94-044 RES
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EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
ELK RIVER, MINNESOTA
Pursuant to due call and notice thereof, a regular or
special meeting of the City Council of the city of Elk River,
Minnesota, was duly called and held at the Elk River City Hall on
May 2, ~994, commencing at 6:00 P.M., C.T.
The following Councilmembers were present:
Mayor Duitsman, Councilrnembers Dietz, Scheel, Farber and Holmgren
and the following were absent: None
Councilmember Holmqren
following resolution and moved its adoption:
introduced the
RESOLUTION NO. 94-44
RESOLUTION INITIATING THE PROCESS FOR THE SALE
OF THE CITY'S $1,080,000 GENERAL OBLIGATION
STORM SEWER.REVENUE BONDS, SERIES 1994C
BE IT RESOLVED by the City Council (the "Council") of the
city of Elk River (the "City"), Minnesota, as follows:
1. It is hereby determined:
(a) The city has duly ordered the making of and has
undertaken or will undertake the public improvements
described in the attached Exhibit A (the "Improvements")
within the City pursuant to and in full conformity with
Minnesota Statutes, Section 444.075.
(b) It is neCessary for the City to issue its
$1,080,000 General Obligation Storm Sewer Revenue Bonds,
Series 1994C (the "BondS"), pursuant to Minnesota
Statutes, Section 444.075 and Chapter 475, to provide
financing for the Improvements. ..
(c) The City has retained Springsted Incorporated,
in Saint Paul, Minnesota ("Springsted"), as its
independent financial advisor for the Bonds and is
therefore authorized to sell the Bonds by a competitive
negotiated sale in accordance with Minnesota Statutes,
Section 475.60, Subdivision 2(9).
262818.1
2. The terms and conditions of the Bonds and the sale thereof
are fully set forth in the "Terms of Proposal" attached hereto as
Exhibit B, and the Council shall meet at the time and place
specified therein for the purposes of considering the bids for the
purchase of the Bonds and considering the award of the sale of the
Bonds.
Adopted on May 2, 1994, by the Elk River City Council.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmember Dietz and upon a vote being
taken thereon, the following voted in favor thereof:
Mayor Duitsman, Councilmembers Dietz, Scheel, Farber and Holmgren
and the following voted against the same:
None
Whereupon said resolution was declared duly. passed and
adopted.
262818 1
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Exhibit A
Re:
$1,080,000 G.O. Storm Sewer Revenue Bonds, Series 1994C
1994 storm Sewer Improvement Project
Project Costs
Costs of Issuance
Allowance for Discount
Net Bond Issue
262816.1
$1,049,090
16,870
14,040
$1,080,000
Exhibit B
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS Will BE RECEIVED ON THE FOllOWING BASIS:
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TERMS OF PROPOSAL
$1,080,000
CITY OF ELK RIVER, MINNESOTA
GENERAL OBLIGATION STORM SEWER REVENUE BONDS,
SERIES 1994C
Proposals for the Bonds will be received on Monday, May 23, 1994, until 12:00 Noon, Central
Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, after which time they will be opened and tabulated. Consideration for award of the
Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated June 1, 1994, as the date of original issue, and will bear interest
payable on June 1 and December 1 of each year, commencing June 1, 1995. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in
the denomination of $5,000 each, or in integral multiples thereof, as requested by the
purchaser, and fully registered as to principal and interest. Principal will be'payable at the main _
corporate office of the registrar and interest on each Bond will be payable by check or draft of _
the registrar mailed to the registered holder thereof at the holder's address as it appears on the
books of the registrar as of the close of business on the 15th day of the immediately preceding
month.
The Bonds will mature December 1 in the years and amounts as follows:
1995 $25,000
1996 $55,000
1997 $55,000
1998 $60,000
1999 $60,000
2000 $65,000
2001 $65,000
2002 $70,000
2003 $75,000
2004 $80,000
2005 $85,000
2006 $85,000
2007 $ 95,000
2008 $100,000
2009 $105,000
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OPTIONAL REDEMPTION
The City may elect on December 1, 2004, and on any day thereafter, to prepay Bonds due on
or after December 1, 2005. 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.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge net
revenues of its storm sewer utility. The proceeds will be used to finance various improvements
to the City's storm sewer system.
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TYPE OF PROPOSALS
Proposals shall be for not less than $1,065,960 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $10,800,
payable to the order of the City. If a check is used, it must accompany each proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to
comply with the accepted proposal, said amount will be retained by the City. No proposal can
be withdrawn or amended after the time set for receiving proposals unless the meeting of the
City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 -or
1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (Hi) reject any proposal which the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute-cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
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CUSlP NUMBERS
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If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUStP Service Bureau charge for the assignment of CUSlP identification numbers
shall be paid by the purchaser. .
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery wifl be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be
printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On
the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds
which shall be received at the offices of the City or its designee not later than 12:00 Noon,
Central Time. Except as compliance with the terms of payment for the Bonds shall have been
made impossible by action of the City, or its agents, the purchaser shall be liable to the City for
any loss suffered by the City by reason of the purchaser's non-compliance with said terms for
payment.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official e
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 45 copies of the
Official Stat~ment and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated May 2, 1994
BY ORDER OF THE CITY COUNCIL
Isl Patrick Klaers
Administrator e