HomeMy WebLinkAbout2002 07-18 City Council Special Meeting PacketAGENDA -- SPECIAL MEETING
MAPLEWOOD CITY COUNCIL
5:00 P.M. Thursday, July 18, 2002
Council Chambers, Municipal Building
Meeting No. 02 -15
A. CALL TO ORDER
B. PLEDGE OF ALLEGIANCE
C. ROLL CALL
D. APPROVAL OF AGENDA
E. AWARD OF BIDS
1. Bid Award on Improvement Bonds - Finance Department
F. UNFINISHED BUSINESS -See Note Below
1. County Road E- Bruentrup Farm Parking Lot
An agreement is not available between the City and Schifsky for the change order for the
Bruentrup Farm Parking Lot. An agreement should be ready for the July 22, 2002 council
meeting.
G. COUNCIL PRESENTATIONS
H. ADMINISTRATIVE PRESENTATIONS
I. ADJOURNMENT
Sign language interpreters for hearing impaired persons are available for public hearings upon request. The request for this
service must be made at least 96 hours in advance. Please call the City Clerk's Office at (651) 770 -4523 to make arrangements.
Assisted Listening Devices are also available. Please check with the City Clerk for availability.
RULES OF CIVILITY FOR OUR COMMUNITY
Following are some rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff
and citizens. It is hoped that by following these simple rules, everyone's opinions can be heard and understood in a reasonable
manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles:
Show respect for each other, actively listen to one another, keep emotions in check and use respectful language.
AGENDA NO.
AGENDA REPORT
TO: City Manager
FROM: Finance Director
RE: Bid Award on Improvement Bonds
DATE: July 12, 2002
On June 10 the Council gave preliminary approval for the sale of General
Obligation Improvement Bonds totaling $4,815,000. The bids on these bonds are
scheduled to be opened at 11:00 a.m. on Thursday, July 18.
The bid award is scheduled for 5:00 p.m. at a special Council meeting on
Thursday, July 18. A recommendation regarding the bid award will be made at
the Council meeting by Dan Hartman of Springsted Incorporated. At that time, a
resolution will need to be adopted to award the bid on the bond issue. A copy of
each resolution is attached.
P \PERM \02BONDS2.DOC
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
MAPLEWOOD, MINNESOTA
HELD: July 18, 2002
Pursuant to due call and notice thereof, a regular meeting of the City Council of
the City of Maplewood, Ramsey County, Minnesota, was duly held at the City Hall in said City
on Thursday, the 18th day of July, 2002, at 5:00 P.M., for the purpose, in part, of considering
proposals for, and awarding the competitive negotiated sale of, $4,815,000 General Obligation
Improvement Bonds, Series 2002A of the City.
The following members were present:
and the following were absent:
The City Clerk presented proposals on $4,815,000 General Obligation
Improvement Bonds, Series 2002A of the City, for which proposals were to be received, opened
and tabulated by the City Clerk, or designee, this same day, in accordance with the resolution
adopted by the City Council on June 10, 2002.
The following proposals were received, opened and tabulated at 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, in the presence of the City Clerk, or
designee, on this same day:
Bidder Interest Rate True Interest Cost
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The Council then proceeded to consider and discuss the proposals, after which
member introduced the following resolution and moved its adoption:
RESOLUTION ACCEPTING PROPOSAL ON THE
COMPETITIVE NEGOTIATED SALE OF
$4,815,000 GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 2002A, PROVIDING FOR THEIR ISSUANCE,
AND LEVYING A TAX FOR THE PAYMENT THEREOF
A. WHEREAS, the City Council of the City of Maplewood, Minnesota (the
"City "), has heretofore determined and declared that it is necessary and expedient to issue
$4,815,000 General Obligation Improvement Bonds, Series 2002A (the "Bonds ") of the City,
pursuant to Minnesota Statutes, Chapters 429 and 475, to finance the construction of various
improvement projects within the City (the "Improvements"); and
B. WHEREAS, the Improvements and all their components have been
ordered prior to the date hereof, after a hearing thereon for which notice was given describing the
Improvements or all their components by general nature, estimated cost, and area to be assessed;
and
C. WHEREAS, it is in the best interests of the City that the Bonds be issued
in book -entry form as hereinafter provided; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
Maplewood, Minnesota, as follows:
1. Acceptance of Proposal The proposal of (the
"Purchaser "), to purchase the Bonds of the City (or individually, a "Bond "), in accordance with
the Terms of Proposal, at the rates of interest hereinafter set forth, and to pay therefor the sum of
$ , plus interest accrued to settlement, is hereby found, determined and declared to
be the most favorable proposal received and is hereby accepted, and the Bonds are hereby
awarded to said proposal maker. The City Clerk is directed to retain the deposit of said proposal
maker and to forthwith return to the unsuccessful proposal makers their good faith checks and
drafts.
2. Bond Terms.
(a) Title; Original Issue Date; Denominations; Maturities; Term Bond Option
The Bonds shall be titled "General Obligation Improvement Bonds, Series 2002A ", shall be
dated August 1, 2002, as the date of original issue and shall be issued forthwith on or after such
date as fully registered bonds. The Bonds shall be numbered from R -1 upward in the
denomination of $5,000 each or in any integral multiple thereof of a single maturity (the
"Authorized Denominations "). The Bonds shall mature on February 1 in the years and amounts
as follows:
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Year
Amount
Year
Amount
2004
$90,000
2013
$330,000
2005 -2008
345,000
2014
335
2009
310,000
2015
34000
2010
315,000
2016
350,000
2011
320,000
2017 -2018
360
2012,
325,000
All dates are inclusive.
As maybe requested by the Purchaser, one or more term Bonds maybe issued having
mandatory sinking fund redemption and final maturity amounts conforming to the foregoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
(b) Book Entry, Only System The Depository Trust Company, a limited
purpose trust company organized under the laws of the State of New York or any of its
successors or its successors to its functions hereunder (the "Depository ") will act as securities
depository for the Bonds, and to this end:
(i) The Bonds shall be initially issued and, so long as they remain in book
entry form only (the "Book Entry Only Period "), shall at all times be in the form of a
separate single fully registered Bond for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized Denominations
for any Bond shall be deemed to be limited during the Book Entry Only Period to the
outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE
& CO., as the nominee (it or any nominee of the existing or a successor Depository, the
"Nominee").
(iii) With respect to the Bonds neither the City nor the Bond Registrar shall
have any responsibility or obligation to any broker, dealer, bank, or any other financial
institution for which the Depository holds Bonds as securities depository (the
"Participant ") or the person for which a Participant holds an interest in the Bonds shown
on the books and records of the Participant (the "Beneficial Owner "). Without limiting
the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have
any such responsibility or obligation with respect to (A) the accuracy of the records of the
Depository, the Nominee or any Participant with respect to any ownership interest in the
Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than
the Depository, of any notice with respect to the Bonds, including any notice of
redemption, or (C) the payment to any Participant, any Beneficial Owner or any other
person, other than the Depository, of any amount with respect to the principal of or
premium, if any, or interest on the Bonds, or (D) the consent given or other action taken
by the Depository as the Registered Holder of any Bonds (the "Holder "). For purposes of
1425125v1 3
securing the vote or consent of any Holder under this Resolution, the City may, however,
rely upon an omnibus proxy under which the Depository assigns its consenting or voting
rights to certain Participants to whose accounts the Bonds are credited on the record date
identified in a listing attached to the omnibus proxy.
(iv) The City and the Bond Registrar may treat as and deem the Depository to
be the absolute owner of the Bonds for the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds, for the purpose of obtaining any
consent or other action to be taken by Holders for the purpose of registering transfers
with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as
paying agent hereunder, shall pay all principal of and premium, if any, and interest on the
Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and
all such payments shall be valid and effective to fully satisfy and discharge the City's
obligations with respect to the principal of and premium, if any, and interest on the Bonds
to the extent of the sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of written notice to
the effect that the Depository has determined to substitute a new Nominee in place of the
existing Nominee, and subject to the transfer provisions in paragraph 10 hereof,
references to the Nominee hereunder shall refer to such new Nominee.
(vi) So long as any Bond is registered in the name of a Nominee, all payments
with respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the Bond
Registrar or City, as the case may be, to the Depository as provided in the Letter of
Representations to the Depository required by the Depository as a condition to its acting
as book -entry Depository for the Bonds (said Letter of Representations, together with any
replacement thereof or amendment or substitute thereto, including any standard
procedures or policies referenced therein or applicable thereto respecting the procedures
and other matters relating to the Depository's role as book -entry Depository for the
Bonds, collectively hereinafter referred to as the "Letter of Representations ").
(vii) All transfers of beneficial ownership interests in each Bond issued in
book -entry form shall be limited in principal amount to Authorized Denominations and
shall be effected by procedures by the Depository with the Participants for recording and
transferring the ownership of beneficial interests in such Bonds.
(viii) In connection with any notice or other communication to be provided to
the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any
consent or other action to betaken by Holders, the Depository shall consider the date of
receipt of notice requesting such consent or other action as the record date for such
consent or other action; provided, that the City or the Bond Registrar may establish a
special record date for such consent or other action. The City or the Bond Registrar shall,
to the extent possible, give the Depository notice of such special record date not less than
15 calendar days in advance of such special record date to the extent possible.
1425125v1 4
(ix) Any successor Bond Registrar in its written acceptance of its duties under
this Resolution and any paying agency/bond registrar agreement, shall agree to take any
actions necessary from time to time to comply with the requirements of the Letter of
Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in paragraph 5
hereof, make a notation of the reduction in principal amount on the panel provided on the
Bond stating the amount so redeemed.
(c) Termination of Book - Entry Only, sue. Discontinuance of a particular
Depository's services and termination of the book -entry only system maybe effected as follows:
(i) The Depository may determine to discontinue providing its services with
respect to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may terminate the
services of the Depository with respect to the Bond if it determines that the Depository is
no longer able to carry out its functions as securities depository or the continuation of the
system of book -entry transfers through the Depository is not in the best interests of the
City or the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the
preceding paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the City, is
willing and able to assume such functions upon reasonable or customary terms, or if the
City determines that it is in the best interests of the City or the Beneficial Owners of the
Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds
shall no longer be registered as being registered in the bond register in the name of the
Nominee, but may be registered in whatever name or names the Holder of the Bonds
shall designate at that time, in accordance with paragraph 11 hereof. To the extent that
the Beneficial Owners are designated as the transferee by the Holders, in accordance with
paragraph 10 hereof, the Bonds will be delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of
paragraph 10 hereof.
(d) Letter of Representations. The provisions in the Letter of Representations
are incorporated herein by reference and made a part of the resolution, and if and to the extent
any such provisions are inconsistent with the other provisions of this resolution, the provisions in
the Letter of Representations shall control.
3. Purpose. The Bonds shall provide funds to finance the Improvements.
The total cost of the Improvements, which shall include all costs enumerated in Minnesota
Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on
the Improvements shall proceed with due diligence to completion. The City covenants that it
shall do all things and perform all acts required of it to assure that work on the Improvements
1425125v1 5
proceeds with due diligence to completion and that any and all permits and studies required
under law for the Improvements are obtained.
4. Interest The Bonds shall bear interest payable semiannually on
February 1 and August 1 of each year (each, an "Interest Payment Date "), commencing August
1, 2003, calculated on the basis of a 3 60 -day year of twelve 3 0 -day months, at the respective
rates per annum set forth opposite the maturity years as follows:
Maturity
Interest Maturity Interest
Year
Rate Year Rate
2004
% 2012 %
2005
2013
2006
2014
2007
2015
2008
2016
2009
2017
2010
2018
2011
5. Redemption All Bonds maturing in the years 2011 to 2018 both
inclusive, shall be subject to redemption and prepayment at the option of the City on February 1,
2010, and on any date thereafter at a price of par plus accrued interest. Redemption may be in
whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and
the principal amounts within each maturity to be redeemed shall be determined by the City; and
if only part of the Bonds having a common maturity date are called for prepayment, the specific
Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof
called for redemption shall be due and payable on the redemption date, and interest thereon shall
cease to accrue from and after the redemption date. Mailed notice of redemption shall be given
to the paying agent and to each affected registered holder of the Bonds.
To effect a partial redemption of Bonds having a common maturity date, the Bond
Registrar prior to giving notice of redemption shall assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in
its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for
each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected; provided, however,
that only so much of the principal amount of each such Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the
City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
City and Bond Registrar duly executed by the holder thereof or his, her or its attorney duly
authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall
authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or
Bonds of the same series having the same stated maturity and interest rate and of any Authorized
1425125vl 6
Denomination or Denominations, as requested by such Holder, in aggregate principal amount
equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered.
6. Bond Registrar U.S. Bank National Association, in St. Paul, Minnesota,
is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
Registrar "), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this
resolution.
7. Form of Bond The Bonds, together with the Bond Registrar's Certificate
of Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
1425125v1 7
UNITED STATES OF AMERICA
STATE OF MINNESOTA
RAMSEY COUNTY
CITY OF MAPLEWOOD
IM
S
GENERAL OBLIGATION IMPROVEMENT
BOND, SERIES 2002A
INTEREST MATURITY
RATE DATE
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
CUSIP
KNOW ALL PERSONS BY THESE PRESENTS that the City of Maplewood,
Ramsey County, Minnesota (the "Issuer "), certifies that it is indebted and for value received
promises to pay to the registered owner specified above, or registered assigns, in the manner
hereinafter set forth, the principal amount specified above, on the maturity date specified above,
unless called for earlier redemption, and to pay interest thereon semiannually on February 1 and
August 1 of each year (each, an "Interest Payment Date "), commencing August 1, 2003, at the
rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day
months) until the principal sum is paid or has been provided for. This Bond will bear interest
from the most recent Interest Payment Date to which interest has been paid or, if no interest has
been paid, from the date of original issue hereof. The principal of and premium, if any, on this
Bond are payable upon presentation and surrender hereof at the principal office of U.S. Bank
National Association, in St. Paul, Minnesota (the "Bond Registrar "), acting as paying agent, or
any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on
each Interest Payment Date by check or draft mailed to the person in whose name this Bond is
registered (the "Holder" or "Bondholder ") on the registration books of the Issuer maintained by
the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth
day of the calendar month next preceding such Interest Payment Date (the "Regular Record
Date "). Any interest not so timely paid shall cease to be payable to the person who is the Holder
hereof as of the Regular Record Date, and shall be payable to the person who is the Holder
hereof at the close of business on a date (the "Special Record Date ") fixed by the Bond Registrar
whenever money becomes available for payment of the defaulted interest. Notice of the Special
Record Date shall be given to Bondholders not less than ten days prior to the Special Record
Date. The principal of and premium, if any, and interest on this Bond are payable in lawful
money of the United States of America. [So long as this Bond is registered in the name of the
Depository or its Nominee as provided in the Resolution hereinafter described, and as those
terms are defined therein, payment of principal of, premium, if any, and interest on this
Bond and notice with respect thereto shall be made as provided in the Letter of
DATE OF
ORIGINAL ISSUE
AUGUST 1, 2002
1425125v1
Representations, as defined in the Resolution, and surrender of this Bond shall not be
required for payment of the redemption price upon a partial redemption of this Bond.
Until termination of the book -entry only system pursuant to the Resolution, Bonds may
only be registered in the name of the Depository or its Nominee.] *
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law, and that this
Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof
and the date of its issuance and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Maplewood, Ramsey County, Minnesota,
by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures
of its Mayor and its Clerk, the corporate seal of the Issuer having been intentionally omitted as
permitted by law.
Include only until termination of the book -entry only system under paragraph 2
hereof.
1425125vl 9
Date of Registration:
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the Bonds
described in the Resolution
mentioned within.
U.S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota
Bond Registrar
Do
Authorized Signature
Registrable by: U.S. BANK NATIONAL
ASSOCIATION
Payable at: U.S. BANK NATIONAL
ASSOCIATION
CITY OF MAPLEWOOD, RAMSEY COUNTY
MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
Clerk
1425125v1 10
ON REVERSE OF BOND
Redemption All Bonds of this issue (the "Bonds ") maturing in the years 2011 to
2018, both inclusive, are subject to redemption and prepayment at the option of the Issuer on
February 1, 2010, and on any date thereafter at a price of par plus accrued interest. Redemption
may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the
maturities and the principal amounts within each maturity to be redeemed shall be determined by
the Issuer; and if only part of the Bonds having a common maturity date are called for
prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar.
Bonds or portions thereof called for redemption shall be due and payable on the redemption date,
and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of
redemption shall be given to the paying agent and to each affected Holder of the Bonds.
Selection of Bonds for Redemption; Partial Redemption To effect a partial
redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each
Bond having a common maturity date a distinctive number for each $5,000 of the principal
amount of such Bond. The Bond Registrar shall then select by lot, using such method of
selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as
many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to
be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so
selected; provided, however, that only so much of the principal amount of such Bond of a
denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number
assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to
the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of
transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof
or his, her or its attorney duly authorized. in writing) and the Issuer shall execute (if necessary)
and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service
charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate
and of any Authorized Denomination or Denominations, as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion of the principal
of the Bond so surrendered.
Issuance; Purpose; General Obligation This Bond is one of an issue in the total
principal amount of $4,815,000, all of like date of original issue and tenor, except as to number,
maturity, interest rate, denomination and redemption privilege, which Bond has been issued
pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and
pursuant to a resolution adopted by the City Council of the Issuer on July 18, 2002 (the
"Resolution "), for the purpose of providing money to finance various improvement projects
within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation
Improvement Bonds, Series 2002A Fund of the Issuer. This Bond constitutes a general
obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal,
premium, if any, and interest when the same become due, the full faith and credit and taxing
powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; Resolution The Bonds are issuable solely as fully
registered bonds in Authorized Denominations (as defined in the Resolution) and are
1425125v1 1 1
exchangeable for fully registered Bonds of other Authorized Denominations in equal aggregate
principal amounts at the principal office of the Bond Registrar, but only in the, manner and
subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution
for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on
file in the principal office of the Bond Registrar.
Transfer This Bond is transferable by the Holder in person or by his, her or its
attorney duly authorized in writing at the principal office of the Bond Registrar upon
presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions
provided in the Resolution and to reasonable regulations of the Issuer contained in any
agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar
shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds
in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of
an Authorized Denomination or Denominations, in aggregate principal amount equal to the
principal amount of this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss The Bond Registrar may require paymentf of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners The Issuer and Bond Registrar may treat the
person in whose name this Bond is registered as the owner hereof for the purpose of receiving
payment as herein provided (except as otherwise provided on the reverse side hereof with respect
to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and
neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary.
Authentication This Bond shall not be valid or become obligatory for any
purpose or be entitled to any security unless the Certificate of Authentication hereon shall have
been executed by the Bond Registrar.
Qualified Tax - Exempt Obligation ation This Bond has been designated by the Issuer
as a "qualified tax - exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
1425125v1 12
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
Bond, shall be construed as though they were written out in full according to applicable laws or
regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for
(Gust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
1425125v1 13
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within
Bond and does hereby irrevocably constitute and appoint
transfer the Bond on the books kept for the registration thereof,
the premises.
Dated:
attorney to
with full power of substitution in
Notice: The assignor's signature to this assignment must correspond with the name
as it appears upon the face of the within Bond in every particular, without
alteration or any change whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad- 15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address:
(Include information for all joint owners if
the Bond is held by joint account.)
1425125vl 14
[Use only for Bonds when they are
Registered in Book Entry Only System]
PREPAYMENT SCHEDULE
This Bond has been prepaid in part on the date(s) and in the amount(s) as follows:
AUTHORIZED
DATE AMOUNT SIGNATURE OF HOLDER
1425125vl 15
8. Execution; Temporary Bonds The Bonds shall be printed (or, at the
request of the Purchaser, typewritten) and shall be executed on behalf of the City by the
signatures of its Mayor and Clerk and be sealed with the seal of the City; provided, however, that
the seal of the City may be a printed (or, at the request of the Purchaser, photocopied) facsimile;
and provided further that both of such signatures may be printed (or, at the request of the
Purchaser, photocopied) facsimiles and the corporate seal may be omitted on the Bonds as
permitted by law. In the event of disability or resignation or other absence of either such officer,
the Bonds may be signed by the manual or facsimile signature of that officer who may act on
behalf of such absent or disabled officer. In case either such officer whose signature or facsimile
of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of
the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if he or she had remained in office until delivery. The City may elect to deliver, in
lieu of printed definitive bonds, one or more typewritten temporary bonds in substantially the
form set forth above, with such changes as may be necessary to reflect more than one maturity in
a single temporary bond. Such temporary bonds may be executed with photocopied facsimile
signatures of the Mayor and Clerk. Such temporary bonds shall, upon the printing of the
definitive bonds and the execution thereof, be exchanged therefor and canceled.
9. Authentication No Bond shall be valid or obligatory for any purpose or
be entitled to any security or benefit under this resolution unless a Certificate of Authentication
on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by
an authorized representative of the Bond Registrar. Certificates of Authentication on different
Bonds need not be signed by the same person. The Bond Registrar shall authenticate the
signatures of officers of the City on each Bond by execution of the Certificate of Authentication
on the Bond and by inserting as the date of registration in the space provided the date on which
the Bond is authenticated, except that for purposes of delivering the original Bonds to the
Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue,
which date is August 1, 2002. The Certificate of Authentication so executed on each Bond shall
be conclusive evidence that it has been authenticated and delivered under this resolution.
10. Registration; Transfer; Exchange The City will cause to be kept at the
principal office of the Bond Registrar a bond register in which, subject to such reasonable
regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the
registration of Bonds and the registration of transfers of Bonds entitled to be registered or
transferred as herein provided.
Upon surrender for transfer of any Bond at the principal office of the Bond
Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert
the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated
transferee or transferees, one or more new Bonds of any Authorized Denomination or
Denominations of a like aggregate principal amount, having the same stated maturity and interest
rate, as requested by the transferor; provided, however, that no Bond may be registered in blank
or in the name of "bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of any
Authorized Denomination or Denominations of a like aggregate principal amount and stated
maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond
1425125v1 16
Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if
necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and
deliver the Bonds which the Holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this
resolution shall be promptly canceled by the Bond Registrar and thereafter disposed of as
directed by the City.
All Bonds delivered in exchange for or upon transfer of Bonds shall be valid
general obligations of the City evidencing the same debt, and entitled to the same benefits under
this resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly
endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond
Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in
writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection with the transfer or exchange of any Bond and
any legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in
any agreement with the Bond Registrar, including regulations which permit the Bond Registrar
to close its transfer books between record dates and payment dates. The Clerk is hereby
authorized to negotiate and execute the terms of said agreement.
11. Rights Upon Transfer or Exchange Each Bond delivered upon transfer of
or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and
unpaid, and to accrue, which were carried by such other Bond.
12. Interest Payment; Record Date Interest on any Bond shall be paid on
each Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder ") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth (15th) day of the
calendar month next preceding such Interest Payment Date (the "Regular Record Date "). Any
such interest not so timely paid shall cease to be payable to the person who is the Holder thereof
as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at
the close of business on a date (the "Special Record Date ") fixed by the Bond Registrar
whenever money becomes available for payment of the defaulted interest. Notice of the Special
Record Date shall be given by the Bond Registrar to the Holders not less than ten (10) days prior
to the Special Record Date.
13. Treatment of Registered Owner The City and Bond Registrar may treat
the person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 12 above) on, such Bond and for all other purposes whatsoever whether
or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected
by notice to the contrary.
1425125v1 17
14. Delive , ; Application of Proceeds The Bonds when so prepared and
executed shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase
price, and the Purchaser shall not be obliged to see to the proper application thereof.
15. Funds and Accounts There has heretofore been created a capital projects
fund designated the "Public Improvement Projects Fund" held and administered by the Finance
Director separate and apart from all other funds of the City. The Public Improvement Projects
Fund shall continue to be maintained in the manner heretofore specified. In the Public
Improvement Projects Fund there shall be created and maintained separate construction accounts
(the "Construction Accounts ") for each improvement financed by this bond issue. To the
Construction Accounts there shall be credited the proceeds of the sale of the Bonds, less accrued
interest received thereon, and less any amount paid for the Bonds in excess of $4,781,325, plus
any special assessments levied with respect to the Improvements and collected prior to
completion of the Improvements and payment of the costs thereof. From the Construction
Accounts there shall be paid all costs and expenses of making the Improvements listed in
paragraph 16, including the cost of any construction contracts heretofore let and all other costs
incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the
moneys in said account shall be used for no other purpose except as otherwise provided by law;
provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest
on the Bonds due prior to the anticipated date of commencement of the collection of taxes or
special assessments herein levied or covenanted to be levied; and provided further that if upon
completion of the Improvements there shall remain any unexpended balance in the Construction
Accounts, the balance (other than any special assessments) may be transferred by the Council to
the accounts of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429,
and provided further that any special assessments credited to the Construction Accounts shall
only be applied towards payment of the costs of the Improvements upon adoption of a resolution
by the City Council determining that the application of the special assessments for such purpose
will not cause the City to no longer be in compliance with Minnesota Statutes, Section 475.6 1,
Subdivision 1.
There is hereby created a debt service fund to be designated the General
Obligation Improvement Bonds-,-Series 2002A Fund (the "Debt Service Fund ") to be
administered and maintained by the Finance Director as a bookkeeping account separate and
apart from all other funds maintained in the official financial records of the City. The Debt
Service Fund shall be maintained in the manner herein specified until all of the Bonds and the
interest thereon have been fully paid. There are hereby irrevocably appropriated and pledged to,
and there shall be credited to, the Debt Service Fund: (a) all collections of special assessments
herein covenanted to be levied with respect to the Improvements and either initially credited to
the Construction Accounts and not already spent as permitted above and required to pay any
principal and interest due on the Bonds or collected subsequent to the completion of the
Improvements and payment of the costs thereof; (b) all accrued interest received upon delivery
of the Bonds; (c) all funds paid for the Bonds in excess of $4,781,325; (d) any collections of all
taxes herein or hereafter levied for the payment of the principal and interest on the Bonds; (e) all
funds remaining in the Construction Accounts after completion of the Improvements and
payment of the costs thereof, not so transferred to the account of another improvement; (f) all
investment earnings on funds held in the Debt Service Fund; and (g) any and all other moneys
which are properly available and are appropriated by the governing body of the City to the Debt
1425125v1 18
Service Fund. The Debt Service Fund shall be used solely to pay the principal and interest and
any premiums for redemption of the Bonds and any other general obligation bonds of the City
hereafter issued by the City and made payable from said account as provided by law.
No portion of the proceeds of the Bonds shall be used directly or indirectly to
acquire higher yielding investments or to replace funds which were used directly or indirectly to
acquire higher yielding investments, except (1) for a reasonable temporary period until such
proceeds are needed for the purpose for which the Bonds were issued and (2) in addition to the
above in an amount not greater than the lesser of five percent (5 %) of the proceeds of the Bonds
or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in
the Construction Accounts or Debt Service Fund (or any other City account which will be used
to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts
which under then- applicable federal arbitrage regulations may be invested without regard to
yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said
arbitrage regulations on such investments after taking into account any applicable "temporary
periods" or "minor portion" made available under the federal arbitrage regulations. Money in the
Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the
United States or any agency or instrumentality thereof if and to the extent that such investment
would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the
Internal Revenue Code of 1986, as amended (the "Code ").
16. Assessments It is hereby determined that no less than twenty percent
(20 %) of the cost to the City of each Improvement financed hereunder within the meaning of
Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be
levied against every assessable lot, piece and parcel of land benefitted by any of the
Improvements. The City hereby covenants and agrees that it will let all construction contracts
not heretofore let within one (1) year after ordering each Improvement financed hereunder unless
the resolution ordering the Improvement specifies a different time limit for the letting of
construction contracts. The City hereby further covenants agrees that it will do and perform
as soon as they may be done all acts and things necessary for the final and valid levy of such
special assessments, and in the event that any such assessment be at any time held invalid with
respect to any lot, piece or parcel of land due to any error, defect, or irregularity in any action or
proceedings taken or to be taken by the City or the City Council or any of the City officers or
employees, either in the making of the assessments or in the performance of any condition
precedent thereto, the City and the City Council will forthwith do all further acts and take all
further proceedings as may be required by law to make the assessments a valid and binding lien
upon such property. The special assessments have heretofore been authorized in accordance
with Minnesota Statutes, Section 475.55, Subdivision 3. The assessments are payable in equal
annual installments with interest on the declining balance at the rates specified below. Subject to
such adjustments as are required by conditions in existence at the time the assessments are
levied, the assessments are hereby authorized and it is hereby determined that the assessments
shall be payable in equal, consecutive, annual installments, with general taxes for the years
shown below and with interest on the declining balance of all such assessments at a rate per
annum not greater than the maximum permitted by law and not less than the rates per annum
specified below:
1425125v1 19
Improvement
Collection
Desi nation
Amount
Levy Years
Years
Rates
Gladstone South
$1,123,665
2002 -2016
2003 -2017
6.00%
Bush Avenue
$71,000
2001 -2015
2002 -2016
6.30%
English Street
$371,670
2002 -2016
2003 -2017
6.00%
County Road D
$484,489
2002 -2016
2003 -2017
6.00%
Hillcrest Animal
$15,508
2002 -2006
2003 -2007
6.00%
Hospital
Markham Pond Outlet
$44,352
2002 -2006
2003 -2007
6.00%
Maple Hills Lift Station
$151,232
2002 -2006
2003 -2007
6.00%
At the time the assessments are in fact levied the City Council shall, based on the
then - current estimated collections of the assessments, make any adjustments in any ad valorem
taxes required to be levied in order to assure that the City continues to be in compliance with
Minnesota Statutes, Section 475.61, Subdivision 1.
17. Tax Levy; Covera e Test To provide moneys for payment of the
principal and interest on the Bonds there is hereby levied upon all of the taxable property in the
City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with
and as part of other general property taxes in the City for the years and in the amounts as
follows:
Year of
Tax Levy
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Year of
Tax Collection
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
8
Amount
1425125v1 20
The tax levies are such that if collected in full they, together with estimated
collections of special assessments and other revenues herein pledged for the payment of the
Bonds, will produce at least five percent (5 %) in excess of the amount needed to meet when due
the principal and interest payments on the Bonds. The tax levies shall be irrepealable so long as
any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power
to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section
475.61, Subdivision 3.
18. Defeasance When all Bonds have been discharged as provided in this
paragraph, all pledges, covenants and other rights granted by this resolution to the registered
holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its
obligations with respect to any Bonds which are due on any date by irrevocably depositing with
the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if
any Bond should not be paid when due, it may nevertheless be discharged by depositing with the
Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date
of such deposit. The City may also discharge its obligations with respect to any prepayable
Bonds called for redemption on any date when they are prepayable according to their terms, by
depositing with the Bond Registrar on or before that date a sum sufficient for the payment
thereof in full, provided that notice of redemption thereof has been duly given. The City may
also at any time discharge its obligations with respect to any Bonds, subject to the provisions of
law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow,
with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest
payable at such times and at such rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if
notice of redemption as herein required has been duly provided for, to such earlier redemption
date.
19. Compliance With Reimbursement Bond Regulations The provisions of
this paragraph are intended to establish and provide for the City's compliance with United States
Treasury Regulations Section 1.150 -2 (the "Reimbursement Regulations ") applicable to the
"reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the
City to reimburse itself for any expenditure which the City paid or will have paid prior to the
Closing Date (a "Reimbursement Expenditure ").
The City hereby certifies and/or covenants as follows:
(a) Not later than 60 days after the date of payment of a Reimbursement
Expenditure, the City (or person designated to do so on behalf of the City) has made or will have
made a written declaration of the City's official intent (a "Declaration ") which effectively (i)
states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement
Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional
description of the property, project or program to which the Declaration relates and for which the
Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the
general functional purpose thereof from which the Reimbursement Expenditure was to be paid
(collectively the "Project "); and (iii) states the maximum principal amount of debt expected to be
issued by the City for the purpose of financing the Project; provided, however, that no such
1425125v1 21
Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for
the Project, defined in the Reimbursement Regulations to include engineering or architectural,
surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not
exceed 20% of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement
Expenditures not in excess of the lesser of $100,000 or 5% of the proceeds of the Bonds.
Notwithstanding the foregoing, with respect to any Declaration made by the City between
January 27, 1992 and June 30, 1993, with respect to a Reimbursement Expenditure made prior to
March 2, 1992, the City hereby represents that there exists objective evidence, that at the time
the Expenditure was paid the City expected to reimburse the cost thereof with the proceeds of a
borrowing (taxable or tax - exempt) and that expectation was reasonable.
(b) Each Reimbursement Expenditure is a capital expenditure or a cost of
issuance of the Bonds or any of the other types of expenditures described in Section 1.150-
2(d)(3) of the Reimbursement Regulations.
(c) The "reimbursement allocation" described in the Reimbursement
Regulations for each Reimbursement Expenditure shall and will be made forthwith following
(but not prior to) the issuance of the Bonds and in all events within the period ending on the date
which is the later of three years after payment of the Reimbursement Expenditure or one year
after the date on which the Project to which the Reimbursement Expenditure relates is first
placed in service.
(d) Each such reimbursement allocation will be made in a writing that
evidences the City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if
made within 30 days after the Bonds are issued, shall be treated as made on the day the Bonds
are issued.
Provided, however, that the City may take action contrary to any of the foregoing covenants in
this paragraph 19 upon receipt of an opinion of its Bond Counsel for the Bonds stating in effect
that such action will not impair the tax - exempt status of the Bonds.
20. Continuing Disclosure The City is the sole obligated person with respect
to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2 -12 (the
"Rule "), promulgated by the Securities and Exchange Commission (the "Commission ") pursuant
to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking
(the "Undertaking ") hereinafter described to:
(a) Provide or cause to be provided to each nationally recognized municipal
securities information repository ( "NRMSIR ") and to the appropriate state information
depository ( "SID"), if any, for the State of Minnesota, in each case as designated by the
Commission in accordance with the Rule, certain annual financial information and operating data
in accordance with the Undertaking. The City reserves the right to modify from time to time the
terms of the Undertaking as provided therein.
(b) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR
or to the Municipal Securities Rulemaking Board ( "MSRB ") and (ii) the SID, notice of the
1425125v1 22
occurrence of certain material events with respect to the Bonds in accordance with the
Undertaking.
(c) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR
or to the MSRB and (ii) the SID, notice of a failure by the City to provide the annual financial
information with respect to the City described in the Undertaking.
(d) The City agrees that its covenants pursuant to the Rule set forth in this
paragraph 20 and in the Undertaking is intended to be for the benefit of the Holders of the Bonds
and shall be enforceable on behalf of such Holders; provided that the right to enforce the
provisions of these covenants shall be limited to a right to obtain specific enforcement of the
City's obligations under the covenants.
The Mayor and Clerk of the City, or any other officer of the City authorized to act
in their place with "Officers" are hereby authorized and directed to execute on behalf of the City
the Undertaking in substantially the form presented to the City Council subject to such
modifications thereof or additions thereto as are (i) consistent with the requirements under the
Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers.
21. General Obligation Pledge For the prompt and full payment of the
principal and interest on the Bonds, as the same respectively become due, the full faith, credit
and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the
Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds
and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other
funds of the City which are available for such purpose, and such other funds may be reimbursed
with or without interest from the Debt Service Account when a sufficient balance is available
therein.
22. Certificate of Registration The Clerk is hereby directed to file a certified
copy of this resolution with the County Auditor of Ramsey County, Minnesota, together with
such other information as he or she shall require, and to obtain the County Auditor's certificate
that the Bonds have been entered in the County Auditor's Bond Register, and that the tax levy
required by law has been made.
23. Records and Certificates The officers of the City are hereby authorized
and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality
of the issuance of the Bonds, certified copies of all proceedings and records of the City relating
to the Bonds and to the financial condition and affairs of the City, and such other affidavits,
certificates and information as are required to show the facts relating to the legality and
marketability of the Bonds as the same appear from the books and records under their custody
and control or as otherwise known to them, and all such certified copies, certificates and
affidavits, including any heretofore furnished, shall be deemed representations of the City as to
the facts recited therein.
24. Negative Covenant as to Use of Proceeds and Improvements The City
hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or
permit them to be used, or to enter into any deferred payment arrangements for the cost of the
1425125v1 23
Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the
meaning of Sections 103 and 141 through 150 of the Code.
25. Tax - Exempt Status of the Bonds; Rebate. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(1) requirements relating to temporary periods for investments, (2) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment
earnings to the United States if the Bonds (together with other obligations reasonably expected to
be issued and outstanding at one time in this calendar year) exceed the small- issuer exception
amount of $5,000,000.
For purposes of qualifying for the exception to the federal arbitrage rebate
requirements for governmental units issuing $5,000,000 or less of bonds, the City hereby finds,
determines and declares that (1) the Bonds are issued by a governmental unit with general taxing
powers, (2) no Bond is a private activity bond, (3) ninety -five percent (95 %) or more of the net
proceeds of the Bonds are to be used for local governmental activities of the City (or of a
governmental unit the jurisdiction of which is entirely within the jurisdiction of the City), and (4)
the aggregate face amount of all tax - exempt bonds (other than private activity bonds) issued by
the City (and all subordinate entities thereof, and all entities treated as one issuer with the City)
during the calendar year in which the Bonds are issued and outstanding at one time is not
reasonably expected to exceed $5,000,000, all within the meaning of Section 148(fl(4)(C) of the
Code.
26. Designation of Qualified Tax - Exempt Obli ations. In order to qualify the
Bonds as "qualified tax - exempt obligations" within the meaning of Section 265(b)(3) of the
Code, the City hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
Code;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the
(c) the City hereby designates the Bonds as "qualified tax - exempt
obligations" for purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax-exempt obligations (other than
private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds)
which will be issued by the City (and all entities treated as one issuer with the City, and all
subordinate entities whose obligations are treated as issued by the City) during this calendar year
2002 will not exceed $10,000,000; and
(e) not more than $10,000,000 of obligations issued by the City during this
calendar year 2002 have been designated for purposes of Section 265(b)(3) of the Code.
The City shall use its best efforts to comply with any federal procedural requirements which may
apply in order to effectuate the designation made by this paragraph.
1425125vl 24
27. Severability If any section, paragraph or provision of this resolution shall
be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such
section, paragraph or provision shall not affect any of the remaining provisions of this resolution.
28. Headings Headings in this resolution are included for convenience of
reference only and are not a part hereof, and shall not limit or define the meaning of any
provision hereof.
The motion for the adoption of the foregoing resolution was duly seconded by
member and, after a full discussion thereof and upon a vote being taken thereon,
the following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
1425125v 1 25
STATE OF MINNESOTA
COUNTY OF RAMSEY
CITY OF MAPLEWOOD
I, the undersigned, being the duly qualified and acting Clerk of the City of
Maplewood, 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 meeting of the City Council of said City,
duly called and held on the date therein indicated, insofar as such minutes relate to considering
bids for, and awarding the competitive negotiated sale of, $4,815,000 General Obligation
Improvement Bonds, Series 2002A of said City.
WITNESS my hand this day of July, 2002.
Clerk
14251250 26
85 E. SEVENTH PLACE, SUITE 100
SAINT PAUL, MN 55101 -2887
651.223.3000 FAX: 651.223.3002
E -MAIL: advisors @springsted. co
AWARD:
SPRIN.GSTED
Advisors to the Public Sector
$4,815,000
CITY OF MAPLEWOOD, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A
(BOOK ENTRY ONLY)
U.S. BANCORP PIPER JAFFRAY INC.
WELLS FARGO BROKERAGE SERVICES, LLC
EDWARD D. JONES & COMPANY
MORGAN KEEGAN & CO., INC.
SALE:
July 18, 2002
Moo.dy's Rating: Aa2
Interest
Net Interest True Interest
Bidder
Rates
Price Cost Rate
U.S. BANCORP PIPER JAFFRAY INC.
2.00% 2004
$4,781,325.33 $1 4.0470%
WELLS FARGO BROKERAGE
2.50% 2005.
SERVICES, LLC
2.75% 2006
EDWARD D. JONES & COMPANY.
3.25% 2007 -2008
MORGAN KEEGAN & CO., INC.
3.625% 2009
3.75% 2010 -2011
3.875% 2012
4.00% 2013
4.10% 2014
4.20% 2015
4.30% 2016
4.40% 2017
4.50% 2018
(Continued)
CORPORATE OFFICE: SAINT PAUL, MN • Visit our website at www.springsted.com
DES MOINES, IA • MILWAUKEE, WI • MINNEAPOLIS, MN • OVERLAND PARK, KS • VIRGINIA BEACH, VA • WASHINGTON, DC
Interest.
Net Interest True Interest
Bidder
Rates
Price cost Rate
HARRIS TRUST & SAVINGS BANK
2.50%
2004
$4,782,057.60 $1,763 4:0913%
FTN FINANCIAL CAPITAL MARKETS
3.00%
2005 -2006
ISAAK BOND INVESTMENTS, INC.
3.25%
2007
Axelrod Associates, Inc.
3.50%
2008
Bankers' Bank
3.60%
2009
BOSC, Inc.
3.75%
2010 -2011
UMB Bank, N.A.
3.90%
2012
4.00%
2013
4.125%
2014
4.25%
2015
4.35%
2016
4.40%
2017
.4.50%
2018
RBC DAIN RAUSCHER
2.25%
2004
$4 $1,768 4.0962%
2.50%
2005
3.00%
2006
3.25%
2007
3.50%
2008 -2009
3.70%
2010
3.80%
2011
3.90%
'2012
-4.00%
2013
4.15%
2014
4.30%
2015
4.40%
2016
4.50%
2017
4.60%
2018
M O RGAN STANLEY,
3.00 %
2004 -2006
$4,781,343.15 $1,765,161.23 4.0967%
MORGAN STANLEY DW INC.
3.125%
2007
UBS PAINEWEBBER INCORPORATED
3.50%
2008 -2009
SALOMON SMITH BARNEY
3.75%
2010
N RON IN &' COMPANY, INCORPORATED
4.00%
2011 -2013
C I BC WORLD MARKETS
4.10%
2014
CITIZENS BANK
4.20%
2015
4.30%
2016
4.40% '2017.
4.50%
2018
SUNTRUST EQUITABLE SECURITIES
3.50%
2004 -2009
$4,784,761.80 $1,766,330.08 4.1017%
STEPHENS, INC.
3.625%
2010
WILLIAM R. HOUGH & CO.
3.75%
2011
NIKE SECURITIES, L.P.
3.85%
2012
4.00%
2013
4.10%
2014
4.25%
2015
4.30%
2016
4.40%
2017
4.50%
2018
Y�
REOFFERING SCHEDULE OF THE PURCHASER
Rate
Year
Yield
2.00%
2004
1.85%
2.50%
2005
2.30%
2.75%
2006
2.625%
3.25%
2007
3.00%
3.25%
2008
3.25%
3.625%
2009
3.45
3.75%
2010
.3.65%
3.75%
2011
3.75%
3.875%
2012
3.875%
4.00%
2013
4.00%
4.10%
2014
4.10%
4.20%
2015
4.20%
4.30%
2016
4.30%
4.40%
2017
4.40%
4.50%
2018
4.50%
BBI: 5.04%
Average Maturity: 8.916 Years