93-036 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
August 16,1993, commencing at 6:04 P.M., C.T.
The following Councilmembers were present: Duitsman,
Dietz, Scheel, Farber, and Holmgren
and the following were absent:
Councilmember Scheel
following resolution and moved its adoption:
introduced the
RESOLUTION NO. 93-36
RESOLUTION INITIATING THE PROCESS FOR THE SALE
OF THE CITY'S $3,525,000 GENERAL OBLIGATION
PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 1993B
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 assessable and
water system public improvements, respectively, listed in
the attached Exhibit A (the "Improvements") within the
City, pursuant to and in full conformity with Minnesota
Statutes, Chapter 429 and/or Section 444.075.
(b) It would be advantageous for the City to issue
its $3,525,000 General Obligation Permanent Improvement
Revolving Fund Bonds, Series 1993B (the "Bonds"),
pursuant to Minnesota Statutes, Chapters 429 and 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).
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Eroiects
MississIppi Oaks, A
Heritage landIng
Cherryhill Bluffs
MeadowvaJe Heights
Orono Lake 3rd
MississIppI Oaks, B
Trunk
Hott Avenue/4th Street
North Water Tower
North Well and Treatment
Subtotal
Costs of Issuance
Allowance for Discount Bidding
T otaJ
Exhibit A
$ 269,094
649,602
320,395
Sn,389
227.413
196,656
84,203
18,392
$2,343,144
25,396
31 .460
$2,400,000
Total
$ 500,000
600,000
$ 269,094
649.602
320,395
5T1,389
227,413
196.556
84.20~
18,392
500,000
600,000
$3.443.144
35,901
45,955
$1,100,000
10,505
14.495
$1.125,000
$3,525,000
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Exhibit B
THE erN HAS AUTHORIZED $PRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$3,525,000
CIlY OF ELK RIVER, MINNESOTA
GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND
BONOS, SERIES 1993B
Proposals for the Bonds will be received on Tuesday, September 7. 1993, 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 October 1, 1993. as the date of original Issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1994. Interest will
be computed on the basis of 8 360-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 thereat 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 February 1 In the years and amounts as follows:
1995 $515,000
1996 $535,000
1997 $535,000
1998 $105,000
1999 $110,000
2000 $230,000
2001 $240,000
2002 $250,000
2003 $255,000
2004 $275,000
2005 $ 85,000
2006 $ 90.000
2007 $ 95,000
2008 $100,000
2009 $105,000
OPTIONAL REDEMPTION
The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or
atter February 1, 2004. 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. fn addition the City will pledge
special assessments against benefited property and net revenues of the City Water Utility. The
proceeds will be used to finance various public improvements in the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $3,479.045 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
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the form of a certified or cashier's check or a Financial Surety Bond In the amount of $35,250,
payable to the order of the City. tf a check is used, i1 must accompany each proposal. If a
FinancIal Surety Bond is used, It must be trom an insurance company Ijcensed to issue such a
bond In the State of Minnesota, and preapproved by the City. . Such bond must be submitted to
Sprlngsted 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 Jncorporated in the torm 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
falls 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
muftiples 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, (ill) 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.
CUSIP NUMBERS
If the Bonds qualify tor assignment of CUSJP 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
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Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SEnLEMENT
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 will 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 Joss 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
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any addftional information prior. to sals, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
65 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 Statementll of the City with respect
10 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 shaH provide without cost to the
senior managing underwrIter of the syndicate to whIch the Bonds are awarded 150 copies of
the Official Statement 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. My underwriter delivering a proposal with respect to the Bonds agrees thereby
that if its proposal is accepted by the City m 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 August 16, 1993
BY ORDER OF THE CITY COUNCIL
/sl Patrick Klaers
Administrator
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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 August 16, 1993, by the Elk River City Council.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmember Holmgren and upon a vote being
taken thereon, the following voted in favor thereof:
Mayor Duitsman, Councilmembers John Dietz, Cecilia Scheel, Larry
Farber, and Roger Holmgren
and the following voted against the same: None
Whereupon said resolution was declared duly passed and
adopted.
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