92-035 RES
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EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE CITY
OF ELK RIVER, SHERBURNE COUNTY, MINNESOTA
Pursuant to due call and notice thereof a regular meeting
of the City Council of the City of Elk River, Sherburne County,
Minnesota, was held at the Elk River City Library in said City
on Monday, May 4, 1992, commencing at 7:00 p.m.
The following members were present: Vice Mayor Holmgren
Councilmember Kropuenske, Councilmember Dietz
and the following were absent: Mayor Tralle, Councilmember
Schuldt
The following resolution was presented by Councilmember
Dietz who moved its adoption:
RESOLUTION NO. 92-35
RESOLUTION AUTHORIZING THE ISSUANCE
AND SALE OF $2,350,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 1992A
BE IT RESOLVED by the City Council of the City of Elk
River, Sherburne County, Minnesota (the City) as follows:
Section 1. Findings.
1.01 The authorization and construction of two improvement
projects are contemplated. The improvement projects are known
as the Western Area Phase I Improvement Project and the
Westwood Improvement project. Springsted Incorporated
(Springsted), fiscal consultant to the City, has recommended
the City issue general obligation improvement bonds to finance
the improvement projects.
1.02 Springsted has recommended the' City authorize the
sale of general obligation improvement bonds in the aggregate
principal amount of Two Million Three Hundred Fifty Thousand
Dollars ($2,350,000).
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1.03 It is necessary and desirable to the sound financial
management of the City that the City issue and sell its General
Obligation Improvement Bonds, Series 1992A (the Bonds) to
finance the costs of the two improvement projects.
Section 2. Sale of Bonds.
2.01 The City shall issue and sell the Bonds, pursuant to
Chapters 429 and 475 of Minnesota Statutes. The authorized
principal amount of the Bonds shall be Two Million Three
Hundred Fifty Thousand Dollars ($2,350,000). The Bonds shall
be issued and sold in accordance with the Terms of Proposal, a
copy of which, marked Exhibit A, is attached hereto and made a
part hereof.
2.02 Springsted is authorized and directed to negotiate on
behalf of the City with potential purchasers of the Bonds for
the purchase of the Bonds in accordance with the Terms of
Proposal. Proposals for the purchase of the Bonds will be
received by the City Administrator or his designee on Monday,
June 1, 1992, until 11:30 a.m., 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.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmember Kropuenske and upon vote
being taken thereon, the following voted in favor of the
motion:
Vice Mayor Holmgren, Councilmember Dietz, Councilmember
Kropuenske
and the following voted against:
None
whereupon said resolution was declared duly passed and adopted.
LAS:DH4a
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STATE OF MINNESOTA
COUNTY OF SHERBURNE
CITY OF ELK RIVER
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I, the undersigned, being the duly qualified and acting
Clerk of the City of Elk River, Minnesota, do hereby certify
that I have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council of
said City held on Monday, May 4, 1992, with the original
thereof on file in my office and the same is a full, true, and
complete transcript thereof, insofar as the same relates to the
issuance and sale of $2,350,000 General Obligation Improvement
Bonds, Series 1992A of the City.
WITNESS my hand as such Clerk and the corporate seal of the
City this ~ day of May, 1992.
LAS:DH4a
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City Clerk
City of Elk River, Minnesota
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EXHIBIT A
THE erN HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS Issue
ON ITS BEHALF. PROPOSALS Will BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$2,350,000
CITV OF ELK RIVER, MINNESOTA
GENERAL OBUGATION IMPROVEMENT BONOS,
SERIES 1992A
Proposals for the Bonds will be received by the City Administrator or his designee on Monday,
June 1, 1992, until 11 :30 A.M., Central Time, at the offices of SPRINGSTEO Incorporated, 85
East Seventh Place, Suite , 00, 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, 1992, as the date of original issue, and will bear interest
payable on February 1 and August 1 at each year, commencing February 1, 1993. 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 February 1 in the years and amounts as follows:
1994 $165,000
1995 $165.000
1996 $165,000
1997 $165,000
1998 $165,000
1999 $150,000
2000 $150,000
2001 $150,000
2002 $150.000
2003 $150,000
2004 $155,000
2005 $155,000
2006 $155,000
2007 $155,000
2008 $155.000
OPTIONAL REDEMPTION
The City may elect on February 1, 2001, and on any day thereafter, to prepay Bonds due on or
after February 1, 2002. 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 pric& 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
Special assessments against benefited property. The proceeds will be used to finance va(lous
public improvement projects In the City.
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TYPE OF PROPOSALS
Proposals shall be for not less than $2.314,150 and accrued interest on the total principal
amount of the Bonds. Proposals shal/ 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 $23,500,
payable to the order of the City. It a check is used, it must accompany each proposal. If a
Financial Surety Bond is ~sed. 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 undelWriter 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 Spflngsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:3Q P.M.,
Central Time, on the next business day following the award, tf 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 I'f'\ade. Rates shall be in integral
multiples 01 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 e.ch proposal. if' .
accordance with customary practice, will be control/lng.
BONO 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 tt'1e 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 n'ame 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 for assignment of CUSIP numbers such numbers will be printed on tne
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 CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without r.:ost to the
purchasClr 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 Larkin, Hoffman, Daly &
Lindgren, Ltd. of 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
compiiance 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
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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 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 100 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. 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 dElsignation and (Ii) It shall
enter into a contractual relationship with all Participating UnderNriters of the Bonds for
purposes of assuring the receipt by each such Farticipating Underwriter of the Final Official
Statement.
Dated May 4, 1992
BY ORDER OF THE CITY COUNCIL
Isl PatriCk Klaers
Administrator
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