86-034 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 reqular
meeting of the City Council of the City of Elk River, Sherburne
County, Minnesota, was held at the City Hall in said City on
Monday, June 16, 1986, commencing at 7:30 p.m.
The following members were present: Mayor Hinkle, Williams,
Gunkel, Schuldt & Engstrom
and the following were absent:
None
The following resolution was presented by Councilmember
~~r11l1 (H- who moved its adoption:
RESOLUTION NO. 86-34
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $1,975,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 1986A
BE IT RESOLVED by the City Council of the City of Elk
River, Sherburne County, Minnesota (City) as follows:
Section 1. Findinqs: Costs.
1.01 The authorization and construction of four
improvement projects are contemplated. The four projects are
known as the Simonet Drive Improvement Project, the School
Street Improvement Project, the Ridgewood-Knollwood Street
Improvement project, and the Deerfield Third Addition
Improvement project. Springsted, Incorporated (Springsted),
fiscal consultants to the City, have recommended that the City
.
.
.
issue its general obligation improvement bonds to finance the
four improvement projects.
1.02 Springsted has recommended that the sale of
improvement bonds in the aggregate principal amount of One
Million Nine Hundred Seventy-five Thousand Dollars ($1,975,000)
be authorized. Springsted has further recommended that a
rating with respect to the bonds be sought from Moody's
Investment Services, Inc. (Moody's).
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 1986A (the Bonds) to
finance the costs of the four 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 Bands shall be One Million Nine Hundred
Seventy-five Thousand Dollars ($1,975,000). The Mayor or the
City Administrator, and either of them, are hereby authorized
to make application to Moody's for a rating with respect to the
Bonds. 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, July 21, 1986, at 7:30 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 Gunkel and upon vote
being taken thereon, the following voted in favor of the
motion: All members
and the following was voted against:
None
whereupon said'resolution was declared duly passed and adopted.
.t;2\..tLLbrr A
OFFICIAL TERMS OF OFFERING
.
$1,975,000
CITY OF ELK RIVER, MINNESOTA
GEf\ERAL OBUGA TION IMPROVEMENT BONDS, SERIES 1986A
Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday, July
21, 1986, at II :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 the
City Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated August I, 1986 as the date of original issue, and will bear interest payable on
February I and August I of each year, commencing February I, 1987. Interest wi II be computed upon
the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the
MSRB. The Bonds will be issued in integral multiples of $5,000 of a single maturity, 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 of the calendar month next preceding the interest payment.
The Bonds will mature February I in the amounts and years as follows:
$ 70,000
$165,000
1988
1989
$140,000
$135,000
1990-1995
1996-1997
$110,000 1998-2001
$105,000 2002
$85,000 2003
.
In the event that pursuant to federal laws and regulations the City is required to use unexpended
Bond proceeds for early redemption of Bonds in order to continue exemption of the Bonds from
federal taxation, the City shall use such unexpended Bond proceeds to redeem Bonds on any date
after notice is given pursuant to law. 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 such
prepayments shall be at a price of 102% plus accrued interest.
MANDA TORY REDEMPTION
OPTIONAL REDEMPTION
The City may elect on February I, 1995, and on any interest payment date thereafter, to prepay
Bonds due on or after February I, 1996. Redempt ion 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 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 levied against benefited properties. The proceeds will be used to finance various local
improvements with the City.
.
TYPE OF BID
A sealed bid for not less than $1,939,450 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 $19,750 payable to the
.rder 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 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 I %. No rate for any maturity shall be more than I % lower than
any prior rate. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the
date of maturity.
AWARD
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: (j) waive non-substantive informalities of any bid or of matters
relating to the receipt of bids and award of the Bonds, (jj) reject all bids without cause, and, (jii)
reject any bid which the City determines to have failed to comply with the terms herein.
REGISTRAR
.he City will name the Registrar which shall be subject to applicable SEC regulations. The City will
ay for the services of the Registrar.
CUSlP NUMBERS
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 CUSlP
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. A single typewritten Bond
for each maturity may be provided at settlement, which Bonds will be exchanged for printed Bonds
within said 40-day period. 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 shaIl
be received at the offices of the City, or its designee, not later than I :00 P.M., Central Time of the
day of settlement. 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.
.t settlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the
ity, to the effect that the Official Statement did not as of the date of the Official Statement, and
does not as of the date of settlement, contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.
OFFICIAL STATEMENT
.Underwriters may obtain a cOQY of the Official Statement by request to the City's Financial Advisor
prior to the bid opening. The Purchaser will be provided with 25 copies of the Official Statement.
Dated June 16, 1986
/s/ Pat Klaers
Administrator
BY ORDER OF THE CITY COUNCil
.
.
.
.
EXHIBIT B
NOTICE OF SALE
$1,975,000 General Obligation
Bonds, Series 1986A
City of Elk River
Sherburne County, Minnesota
Sealed bids for these bonds will be opened by the City
Administrator, or his designee, on Monday, July 21, 1986, at
11:00 a.m., at the offices of Springsted Incorporated, 85 East
Seventh Place, Suite 100, St. Paul, Minnesota, for consider-
ation and award by the City Council at 7:30 p.m. at the City
Hall in Elk River, Minnesota. Dated August 1, 1986, the bonds
will mature on February 1 in the years and amounts as follows:
Year
Amount
1988
1989
1990 - 1995
1996 - 1997
1998 - 2001
2002
2003
$ 70,000
165,060
140,000
135,000
110,000
105,000
85,000
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, 1987, and semiannually thereafter.
Minimum price, One Million Nine Hundred Thirty-nine Thousand
Four Hundred Fifty Dollars ($1,939,450) plus accrued interest.
Bids shall specify interest rates for each maturity and a net
average interest rate of the issue not exceeding the maximum
permitted by law on the day of sale. 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 four 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
Pat Klaers
Administrator
Dated: June 16, 1986
.
SBS:BAl
.
.
.
STATE OF MINNESOTA )
COUNTY OF SHERBURNE ) ss
CITY OF ELK RIVER )
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 fore-
going extract of minutes of a regular meeting of the City Council
of said City held on Monday, June 16, 1986, 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 $1,975,000 General Obligation Improvement
Bonds, Series 1986A of the City.
WITNESS my hand as such Administrator and the corporate
seal of the City this ~~~ay of June, 1986.
~~C,/fJ? Jaz~-.
City Administrator
City of Elk River, Minnesota