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96-027 RESEXTRACT OF MINUTES OF A MEETING OF THE CITY COLrNCIL OF THE CITY OF ELK RIVER, MINNESOTA HELD: May 13, 1996 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Elk River, Sherburne County, Minnesota, was duly held at the City Hall in said City on the 13th day of May, 1996, at 7:00 o'clock P.M. for the purpose in part of authorizing the competitive negotiated sale of the $500,000 General Obligation Improvement Bonds, Series 1996B of said City. The following members were present: MAYOR DUITSMAN COUNCILMEMBERS: DIETZ, SCHEEL, FARBER & HOLMGREN and the following were absent: Member SCHEEL introduced the following resolution and moved its adoption: RESOLUTION 96-27 RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $500,000 GENER~AL OBLIGATION IMPROVEMENT BONDS, SERIES 1996B A. WHEREAS, the City Council of the City of Elk River, Minnesota, has heretofore determined that it is necessary and expedient to issue its $500,000 General Obligation Improvement Bonds, Series 1996B (the "Bonds") to finance various improvements in the City; 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: 320406.1 1. Authorization; Findings. The City Council hereby authorizes Springsted to solicit bids for the competitive negotiated sale of the Bonds. 2. Meetinq~ Bid Opening. This City Council shall meet at the time and place specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed bids for, and awarding the sale of, the Bonds. The Administrator, or his designee, shall open bids at the time and place specified in such Terms of Proposal. 3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby approved and made a part hereof. 4. Official Statement. In connection with said competitive negotiated sale, the Administrator, Finance Director and other officers or employees of the City are hereby authorized to cooperate with Springsted and participate 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 member FARBER and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: MAYOR DUITSMAN COUNCILMEMBERS: DIETZ, SCHEEL, FARBER & HOLMGREN and the followin~ voted a~ainst the same: NONE Whereupon said resolution was declared duly passed and adopted. 320406.1 2 STATE OF MINNESOTA COUNTY OF SHERBURNE CITY OF ELK RIVER I, the undersigned, being the duly qualified and actin~ 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 meetin~ 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 $500,000 General Obligation Improvement Bonds, Series 1996B. 1996. WITNESS my hand this 13TH day of MAY / 320406.1 3 EXHIBIT A THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $500,000 CITY OF ELK RIVER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1996B (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, June 3, 1996, 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 6:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Spdngsted the final Proposal pdce and coupons, by telephone (812) 223-3000 or fax (612) 223-3002 for inclusion In the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Spdngsted prior to the time of sale specified above. Proposals may also be filed electronically via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal, within a one-hour period pdor to the time of sale established above, but no Proposals will be received after that time. If provisions in the Terms of ProposaJ conflict with the PARITY Rules of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the b~der. For further information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE, Suite 100, Bellevue, Washington 98004, telephone (206) 635-3545. Neither the City nor Springsted Incorporated assumes any liability if there is a malfunction of PARITY. 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 July 1, 1996, as the date of odginal issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1997. 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 amounts as follows: 1999 $125,000 2001 $75,000 2003 $75,000 2000 $ 80,000 2002 $75,000 2004 $70,000 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book errby system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co, as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single -i- maturity through book entries made on the 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 in, rarest,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 required 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. OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated matudty dates. SECURtTY AND PURPOSE The E,3nds 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 for street improvements In the City. TYPE OF PROPOSALS Proposals shall be for not less than $494,000 and accrued interest on the total 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 $5,000, 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 bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Spdngsted Incorporated pdor 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 underwriter using a F~nancial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certif'~ed 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. 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 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 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. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals add 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. - ii - CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers wi{I be pdnted on the Bonds, but neither the failure to print Su~ '~u~'perS 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. SE3q'LEMENT 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 Bdggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, ancl 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 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. CONTINUING DISCLOSURE On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a 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 Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Spdngsted 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 taw, 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 20 copies of the Official Statement and the addendum or acldenda 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 designation and (ii) it shall enter into a contractual relationsl3ip with all Participating Underwriters of the Bonds for purposes of assudng the receipt by each such Participating Underwriter of the Final Official Statement. Dated May 13, 1996 BY ORDER OF THE CITY COUNCIL Is/Patrick Klaers Administcator