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92-036 RES . . . 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, Councilmembers Kropuenske and Dietz and the following were absent: Schuldt Mayor Tralle and Councilmember The following resolution was presented by Councilmember Kropuenske who moved its adoption: RESOLUTION NO. 92-36 RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $1,095,000 GENERAL OBLIGATION STATE-AID ROAD BONDS, SERIES 1992B 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 four municipal state-aid roadway projects are contemplated. The projects are known as the Main Street/Highway 169 Project, the Western Area Project, the Jackson Avenue/Highway 169 Project, and the Main Street Bridge Replacement Project. Springsted Incorporated (Springsted), fiscal consultant to the City, has recommended the City issue general obligation state-aid road bonds to finance a portion of the cost of the projects. 1.02 Springsted has recommended the City authorize the sale of general obligation state-aid road bonds in the aggregate principal amount of One Million Ninety-five Thousand Dollars ($1,095,000). . . . 1.03 It is necessary and desirable to the sound financial management of the City that the City issue and sell its General Obligation State-Aid Road Bonds, Series 1992B (the Bonds) to finance a portion of the costs of the four projects. Section 2. Sale of Bonds. 2.01 The City shall issue and sell the Bonds, pursuant to Chapters 162 and 475 of Minnesota Statutes. The authorized principal amount of the Bonds shall be One Million Ninety-five Thousand Dollars ($1,095,000). 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. The Bonds shall be issued in amounts and on terms such that the average annual amount of principal and interest due in all subsequent calendar years on the Bonds, including any similar obligations 'of the City which are outstanding, shall not exceed fifty percent (50%) of the amount of the last annual allotment preceding the Bond issue received by the City from the Construction Account in the Municipal State-Aid Street Fund. 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 Dietz and upon vote being taken thereon, the following voted in favor of the motion: Vice Mayor Holmgren, Councilmember Kropuenske, Counci1member Dietz and the following voted against: None whereupon said resolution was declared duly passed and adopted. LAS:DH5a 2. . . . STATE OF MINNESOTA COUNTY OF SHERBURNE CITY OF ELK RIVER ss. 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 $1,095,000 General Obligation State-Aid Road Bonds, Series 1992B of the City. WITNESS my hand as such Clerk and the corporate seal of the City this ~ day of May, 1992. _~ (/--L~A~ City Clerk .. City of Elk River, Minnesota .. LAS:DH5a . . . EXHIBIT A THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS Issue ON ITS BEHAlf. PROPOSALS WILL BE RECEIVED ON THE FOUOWING BASIS: TERMS OF PROPOSAL $1,095,000 CITY OF ELK AIVER, MINNESOTA GENERAL OBUGATION STATE-AID ROAD BONDS, SERIES 1992B Proposals tor 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 SPAINGSTED 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. DEl' AILS OF THE BONDS The Bonds will be dated June 1, 1992. as the date of original Issue, and will bear Interest payable on April 1 and October 1 of each year, commencing April 1, 1993. Interest will be computed on the basis of a 3S0-day year of twelve 3o-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 01 the close 01 business on the 15th day 01 the Immediately preceding month. The Bonds will mature April 1 in the years and amounts as follows: 1993 $120,000 1994 $145,000 1995 $150.000 1 i96 $155,000 1997 $165,000 , 998 $175,000 1999 $185,000 OPTlONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PUAPOSE 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 add:tlon the City will pledge annual State-Aid allotments from the Minnesota Department of Transportation. The proceeds will be used to finance construction of improvements to State-Ajd roads within the City. TYPE OF PROPOSALS Proposals shall be for not less than $1,084,050 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit (It Deposit") in the form of a certified or cashier's check or a Financial Surety Bond In the amount of $10,950, 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 -I - . bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to ~pflngsteo Incorporated prior to 1I11;1 vlJ~' Ii. I~ v, tho prQPo~ClI~. The F!lnanoiQI Suroty Sond must identify each underwriter whose Deposit is guaranteed by sueh 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. 11 such Deposit is not reeeived 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 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. BONO INSURANCE AT PURCHASER'S OPTION . . If the Bonds qualify for issuance of any policy of municipal bond insuranee or commitment therefor at the option of the underwriter, the purchase of any such Insurance polley or the '. issuance of any such commitment shail be at the sole option and expense 01 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 polley 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 for aSsignment of CUSIP numbers such numbers will be printed on the Bonds, but nEtither 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. SElTLEMENT 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 appfo"ing legal opinion of Larken, Hoffman, Daly & - ii . . . . Undgren, Ltd., Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, inchJding 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. Ex.cept 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 Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies 01 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 Statemenf of the City with respect to the Bonds, as that term Is defined in Rule , 5c2-12. 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 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 eacn Participating Underwriter. Any undaf'Writer 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 (i1) It shell enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter 01 the Final Official Statement. Dated May 4, 1992 BY ORDER OF THE CITY COUNCIL Isl Patrick KJaers Administrator . iil -