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87-052 . . . EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF SHOREWOOD, HENNEPIN COUNTY, MINNESOTA Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Shorewood, Minnesota, was duly held at the City Hall in said City on Monday, the 11th day of May, 1987, at 7:30 p.m. The following members of the Council were present: B. Brancel, J. Haugen, K. Stover, R. Gagne & Mayor R. Rascop and the following were absent: None * * * * * * * * * Councilmember Gagne introduced the following resolution and moved its adoption: RESOLUTION NO. 52-87 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,450,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1987A WHEREAS, the City of Shorewood has conducted public hearings pursuant to Minnesota Statutes, Chapter 429, and WHEREAS, the City has authority pursuant to Chapter 429 and Chapter 475 of the Minnesota Statutes to issue general obligation bonds to pay for said improvements, and WHEREAS, because of conditions in the current bond market, it appears feasible and prudent to issue Temporary Improvement Bonds as authorized by Minnesota Statutes, Section 429.091, Subd. 3, and WHEREAS, it is necessary that the City borrow the sum of $1,450,000 to finance construction of the public improvements, and the issuance of general obligation temporary improvement bonds is authorized by Chapters 429 and 475 of the Minnesota Statutes, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA, as follows: . . . 1. It is hereby determined: That the following assessable public improvements (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: ( a) Project Description Project Cost Project 87-1 Shorewood Oaks (Street, Curb, Gutter, water, sanitary sewer and storm sewer) Construction Bid Engineering, Contingencies, Administrative, Legal, Issuance and Miscellaneous Expenses Capitalized Interest Allowance for Discount $ I ,204, 595 204,780 41 ,685 10,875 $ I , 46 I , 935 ( I I . 935 ) $ I ,450,000 Total Costs Less: Investment Earnings Net Bond Issue (b) That it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,450,000 General Obligation Temporary Improvement Bonds, Series 1987A (the "Bonds") to provide financing for the improve- ments during construction, which Bonds shall be fully registered. . 2. In order to provide financing for the improvements, the City shall therefore issue and sell its General Obligation Temporary Improvement Bonds in the aggregate principal amount of $1,439,125 for the above stated purposes. It is further determined that additional bonds in the amount of $10,875 shall be issued to represent the additional cost of marketing bonds, as authorized by Minnesota Statutes, Section 475.56, which amount does not exceed 2% of the amount otherwise authorized. All amounts received for the sale of said bonds in excess of $1,439,125 shall be credited to the sinking fund for the payment of interest on these obligations. 3. The Bonds shall be sold in accordance with the terms of the Official Terms of Offering which is attached hereto and marked Exhibit A. . . . 4. 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 Off icial Terms of Offe ring attached hereto as Exhibit B to be published in the manner required by law. 5. Sealed bids will be received for said Bonds at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, St. Paul, MN 55101-2143, until 12:00 noon on June 8, 1987, at which time they will be opened and tabulated. The bids shall be considered by the Ci ty Council at the Ci ty Hall in the City of Shorewood at 7: 30p. m. on said date, and the Ci ty Council will take such action in respect thereto as may be found necessary or expedient. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember H;:mgpn , and upon vote being taken thereon, the following voted in favor thereof: All members and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. Mayor Attest: City Clerk Exhibit A e OFFICIAL TERMS OF OFFERING $1 ,450,000 CITY OF SHORE WOOD, MINNESOTA GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1987 A Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday, June 8, 1987, at 12:00 Noon, 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 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated July I, 1987, as the date of original issue, and will bear interest payable on January I and July I of each year, commencing January I, \988. 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 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 July I, 1990. OPTIONAL REDEMPTION eThe City may elect on July I, 1989, and any interest payment date thereafter to prepay Bonds due on July I, 1990. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, 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 finance the construction of various improvements in the City. TYPE OF BID A sealed bid for not less than $\ ,439, 125 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the openinlJ of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of ~ 14,500, 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. Bidders shall specify a single rate which eShall not exceed, nor shall the net effective rate for the entire Issue of the Bonds exceed the maximum rate permitted by law. AWARD .he Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by he 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, (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 applicable SEC regulations. will pay for the services of the Registrar. The City 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 wi II 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 urchaser 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 Wurst, Pearson, Larson, Underwood, and Mertz, 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 I :00 P.M., 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. 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 omi t 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 STA TEMENT 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 May II, 1987 BY ORDER OF THE CITY COUNCIL .' /s/ Sandra Kennelly Clerk . . . ~ Exhibit B OFFICIAL TERMS OF OFFERING 1,450,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS SERIES 1987A CITY OF SHOREWOOD HENNEPIN COUNTY, MINNESOTA Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday, June 8, 1987, at 12:00 Noon, Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101-2143. Consideration for award of the Bonds will be by the Ci ty Council at 7: 30p.m. , Cent ral Time, of the same day. Dated July 1,1987, the Bonds will mature on July 1,1990. All Bonds are subject to being called for prior payment on July 1, 1989, and any interest payment date thereafter. The City will appoint a Bond Registrar, Transfer Agent and Paying Agent. Interest will be payable on each January 1 and July 1, commencing January 1, 1988, 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, Section 475.55. An unqualif ied legal opinion will be furnished by Messrs. Wurst, Pearson, Larson, Underwood, and Mertz, of Minneapolis, Minnesota. The purpose of the bonds is to finance the construction of various public improvements, and the Bonds will be paid for by special assessments and general funds of the City, and if necessary from an ad valorem tax levy. The full faith, credit and taxing powers of the City are pledged to all bonds. No bid of less than $1,439,125 will be considered. BY ORDER OF THE CITY COUNCIL Sandra Kennelly City Clerk City of Shorewood, Minnesota Dated Mav 11 , 1987. . STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF SHOREWOOD I, the undersigned, being the duly qualified and acting City Clerk of the City of Shorewood, Minnesota, 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 May 11, 1987, with the original on file in my office and the same is a full, true and complete transcript therefrom. WITNESS My hand officially as such City Clerk and the corporate "- seal of the City this 1/4 day of ,Jl}A~ , 1987. f/ ~~~,~ _J~/ City Clerk . (SEAL) .