98-121 RESEXTR3tCT 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 held at the City Hall in said City on
November 9, 1998, at 6:30 o'clock P.M. for the purpose in part
of authorizing the sale of the City's $1,375,000 General
Obligation Improvement Bonds, Series 1998A.
The following Councilmembers were present:
Mayor Duitsman
Councilmembers: Dietz, Thompson, Holmgren
and the following were absent:
Councilmember Farber
introduced the following
Councilmember Holmgren
resolution and moved its adoption:
RESOLUTION 98-121
RESOLUTION PROVIDING FOR THE SALE OF
THE CITY'S $1,375,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 1998A
A. WHEREAS, the City Council of the City of Elk
River, Minnesota, determines that it is necessary and expedient
to issue the City's $1,375,000 General Obligation Improvement
Bonds, Series 1998A (the "Bonds"), to finance the assessable
public improvement projects described in the attached schedule,
all of which have been duly ordered by the Council pursuant to
and in accordance with the provisions of Minnesota Statutes,
Chapter 429; and
B. WHEREAS, the City has retained Springsted
Incorporated, in Saint Paul, Minnesota ("Springsted"), as its
independent financial advisor and is therefore authorized to sell
these obligations by a competitive negotiated sale in accordance
with Minnesota Statutes, Section 475.60, Subdivision 2(9); and
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Elk River, Minnesota, as follows:
1. Authorization~ Findinqs. The Council hereby
authorizes Springsted to solicit bids for the competitive
negotiated sale of the Bonds.
2. Meetinq; Bid Openinq. The Council shall meet at
the time and place specified in the Terms of Proposal attached
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hereto and made a part hereof for the purpose of considerin9
sealed bids for and awardin9 the sale of the Bonds.
3. Terms of Proposal. The terms and conditions of
the Bonds are set forth in the "Terms of Proposal" attached
hereto.
4. Official Statement. The City officials are hereby
authorized to cooperate with Springsted in the preparation of an
official statement for the Bonds and to execute and deliver it on
behalf of the City upon,its completion.
The motion for the adoption of the foregoing resolution
was duly seconded by Councilmember Dietz and, after
full discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof:
Mayor Duitsman
Councilm~mbers: Dietz, Thompson, Holmgren
and the following voted against the same:
None
Whereupon said resolution was declared duly passed and
adopted.
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CITY OF ELK RIVER. MINNESOTA
Project
The Sedes 1998A Bonds
Project Less: Net Project
Costs to be PrepaymentS Co~Ls to b~
Financed of ASSessrr~s. Financed
Gua~ian Angels
1998 Overlay
Lake Orono Sediment Removal
Business Center Ddve
Railroad Drive
Boston Street
158,1o0 -
2~.000 (8.700)
710,000 (46,200)
498,g39 -
3.5,333 -
58,575 -
158,100
281,300
663,800
498,939
38,333
58,575
Total
Less: Exce. ss 1997 ~ond Proceeds
Less: 1998 Lake Orono Levy
Less: Rounding
1,753,9.47 (54,900)
1,699,047
(223,700)
(~00,000)
(347)
Total Series 1998A Bonds
1,375,000
(aJ Includes consfrucb'on, engineering, legal, admini~batlon, cosfs of issuance
end allowance for d~scount biddblg.
(b) Improvement projects are all nearing completion, lherefOre Investment
earnings are not projecfed on the Series 1ggSA Bonds.
(b)
THE CITY HAS AUTHORIZED SPRING$TED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS;
TERMS OF PROPOSAL
$1,375,000
CITY OF ELK R, IVER, MINNESOTA
GENERAL OBLIGATION IMPROVEfCENT BONDS~ SERIES 1998A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, November $0, lggs, until 10:30 A.M.,
Central Time, at the offices of Springsted Inoorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will 13e opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 6:00 P.M., Central Time, of the same day.
SUBMISSION OF pROPOSALS
Proposals may be submitted In a sealed envelope or by fax (651)223-3002 to SpringSted.
Signed Proposals, without final price or coupons, may be submitted to Spdngsted prior to the
time 'of sale. The bidder shall ba responsible for submitting to Springsted the final Proposal
price, and coupons, by telephone (651)223-3000 or fax (651)223-3002 for inclusion in the
submitted Proposal. Spdngsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. All bidders are advised that each Proposal
shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds
regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated December 1, 1998, as the date of oHginal issue, and will bear interest
payable, on February 1 and August I of each year, commencing August 1, 1999. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February I In the years and amoun[s as follows:
2000 $200,000 2003 $200,000 2006 $ 80,000 2008 $ 70,000
2001 $200.000 2004 $200.000 2007 S 70,000 2009 $ 75,000
2002 $200,000 2005 $ $0,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds, provided that no serial bond may mature on or after the first mandatory
sinking fund redemption date of any term bond. All term bonds shall be subject to mandatory
sinking fund redemption and must conform to the maturity schedule set forth above at a price of
par plus accrued interest to the date of redemption. In order to designate term bonds, the
proposal must specify "Last Year of Serial Maturities" and 'Wears of Term Maturities" in the
spaces provided On the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds wiII be issued in fully registered form and one Obligation,
rerresenting the aggregate principal amount of the Bonds maturing In each year, will be
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registered in the name of Cede & Co. as nominee of 'i'he Depos~ory Trust Company ("DTC"),
New York, New York, which will act as securities depository cf the Bonds. Individual purchases
of the Bonds may be made In the principal amount of $5,000 or any multiple thereof of ~ single
matudty through book entdes made on [he books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be require¢ to deposit the
Bonds with DTC,
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. The City w~ll pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2006, and on any day thereafter, to prepay Bonds due on or
after February 1, 2007. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of sdoh matudty to be
prepaid. DTC will determine by lot the amount of each participant's Interest in such maturity to
be redeemed and eacl~ participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a pdce of par plus accrued interest.
SECURIT'Y'ANDPURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faitt~ 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 vadous
improvements within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,359,875 and accrued interest on tile tote[ principal
amount of the Bonds. Proposals shall 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 $13,750,
payable to the order of the City. If a check is used, It must accompany each proposer, if a
Financial Surety Bend iS used, 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 underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an undervvrfter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a codified or cashier's
check or wire transfer as instructed by Spdngsted Incorporated not la'~er 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 depose 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 wlth 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 a~other 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 asc, er~ding order. Bonds of the same maturity shall bear a single
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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, (iii) 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.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be pdnted on the
Bonds, but neither the failure to print such numbers on any Obligation 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 Bdgg~ and Morgan,
Professional Association. of Saint Paul and Minneapolis. Minnesota, and of customary dosing
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 Tim~. Except as compliance with the terms
of payment for the Bonds shall have been made impossible by 8etlon of the City, or its agent;s,
ihs 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.
CONTINUING DISCLOSURE
On the date of the actual issuance and delivery of the Bonds. the City will execute and deliver
Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to
be provided, annual financial information, including audited financial statements of the City, and
notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5).
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 Sta;ement Or for any additional information prior to sale, any
prospective purchaser is referred to the FinancJal Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Borlds, together with arly 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 urlderwriting 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 60 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 distribL~ting copies of the Final Official Statement to each Padicipating 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 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 November 9, 1998 BY ORDER OF THE CITY COUNCIL
/si Sandra Peine
Clerk
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STATE OF MINNESOTA
COUNTY OF SHERBURNE
CITY OF ELK RIVER
I, the undersigned, being the duly qualified and acting
City Clerk of the City of Elk River, Minnesota, DO HEREBY CERTIFY
that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that
the same is a full~ true and complete transcript of the minutes
of a meeting of the City Council of said City, duly called and
held on the date therein indicated, insofar as such minutes
relate to the City's $1,375,000 General Obligation Improvement
Bonds, Series 1998A.
WITNESS my hand this 9th day of November ,
1998. ~.~
Cit~ Clerk J-~~t~
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