City Council Resolution 1986-1714IOIvTICELi,O
R.ESULUTION NO. 86-17
RESOLUTION PROVIDING FOR THE LSSUAivCE AND SALE UF' X385,000
GENERAL OBLIGATION INiPkUVENlENT bUIVDS, SERIES 1986A
OF THE CITY OF I4IUNTICELLO, iViINNESOTA
It is hereby resolved by the City Council of the City of Monticello (the
"Issuer") as follows:
1• Findings, Authorization.
1.1 It is hereby found and determined that it is necessary and expedient
to the sound financial management of the Issuer for the Issuer to issue its general
obligation improvement bonds for the purpose of providing funds to pay the costs of
certain street and sewer improvements (the Improvements") undertaken by the
Issuer pursuant to Minnesota Statutes, Chapter 42 y.
1.2 The Issuer is authorized by Minnesota Statutes, Section 429.091 to (a)
issue its general obligation bonds for the purpose of providing funds to meet the
costs of the Improvements; and (b) to provide for the issuance of such bonds in the
manner provided by, and subject to the limitations of, Minnesota Statutes, Chapter
475.
2• Sale of Bonds.
Improvements,nthe Issue shall lissueu ds Gene ay the construction costs of the
Series 1986A (the "Bonds") in the principal amou t of 1$385 OUO mAny excess of the
purchase price of the Bonds over the sum of $379,225 shall be credited to the debt
service fund for the Bonds to pay interest first due on the Bonds.
2.2 The Bonds shall be issued, .sold and delivered in accordance with the
Official Terms of Bond Offering, attached hereto as Appendix A.
3• Award of Bonds Advertisement Meetin .
3.1 The Clerk-Administrator of the Issuer is authorized and directed to
cause advertisement for sealed bids for the purchase of the Bonds to be published
in the manner required by Minnesota Statutes, Chapter 475, and in any additional
publications as the Clerk-Administrator may determine to be suitable. Such
advertisement for sealed bids shall be in substantially the following form:
OFFICIAL NOTICE OF SALE
;385,000
GENERAL OBLIGATION IMPROYEMEIrT BONDS, SERIES 1986A
CITY OF MONTICELLO, MINNESOTA
Notice is hereby given that the City of Monticello, Minnesota (the "City")
will receive sealed bids on Monday, July 28, 1986. Bids will be received by the City
Administrator or his designee until 1:30 P.1V1., Central 'l'ime, at the offices of
SPkIIv GST~;D Incorporated, at which time they will be opened and tabulated for
consideration and award by the City Council at a regular meeting of the Council at
7:30 P.M., Central Time, on that date.
The Bonds will be dated August 1, 1986, will bear interest payable on
February 1 and August 1 of each year, commencing August 1, 1987. The Bonds will
be issued in integral multiples of X5,000 of a single maturity, as requested by the
Purchaser, and will be fully registered as to principal and interest.
The lsonds will mature February 1 in the amounts and years as follows:
Year Amount Year Amount
1589 X20,000 1996 $25,000
1990 20,000 1997 30,000
1591 20,000 1998 30,000
1992 20,000 1999 35,000
1993 25,000 2000 35,000
1994 25,000 2001 35,000
1595 25,000 2002 40,000
In 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 redeerri Bonds on any date after notice is given pursuant to law.
If less than all the Bonds are redeemed, t3onds will be redeemed in reverse order of
maturity and by lot within a single maturity.
Bonds due on or after February 1, 1997 will be subject to redemption, in
whole or in part at par plus accrued interest, at the City's option on February 1,
1996, and on any interest payment date thereafter. If less than all of the Bonds are
redeemed, Bonds will be redeemed in reverse order of maturity and by lot within a
single maturity.
The City will ~ furnish the approving legal opinion of Holmes & Graven,
Chartered, of Minneapolis, Minnesota. A copy of the legal opinion will be
reproduced on the printed Bonds. Copies of the detailed Official Terms of Offering
and additional information may be obtained from the Clerk-Administrator of the
City or from Springsted, Incorporated, Suite 100, 85 East Seventh Place, St. Paul,
Minnesota 55101.
Dated: June 23, 1986
BY OHDEk OF THE CITY COUNCIL
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3.2. Sealed bids for the Bonds will be opened by the City Administrator or
his designee on Ylonday, July 28, 1586, at 1:30 I?.NI., Central Time, at the offices of
S1~RIivGSTEL Incorporated. Consideration for award of the Bonds will be by the
City Council at 7:30 I?.iYI., Central Time, of the same day.
Adopted by the City Council of the City of Monticello this 23rd day of
June, 1986.
Offered by: F. Fair
Seconded by: W, Fair
Roll Call: F. Fair, W. Fair & Mayor Grimsmo
Clerk-A inistrator
~_-~ --~-
iYlayor
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Exhibit A
OFFICIAL TERMS OF OFFERING
$385,000
CITY OF MONTICELLO, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1986A
Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday,
July 28, 1986, at 1:30 P. M., Central Time, at the offices of SPRINGSTED Incorporated, 85 East
Seventh Place, Suite 100, Saint Paul, Minnesota. 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 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 I in the amounts and years as follows:
$20,000 1989-1992 $30,000 1997-1998 $35,000 1999-2001 $40,000 2002
$25,000 1993-1996
MANDATORY REDEMPTION
In 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, 1996, and on any interest payment date thereafter, to prepay
Bonds due on or after February I, 1997. 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 finance various
improvements in the City.
TYPE OF BID
A sealed bid for not less than $379,225 and accrued interest on the total principal amount of the
Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to
the time set for bid opening, a certified or cashier's check in the amount of $3,850, 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 S/100 or I /8 of I.0%. No rate for any maturity shall be more than I.5°'o lower
than any prior rate. No rate nor the net effective rate for the entire Issue of the Bonds shall exceed
the maximum rate permitted by law. 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: (i) waive non-substantive informalities of any bid or of matters
relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii)
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. 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 Holmes 8~ Graven, Chartered 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 I: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 said terms for payment.
ettlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the
ity, 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 Ci.ty's Financial Advisor
prior to the bid opening. The Purchaser will be provided with 20 copies of the Official Statement.
Dated June 23, 1986
BY ORDER OF THE CITY COUNCIL
/s/ Thomas A. Eidem
City Administrator
CERTIFICATION OF IriINUTES
Municipality:
City of Nionticello, Minnesota
Governing body: City Council
Meeting: A meeting of the City Council of the City of Nionticello,
Minnesota held on the 23rd day of June, 1986, at 7:30 p.m. at
the City Nlunicipal Building in the City of Nionticello,
Nlinnesota.
Members
present: F. Fair, W. Fair & Mayor Grimsmo
Members
absent: Blonigen & Maxwell
Documents: A copy of a resolution adopted by the City Council of the City
of Monticello at said meeting.
Certification:
1, Thomas A Eidem , Citv Administrator of the City of
Nionticello do hereby certify the following:
Attached hereto is a true and correct copy of a resolution on file and of
record in the offices of the City of Nionticello, which resolution was adopted by the
City Council, at the meeting referred to above. Said meeting was a re¢ular
meeting of the City Council, was open to the public, and was held at the time and
place at which meetings of the City Council are regularly held. NIember
F. Fair moved the adoption of the attached resolution. The motion for
adoption of the attached resolution was seconded by Member W. Fair A
vote being taken on the motion, the following voted in favor of the resolution:
All members present
and the following voted against the resolution:
None
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4Ghereupon said resolution was declared duly passed and adopted. The attached
resolution is in full force and effect and no action has been taken by the City
Council of the Gity of Monticello which would in any way alter or amend the
attached resolution.
Witness my hand officially as the Clerk-Administrator of the City of
Monticello, Minnesota, this 23rd day of June, 158 .
/ w
Clerk-A ministrator
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