the City)
during calendar year 1993 will not exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City
during calendar year 1993 have been designated for purposes of Section
265 (b) (3) of the Code.
6.05. The City will use its best efforts to comply with any federal procedural
requirements which may apply in order to effectuate the designations made by this
section.
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The motion for the adoption of the foregoing resolution was duly seconded by
Member Dockendorf , and upon vote being taken thereon, the following
voted in favor thereof: Donald J. Chmiel, Colleen C. Dockendorf, Michael Mason and
Richard Wing
and the following voted against the same: Mark Senn
whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA
COUNTIES OF CARVER
AND HENNEPIN
CITY OF CHANHASSEN
)
)
) ss.
)
)
)
I, the undersigned, being the duly qualified and acting City Manager of'the
City of Chanhassen, Carver and Hennepin Counties, Minnesota, do hereby certify
that I have carefully compared the attached and foregoing extract of minutes of a
special meeting of the City Council of the City held on October 4, 1993, with the
original minutes on file in my office and the extract is a full, true and correct copy
of the minutes insofar as they relate to the issuance and sale of $1,63§,000 General
Obligation Improvement Bonds, Series 1993C of the City.
WITNESS My hand officially as such City Manager and the corporate seal of the
City this/~ ~ day of October, 1993.
City Ma~-~-ge r
Chanhassen, Minnesota
(SEAL)
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