86-070
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EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF SHOREWOOD,
HENNEPIN COUNTY, MINNESOTA
Pursuant to notice thereof, a (regular) (~~) meeting of the
City Council of the City of Shorewood, Hennepin County, Minnesota, was held
at the City Hall in said City on Monday, June 23, 1986, commencing at 7: 30
p.m.
The fOllowing members were present: Mayor R. Rascop,
R. Gagne, K. Stover, T. Shaw and J. Haugen
and the following were absent:
None
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The fOllowing resolution was presented by Councilperson
Gagne
who moved its adoption:
RESOLUTION NO. 70 - 8 6
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RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
$985,000 GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 1986A
BE IT RESOLVED By the City Council of the City of Shorewood,
Hennepin County, Minnesota, as follows:
1. It is hereby determined:
(a) That the following assessable public improve-
ments (the "Improvements") have been made, duly
ordered or contracts let for the construction
thereof by the City pursuant to the provisions of
Minnesota Statutes, Chapter 429:
Project Costs
Construction, Engineering
and Contingency $961,000
Issuance and Registration
Costs 17,000
$978,000
Discount Allowance 19,200
Total Costs $997,200
. Less: Investment Earnings (12,200)
Total Bond Issue $985,000
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(b)
That it is necessary and expedient to the sound
financial management of the affai rs of the Ci ty to
issue $985,000 General Obligation Improvement
Bonds of 1986 (the "Bonds") , to provide financing
for the Improvements, which Bonds shall be fully
registered.
2. In order to provide financing for the Improvements, the
City shall issue and sell Bonds in the amount of$965,800; in order to
provide in part the additional interest required to market the Bonds at this
time, additional Bonds shall be issued in the amount of $19,200. Any
excess of the purchase price of the Bonds over the sum of $965,800 shall be
credited to the debt service fund for the Bonds for the purpose of paying
interest first coming due on the Bonds. The Bonds shall be issued and sold
in accordance with the terms of the Official Notice of Sale which is
attached hereto and marked Exhibit A.
3. The City Clerk is authorized and directed to advertise the
Bonds for sale in accordance with the attached notice of sale and to
cause the abbreviated notice of sale attached hereto as Exhibit B to
be published in the manner required by law. The City Council shall
meet on Monday, July 28, 1986, at 7:30 p.m. for the purpose of opening
and considering the bids on the Bonds and taking any other appropriate
action.
The motion for the adoption of the foregoing resolution was duly
seconded by Councilperson
Hauqen
and upon vote being taken
thereon, the fOllowing voted Aye:
All members
and the following voted No:
None
whereupon said resolution was declared duly passed and adopted.
Approved and signed this 'Z-3r~ day of ~Y>'/"-"\
, 1986.
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~~~ ~~/
Mayor
Attest:
. City Clerk
OFFICIAL TERMS OF OFFERING
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$985,000
CITY OF SHORE WOOD, MINNESOTA
GENERAL OBUGA TION IMPROVEMENT BONDS, SERIES 1986A
Sealed bids for the Bonds will be opened by the City Council on Monday, July 28, 1986, at 7:30 P.M.,
Central Time, at the Shorewood City Hall. Consideration for award of the Bonds will immediately
follow the opening of bids.
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 August I, 1987. 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 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 in the amounts and years as follows:
$50,000 1988
$70,000 1989-1993
$65,000 1994-2002
MANDATORY REDEMPTION
.11 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.
OPTIONAL REDEMPTION
The City may elect on February I, 1992, and on any interest payment date thereafter, to prepay
Bonds due on or after February I, 1993. 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 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 against benefited property. The proceeds will be used to construct various improvements
in the City.
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TYPE OF BID
A sealed bid for not less than $965,800 and accrued interest on the total principal amount of the
.onds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to
he time set for bid opening, a certified or cashier's check in the amount of $10,000, 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 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 1.5% 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, (ij) reject all bids without cause, and, (iij)
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 applicableSEC 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 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. 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 Wurst, Pearson, Larson & Underwood, Professional Association 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 shall be received at the offices of the City, or its designee, not later than 1:00 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
.id terms for payment.
,
At settlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the
City, 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 copy of the Official Statement by request to the City's Financial Advisor
prior to the bid opening. The Purchaser will be provided with 20 copies of the Official Statement.
Dated June 23, 1986
/ s/ Sandra L. Kennelly
City Clerk
BY ORDER OF THE CITY COUNCIL
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NOTICE OF SALE
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$985,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1986A
CITY OF SHOREWOOD
HENNEPIN COUNTY, MINNESOTA
These bonds will be offered on Monday, July 28, 1986. Bids
will be received until 7:30 p.m. at the City Hall in the City of
Shorewood, when they will be opened and considered by the City
Council. Dated August 1, 1986, the bonds will mature on February
1 in the years and amounts as follows:
Year Amount Year Amount
1988 $50,000 1996 $65,000
1989 70,000 1997 65,000
1990 70,000 1998 65,000
1991 70,000 1999 65,000
1992 70,000 2000 65,000
1993 70,000 2001 65,000
1994 65,000 2002 65,000
1995 65,000
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Bonds maturing after February 1, 1992, will be subject to re-
demption and prepayment at the option of the City and in whole
or in part, in inverse order of maturities and by lot assigned
in proportion to their principal amount, within any maturity,
on February 1, 1992, and any interest payment date thereafter
at a price equal to the principal amount thereof to be redeemed
plus accrued interest to the date of redemption.
The City will appoint a Bond Registrar, Transfer Agent and
Paying Agent. Interest will be payable on each February 1 and
August 1, commencing August 1, 1987, to the registered owners
of the Bonds appearing of record in the bond register as of the
15th day of the immediately preceding month. No rate of interest
nor the net effective rate of the issue may exceed the maximum
legal rate determined pursuant to Minnesota Statutes. An un-
qualified legal opinion will be furnished by Messrs. Wurst,
Pearson, Larson and Underwood, of Minneapolis, Minnesota. The
purpose of the Improvement Bonds is to finance various public
improvements in the City. The various improvements will be paid
from special assessments and general funds of the City. No bid
of less than $965,800 will be considered.
.
Bidders should be aware that 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 statements in this
Notice of Sale and said Official Terms of Offering, the provisions
of the latter shall be those to be complied~with for the issue.
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BY ORDER OF THE CITY COUNCIL
Sandra L. Kennelly
City Clerk
Shorewood, Minnesota
Dated:
June 23, 1986.
Further information may be obtained from and. bids may be delivered
to SPRINGSTED INCORPORATED, 85 East Seventh Place, Suite 100, St.
Paul, Minnesota 55101, 612/223-3000.
.
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STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF SHOREWOOD
I, the undersigned, being the duly qualified and acting City Clerk
of the Ci ty of Shorewood, Minnesota, do hereby certify that I have carefully
compared the attached and foregoing extract of minutes of a (regular)
(special) meeting of the City Council of said City held on June 23, 1986,
wi th 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 $985,000 General Obligation Improvement Bonds of
1986 of the City.
WITNESS My hand as such Clerk and the corporate seal of the City
this 2..3":;:' day of
~AJvv--.~
, 1986.
~A~,3r~~
. CJ
City Clerk
City of Shorewood, Minnesota
(SEAL)
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