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88-019 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, March 21, 1988, commencing at 7:00 p.m. The following members were present: Mayor Gunkel, Counci1members Holmgren, Schuldt, Dobe1 and Tra11e and the following were absent: None The following resolution was presented by Councilmember Tralle who moved its adoption: RESOLUTION NO. 88-19 . RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,180,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1988A BE IT RESOLVED by the City Council of the City of Elk River, Sherburne County, Minnesota (City) as follows: Section 1. Findings. 1.01 The authorization and construction of three improvement projects are contemplated. The three improvement projects are known as the Royal Oaks Ridge Improvement Project, the Main Street Improvement Project, and the Jackson Avenue Improvement Project. Springsted Incorporated (Springsted), fiscal consultants to the City, have recommended that the City issue its general obligation improvement bonds to finance the improvement projects. 1.02 Springsted has recommended that the sale of improvement bonds in the aggregate principal amount of One Million One Hundred Eighty Thousand Dollars ($1,180,000) be authorized. . 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 1988A (the Bonds) to finance the costs of the three improvement projects. Section 2. Sale of Bonds. . 2.01 The City shall issue and sell the Bonds, pursuant to Chapter 429 and 475 of the Minnesota Statutes. The authorized principal amount of the Bonds shall be One Million One Hundred Eighty Thousand Dollars ($1,180,000). The Bonds shall be issued and sold in accordance with the terms of the Official Terms of Offering, a copy of which, marked Exhibit A, is attached hereto and made a part hereof. 2.02 The City Clerk is authorized and directed to advertise the Bonds for sale in accordance with such Official Terms of Offering and to cause an abbreviated notice of sale in the form of Exhibit B, attached hereto and made a part hereof, to be published in the manner required by law. The City Council shall meet on Monday, April 18, 1988, at 7:00 p.m., for the purpose of considering sealed bids on the Bonds and taking any other appropriate action. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Dobel and upon vote being taken thereon, the following voted in favor of the motion: Mayor Gunkel, Councilmembers Dobel, Tralle, Schuldt and Holmgren . and the following was voted against: None whereupon said resolution was declared duly passed and adopted. . EXHIBIT A OFFICIAL TERMS OF OFFERING . $1,180,000 CITY OF ELK RIVER, MINNESOTA GENERAL OBLIGATION IMPROVEliENT BONDS, SERIES 1988A Sealed bids for the Bonds will be opened by the City on Monday, April 18, 1988, at 11:00 A.M., Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143. Consideration for award of the Bonds will be by the City Council at 7:00 P.li., Central Time, of the same day. DETAILS OF THE BONDS . The Bonds will be dated May 1, 1988, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1989. Interest will be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of tte MSRB. 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 his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature February 1 in the amounts and years as follows: $325,000 $190,000 1990 1991 $185,000 $130,000 1992 1993 $125,000 $ 45,000 1994 1995-1999 OPTIONAL REDEMPTION The City may elect on February 1, 1995, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1996. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and accrued interes~. 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 1. . pledge special assessments filed against benefited property. The proceeds will be used to finance various improvements within the City. TYPE OF BID . A sealed bid for not less than $1,164,070 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $11,800, payable to the order of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids unless the meeting of the City Council scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates offered by Bidders shall be in integral multiples of 5/100 or 1/8 of 1%. No rate for any maturity shall be more than 1% lower than any ~rior rate. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. AlvARO The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. 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 neither the failure 2. . . . 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 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 Larkin, Hoffman, Daly & Lindgren, Ltd. of Minneapolisl 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 1:00 P.M., Central Time. Except as conpliance 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 Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The Purchaser will be proved with 30 copies of the Official Statement. Dated: March 21, 1988 BY ORDER OF THE CITY COUNCIL /s/ Patrick D. Klaers Administrator-Clerk SBS:EW4s 3. . . . EXHIBIT B NOTICE OF SALE $1,180,000 General Obligation Improvement Bonds, Series 1988A City of Elk River Sherburne County, Minnesota Sealed bids for these bonds will be opened by the City Administrator, or his designee, on Monday, April 18, 1988, at 11:00 a.m., at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, for consideration and award by the City Council at 7:00 p.m. at the Elk River City Library in Elk River, Minnesota. The bonds will be improvement bonds and shall be general obligations supported by the full faith and credit of the City. The bonds will be dated May 1, 1988 and will mature on February 1 in the years and amounts as follows: Year Amount 1990 1991 1992 1993 1994 1995 - 1999 $325,000.00 190,000.00 185,000.00 130,000.00 125,000.00 45,000.00 Bonds maturing on or after February 1, 1996, are subject to prior redemption on February 1, 1995, and any interest payment date thereafter, at par plus accrued interest. Interest will be payable on February 1, 1989, and semiannually thereafter. Minimum price, One Million One Hundred Sixty-four Thousand Seventy Dollars ($1,164,070) plus accrued interest. Bids shall specify interest rates for each maturity in accord with the Official Terms of Offering. An approving legal opinion will be furnished by Larkin, Hoffman, Daly & Lindgren, Ltd., Minneapolis, Minnesota. The purpose of the Bonds is to provide financing for three improvement projects. The Official Terms of Offering to be published in the Official Statement for the offering may contain additional bidding terms and information relative to the issue. In the event of a variance between the statements in this notice and the Official Terms of Offering, the provisions of the latter shall govern. BY ORDER OF THE CITY COUNCIL Dated: March 21, 1988 /s/ Patrick D. Klaers City Administrator SBS:B08 .- '. y,.... . STATE OF MINNESOTA COUNTY OF SHERBURNE CITY OF ELK RIVER ss I, the undersigned, being the duly qualified and acting Administrator 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, March 21, 1988, 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 $1,180,000 General Obligation Improvement Bonds, Series 1988A of the City. WITNESS my hand as such Administrator and the corporate seal of the City this 21st day of March, 1988. .~. I' /a~J 1) r~~~~ City Administrator City of Elk River, Minnesota . . SBS:B08