City Council Resolution 1992-15Extract of Minutes of Meeting
of the City Council of the City
of Monticello, Wright County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council
of the City of Monticello, Wright County, Minnesota, was held at the City Hall in the
City on Tuesday, May 26, 1992, commencing at 7: 00 P.M.
The following members of the Council were present: Shirley Anderson,
Brad Fyle, Clint Herbst, Dan Blonigen and Mayor Ken Maus
and the following were absent: None
The following resolution was presented by Councilmember Anderson
moved its adoption:
RESOLUTION NO. 92-15
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $705,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1992A
who
BE IT RESOLVED By the City Council of the City of Monticello, Wright
County, Minnesota ( City) as follows:
1. It is hereby determined that:
(a) 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
(Act);
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Project Desi Total
j Designation & Description: Project Cost
92-02 School Boulevard
92-07 Cardinal Hills
Construction $ 8522985
Less: School District Payment 173,785
Plus: Allowance for Discount 81813
Plus: Issuance Costs 16.987
Total Bond Issue $ 705,000
(b) it is necessary and expedient to the sound financial management
of the affairs of the City to issue $705,000 General Obligation Improvement
Bonds, Series 1992A (Bonds) pursuant to the Act to provide financing for the
Improvements.
2. To provide financing for the Improvements, the City will issue and sell
Bonds in the amount of $696,187. To provide in part the additional interest required
to market the Bonds at this time, additional Bonds will be issued in the amount of
$8,813. The excess of the purchase price of the Bonds over the sum of $696,187 will
be credited to the debt service fund for the Bonds for the purpose of paying interest
first coming due on the additional Bonds. The Bonds will be issued, sold and
delivered in accordance with the terms of the following Terms of Proposal:
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$705,000
CITY OF MONTICELLO, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 1992A
Proposals for the Bonds will be received by Springsted Incorporated on behalf of the City on
Monday, June 22, 1992, until 12:00 Noon, 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 7:00 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated July 1, 1992, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1993. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months. 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 the holder's address as it appears on the
books of the registrar as of the close of business on the 15th day of the immediately preceding
month.
The Bonds will mature February 1 in the years and amounts as follows:
1994 $50,000 1998 $75,000 2001 $70,000
1995 $75,000 1999 $75,000 2402 $70,000
1996 $75,000 2000 $70,000 2003 $70,000
1997 $75,000
OPTIONAL REDEMPTION
The City may elect on February 1, 2001, and on any day thereafter, to prepay Bonds due on or
after February 1, 2002. Redemption may be in whole or in part and if in part, at the option of
the City and in such order as the City shall determine and within a maturity by lot as selected
by the registrar. All prepayments shall be at a price of par plus 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 various
improvements within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $696,187 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 $7,050,
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
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 underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified 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 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 proposal, in accordance with customary
practice, will be controlling.
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.
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. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven,
Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of
customary closing papers, including a no-litigatio.n 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.
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, Springsted 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 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 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 30 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 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 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 May 26, 1992
BY ORDER OF THE CITY COUNCIL
/s/ Rick Wolfsteller
Administrator
3. Springsted Incorporated is authorized and directed to negotiate the Bonds
in accordance with the foregoing Terms of Proposal. The City Council will meet at
7:00 p.m. on Monday, June 22, 1992, to consider bids on the Bonds and take any
other appropriate action with respect to the Bonds.
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Blonigen , and upon vote being taken thereon the following
members voted in favor of the motion: Anderson, Fyfe, Herbst, Blonigen, Maus
and the following voted against: None
whereupon the resolution was declared duly passed and adopted.
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STATE OF MINNESOTA )
COUNTY OF WRIGHT )
CITY OF MONTICELLO )
I, the undersigned, being the duly qualified and acting Administrator of the
City of Monticello, Minnesota, hereby certify that I have carefully compared the
attached and foregoing extract of minutes of a regular meeting of the City Council
of the City held on Tuesday, May 26, 1992, with the original minutes on file in my
office and the extract is a full, true and correct copy of the minutes, insofar as they
relate to the issuance and sale of $705,000 General Obligation Improvement Bonds,
Series 1992A of the City.
WITNESS My hand as City Administrator and the corporate seal of the City this
day of1992.
( SEAL)
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( & )0)�/ /- -77
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City Adminis; rator
City of Monticello, Minnesota
STEFANIE N. GALEY
Attorney at Law
Direct Dial (612) 337-9212
May 22, 1992
HOLMES & GRAVEN
CHARTERED
470 Pillsbury Center, Minneapolis, Minnesota 55402
Telephone (612) 337-9300
Facsimile (612) 337-9310
Mr. Rick Wolfsteller EXPRESS MAIL
City of Monticello
P.O. Box 1147
Monticello, MN 55362-9245
RE: $705,000 General Obligation Improvement Bonds, Series 1992A
Dear Mr. Wolfsteller:
Enclosed please find four (4) copies of resolution providing for issuance of the
above -referenced bonds for action at the Council meeting on Tuesday, May 26th.
Please send two (2) certified copies of the resolution to Nancy Langness at
Springsted after adoption.
Sincerely,
Stefanie N. Galey
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Enclosures
cc (w/enc): Nancy Langness
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