HomeMy WebLinkAboutSeptember 21, 1992 HZGH SCHOOl,**
) to 8:30
Monday, September 21~ 1992
b) ~n~i[~r of ~l Wa~en
c) ~ider of ~ildi~
d) of Fire ~ Res~e Re~
f) of Se~ & Nater Co~ection
For
Sch~l~
g) Agre~
5. 92-29~
®
Program
on The Wilds ProJ~c ~
Legal,Servic~.andEscrowAgreements
~Approval of 1993-1997 Capital Improvement
S. Consider Re '.~ndation" from Planning Commission
Interview C~tt, ee ·
9. Rec~ation on Space and Staffing Needs
10. Consider~ Bl~ For project 92-12 Holly Circle
Impoundment Structure -
Continue Discussion of Landscape Ordinance
11.
12. Other Business
a)
b)
*All times stated on the Council Agenda, wi=~ the exception' ~of
~Public Hearings, are approximate and m~.y start a few minutes
earlier or later.
4~29 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. ~12) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNrrY ~PLOYER
**INFO-EXPO PRIOR LAKE HIGH SCHOOL**
6:30 to 8:30 P.M.
=======================
CALL TO ORDER
1.
2.
3.
e
REGULAR COUNCIL MEETING
AGENDA REPORT
Monday, September 21, 1992
8:30 p.m.
Pledge of Allegiance
Minutes of The Previous Meeting - see attached.
Consent Agenda:
a)
b)
¢)
d)
e)
f)
g)
Consider Approval of Invoices To Be Paid - see
attached.
Consider Approval of Animal Warden Report -
see attached.
Consider Approval of Building Permit Report -
see attached.
Consider Approval of Fire and Rescue Report -
see attached.
Consider Approval of Treasurer's Report - see
attached.
Consider Approval of Sewer & Water Connection
Deadline Extensions For Kent Gilder, Robert
Komorouski and Robert Scheeler - see attached
staff report.
Consider Approval of Agreement with Advance
Resources, Inc. - see attached staff report.
Presentation from Scott County HRA - Bill Jaffa,
Executive Director, Scott County ~{RA, and HRA
Commissioner for Prior Lake, Mary Beth Onkka, have
requested an opportunity to make a short
presentation to the Prior Lake city Council on the
activities of the Authority. Jaffa and Onkka, will
be present at the meetin~ to spend approximately 15
to 20 minutes discussing current projects and
activities of their organization. No formal action
is requested.
Consider Approval of Resolutions 92-29, 92-30 and
92-31 Authorizing Bond Refunds - see attached
staff report.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 4474230 / Fax (612) 4474245
Receive Staff Report on The Wilds Project and
presentation of Legal Services and Escrow
Agreements. Since the last report at the September
8 Council meeting, staff has been working on the
Metropolitan Council's Metropolitan Community and
Development Committee (MCDC) presentation scheduled
for Monday, September 21 at 4=00 p.m. City staff,
together with Bob Hoffman (Larkin, Hoffman) will be
present at the Metropolitan Council Committee
meeting to make a presentation on the EAW. The
MCDC decision will be considered by the full
Council on Thursday, September 24. A/1 up to date
report on the status of the golf course grading for
this fall will be provided at the City Council
meeting. Staff and Bob Hoffman will report at the
Council meeting on the results from the MCDC
meeting. In addition, City Attorney Glenn Kessel
is finalizing legal services and escrow agreements
between Bob Hoffman and Dick Burtness. City
Attorney Kessel will present the agreements for
Council action at the meeting.
Consider Approval of 1993-1997 Capital Improvement
Program. City staff presented the Capital
Improvement Program to the City Council on Tuesday,
September 8. General discussion occurred on the
1993 program and the variety of construction
projects proposed for the fiye year period. No
action was taken by the Council at that meeting.
Staff is requesting that the Council review the
proposed projects and take action to adopt the
1993-1997 Capital Improvement Program. Please keep
in mind that the CIP is a planning guide and tool.
All ?rojects identified within the program will
require further action from the Council either
through the budget and/or public hearing process.
Staff is requesting that the Council bring
~uestions forward at the meeting to address any
issues you have on the projects. After discussion,
staff will recommend approval of the 1993-1997
Capital Improvement Program as presented or amended
at the meeting. Please bring your CIP to the
meeting.
Consider Recommendation from Planning Commission
Interview Committee. The Planning Commission
Interview Committee (PCIC) consisting of Mayor Lee
Andren, Councilmember Tom Kedrowski and . City
Manager Dave Unmacht met to review the applicants
for the Prior Lake Planning Commission. A vacancy
exists on the Commission due to the resignation of
Mary Ellen Wells. A total of eleven applications
were received for the one vacancy. One applicant
(Marianne Whiting) withdrew her application prior
to formal review, and one applican~ (Daniel J.
Stanley) did not submit his application on time.
2
The PCIC met to narrow the applications down to a
manageable size for interview purposes. After
discussion, the PCIC agreed to interview four
candidates, Allen Greenfield, James Mason, Dan
Choudek and Ray Pratt. One candidate, Bob
Underferth, is being recommended by the Committee
for a vacant position on the Economic Development
Committee.
0
Interviews were conducted on Wednesday, September
9. The PCIC subsequently narrowed the candidates
down to Allen Greenfield and Ray Pratt. At the
time of this writing, a second interview with
additional questions is planned for Friday,
September 18. The PCIC felt that a second
interview with the two remaining candidates was
imperative to the formation of a recommendation to
fulfill the Planning Commission vacancy. It is
the intent of the Committee to have a
recommendation to present to City Council at the
Council meeting on September 21. In addition, the
Committee will be asking the Council to appoint Bob
Underferth to the Economic Development Committee
for a term beginning October 1, 1992 and ending
September 30, 1994.
Consider Recommendation on Space and Staffing Needs
Analysis - see attached staff report.
10.
11.
Consider Bids for Project 92-12 Holly Circle
Impoundment Structure - see attached staff report.
Continue Discussion of Landscape Ordinance 92-10.
The first consideration of the Landscape Ordinance
occurred on September 8, 1992. The Council's
format for initial review of this ordinance was to
segregate the methodology and purpose from the
actual detailed ordinance requirements. On
September 8, 1992, Mr. Kopischke was present to
discuss the methodology, purpose and focus of the
ordinance. The Council asked Staff and Mr.
Kopischke, who will be present at the meeting, to
apply the requirements of the ordinance to an
existing condition. Staff will use the recently
approved site of the County Market Grocery Store as
the base for demonstrating the requirements of the
ordinance. In addition, additional details on the
ordinance can be discussed by the Council.
12. Other Business
a)
b)
*Ail times stated on the Council Agenda, with the exception of
Public Hearings, are approximate and may start a few minutes
earlier or later.
MINUTES OF THE CITY COUNCIL
September 8, 1992
The Common Council of the City of Prior Lake met in regular
session on Tuesday, September 8, 1992 at 7:30 p.m. in the City
Council Chambers. Present were Mayor Andren, Councilmembers
Fitzgerald, Scott, White, and Kedrowski, City Manager Unmacht,
Assistant City Manager Schmudlach, Director of Finance Teschner,
Director of Planning Graser, Director of Public Works Anderson,
Assistant City Engineer Ix)ney, Assistant City Planner Garross,
Associate Planner Lucast, City Attorney Kessel and Recording
Secretary Jaspers.
Mayor Andren called the meeting to order and asked everyone to
rise for the pledge of allegiance.
The minutes of the August 17, 1992 Council meeting were
by Council.
reviewed
MOTION MADE BY KEDROWSKI, SECONDED BY SCOTT, TO APPROVE THE
AUGUST 17, 1992 COUNCIL MINUTES AS SUBMITTED.
Upon a vote taken, ayes by Andren, Fitzgerald, Scott and
Kedrowski, the motion carried. Councilmember White abstained
from voting due to the fact that he had been absent during the
August 17, 1992 meeting.
The next order of business was approval
items (a) thru (f). Councilmember
items (c), (e) and (f) be pulled from
discussion and clarification.
of the Consent Agenda
Fitzgerald requested that
the Consent Agenda for
a)
b)
¢)
a)
e)
f)
Consider Approval of Invoices To Be Paid
Consider Approval of Outdoor Concert Ordinance 92-08
Consider Approval of Preliminary Budget Resolution 92-24
Consider Approval of Equipment Purchase for Blood
Pathogen Exposure
Consider Approval of Waiving Fee for Yacht Club Outdoor
Concert Permit
Consider Approval of Agreement Between the City of Prior
Lake and Advance Resources for Development, Inc.
MOTION MADE BY FITZGERALD, SECONDED BY KEDROWSKI,
CONSENT AGENDA ITEMS (a), (b) and (d).
TO APPROVE
Upon a vote taken, ayes by Andren, Fitzgerald, Kedrowski, White,
and Scott, the motion passed unanimously.
The next order of business was: Presentation of Certificate of
Appreciation to Mary Ellen Wells. City Manager Unmacht
introduced Mary Ellen Wells and reviewed her contribution to the
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Minutes of the Prior Lake City Council September 8, 1992
Planning Commission over the ~as~ 4 years. Mayor Andren
presented a Certificate of Appreciation to Ms. Wells and on
behalf of the City Council thanked her for her contribution. Ms.
Wells expressed thanks and appreciation for the opportunity to
serve on the Planning Commission.
The next order of business was: Public Hearing on Drainage and
Utility Easement Vacation for Vik Konters - Resolution 92-26.
The Public Hearing was called to order at 7:40 p.m. by Mayor
Andren. Associate Planner Lucast presented an overhead of the
area and explained the details of the vacation. A short
discussion followed. Vik Konters was present and explained his
request.
MOTION BY WHITE, SECONDED BY KEDROWSKI, TO APPROVE RESOLUTION
92-26 PROVIDING FOR THE VACATION OF DRAINAGE AND UTILITY EASEMENT
WITHIN THE PLAT OF JEFFERSON'S FIRST ADDITION.
Upon a vote taken, ayes by Andren, Fitzgerald, Kedrowski,
and Scott, the motion passed unanimously.
White,
MOTION BY SCOTT, SECONDED BY KEDROWSKI,
HEARING.
TO CLOSE THE PUBLIC
Upon a vote taken ayes by Andren, Fitzgerald,
and Scott, the motion passed unanimously.
Kedrowski, White,
The next order of business was: Consider Rezoning and
Comprehensive Plan Amendment Application from Jim Allen (Westbury
Ponds). Robert Smith from Smith Land Planning Consultants,
Inc., representing the applicant, presented overheads and details
of the Rezoning and Comprehensive Plan Amendment application.
Smith stated that the applicant has been working with staff
regarding concerns and issues raised by the citizens and Planning
Commission members at the Planning Commission hearing. Assistant
City Planner Garross explained the process the Comprehensive Plan
Amendment, Rezoning application and concept site plan/preliminary
plat consideration will be going through. Garross presented
background on the applications, discussed issues in the staff
report and presented the Planning Commission recommendation. The
following individuals addressed the Council on drainage issues,
traffic concerns and spoke in favor of the Rezone and
Comprehensive Plan Amendment: Donald Ramm, 16811 Willow Lane,
Chris Johnson, 3784 Pershing Street and Tom Schneider, 16840 Elm
Avenue. A letter from Violet Anderson, 3975 Pershing Street was
read into the record voicing her concern over the location of the
~roposed park in the northern part of the concept plat. Council
input followed with discussion on the Comprehensive Plan
Amendment and Rezoning Application, the proposed changes in land
use, traffic, parking and the public hearing notice relative to
the rezoning application. Based on procedural and public notice
requirements, it was agreed by the Council and applicant that any
action on the rezone application should occur after further
public notice and hearing.
MOTION MADE BY WHITE, SECONDED BY KEDROWSKI, TO APPROVE THE
COMPREHENSIVE PLAN AMENDMENT FOR WESTBURY PONDS FROM R-3 MEDIUM
DENSITY TO R-1 LOW DENSITY, AND THE B-3 GENERAL BUSINESS TO R-1
LOW DENSITY.
2
Minutes of the Prior Lake City Council September 8, 1992
Upon a vote taken,.ayes by Andren, Fitzgerald, Kedrowski,
and Scott, the motion passed unanimously.
White,
MOTION BY WHITE,
APPLICATION FOR
COUNCIL MEETING.
SECONDED BY SCOTT, TO TABLE
WESTBUR¥ PONDS TO THE OCTOBER
THE REZONING
5, 1992 CITY
Upon a vote taken, ayes by Andren, Fitzgerald, Kedrowski,
and Scott, the motion passed unanimously.
At this time a recess was called.
White,
The meeting was reconvened at 9:30 p.m.
The next order of business was: Presentation From Marianne
Whiting on Zoning Code Recommendations. Marianne Whi~in~ stated
that a group of residents have been meeting and reviewing the
Prior Lake Zoning Ordinance with respect to minimum lot size
requirements. In addition, their review has involved certain
additional aspects of the Subdivision and Zoning Ordinance. Ms.
Whiting presented a set of recommendations and requested the
Council to set a Workshop date to discuss the recommendations.
Discussion followed with the Council. The general consensus of
the Council was to establish a Workshop with the group to be
scheduled for October 12, 1992 at 6:30 p.m. No future action
occurred.
The next order of business was: Consider Second Draft of Term
Limit Policy. City Manager Unmacht reviewed the background of
this item and introduced the revised policy. The major change
from the initial draft is the institution of a three term limit
(6 years) as opposed to a two term limit (4 years). Discussion
occurred on the implementation plan for staggering the expired
terms of appointed commission/committee members and the rationale
for a term limit policy. City Attorney Kessel reported that
state law does not allow for the City Council to adopt term
limits for locally elected officials.
MOTION BY KEDROWSKI, SECONDED BY SCOTT, TO APPROVE THE SECOND
DRAFT OF THE TERM LIMIT POLICY WITH THE UNDERSTANDING THAT TERMS
BE STAGGERED FOR THE APPLICABLE COMMITTEE/COMMISSION MEMBERS
ACCORDING TO STAFF RECOMMENDATION OUTLINED DURING THE
DISCUSSION.
Upon a vote taken, ayes by Andren, Kedrowski, Scott, White, nay
by Fitzgerald. The motion carried.
The next order of business was: Consider First Draft of Proposed
Landscape Ordinance 92-10. Greg Kopischke of Westwood Planning
and Development has been working with City Planner Graser to
develop a Landscape Ordinance. Mr. Kopischke presented
highlights of the Ordinance to the Council. Discussion followed
by the Council on the purpose of the ordinance and the best
process to follow to review the document. Council was
encouraged to seek input on the ordinance from the private
sector. Staff was directed to place the ordinance on the
September 21 meeting agenda for further discussion.
Minutes of the Prior Lake City Council September 8, 1992
At this time a recess was called.
The meeting was reconvened at 10:40 p.m.
The next order of business was: Update on The Wilds Golf Course
Development. City Manager Unmacht gave an update on The Wilds
project. The deadline for EAW comments was or%ginally schedu%ed
for September 2, 1992, but due to its complexity and outstanding
issues, an extension to September 24, 1992 was granted. The
Metropolitan Community Development Committee of the Metropolitan
Council will consider and approve their EAW comments on September
21 and the Full Council will take action on September 24, 1992.
The leg91 counsel for this project is recommended to be the firm
of Larkln, Hof~man, Daly and Lindgren, LTD. Firm representative
Bob Hoffman is working on the contract document with the
understanding that the City would be reimbursed 50% of our
expenses by the developer. The contractual agreements will be
presented to the Council at the next meeting.
A Comprehensive Plan Amendment issue will be addressed at the
first Council meeting.in October. This action will address our
Comprehensive Plan adopted in the early 1980's dealing with the
NW quadrant (Wilds location). The Metropolitan Council is
requesting that to facilitate our EAW, a textual amendment occur
outlining new land uses in this area. The Planning Commission
will hold a public hearing on this amendment on September 17.
City Manager Unmacht announced the television cable program
"Inside City Hall" will feature Dick Burtness on September 17 and
24. The program will air at 7:30 p.m.
The next order of business was: Consider First Draft of 1993-97
Capital Improvement Program. City Manager Unmacht and Finance
Director Teschner presented overheads, introduced the format and
document, highlighted the 1993 construction schedule, summarized
the 1994-1997 schedule of pro~ects, and requested review of
material by Councilmembers prior to the next Council meeting on
September 21. Discussion followed by the Council. Staff was
directed to place this item on the September 21 Council Agenda
for further action.
The next order of business was: Consider Revised Street
Collector Fee Proposal. City Manager Unmacht explained the
p~oposed MSAS projects in the draft CIP total approximately $3.4
million dollars. The City's fee revenue sources fall
approximatel~ $870,000 short of funding these projects.
Assistant City Engineer Loney explained that a collector street
fee proposal was presented to the Council first on February 18,
1992, and again at the September 3 Workshop. Loney presented the
Council with four alternative revenue mixes which would implement
the street collector fee. Extensive discussion followed by the
Council. Staff was directed to place this item on the September
21 agenda for further discussion.
At this time Consent Agenda item 3(e) was discussed: Consider
Approval of Waiving Fee For Yacht Club Outdoor Concert Permit.
The Yacht Club applied for an Outdoor Concert Permit for
Minutes of the Prior Lake City Council September 8, 1992
September 12, 1992 from 7:30 to 9:30 p.m. on the Yacht Club
Island. The permit was approved by City Manager Unmacht and the
Police Department. The request for fee waiver is consistent with
Section 3-12-4 D of the Prior Lake City Ordinance. Jody Stroh
was present to answer any questions. Discussion followed by the
council on the meaning and interpretation of this clause in the
ordinance.
MOTION BY FITZGERALD, SECONDED BY KEDROWSKI, TO WAIVE THE FEE FOR
AN OUTDOOR CONCERT PERMIT FOR THE YACHT CLUB TO BE HELD ON
SEPTEMBER 12, 1992.
Upon a vote taken, ayes by Andren, Fitzgerald, Kedrowski,
and Scott, the motion passed unanimously.
White,
At this time Fire Department representatives A1 Borchardt and
Kenny Klingberg were present to present bid specifications for
the rescue and pumper truck. Fire officials requested Council
approval for the $500,000 fire fighting equipment so they can
establish a bid opening date of September 29, 1992 at 10:00 a.m.
MOTION BY KEDROWSKI, SECONDED BY WHITE, TO APPROVE THE FIRE
DEPARTMENT EQUIPMENT SPECIFICATIONS AND ESTABLISH A BID OPENING
FOR SEPTEMBER 29, 1992 AT 10:00 A.M.
Upon a vote taken, ayes by Andren, Fitzgerald, Kedrowski,
and Scott, the motion passed unanimously.
White,
At this time Consent Agenda item 3(c) was discussed: Consider
Approval of Preliminary Budget Resolution 92-24. City Manager
Unmacht and Finance Director Teschner presented overheads on a
range of property tax levy increases and their proposed impact on
City taxes for various market values of housing. Discussion
followed by the Council with regard to the appropriate
preliminary budget amount and preliminary property tax levy.
MOTION BY FITZGERALD TO APPROVE RESOLUTION 92-24 INCORPORATING AN
8.3% LEVY INCREASE.
Motion died due to lack of second.
Discussion followed by Council on the purpose of Resolution
92-24. Discussion occurred on the new budget process, the impact
of the various property tax levies and the possibility of state
mandated levy limits in the future.
MOTION BY WHITE, SECONDED BY KEDROWSKI, TO APPROVE RESOLUTION
92-24 INCORPORATING A 10% PRELIMINARY LEVY INCREASE.
Upon a vote taken, ayes by Andren, Kedrowski, White,
Nay by Fitzgerald. The motion carried.
and Scott.
At this time Consent Agenda item 3(f) was discussed: Consider
Approval of Agreement Between the City of Prior Lake and Advance
Resources fo~ 9eve%opment Inc. Councilmember Fitzgerald asked
for a clarification on specific language. Assistant City
Manager Schmudlach reviewed the contract and stated the intent
was that Advance would be compensated for their work in two
5
Minutes of the Prior Lake City Council September 8, 1992
installments. Discussion followed by the Council. Councilmember
Fitzgerald felt an hourly rate should also be included in the
agreement. The Council asked that this item be put on the
Consent Agenda for action on September 21.
Topics discussed under Other Business were as follows:
Mayor Andren requested the Council to consider a Resolution
as recommended by the City of Burnsville. Andren stated that
a new report from Minneapolis residents to MNDOT Commissioner
James Denn recommends that no additional lanes be added to
1-35W; instead it proposes to add light rail from downtown
Minneapolis to Burnsville Center. A resolution is needed to
egcoura~e MNDOT to support an "interim third lane" on 1-35W.
Discussion occurred.
MOTION BY KEDROWSKI, SECONDED BY SCOTT, TO APPROVE RESOLUTION
92-27 SUPPORTING THE INTERIM THIRD LANE PROJECT FOR 1-35W.
Upon a vote taken, ayes by Andren, Fitzgerald,
White, and Scott, the motion passed unanimously.
Kedrowski,
Regional Breakfast Meeting: Metropolitan Council September 14
in Scott County area. Those attending from Prior Lake will
be: Kedrowski, Unmacht, White and Scott.
Info-Expo scheduled for September 21, 1992. This is the same
night as the next Council meeting. Therefore city Manager
Unmacht will adjust the Council schedule to provide for
Info-Expo attendance.
The next Council meeting will be Monday, September 21,
7:30 p.m.
1992 at
There being no further business, the meeting
a.m. by general consent of the
adjourned at 12: 06
Council ~~1.~~
AAcngt~'~g JReac~rdins~er-'~ g Secretary
6
THE FOLLOWING IS A LIST OF INVOICES SCHEDULED
FOR PAYMENT ON WED. SEPT. 22, 1992
MISC. DEPTS.
General Office Products
Coast to Coast Stores
Radermacher Super Valu
Snyder Drug Store
Carlson Hardware
Shiely Co.
Prior Lake Aggregate
NAPA Auto Parts
CarQuest
Scott-Rice Telephone
Shakopee Public Utilities
Minnegasco
MN Valley Electric Co-op.
Office Supplies
Misc. Supplies
Misc. Supplies
Misc. Supplies
Misc. Supplies
Sand & Gravel
Sand & Gravel
Repair Supplies
Repair Supplies
Telephone Service
Utilities
Utilities
Utilities
GENERAL GOVERNMENT
SW Suburban Publishing
Prior Lake American
Interim Personnel Services
Internat'l. Office Systems
The Drawing Board
David Unmacht
City of Albert Lea
Politics in Minnesota
Citizens League
MN Taxpayer's Assn.
League of Minnesota Cities
AAA Typewriter Products
Valley Sign
Wally's World
Petty Cash
Lommen, Nelson
AlphaSoft
MCI Telecommunications
Heating Consultants
American Linen
Floyd Total Security
Cooper & Associates
Xerox Corp.
Want Ad
Publishing
Temporary Help
Fax Supplies
Copier Supplies
Conference Expense
Publication
Subscription
Publication
Publication
Dues
Supplies
Election Supplies
Printed Supplies
Postage & Supplies
Attorney Fees
Software Update
Telephone Service
Building Maintenance
Building Maintenance
Building Maintenance
Equipment Repair
Copier Supplies
425.35
173.04
610.02
89.06
118.92
1,408.01
355.16
113.08
189.46
1,478.20
115.68
88.76
1,833.96
14.00
1,646.96
262.80
152.10
151.72
75.84
10.00
48.00
10.65
10.65
5,874.00
50.59
59.64
63.90
58.10
5,024.50
649.88
95.46
241.55
77.94
65.89
55.00
398.49
PUBLIC SAFETY
Internat'l. Office Systems
Wally's World of Printing
Noll's Hallmark Shop
Streichers
Comm Center
Prior Lake Plumbing
Master Electric
ESI Communications
Dr. L.M. Campbell
MinnComm Paging
Chris Olson
Steven Schmidt
Comm Center
K.K. Towing
Amoco Car Care Center
DARE America
Treadway Graphics
Reynolds Welding
FIRE & SAFETY
Reynolds Welding
Fire Dept. Relief Assn.
Emergency Medical Products
University of Cincinnati
National Imprint Corp.
MN Conway
Index Computer
CIVIL DEFENSE
Electric Service Co.
ANIMAL CONTROL
Robert McAllister
PUBLIC WORKS
Mail Stop
Prior Prints
Larry Anderson
MacQueen Equipment
Dem-Con Landfill
WaterPro
WM. Mueller & Sons
Newman Traffic Signs
Todd Chevrolet
Metro Alarm
Pump & Meter Service
Menards
Art Johnson Trucking
Fax Supplies
Printed Supplies
Operating Supplies
Operating Supplies
Supplies
Bldg. Maint. Supplies
Bldg. Maint. Supplies
Small Tools & Equipment
Professional Services
Pager Service
Meeting Expense
Meeting Expense
Equipment Repair
Vehicle Repair
Vehicle Repair
DARE Supplies
DARE Supplies
Oxygen Supplies
Oxygen Supplies
Fire State Aid
Medical Supplies
Training
Public Info. Supplies
Equipment Repair
Equipment Repair
Siren Repair
Animal Warden
Operating Supplies
Operating Supplies
Meeting Expense
Repair Supplies
Landfill Charges
Repair Supplies
Street Maint. Supplies
Street Maint. Supplies
Equip. Repair Supplies
Alarm Service
Repairs
Repairs
Machine Rental
63.64
36.61
121.06
615.57
204.48
72.00
114.94
307.70
249.74
51.92
8.96
25.17
66.06
64.88
659.70
203.34
374.40
33.30
33.30
39,966.00
112.56
460.00
463.09
608.73
78.75
393.84
463.12
40.70
8.47
192.79
904.39
21.00
142.98
285.13
39.84
58.48
116.78
225.00
21.98
175.00
PARK AND RECREATION
Dixie Larson
Prior Prints
Art Stone
Target Stores
Prchal Candy Co.
Pro-ex
Sponsel's MN Harvest
Lisa Conlin
Diane Wikstrom
MTI Distributing
A Bulb Co.
Pioneer Manufacturing
Vaughn Display
C.H. Carpenter Lumber Co.
Pepsi Co.
U.S. West Communications
Metro Alarm
Glenwood Inglewood
A & B Auto Electric
Dan's Auto Repair
Teri-Jo's Floral
ECONOMIC DEVELOPMENT
Park Reservation Refund
Printed Supplies
Dance Supplies
Dance Supplies
Supplies
Supplies
Park Program
Park Program Instructor
Park Program Instructor
Supplies
Park Maint. Supplies
Park Maint. Supplies
Park Maint. Supplies
Park Maint. Supplies
Rental
Telephone Service
Alarm Service
Building Supplies
Equipment Repair
Vehicle Repair
Funeral Arrangement
35.00
2,280.28
30.13
52.22
21.50
83.22
75.00
51.00
145.00
396.71
49.84
142.66
195.91
214.19
10.00
58.55
83.07
44.35
62.28
63.00
33.95
Real Estate Journal
MN/DTED
Kay Schmudlach
Thompson Publishing Group
Ads
Conference Fee
Conference Expense
Publication
1,230.00
135.00
49.69
174.00
WATER UTILITY
Feed-Rite Controls
Water Pro
MVTL Laboratories
U.S. West Communications
Gopher State One-Call
Water Pro
Mail Stop & Office Products
State Treasurer
S.Central Dist. Operators
Chemicals
Pressure Reducers
Water Analysis
Telephone Service
State Terminal
Equipment Repair
UPS Charge
Operator Exam Charge
Conference Fee
3,186.64
1,828.31
140.00
42.71
360.00
216.01
4.07
15.00
30.00
SEWER UTILITY
MWCC
MWCC
On Site Const. Equip. Repair
Installment
SAC Charges
Repairs
41,001.00
20,790.00
96.00
CONTINGENCY
Monnens Supply
Strgar-Roscoe-Fausch
Earl F. Andersen
Park Nicollet Medical Center
Fire Bldg. Renovation
Engineering Services
Pond Fountain
Professional Services
34.13
6,891.36
800.66
157.00
PARK DEDICATION FUND
Prior Lake Aggregate
Prior Lake Rental Center
Friedges Landscaping
Instant Testing Co.
West Star Curb & Concrete
PRIOR LAKE CONSTRUCTION FUND
TKDA
Clarence Schmaltz
TRUNK RESERVE FUND
Valley Engineering
Prior Lake American
Southam Bus. Communications
DEBT SERVICE
Norwest Bank Minnesota
DEBT SERVICE-GENERAL FUND
Norwest Bank Minnesota
EQUIPMENT ACQUISITION
Clarey's Safety Equipment
Trails
Rentals
Sod
Professional Services
Est.#2-Franklin Trails
Engineering Fees
Watering Sod
Engineering Fees
Publishing
Adv. for Bids
Debt Service
Debt Service
Nozzles
109.04
61.29
2,524.12
480.73
4,945.47
287.85
35.00
3,044.50
97.19
156.88
150,480.00
720.00
391.04
DOG CATCHERS
MONTHLY REPORT
TOTAL
THIS MONTH
Number of dogs plekad up
/?.
Number of hours within
Prior Lake area
Number of unelalmad dogs
Reimbursement to Cfty
*Include current month's tot&l
CITY OF PRIOR LAKE
Su~nary of Building Permits Issued
Month of AUGUST 1992
No. of Declared No. of
No. of Declared Permits Value Permits
Single Family Dwellings
Other Dwellings
(No. of Units 0
Dwelling Units P~movedt O
Net Change +4
Besidential Garages
4 412,080.68 5
0 0 0
0 0 0
1 3,588.72 6
578,011.66 59
0 0
0 0
49,074.56
Indust r iai-Con, ne rcial
1 1,342,534.46 0
0 2
Structures other than
buildings
5,000.00 0
0 6
Additions, Alterations
1. Besidential
2. Industrial and
Conm~rcial
13 94,309.00 21
0 0 3
102,709.78 146
50,500.00 5
Mechanicals Permits
12 38,105.00 0
0 96
32 1,895,617.86 35
780,296.00 323
Total Declared
10,13Z,877.4~_ _
08/C: 1/92
(:)8/01/92
(:)8/(:) 1/92
08/01/92
08/01/92
08/01/92
08 / C) 2 / 92
(:)8/03/92
(i)8/05/92
(.]8/04/92
(')8 / 04 / 92
08/05/92
08/05/92
(:)8/£)7/92
C)8/07/92
(:)8/07/92
08 / (i)8 / 92
08/08/92
08/08/92
08/08/92
08/10/92
08/10/92
08/tO ~'~
08/10/92
O8/11/92
(:)8/12/92
08/12/92
08/12/92
08/13/92
(:)8/13/92
(:)8/15/92
08/15/92
(:)8/14/92
(')8/14/92
(')8/14/92
08/15/92
08/15/92
(1)8/16/92
08/17/92
(.]8/17/92
08/17/92
08/18/92
(:)8/18/92
(i>8/19/92
08/1 ~/92
08/20/92
09~7
08(_')(:)
1200
175(:)
2(.-)45
25(-')5
C)2-?.8
0&53
1611
1&51
2244
112&
1708
(-)045
(i)924
2145
1517
1543
1956
2014
1011
1145
1918
1507
014 o
1527
~ ~55
0320
1
-.'134
122o
2145
232(:)
(i)647
1727
1542
1651
1952
2116
1546
1936
0213
0548
15(I)3
PRIOR LAKE
PRIOR LAKE
PRIOR LAKE
F'RIOR LAKE
PRIOR LAKE
PRIOR LAKE
PR IOR LAKE
PRIOR LAKE
SPRING LAKE
SF'RING LAKE
PRIOR LAKE
PRIOR LAKE
PRIOR LAKE
PRIOR LAKE
PRI OR LAKE
JORDAN
PRIOR LAKE
PRIOR LAKE
PRIOR LAKE
PR IOR LAKE
PRIOR LAKE
CREDIT RIVER
SPRING LAKE
PRIOR LAKE
PRIOR LAKE
PRIOR LAKE
SPRING LAKE
CREDIT RIVER
PRIOR LAKE
CREDIT RIVER
PRIOR LAKE
PRIOR LAKE
PR IOR LAKE
PRIOR LAKE
SPRING LAKE
PRIOR LAKE
PRIOR LAKE
PRIOR LAKE
SPRING LAKE
SPRING LAKE
CREDIT RIVER
F'RIOR LAKE
SF'RING LAKE
PRIOR LAKE
PRIOR LAKE
MEDICAL
M~DICAL
FIRE
FIRE
1(i)/52
FIRE
FIRE
10/52
MEDICAL
10/52
10/52
MEDICAL
MEDICAL
10/52
MEDICAL
MEDICAL
MUTUAL AID
MEDICAL
MEDICAL
FIRE
MEDICAL
MEDICAL
MEDICAL
10/52
MEDICAL
MEDICAL
MEDICAL
MEDICAL
FIRE
10/52
MEDICAL
MEDICAL
FIRE
MEDICAL
10/52
MEDICAL
MEDICAL
1(i)/52
MEDICAL
FIRE
MEDICAL
FIRE
FIRE
MEDICAL
MEDICAL
MEDICAL
MEDICAL
TRANSPORT ONE TO ST. FRANCIS
NO TRANSPORT
CLEANUP
F'ARADE & EXTRICATION
CANCELED BY F.L.P.D.
POWER LINE IN TREE
POSS. LIGHTING STRIKE UNFOUNDED
542 TRANSPORTED
542 TRANSPORTED
NO TRANSPORT
CANCELLED PER OFFICER ON SCENE
TRANSF'ORT ONE TO ST. FRANCIS
NO TRANSPORT
NO TRANSPORT
TRANSPORT ONE TO ST. FRANCIS
TRANSPORT ONE TO PARK NIC. CLINIC,
MUTUAL AID TO BELLE F'LAINE STANDBY
TRANSPORT ONE TO ST. FRANCIS
542 TRANSPORTED
POWER POLE
CANCELLED
TRANSF'ORT ONE TO RIDGES
NO TRANSPORT
TRANSPORT ONE TO ST. FRANCIS
TRANSPORT ONE TO QUEEN OF PEACE
540 TRANSF'ORTED
TRANSPORT ONE TO RIDGES
TRANSF'ORT ONE TO ~,. FRANCIS
TRUCK FIRE
CANCELLED ENROUTE
TRANSF'ORT ONE TO FAIRVIEW SOUTHDALE
NO TRANSF'ORT
RECREATIONAL FIRE
TRANSPORT ONE TO ST. FRANCIS
TRANSPORT ONE TO FAIRVIEW SOUTHDALE
NO TRANSPORT
TRANSF'ORT ONE TO ST. FRANCIS
NO TRANSF'ORT
TRANSPORT ONE TO ST. FRANCIS
HOUSE FIRE
TRANSF'ORT ONE TO RIDGES
TRUCK FIRE
CANCELLED ON SCENE
TRANSPORT ONE TO RIDGES
NO TRANSPORT
542 TRANSPORTED
542 TRANSPORTED
TO: Mayor and City Council
FROM: Ralph Teschner, Finance Director
DATE: Sept. 3, 1992
RE: Sept. 1, 1992 Treasurer's Report
FUNDS
General
Sewer & Water
Capital Park
Debt Service
Construction
Tax Increment
Equip. Acquis.
Trunk Reserve
08/1/92
BALANCE
(59,057.05)
2,313.32
62,996.86
68,421.30
22,027.02
34,064.11
1,503.19
166.37
RECEIPTS DISBURSEMENTS
507,653.57 465,159.14
209,678.47 169,715.07
112,766.00 150,584.60
42,786.75 20,457.50
457.76 335.42
63.13 0.00
2.63 0.00
199t848.04 188t068.38
BALANCE INVESTMENTS
(16,562.62) 1,100,000.00
42,276.72 995,980.16
25,178.26
90,750.55 5,416,000.00
22,149.36 275,000.00
34,127.24
1,505.82
11t946.03
425t000.00
TOTAL 132,435.12 1,073,256.35 994,320.11 211,371.36 8,211,980.16
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY F_JvlPLOYER
CONSENT AGENDA:
REQUESTED BY :
SUBJECT MATTER:
DATE'.
3 (f)
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF SEWER & WATER CONNECTION
DEADLINE EXTENSIONS FOR KENT GILDER, ROBERT
KOMOROUSKI AND ROBERT SCHEELER
SEPTEMBER 21, 1992
INTRODUCTION:
City Code 9-4-3 & 9-5-4 states that "At such
time as a Municipal water/sewer system becomes
available and within a one-year period,
property served by a private water/sewer
system shall make direct connection to the
public systems in compliance with this
Chapter."
Three property owners within the North Shore
Oaks Pro3ect 90-13 area have not made
connection and have formally reguested an
extension to the above referenced timeframe of
basically one additional year. The individuals
and property address are listed as:
NAME ADDRESS
Kent Gilder 14240 Ash Circle NE
Robert Komorouski 14184 Ash Circle NE
Robert Scheeler 14254 Ash Circle NE
Each has submitted a letter to the City
Building Official, Gary Staber, stating the
reason(s) as to their specific delay.
BACKGROUND:
The City of Prior Lake installed public
utilities in Ash Circle during the summer of
1990 and conducted the assessment hearing on
September 17, 1990. Since the pipes were not
completely air and pressure tested at that
time, residents were given until 9/1/92 to
connect.
As the expiration of this time period neared
official notification was sent to these
residents on August 20, 1992 reminding them of
the pending deadline. This sequence of events
subsequently prompted a reply requesting an
extension.
DISCUSSION:
Enclosed with this report writeup are copies
of those letters. It appears for the most part
all have fairly valid reasons and more
importantly have expressed the intention to
hookup. In the Gilder case they purchased the
property and were unaware of the connection
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 ! Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNrrY EMPLOYER
deadline. Komourski has cited 9ersonal
financial difficulties that he is in the
process of resolving. While the most unusual
circumstances seem to surround Robert Scheeler
who has purchased a house from a person who
did not originally own the home. Until he
obtains clear title on the property, which he
currently is pursuing thr?ugh the Attorney
General's Office, he is obviously reluctant to
connect a residence which he may not own.
Past Council action for first time requests
has indicated a consistent ~ractice of
granting connection extensions. Such
willingness to cooperate with property owners
as opposed to exercising litigation
~roceedings has proved to be very successful
in encouraging connection to the City's
municipal water and sewer system.
ALTERNATIVES:
The alternatives available to the Council are:
1. Approve an across the board extension for
sewer and water connections for the those
individuals listed in the Staff report.
2. Deny the requests and proceed to enforce
the City ordinance in court.
3. Modify the extension timeframe to another
date as decided upon by the Council.
RECOMMENDATION:
Staff would recommend Alternative #1 as the
best means to gaining compliance on
connection to the City's utilities.
ACTION REQUIRED:
Motion as part of the consent agenda to
approve an extension deadline for municipal
utility connection until September 1, 1993 for
Kent Gilder, 14240 Ash Circle NE, Robert
Komorouski, 14184 Ash Circle NE and Robert
Scheeler, 14254 Ash Circle NE is in order.
t
14254 Ash Circle NE
Prior Lake, MN 55372
September 9, 1992
City of Prior Lake
4629 Dakota St. SE
Prior Lake, MN 55372
Dear Mr. Ralph Teschner,
Last week we sent letters to both you and Mt-. Gar-y Stabler.
We requested that you handle those letters "Confidential" and
"Private."
The deadline for connection to municipal utilities was 9-1-
92. We request an extension from 9-1-92 to 9-1-93. We are
making plans to connect and comply with ordinances.
We purchased our home 9-19-89. The legal documents and title
work are incorrect. A clear title has not been verified to
date. Previous legal attempts to correct the problem have
been unsuccessful. We will legally proceed to resolve the
problem.
Respectfully submitted for- your consideration.
~be~t D. S~e/e-1 er
/
~L'inda Laz~_~e-~ch~e 1 er
AGENDA NUMBER:
PREPARED BY:
SUBJECT:
DATE:
KAY SCHMUDLACH, ASSISTANT CITY MANAGER
CONSIDER APPROVAL OF AGREEMENT WITH
RESOURCES, INC.
SEPTEMBER 21, 1992
ADVANCE
INTRODUCTION:
BACKGROUND:
DISCUSSION:
The City Council considered an agreement with
Advance Resources, Inc. on September 8, 1992.
The purpose of the agreement was to specify
the responsibilities of each party in
preparing a grant application to the State of
Minnesota for costs associated with Rainbow
Play Systems relocating to the new Business
Office Park. Councilmember Fitzgerald
requested clarification of Section F, Method
of Payment in the agreement. The attached
document has been amended to more accurately
represent the agreement between Advance
Resources, Inc. and the City of Prior Lake.
The agreement with Advance Resources is to
assist with the negotiation of bringing
Rainbow Play Systems into the new Business
Office Park. The agreement ~reviously
requested funding of up to $6,500 in a two
part payment. The confusion was in whether or
not the City was responsible for the second
payment if the grant application was
unsuccessful. The agreement also neglected to
specify the hourly rate at which the
consultant works.
The agreement between Advance Resources, Inc.
and the City has been restructured to reflect
more specificity with the method of payment.
The agreement still calls for 2 payments,
however the essence of the ~ayments has
changed. The first ~aymen~ is a fee of
$3,500.00 which the City will pay Advance
Resources, Inc. upon authorization to prepare
an Economic Recovery Grant application.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
BUDGET IMPACT:
RECOMMENDATION:
ALTERNATIVES:
ACTION REQUIRED:
The second payment is due upon submission of
the Economic Recovery Grant application. This
ayment will be based on an hourly fee of
75.00 for an amount not to exceed $3,000.00.
The City will recover our costs for this
project through a reimbursement from the
future Tax Increment proceeds.
The Contingency Fund has a balance of
approximately $80,000.00. The balance
following the approval of $6,500 will be
$73,500.00. Staff has not requested any
previous funding from the Contingency Fund to
cover any costs associated with the
development of the Business Office Park.
Staff Ks working with Advance Resources, Inc.
on a similar agreement for Tax Increment
Services. This agreement will be introduced
to the Council at a later date.
Staff recommends Council appropriate $6,500
from the Contingency Fund to cover the costs
of applying for the Economic Recovery Grant.
The City Council has the following
alternatives:
The City Council can approve the
agreement between the City and Advance
Resources, Inc. with an appropriation of
$6,500 from the Contingency Fund to cover
the costs.
The City Council can approve the
Development Agreement between the City
and Advance Resources, Inc. and deny the
appropriation from the Contingency Fund.
In this scenario funds would come from
the Economic Development Budget. (No
money has been set aside for this
project.)
3. The City Council can deny the Agreement
and the request for funds from the
Contingency Fund.
A motion to approve the Consent Agenda would
constitute approval of Alternative #1, the
approval of the agreement between the City and
Advance Resources, Inc. and the appropriation
of $6,500 from the Contingency Fund to cover
the costs of the agreement.
2
AGREEMENT BETWEEN
CITY OF PRIOR ~ MINNESOTA,
ADVANCE RESOU~ FOR DEVELOPMENT. INC.
WHEREAS, this AGREEMENT is made and entered Into this 21st day of September. 1992, by and
between Advance Resources for Development, Inc., a Minnesota Corporation with olfices at 201 N. Broad
Sr.., Suite 310, Mankato, Minnesota 56001 (hereinalter referred to as the 'CONSULTANT'), and the City ~
I=,i,.x L,'ake. M~nnesota, with offices at 4629 Dakota St., Prior Lake, Minnesota 55372 (hereinafter referred {o
as the 'CLIENT'); and
WHERE. AS, zhe CLIENT desires to engage the services of the CONSULTANT to furnish technical
arid prole.~s,onal assistance in conjunclion with the coordination, research, analysis and subsequent
pfeparat,on of a linancial package to enable eXpansion of a local manufacluring company (hereinafter
r~errecl to as the 'PROJECT'), and the CONSULTANT has signified its willingness to furnish technical
a~ i:xofessional services to the CLIENT; anti
WHEREAS, the CONSULTANT is willing to consider providir~ such assistance through the
:(,~xd,nafion, research, analysis and subsequent preparation of an economic recovery grant 3pplication to
f~.cilitate the PROJECT (hereinafter referred to as the 'ACTIVITIES'); and
WHEREAS, the CONSULTANT represents that it is familiar with regulations governing the
ACTIVITIES and is qualified and willing to provide such assistance.
NOW THEREFORE, the parties hereto do mutually agree as follows:
A. S_col~ of C_onsultam'_s_Service. s
The CONSULTANT agrees to perform in a good and professional manner those services outlined in
Appendix A, a copy of which is attached hereto and incorporated in this AGREEMENT.
B. Services to be Provided by the_Client
In the event that any :,nformation, data, reports, records, and maps are existing and available and
are useful for carryin;: o~ the work on this PROJECT. this information shall be promptly furnished
to the CONSULTANT? Specific services and materials to be provided by the CLIENT are outlined in
Appendix B, a copy pf which is attached hereto and incorporated in this AGREEMENT.
C. Meatiness and
The CONSULTANT shall during the duration of th~s contract, attend the necessary meetings to
facilitate the PROJECT. The CONSULTANT shall provide sufficient copies of proposed documents
to the CLIENT for meeting purposes. Sufficient copies of any final documents shall be prepared to
e~sure that the CMENT can meet its Obligations for submitting said documents.
D. _ChanQes_in Scope_ of Semi.ce
The CUENT may requesl of the CONSULTANT changes in the Scope of Services to be performed
13ereunder. Changes which are mutually agreed upon by and between the CLIENT and the
CONSULTANT, including any appropriate increase or decrease in the amount of compensation.
shall be incorporated in wntten amendments to this AGREEMENT.
E. Consultant's C_ ompe_~.s~at ~on
The CONSULTANT 5t~all be compensated on the following basis: ul:) to an amount not to exceed
six thousand five ~j,.,nOred dollars ($6,500) (aS referenced under F below) for CONSULTANT time
and expenses inck'.'-L.;3 travel, general out-of-pocket expenses and printing.
TOTRL F'. 01
Ir. Mefl'K~l of Pay _me_or
Ho
The CONSULTANT shall be paid up to an amount not to exceed $6,500 for preparation and
submi.~s~on of an economic recovery grant application. The method of payment is as follows:
1. Three thousand bye hundred clOIlars ($,3.500) upon recei~ Of authorization from the CLIENT to
,nr~'par? of an Economic Recove~ Grant application. Th~ balanc~ of tl-,rec thcu;..~,~d rJGIl~la;
($3,0OO) is clue upon submission of the application. The CONSULTANT will maintain a record of
hours spern in completing ttqis work anti will charge a rate of $75/hour. If the CLIENT terminates
the work. prier tO com~;Ic~ion the CONSULTA.~ will be comper~atecJ f~ tt',~; [i~;,~ ~peri~ up to [hat
point.
Time o! Per[,ormance
The services of the CONSULTANT will begin upon delivery to the CONSULTANT of an executed
copy o! this AGREEMENT and shall, abse~ of causes beyond d',c control of [1'~¢ CONSULTANT, be
completed by I',lovemb~r I, 1992, unless oth6r.'ise rnutuall~ a~e~'..d t-,,' twu,.'~ tl,~ CONSULTANT and
the CUENT.
Hold Harmless
CONSULT.AI','T ~ereby 3grea5 to Jndemn',d't an~ hold CLIENT
CONSULTANT an~/or ~:c employee,'agent5 ~';~;ng om of the
c~tr~.
L Other
The CLIENT 3n~ the CONSULTANT agree to the terms and co,-,d;t;o,',s ~utl;,3,~d i,-~ Ap~r~ix C, ~,
copy of which ~s atlached hereto and incorporated in this AGREEMENT.
IN WITNESS WHEREOF, the CLIENT and the CONSULTANT have executed this AGREEMENT on
the date and year first above written.
CONSULTANT:
ADVANCE RESOURCES FOR
DEVELOPMENT, INC.
CLIENT:
CITY OF PRIOR LAKE, MINNESOTA,
By:
Roger Guenette
On behalf o! Aclvance Resources
for Development, Inc.
Its:
By:
Its:
P~2of2
APPENDIX A
The CONSULTANT shall perform the following services to facilitate the PROJECT;
P_rej~aration and Submission of an Economic Recover~ _Grant Applicatm_n
The CONS!J[TANT w~ll work with tho CLIENT in making ccnt3~$ ~..ith Mir, F,~.~ct& Dc~,-~rt~;',c-r,t
Trade ~nd Fconomlc Development (DTED) officials to cleterrninc ,~v,3ilabil~/ c,! ~,';~,'~t l~ncl.:,
engender Suppo~l h3r the prolecl.
Th~ CON,Ut TANT will determine, early in the process., the other ~Cur¢¢;~ ;cf t~,.~.-~uing '~,hich
conmffule the financing I:ackage for the proieCt in order to ensure tl',~,~ ~.,~,~;e;, o! I;~&ncir~
fi~rnly cornm~ed to the project.
The CONSULTAHT will serve as the party responsible for the preparer;On of th~ lun~J ~;,plicati~r,
nnd en~t~re t~3t the nece.~..~,-~r)· project information is in order to rnce.', &pF!ic&ticn ~eq~ir~mc-,~t~ ;~r,d
time !in~.$. The CONSULTANT will undertake the follc~wing Specific. ~t~.~,~, f~; ~ra,',; p~uparati,~[~.
Collect, review and assemble all information for inclusion in the grant appliCatiOn.
Prepare DTED grant application.
Consult with the CLIENT to ensure that its officials are fully ~nformed as ~o parties ancl
decisions involved in the proc¢5.% information in the grant clocur~et]ts, ~:'J the
of the proposed project.
Mee~ with St3te ~aff. offici~l~ and elected rep~c$ont~ti¥cs l~r t,h~ p~,~3 o1
the c:ntonts of the applicmion and soliciting their suppcrt for apprc',[,',~ :?,c appl[cat;~n.
M,,~et wiT,", priv;te lenders and a,'lor~e;¢~ fur th~ purpu~,~ cf ~;,~,,d;r~;~t"~i ,~qu[~u;]~cn[s ur
public financing.
and appropriateness before final submission.
APPENDIX B
INFORMATION AND SERVICES TO BE PROVIDED BY THE CLIENT
Tt~e CLIENT agrees to proviOe the following information and services to the CONSULTANT on a
is contingent upon the timely receipt from II~e CUENT, a~ no cost to the CONSULTANT, the services,
ioel~ihed in tl3e following paragraphs.
1. The CLIENT shal~ b~ available on a day-to-0ay basis to ensure timely progress of the PROJECT.
The CLIENT shall .'~ci~T ,n ',he 3rran~omcn! of meetings w~h public cff.,c,al~ a~',;~ ~,[ho, .',pp, op~ia[~
public agencies.
The CL~EN'r .~h,~lt ob'..-,,~ the
to complete the ACTIVITIES.
APPENDIX C
OTHER PROVISIONS
Tc:,mrv4,';.":: Th,3 CLI[;:T aF,a'
CLIENT. c~d thc ~ONCULTANT :,ha~ .cccF, c
~ormrmc: sf this AOREEMENT in accoed~nce w~h ils terms. ~ "'~u~,', ~;lu~ ~r,:.*o o~; o: c~u~'.
~yond the ~mrol and wflhom d~auE ~ n~ligence ¢ the CONSULTANT.
;~rnpletir. g ex~t3 wo;'k a,lh;(b'od b~ lbo ~' ,c~ ... · · .
CUENT ~d the CONSULTANT.
~i.'_.d'_,D...qa_.pcc2..=.,'tt cf Cl;ent. Al! fiai:-~hod c,~- unf;aished documcnU., d,il,,, sur,¢is..~tuJ.~.." .....
maps. models, pholo~aph:-'., and reports pr,;~:ed b~ th~ ,,,.,,,~,,.,,_.,-,,,, ~;~,:,~t &i ;he oFt,or,
CLIENT. become lhe CLIENT'S property.
Ca,,%qict cf Ir. torch. Th,2 '"'"' '"' ' '"" ~-
,,~I',oUL,,,NT ce¢,~;6~ to the beat o! h;:, kn,~,;Icd:~c ;h.~; ,,~, CLIENT
cuniary interest in the business of the CONSULTANT or tiao AGREEMENT, and that no
,.~.~c.4=~.., ;,.~h thc CCNSULTANT ,",as any ir,;~r~.st that w~uld cc. nfl;ct .; anx m:.ancr
with the performance of the AGREEMENT.
~..,.,:~h¢n~.,. ....h L~ws. The CONSULTANT ehall al all fin'~o; ob~,c ,, ' .......... ,.,It', '"
m~ner affe~ the pedormance of t~ AGREEME~.
Personnel. Ail of the se~ices will be performed by the CONSULTANT. The CONSULTANT
rcC.;e:'~.'~t:, :hat it h.~.. Or will secure at its own e~;pe, nse. all pe[.~or, r,~ I;eqo,,,'" ',," :,'. ca~r~' ou~ a,',J
perform tho Jcop6 ~f ~n,'ices el :his AGREEMENT. Such pO$OhC,(-: :i,l',all ,~.,el,I' ' quuhf,,.-,.,' '"
,P,~,,-i~,' "~= .... ,u=,'(""",, m,.,~,, .......... ,,,,a,.,,..,. 'D,~o rol~liO;,Ship of ll,e CONSULTANT to ih,~,~,..,,.;,, ,"'" '~'"' i~ ;.hill o,
employee or agent of the CONSULTANT an employee of the CLIEN1 for any purpose.
[ndemn;'fic_3_tj;0. I: is. :r. commende~ hersin by r~e CONSULTANq'
¢.r~;~¢;~r.atio;'. 3,' an O4,c,r:~a,iC roco;~r/ tun~l a~p:ic~,tion ;he
cor~u,'tant,, .~c,%ic~$ f.'o;a ar,i pd;'ale compan.~ which will
th= pm-ate ;.¢mpany ~iithdr&wS from the PROJECT. In tills
f:nancial c~,pcsure tar COI',ISULTANT fees if the private
withdraws Item the PROJECT.
TOTRL P.
AGENDA'.
REQUESTED ~Y:
SUBJECT MATTER:
DATE:
5
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF RESOLUTIONS 92-29, 92-30
& 92-31 AUTHORIZING BOND REFUNDINGS
SEPTEMBER 21, 1992
INTRODUCTION:
BACKGROUND:
DISCUSSION:
The City has three outstanding bond issues
that are eligible candidates for refunding.
The purpose for refinancing is threefold:
1. Achieve a lower net effective interest
rate.
2. Reduce debt service costs by attaining
lower interest payments.
3. Pass these savings along to the taxpayer
in the form of reduced future levies.
The method of accomplishing these objectives
is to be in the form of a negotiated bond sale
whereby Juran & Moody would purchase the bonds
outright at the council meeting at competitive
market rates as opposed to a public sale. The
reason being that the issuance costs typically
associated with a public sale would eat up a
large percentage of the potential savings.
The bond issues considered for refunding are
the general obligation bonds issued in 1979
for the financing of several developer
projects within that year, the capital fire
bonds in 1984 which was the City's last
approved referendum for the purchase of fire
equipment and the bond issue related to the
downtown overlay improvements of 1989.
The interest rate market of today is very
favorable as treasury bill rates issued by the
federal government reached a 29 year low this
month at 2.91%. As such, staff in concert with
our fiscal consultant Steve Mattson, prepared
a refunding analysis to evaluate which bond
issues of Prior Lake would lend themselves
toward refinancing.
A scenario of these findings are outlined
below for Council information. It is important
to note that the rates utilized were as of
9/14/92 and, that depending upon the market
one week from today, interest rates could
either move off or improve thereby affecting
our yield.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY E~PLOYER
OND SSUE
Description: General Obligation Bonds 1979
Original Amount: $1,425,000.00
Principal Bal: $ 415,000.00
Option Date: 1/1/93
Refunding Type: Current
Old Bond Rate: 6.1871%
New Bond Rate: 4.9900%
Proposed Saving: $14,271.00
BOND ISSUE #2
Description: G.O. Fire Bonds 1984
Original Amount: $295,000.00
Principal Bal: $165,000.00
Option Date: 8/1/93
Refunding Type: Cross-over
Old Bond Rate: 10.0382%
New Bond Rate: 4.8578%
Proposed Saving: $19,789.00
BOND ISSUE #3
Description: General Obligation Bonds 1989
Original Amount: $1,175,000.00
Principal Bal: $ 825,000.00
Option Date: 12/1/93
Refunding Type: Cross-over
Old Bond Rate: 6.5164%
New Bond Rate: 4.8061%
Proposed Saving: $21,026.00
The option date discussed above is also known
as the call date which is the earliest that a
bond issue may be retired. This provides a
measure of protection for the investor who is
b~y%ng the bonds and needs some sort of
minimum guarantee that the investment will
endure.
In addition there are two types of refunding
that may occur here; the first under Bond
Issue #1 is a current refunding because the
call date has passed and the new rates would
become effective January 1st. The other two
are known as cross-over refundings because the
city must continue to pay on the old bonds
until the call dates which are August 1 and
December 1, 1993 respectively. At that point
in time the City bond payments "cross-over"
under the new interest rates for the duration
of the bond issue.
ALTERNATIVES:
1. Approve the following resolutions-
Resolution 92-29 Authorizing $425]000 G.O.
Refunding Bonds of 1992.
Resolution 92-30 Authorizing $175,000 G.O.
Cross-over Refunding Fire Equipment Bonds
of 1992.
Resolution 92-31 Authorizing $860,000 G.O.
Cross-over Refunding Bonds of 1992.
2. Delay the refinancing until a future time
as determined by the Council.
RECOMMENDATION:
ACTION REQUIRED:
3. Deny approval of the resolutions.
While the total savings depicted above of
$55,086.00 is relatively moderate, Staff
has represented these estimates somewhat on
the conservative side and that actual savings
should be in excess of $60,000.00. These
figures include the out-of-pocket cash the
City must contribute of $6,015.00.
Interest rates are not anticipated to drift
much lower due to concerns of the stability of
dollar. Therefore Staff would recommend that
the above referenced bonds be refunded in an
effort to realize these interest savings.
The reason for three separate resolutions and
corresponding bond issues is that they cannot
be consolidated due to the different maturity
dates of each issue.
The final figures will not be known until
Monday September 21, therefore the Resolutions
will be presented at the meeting by Steve
Mattson, along with the proposed sale for
Council consideration.
Motion to approve Resolution 92-29 Authorizing
$425,000 G.O. Refunding Bonds, Resolution
92-30 Authorizing $175,000 G.O. Cross-over
Refunding Fire Equipment Bonds of 1992 and
Resolution 92-31 Authorizing $860,000 G.O.
Cross-over Refunding Bonds of 1992.
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
PRIOR LAKE, MINNESOTA
HELD: September 21, 1992
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Prior Lake, Scott
County, Minnesota, was duly held at the City Hall in said City on.
Monday, the~21st day of September, 1992, at o'clock _.M.,
for the purpose, in part, of authorizing the issuance of, and
awarding the sale of, $425,000 General Obligation Refunding Bonds
of 1992 of the City.
The following members were present:
and the following were absent:
Member
resolution and moved its adoption:
introduced the following
RESOLUTION PROVIDING FOR THE
ISSUANCE AND SALE OF
$425,000 GENERAL OBLIGATION
REFUNDING BONDS OF 1992
A. WHEREAS, the City of Prior Lake, Minnesota (the
"City"), has heretofore issued $1,425,000 General Obligation
Improvement Bonds of 1979, dated July 1, 1979 (the "Prior
Bonds"), for the purpose of providing money for various
improvements in the City (the "Project"); and
B. WHEREAS, $415,000 in principal amount of the Prior
Bonds which mature in the years 1993 and thereafter are subject
to redemption and prepayment at the option of the City on January
1, 1993 at a price of par plus accrued interest as provided in
the resolution of the City Council, dated June 11, 1979
authorizing the issuance of the Prior Bonds (the "Prior
Resolution"); and
C. WHEREAS, the City Council deems it desirable and in
the best interests of the City to call for redemption and
prepayment all of the Prior Bonds which mature on July 1, 1993
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and thereafter on January 1, 1993 in accordance with the Prior
Resolution in order to reduce the debt service costs to the City;
and
D. WHEREAS, the City Council has heretofore determined
and declared that it is necessary and expedient to issue $425,000
General Obligation Refunding Bonds of 1992 of the City, pursuant
to Minnesota Statutes, Chapter 475, to provide funds to pay on
January 1, 1993, all of the City's Prior Bonds which then remain
outstanding (the "Refunding"); and
E. WHEREAS, no other obligations have been sOld
pursuant to a private sale within the last twelve (12) calendar
months of the date hereof which when combined with this issue
would exceed the $1,200,000 limitation on negotiated sales as
required by Minnesota Statutes, Section 475.60, Subdivision 2(2);
and
NOW, THEREFORE, BE IT RESOLVED by the Council of the
City of Prior Lake, Minnesota, as follows:
1. Acceptance of offer. The offer of Juran & Moody,
Inc. (the "Purchaser"), to purchase $425,000 General Obligation
Refunding Bonds of 1992 of the city (the "Bonds", or individually
a "Bond"), in accordance with the terms and at the rates of
interest hereinafter set forth, and to pay therefor the sum of
$416,670, plus interest accrued to settlement, is hereby
accepted.
2. Title; Oriqinal Issue Date; Denominations;
Maturities. The Bonds shall be titled "General Obligation
Refunding Bonds of 1992", shall be dated October 1, 1992, 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 Bonds shall
mature, without option of prepayment, on July i in the years and
amounts as follows:
Year Amount Year Amount
1993 $55,000 1998 $60,000
1994-1995 60,000 1999 50,000
1996 55v000 2000 35,000
1997 50,000
All dates are inclusive.
2
3. ~urDose. The Bonds (together with other available
funds, if any, appropriated in paragraph 15 hereof) shall provide
funds to finance the Refunding. It is hereby found, determined
and declared that the Refunding is pursuant to Minnesota
Statutes, Section 475.67 and shall result in a reduction of debt
service cost to the City.
4. Interest. The Bonds shall bear interest payable
semiannually on January i and July I of each year (each, an
"Interest Payment Date"), commencing July 1, 1993, calculated on
the basis of a 360-day year of twelve 30-day months, at the
respective~rates per annum set forth opposite the maturity years
as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
1993 % 1997
1994 1998
1995 1999
1996 2000
5. No Redemption. The Bonds shall not be subject to
redemption and prepayment prior to their maturity.
6. Bond Reqistrar. Firstar Trust Company, in
Milwaukee, Wisconsin 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:
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3
UNITED STATES OF AMERICA
STATE OF MINNESOTA
SCOTT COUNTY
CITY OF PRIOR LAKE
GENERAL OBLIGATION
REFUNDING BOND OF 1992
INTEREST MATURITY DATE OF
.RATE DATE ORIGINAL ISSUE ~ CUSIP
OCTOBER 1, 1992
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Prior Lake, Scott 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, without option of
prepayment, and to pay interest thereon semiannually on January 1
and July I of each year (each, an "Interest Payment Date"),
commencing July 1, 1993, 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
Firstar Trust Company, in Milwaukee, Wisconsin (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
ZZ5515
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.
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 Prior Lake, Scott
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 Manager, the corporate seal of the Issuer having been
intentionally omitted as permitted by law.
:):)5 515
5
Date of Registration:
Registrable by: FIRSTAR
TRUST COMPANY
Payable at: FIRSTAR
TRUST COMPANY
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
CITY OF PRIOR LAKE,
SCOTT COUNTY, MINNESOTA
/sS Facsimile
Mayor
FIRSTAR TRUST
COMPANY
Milwaukee, Wisconsin
Bond Registrar
/s/ Facsimile
Manager
By
Authorized Signature
2~5515
6
ON REVERSE OF BOND
No Redemption. The Bonds of this issue (the "Bonds")
are not subject to redemption and prepayment prior to their
maturity.
Issuance; Purpose; General Obligation. This Bond is
one of an issue in the total principal amount of $425,000, all of
like date of original issue and tenor, except as to number,
maturity, interest rate and denomination, 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 September 21, 1992
(the "Resolution"), for the purpose of providing money to redeem
on January 1, 1993, all of the outstanding General Obligation
Improvement Bonds of 1979, dated July 1, 1979 of the Issuer.
This Bond is payable out of the General Obligation Refunding
Bonds of 1992 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; Exchanae; Resolution. The Bonds are
issuable solely as fully registered bonds in the denominations of
$5,000 and integral multiples thereof of a single maturity and
are 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
zz5515
7
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 0r boss. 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 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.
Oualified Tax-Exempt Obliaati0P. 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.
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
(Cust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
225515
8
ASS IGNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
the within Bond and does
hereby irrevocably constitute and appoint
attorney to transfer the Bond on the books kept for the
registration thereof, with full power of substitution in the
premises.
Dated:
Notice:
Signature Guaranteed:
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(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.
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.)
;25515
9
8. Execution: Temporary Bonds. The Bonds shall be
executed on behalf of the City by the signatures of its Mayor and
Manager and be sealed with the seal of the City; provided,
however, that the seal of the City may be a printed facsimile;
and provided further that both of such signatures may be printed
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 Manager. Such temporary bonds shall,
upon the printing of the definitive bonds and the execution
thereof, be exchanged therefor and canceled.
9. Authent~¢ation. 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 October 1, 1992. 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.
2:)5515
10
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
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.
Ail 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 Manager is hereby authorized to negotiate and execute
the terms of said agreement.
225 515
11
11. Riahts 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 Reaistered 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.
14. Delivery; 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. Fund and Accounts.
(a) $ of the proceeds of the Bonds shall be
deposited in the Debt Service Account of the General Obligation
Improvement Bonds of 1979 Fund (the "Bond Fund") heretofore
created by the Prior Resolution for the Prior Bonds, which
amount, together with all other funds held therein, is sufficient
to prepay the outstanding Prior Bonds on January 1, 1993.
(b) There is hereby created a special fund to be
designated the "General Obligation'Refunding Bonds of 1992 Fund"
(the "Fund") to be administered and maintained by the Finance
zz5515
12
Director as a bookkeeping account separate and apart from all
other Funds maintained in the official financial records of the
City. The Fund shall be maintained in the manner herein
specified until all of the Bonds and the interest thereon have
been fully paid. There shall be maintained in the Fund two (2)
separate accounts, to be designated the "Payment Account" and
"Debt Service Account", respectively.
(i) Payment Account. There shall be deposited in the
Payment Account $. of the remaining proceeds of the
Bonds from which a portion of the costs of issuing the Bonds
shall be paid. Monies in the Payment Account shall be used
to pay a portion of the costs of issuing the Bonds. Any
monies remaining in the Payment Account after all costs of
issuance have been paid or provided for shall be transferred
to the Debt Service Account for the Bonds.
(ii) Debt Service Account. There are hereby
irrevocably appropriated and pledged to, and there shall be
credited to, the Debt Service Account: (a) all uncollected
special assessments pledged to the payment of the Prior
Bonds; (b) all accrued interest received upon delivery of
the Bonds; (c) any collections of all taxes which may
hereafter be levied in the event that the special
assessments herein pledged to the payment of the principal
and interest on the Bonds are insufficient therefor; (d) any
collections of all taxes heretofore levied for the payment
of the Prior Bonds and interest thereon which are not needed
to pay the Prior Bonds as a result of the Refunding; (e) all
funds remaining in the Payment Account after all costs of
issuing the Bonds have been paid; (f) any funds remaining on
deposit in the Bond Fund established for the Prior Bonds
after the same have been paid and discharged; (g) all
investment earnings on funds held in the Debt Service
Account; and (h) any and all other moneys which are properly
available and are appropriated by the governing body of the
City to the Debt Service Account. The Debt Service Account
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
2:)5515
13
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
Payment Account or Debt Service Account (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. Special Assessments. The City has heretofore
levied special assessments pursuant to the Prior Resolution,
which assessments were pledged to the payment of the principal
and interest on the Prior Bonds and all uncollected special
assessments are now pledged to the payment of principal and
interest on the Bonds herein authorized. Said assessments were
levied as provided below, payable in equal, consecutive, annual
installments, including principal and interest with general taxes
for the years shown below at the rate shown opposite such years.
Improvement
Designation Amount Rate
Levy Years
Sewer and Water $ 8.00%
of 1979
1992-1999
17. Coverage Test. The special assessments are such
that if collected in full they, together with estimated
collections of 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.
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 cease. The City may discharge its obligations
225515
14
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 9aid 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 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,
subject to sale and/or reinvestment, to pay all amounts to become
due thereon to maturity.
19. 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.
20. Notice of Call for Redemption. The Manager is
hereby authorized and directed to cause notice of redemption to
be published in Northwestern Financial Review prior to January 1,
1993, and.to give mailed notice of redemption prior to said
redemption date to American National Bank and Trust Company, in
St. Paul, Minnesota, the paying agent for the Prior Bonds, and to
all holders of the Prior Bonds, if any, who have registered their
names, addresses and serial numbers with the City Manager. Said
notice shall be in substantially the form attached hereto as
Exhibit A.
21. Prior Bonds; Security. Until retirement of the
Prior Bonds, all provisions theretofore made for the security
thereof shall be observed by the City and all of its officers and
agents.
22. Certificate of Registration. The Manager is
hereby directed to file a certified copy of this resolution with
the County Auditor of Scott County, Minnesota, together with such
other information as he or she shall require, and to obtain the
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15
County Auditor's certificate that the Bonds have been entered in
the County Auditor's Bond Register.
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 appearfrom 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. Neqative Covenant as to Use of Proceeds and
Project. The City hereby covenants not to use the proceeds of
the Bonds or to use the Project, or to cause or permit them to be
used, or to enter into any deferred payment arrangements for the
cost of the Project, 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
225515
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(f) (4).(D) of the Code.
Furthermore:
(i) there shall not be taken into account for
purposes of said $5,000,000 limit any bond issued to
refund (other than to advance refund) any bond to the
extent the amount of the refunding bond does not exceed
the outstanding amount of the refunded bond;
(ii) the aggregate face amount of the Bonds does
not exceed $5,000,000;
(iii) each of the Prior Bonds was issued as part
of an issue which was treated as meeting the rebate
requirements by reason of the exception for
governmental units issuing $5,000,000 or less of bonds;
(iv) the average maturity of the Bonds does not
exceed the average maturity of the Prior Bonds; and
(v) no part of the Bonds has a maturity date
which is later than the date which is thirty (30) years
after the dates the Prior Bonds were issued.
26. Designation of Qualified Tax-Exempt Obliaations:
Issuance Limit. 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;
(b) the Bonds are not "private activity bonds" as
defined in Section 141 of the Code;
(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
225515
are treated as issued by the City) during this calendar
year 1992 will not exceed $10,000,000;
(e) not more than $10,000,000 of obligations
issued by the City during this calendar year 1992 have
been designated for purposes of Section 265(b)(3) of
the Code;
(f) the aggregate face amount of the Bonds does
not exceed $10,000,000; and
~ (g) the Bonds are issued to refund, and not to
"advance refund" the Prior Bonds within the meaning of
Section 149(d)(5) of the Code, and shall not be taken
into account under the $10,000,000 issuance limit to
the extent the Bonds do not exceed the outstanding
amount of the Prior Bonds.
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.
27. Severabilit¥. 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. Headinqs. 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:
adopted.
Whereupon said resolution was declared duly passed and
:~25515
18
STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF PRIOR LAKE
I, the undersigned, being the duly qualified and acting
Manager of the City of Prior Lake, 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 authorizing the issuance of, and awarding the sale of,
$425,000 General Obligation Refunding Bonds of 1992 of said City.
WITNESS my hand and the seal of said City this 21st day
of September, 1992.
(SEAL)
Manager
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19
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION IMPROVEMENT BONDS OF 1979
CITY OF PRIOR LAKE,
SCOTT COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the
City of Prior Lake, Scott County, Minnesota, there have been
called for redemption and prepayment on
January 1, 1993
those outstanding bonds of the City designated as General
Obligation Improvement Bonds of 1979, dated July 1, 1979, bearing
serial numbers 203 through 285, having stated maturity dates in
the years 1993 through 2000, and totalling $415,000 in principal
amount. The bonds are being called at a price of par plus
accrued interest to January 1, 1993, on which date all interest
on said bonds will cease to accrue. Holders of the bonds hereby
called for redemption are requested to present their bonds for
payment, with subsequently maturing interest coupons attached, at
American National Bank and Trust Company, 101 East Fifth Street,
in Saint Paul, Minnesota 55101, on or before January 1, 1993.
Dated: September 21, 1992.
BY ORDER OF THE CITY COUNCIL
/s/ David Unmacht
Manager
Important Notice: Under the Interest and Dividend Compliance Act
of 1983, 20% will be withheld if tax identification is not
properly certified.
Additional information
may be obtained from:
JURAN & MOODY, INC.
Minnesota Mutual Life Building
400 North Robert Street
Suite 800
St. Paul, Minnesota 55101-2091
Telephone No.: (612) 224-1500
Attn.: Lori A. Denker
Public Finance Department
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
PRIOR LAKE, MINNESOTA
HELD: September 21, 1992
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Prior Lake, Scott
.County, Minnesota, was duly held at the City Hall in said city on
Monday, the 21st day of September, 1992, at o'clock .M.,
for the purpose,~in part, of authorizing the issuance of, a~d ~
awarding the sale of, $860,000 General Obligation Crossover
Refunding Bonds of 1992B of the City.
The following members were present:
and the following were absent:
Member introduced the following
resolution and moved its adoption:
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF
$860,000 GENERAL OBLIGATION
CROSSOVER REFUNDING BONDS OF 1992B,
AND LEVYING A TAX FOR THE PAYMENT THEREOF
A. WHEREAS, the City Council of the City of Prior
Lake, Minnesota (the "City"), has heretofore determined and
declared that it is necessary and expedient to provide moneys for
a crossover refunding of the City's General Obligation Improve-
ment Bonds of 1989, dated August 1, 1989 (the "Prior Bonds"),
issued for the purpose of providing money to finance the
construction of various improvements in the City (the "Project")
pursuant to the resolution of the City Council, dated July 17,
1989, authorizing issuance of the Prior Bonds (the "Prior
Resolution"); and
B. WHEREAS, $825,000 of the principal amount of the
Prior Bonds which mature on or after December 1, 1994, are
callable on December 1, 1993, at a price of par plus accrued
interest as provided in the Prior Resolution; and
225593
C. WHEREAS, the refunding of the callable Prior Bonds,
is consistent with covenants made with the holders thereof, and
is necessary and desirable for the reduction of debt service cost
to the City; and
D. WHEREAS, the City Council has heretofore determined
and declared that it is necessary and expedient to issue $860,000
General Obligation Crossover Refunding Bonds of 1992B of the
City, pursuant to Minnesota Statutes, Chapter 475, to provide
moneys for a crossover refunding of the callable Prior Bonds; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the
City of Prior Lake, Minnesota, as follows:
1. Acceptance of Offer. The offer of Juran & Moody,
Inc. (the "Purchaser"), to purchase $860,000 General Obligation
Crossover Refunding Bonds of 1992B of the City (the "Bonds" or
the "Refunding Bonds", or individually a "Bond"), in accordance
with the terms and at the rates of interest hereinafter set
forth, and to pay therefor the sum of $843,144, plus interest
accrued to settlement, is hereby accepted.
2. TStle: Original Issue Date: Denominations:
Maturities. The Bonds shall be titled "General Obligation
Crossover Refunding Bonds of 1992B", shall be dated October 1,
1992, 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 Bonds
shall mature, without option of prepayment, on December i in the
years and amounts as follows:
year Amount Year Amount
1994-1995
$130,000 1996-1999 $150,000
All dates are inclusive.
3. PurD~ose; Refunding Findings. The Bonds shall
provide funds for a crossover refunding of all the City's
callable Prior Bonds (the "Refunding"). It is hereby found,
determined and declared that the Refunding is pursuant to
Minnesota Statutes, Section 475.67, Subdivision 13, and shall
result in a reduction of debt service cost to the City.
4. Interest. The Bonds shall bear interest payable
semiannually on June i and December 1 of each year (each, an
"Interest Payment Date"), commencing June 1, 1993, calculated on
the basis of a 360-day year of twelve 30-day months, at the
~Z5593
respective rates per annum set forth opposite the maturity years
as follows=
Maturity Interest Maturity Interest
Year Rate Year Rate
1994 % 1997
1995 1998
1996 1999
5. No Redemption. The Bonds shall not be subject to
redemption and prepayment prior to their maturity.
6. Bond ~Ois~rar. Firstar Trust Company, in
Milwaukee, Wisconsin, 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 ~ond. 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:
225593
3
UNITED STATES OF AMERICA
STATE OF MINNESOTA
SCOTT COUNTY
CITY OF PRIOR LAKE
R-
GENERAL OBLIGATION
CROSSOVER REFUNDING BOND OF 1992B
INTEREST MATURITY DATE OF
~ATE DATE ORIGINAL Issu~ CUSIP
OCTOBER 1, 1992
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Prior Lake, Scott 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, without option of
prepayment, and to pay interest thereon semiannually on June 1
and December i of each year (each, an "Interest Payment Date"),
commencing June 1. 1993, 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
Firstar Trust Company, in Milwaukee, Wisconsin (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,
225593
4
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.
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 Prior Lake, Scott
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 Manager, the corporate seal of the Issuer having been
intentionally omitted as permitted by law.
2~559~
5
Date of Registration:
Registrable by: FIRSTAR TRUST
COMPANY
Payable at: FIRSTAR TRUST COMPANY
BOND REGISTRARtS
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
CITY OF PRIOR LAKE,
SCOTT COUNTY, MINNESOTA
/S/ Yacs~m~e
Mayor
FIRSTAR TRUST COMPANY
Milwaukee, Wisconsin
Bond Registrar
/s/ Facsimile ,
Manager
By.
Authorized Signature
225593
6
ON REVERSE OF BOND
NO Redemption. The Bonds of this issue (the "Bonds*t)
are not subject to redemption and prepayment prior to their
maturity.
Issuance; Purp_ose; Genera~ Obl~qat~on. This Bond is
one of an issue in the total principal amount of $860,000, all of
like date of original issue and tenor, except as to number,
maturity, interest rate and denomination which Bond has been
issued pursuant~to and in full conformity with the Constitut~ion
and laws of the State of Minnesota and pursuant to a resolution
adopted by the City Council of the Issuer on September 21, 1992
(the "Resolution"), for the purpose of providing funds sufficient
for a crossover refunding on December 1, 1993, of the Issuer's
General Obligation Improvement Bonds of 1989, dated August 1,
1989, which mature on December 1, 1994, and thereafter. This
Bond is payable out of the Escrow Account and the Debt Service
Account of the Issuer's General Obligation Crossover Refunding
Bonds of 1992B Fund. 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 the denominations of
$5,000 and integral multiples thereof of a single maturity and
are 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
225593
7
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 ~oSS. 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 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.
Oualified Tax-Exempt Obliaation. 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.
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
(Cust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
225593
8
AS S I GNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
the within Bond and does
hereby irrevocably constitute and appoint
attorney to transfer the Bond on the books kept for the
registration thereof, with full power of substitution in the
premises.
Dated:
Notice:
Signature Guaranteed:
The assignor's signature to this
assignment must correspond with the
name as it appears upon the face of
the within Bond in every particu-
lar, without alteration or any
change whatever.
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.
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.)
225593
9
8. Execution; TemPorary Bonds. The Bonds shall be
executed on behalf of the City by the signatures of its Mayor and
Manager and be sealed with the seal of the City; provided,
however, that the seal of the City may be a printed facsimile;
and provided further that both of such signatures may be printed
facsimiles and the corporate seal may be omitted 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~sha11 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 Manager. Such temporary bonds shall, upon the printing
of the definitive bonds and the execution thereof, be exchanged
therefor and cancelled.
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 October 1, 1992. 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.
225595
10
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
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 cancelled 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 Manager is hereby authorized to negotiate and execute
the terms of said agreement.
225593
11
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 Pa~vment= 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 Reaister~d 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.
14. Deliver~ ADDlication 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. YUD~ a~d Accounts. There is hereby created a
special fund to be designated the "General Obligation Crossover
Refunding Bonds of 1992B Fund" (the "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 Fund shall be
maintained in the manner herein specified until all of the Bonds
and the interest thereon have been fully paid. There shall be
maintained in the Fund two (2) separate accounts, to be
designated the "Escrow Account" and "Debt Service Account",
respectively.
225593
12
(i) Escrow Account. The Escrow Account shall be maintained
as an escrow account with Firstar Trust Company (the "Escrow
Agent") in Milwaukee, Wisconsin, which is a suitable financial
institution within the State whose deposits are insured by the
Federal Deposit Insurance Corporation and whose combined capital
and surplus is not less than $500,000. All proceeds of the sale
of the Bonds shall be received by the Escrow Agent and applied to
fund the Escrow Account or to pay costs of issuing the Bonds.
Proceeds of the Bonds not used to pay costs of issuance are
hereby irrevocable pledged and appropriated to the Escrow
Account, together with all investment earnings thereon. The
Escrow Account shall be invested in securities maturing or
~callable at the option of the holder on such .dates and bearing
interest at such rates as shall be required to provide sufficient
funds, together with any cash or other funds retained in the
Escrow Account, (i) to pay when due the interest to accrue on
each Bond herein authorized to and including December 1, 1993;
and (ii) to pay when called for redemption on December 1, 1993,
the principal amount of each of the Prior Bonds. From the Escrow
Account there shall be paid (1) all interest on the Bonds herein
authorized to and including December 1, 1993, and (2) the
principal of the Prior Bonds due by reason of their call for
redemption on December 1, 1993. The Escrow Account shall be
irrevocable appropriated to the payment of the principal of and
interest on the Bonds herein authorized until the proceeds of the
Bonds are applied to payment of the Prior Bonds. The moneys in
the Escrow Account shall be used solely for the purposes herein
set forth and for no other purpose, except that any surplus in
the Escrow Account may be remitted to the City, all in accordance
with an agreement (the "Escrow Agreement") by and between the
City and Escrow Agent, a form of which agreement is on file in
the office of the Manager. Any moneys remitted to the City upon
termination of the Escrow Agreement shall be deposited in the
Debt Service Account.
(ii) Debt Service Account. To the Debt Service Account
there is hereby pledged and irrevocable appropriated and there
shall be credited: (1) all uncollected special assessments
pledged to the payment of the Prior Bonds; (2) any collections of
all taxes herein or hereafter levied for the payment of the Bonds
and interest thereon; (3) any balance remitted to the City upon
the termination of the Escrow Agreement; (4) any balance
remaining on December 2, 1993, in the Debt Service Account of the
General Obligation Improvement Bonds of 1989 Fund created by the
Prior Resolution; (5) any collections of all taxes heretofore
levied for the payment of the Prior Bonds and interest thereon
which are not needed to pay the Prior Bonds as a result of the
Refunding; (6) all investment earnings on funds in the Debt
Service Account; and (7) any and all other moneys which are
225593
13
properly available and are appropriated by the governing body of
the City to the Debt Service Account. The amount of any surplus
remaining in the Debt Service Account when the Bonds and interest
thereon are paid shall be used consistent with Minnesota
Statutes, Section 475.61, Subdivision 4.
The moneys in the Debt Service Account shall be used solely to
pay the principal of and interest on the Bonds or any other bonds
hereafter issued and made payable from the Fund. No portion of
the proceeds of the Bonds shall be used directly or indirectly to
acquire higher yielding investments otto 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 Fund (or any other
City account which will be sued to pay principal and interest to
become due on the Bonds) in excess of amounts which under the
applicable federal arbitrage regulations may be invested without
regard as to yield shall not be invested in excess of the appli-
cable yield restrictions imposed by the arbitrage regulations on
such investments after taking into account any applicable
"temporary periods" or "minor portion" made available under the
federal arbitrage regulations. In addition, the proceeds of the
Bonds and 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 federal Internal Revenue Code of 1986, as amended (the
"Code").
16. Prior Bonds; Security. Until retirement of the
Prior Bonds, all provisions theretofore made for the security
thereof shall be observed by the City and all of its officers and
agents.
17. SDecial Assessments. The City has heretofore
levied special assessments pursuant to the Prior Resolution,
which assessments were pledged to the payment of the principal
and interest on the Prior Bonds and all uncollected special
assessments are now pledged to the payment of principal and
interest on the Bonds herein authorized. Said assessments were
levied as provided below, payable in equal, consecutive, annual
installments, including principal and interest with general taxes
for the years shown below at the rate shown opposite such years.
225593
14
Improvement
Desianation Amount Rate
Public Improvement
Project 89-11
$ 8.00% 1992-1999
18. Tax Lew; Coveraae Test: Cancellation of Certain
Tax Levies. 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 Year of Tax
Lev~ ~ Amount
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 and
sums held in the Escrow Account, 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.
Upon payment of the Prior Bonds, the taxes levied in
Paragraph 17 of the Prior Resolution authorizing the issuance of
the Prior Bonds, in the years 1992 through 1998 for collection in
1993 through 1999 shall be cancelled.
19. DeSeasance. 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
15
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 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, subject to sale and/or reinvestment, to pay
all amounts to become due thereon to maturity.
20. General Obligation Pledge. For the prompt and
full payment of the principal of 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 Escrow Account or Debt Service Account is
ever insufficient to pay all principal and interest then due on
the Bonds payable therefrom, the deficiency shall be promptly
paid out of any other accounts of the City which are available
for such purpose, and such other funds may be reimbursed without
interest from the Escrow Account or Debt Service Account when a
sufficient balance is available therein.
21. Securities; Escrow A~ent. Securities purchased
from moneys in the Escrow Account shall be limited to securities
set forth in Minnesota Statutes, Section 475.67, Subdivision 8,
and any amendments or supplements thereto. Securities purchased
from the Escrow Account shall be purchased simultaneously with
the delivery of the Bonds. The City Council has investigated the
facts and hereby finds and determines that the Escrow Agent is a
suitable financial institution to act as escrow agent.
22. Redemption of Prior Bonds. The Prior Bonds which
mature in 1994 and thereafter shall be redeemed and prepaid on
December 1, 1993, in accordance with the terms and conditions set
forth in the Notice of Call for Redemption attached hereto as
Exhibit A, which terms and conditions are hereby approved and
incorporated herein by reference. Said Notice of Call for
Redemption shall be mailed to the paying agent or agents for the
Prior Bonds prior to said redemption date therefor and to the
registered owner of each Prior Bond at the address shown on the
registration books kept by the registrar for the Prior Bonds
pursuant to the Escrow Agreement.
225593
16
23. Escrow Agreement. On or prior to the delivery of
the Bonds the Mayor and Manager shall, and are hereby authorized
and directed to, execute on behalf of the City an Escrow
Agreement. The Escrow Agreement is hereby approved and adopted
and made a part of this resolution, and the City covenants that
it will promptly enforce all provisions thereof in the event of
default thereunder by the Escrow Agent.
24. ~rch~se of SLGS. The Finance Director, or anyone
designated by the Finance Director to act in his or her behalf,
is hereby authorized and directed to purchase the appropriate
United States Treasury Securities, State and Local Government
Series.~. from the~proceeds of the Bonds in accordance with the-
provisions of this resolution and to execute all such documents
(including the appropriate subscription form) required to effect
such purchase in accordance with the U.S. Treasury Regulations
(31 CRF Part 344).
25. Certificate of Registration. The Manager is
hereby directed to file a certified copy of this resolution with
the County Auditor of Scott 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, that the tax levy for the
Prior Bonds has been canceled, and that the tax levy required by
law for the Bonds has been made.
26. ~ecords 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 re furnished,
shall be deemed representations of the City as to the facts
recited therein.
27. Negative covenant as to Use of Proceeds aR~
project. The City hereby covenants not to use the proceeds of
the Bonds or to use the Project, or to cause or permit them to be
used, or to enter into any deferred payment arrangements for the
cost of the Project, 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.
225593
17
28. 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 is not reasonably expected to exceed $5,000,000, all
within the meaning of Section 148(f)(4)(D) of the Code.
Furthermore:
(i) each of the Prior Bonds was issued as part of
an issue which was treated as meeting the rebate
requirements by reason of the exception for govern-
mental units issuing $5,000,000 or less of bonds;
(ii) the average maturity of the Bonds does not
exceed the remaining average maturity of the Prior
Bonds; and
(iii) no maturity of the Bonds has a maturity
date which is later than the date which is thirty (30)
years after the dates the Prior Bonds were issued.
29. Designation of Qualified Tax-Exempt Obligations.
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:
225593
18
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as
defined in Section 141 of the Code;
(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 1992 will not exceed $10,000,000;
(e) not more than $10,000,000 of obligations
issued by the City during this calendar year 1992 have
been designated for purposes of Section 265(b)(3) of
the Code; and
(f) the aggregate face amount of the Bonds does
not exceed $10,000,000.
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.
30. Supplemental Resolution. The Prior Resolution is
hereby supplemented to the extent necessary to give effect to the
provisions of this resolution.
31. 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.
32. Headinas. 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.
225593
19
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:
adopted.
Whereupon said resolution was declared duly passed and
2O
STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF PRIOR LAKE
I, the undersigned, being the duly qualified and acting
Manager of the City of Prior Lake, 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 authorizing the issuance of, and awarding the sale of,
$860,000 General Obligation Crossover Refunding Bonds of 1992B of
said City.
WITNESS my hand and the seal of said City this 21st day
of September, 1992.
(SEAL)
Manager
22559~
21
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION IMPROVEMENT BONDS OF 1989
CITY OF PRIOR LAKE,
SCOTT COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the
City of Prior Lake, Scott County, Minnesota, there have been
called for redemption and prepayment on
December 1, 1993
those outstanding bonds of the City designated as General Obliga-
tion Improvement Bonds of 1989, dated August 1, 1989, having
stated maturity dates in the years 1994 through 1999, and
totalling $825,000 in principal amount. The bonds are being
called at a price of par plus accrued interest to December 1,
1993, on which date all interest on said bonds will cease to
accrue. Holders of the bonds hereby called for redemption are
requested to present their bonds for payment, at American
National Bank and Trust Company, 101 East Fifth Street, in Saint
Paul, Minnesota 55101, on or before December 1, 1993.
Dated: September 21, 1992.
BY ORDER OF THE CITY
COUNCIL
/S/ David Unmacht
Manager
Important Notiae~ Under the Interest and Dividend Compliance Act
of 1983, 20% will be withheld if tax identification is not
properly certified.
Additional information
may be obtained from:
JURAN & MOODY, INC.
Minnesota Mutual Life Building
400 North Robert Street
Suite 800
St. Paul, Minnesota 55101-2091
Telephone No.: (612) 224-1500
Attn.: Lori A. Denker
Public Finance Department
225593
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
PRIOR LAKE, MINNESOTA
HELD: September 21, 1992
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Prior Lake, Scott
County, Minnesota, was duly held at the City Hall in said City on
Monday, the 21st day of September, 1992, at o'clock .M.,
for the purpose, in part, of authorizing the issuance of, and
awarding the sale of, $175,000 General Obligation Crossover
Refunding Bonds of 1992A of the City.
The following members were present:
and the following were absent:
Member introduced the following
resolution and moved its adoption:
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF
$175,000 GENERAL OBLIGATION
CROSSOVER REFUNDING BONDS OF 1992A,
AND LEVYING A TAX FOR THE PAYMENT THEREOF
A. WHEREAS, the City Council of the City of Prior
Lake, Minnesota (the "city"), has heretofore determined and
declared that it is necessary and expedient to provide moneys for
a crossover refunding of the City's General Obligation Bonds of
1984, dated April 1, 1984 (the "Prior Bonds"), issued for the
purpose of providing money to finance the acquisition of fire
fighting apparatus and the acquisition and betterment of the
existing fire hall for the City (the "Project") pursuant to the
resolution of the City Council, dated April 9, 1984, authorizing
issuance of the Prior Bonds (the "Prior Resolution"); and
B. WHEREAS, $165,000 of the principal amount of the
Prior Bonds which mature on or after August 1, 1994, are callable
on August 1, 1993, at a price of par plus accrued interest, plus
225525
a premium of one percent (1.00%) of par as provided in the Prior
Resolution; and
C. WHEREAS, the refunding of the callable Prior Bonds,
is consistent with covenants made with the holders thereof, and
is necessary and desirable for the reduction of debt service cost
to the City; and
D. WHEREAS, the City Council has heretofore determined
and declared that it is necessary and expedient to issue $175,000
General Obligation Crossover Refunding Bonds of 1992A of the
City, pursuant to Minnesota Statutes, Chapter 475, to provide
moneys for a crossover refunding of the callable Prior Bonds; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the
City of Prior Lake, Minnesota, as follows:
1. Acceptance of Offer. The offer of Juran & Moody,
Inc. (the "Purchaser"), to purchase $175,000 General Obligation
Crossover Refunding Bonds of 1992A of the City (the "Bonds" or
the "Refunding Bonds", or individually a "Bond"), in accordance
with the terms and at the rates of interest hereinafter set
forth, and to pay therefor the sum of $171,570, plus interest
accrued to settlement, is hereby accepted.
2. Title; Original Issue Date; Denominations;
Maturities. The Bonds shall be titled "General Obligation
Crossover Refunding Bonds of 1992A", shall be dated October l,
1992, 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 Bonds
shall mature, without option of prepayment, on August 1 in the
years and amounts as follows:
Year Amount Year Amount
1994-1995 $25,000 1999 $35,000
1996-1998 30,000
Ail dates are inclusive.
3. Purpose; Refunding Findings. The Bonds shall
provide funds for a crossover refunding of all the City's
callable Prior Bonds (the "Refunding"). It is hereby found,
determined and declared that the Refunding is pursuant to
Minnesota Statutes, Section 475.67, Subdivision 13, and shall
result in a reduction of debt service cost to the City.
2
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, 1993, calculated
on the basis of a 360-day year of twelve 30-day months, at the
respective rates per annum set forth opposite the maturity years
as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
1994 % 1997
1995 1998
1996 1999
5. No Redemption. The Bonds shall not be subject to
redemption and prepayment prior to their maturity.
6. Bond Registrar. Firstar Trust Company, in
Milwaukee, Wisconsin, 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:
3
UNITED STATES OF AMERICA
STATE OF MINNESOTA
SCOTT COUNTY
CITY OF PRIOR LAKE
R-
GENERAL OBLIGATION
CROSSOVER REFUNDING BOND OF 1992A
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
OCTOBER 1, 1992
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Prior Lake, Scott 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, without option of
prepayment, and to pay interest thereon semiannually on February
1 and August 1 of each year (each, an "Interest Payment Date"),
commencing August 1, 1993, 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
Firstar Trust Company, in Milwaukee, Wisconsin (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,
225525
4
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.
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 Prior Lake, Scott
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 Manager, the corporate seal of the Issuer having been
intentionally omitted as permitted by law.
zz5525
5
Date of Registration:
Registrable by: FIRSTAR TRUST
COMPANY
Payable at: FIRSTAR TRUST COMPANY
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
CITY OF PRIOR LAKE,
SCOTT COUNTY, MINNESOTA
/S/ Facsimile
Mayor
FIRSTAR TRUST COMPANY
Milwaukee, Wisconsin
Bond Registrar
/s/ Facsimile
Manager
By
Authorized Signature
225525
6
ON REVERSE OF BOND
NQ Redemption. The Bonds of this issue (the "Bonds")
are not subject to redemption and prepayment prior to their
maturity.
Issuance; Purpose; General Obliqation. This Bond is
one of an issue in the total principal amount of $175,000, all of
like date of original issue and tenor, except as to number,
maturity, interest rate and denomination 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 September 21, 1992
(the "Resolution"), for the purpose of providing funds sufficient
for a crossover refunding on August 1, 1993, of the Issuer's
General Obligation Bonds of 1984, dated April 1, 1984, which
mature on August 1, 1994, and thereafter. This Bond is payable
out of the Escrow Account and the Debt Service Account of the
Issuer's General Obligation Crossover Refunding Bonds of 1992A
Fund. 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: Exchanae; Resolution. The Bonds are
issuable solely as fully registered bonds in the denominations of
$5,000 and integral multiples thereof of a single maturity and
are 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
225525
7
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 0r boss. 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 this Bond and any legal or unusual costs regarding
transfers and lost Bonds.
Treatment of Reaistered 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.
Oualified Tax-Exempt Obliaation. 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.
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
(Ch/st) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
225525
8
ASSIGNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
the within Bond and does
hereby irrevocably constitute and appoint
attorney to transfer the Bond on the books kept for the
registration thereof, with full power of substitution in the
premises.
Dated:
Notice:
Signature Guaranteed:
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(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.
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.)
225525
9
8. Execution: Temporary Bonds. The Bonds shall be
executed on behalf of the City by the signatures of its Mayor and
Manager and be sealed with the seal of the City; provided,
however, that the seal of the City may be a printed facsimile;
and provided further that both of such signatures may be printed
facsimiles and the corporate seal may be omitted 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 Manager. Such temporary bonds shall, upon the printing
of the definitive bonds and the execution thereof, be exchanged
therefor and cancelled.
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 October 1, 1992. 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.
10
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
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.
Ail Bonds surrendered upon any exchange or transfer
provided for in this resolution shall be promptly cancelled 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 Manager is hereby authorized to negotiate and execute
the terms of said agreement.
225525
11
11. Rights Upon Transfer or Exchanqe. 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.
14. Delivery; ADplication 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. Fund and Accounts. There is hereby created a
special fund to be designated the "General Obligation Crossover
Refunding Bonds of 1992A Fund" (the "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 Fund shall be
maintained in the manner herein specified until all of the Bonds
and the interest thereon have been fully paid. There shall be
maintained in the Fund two (2) separate accounts, to be
designated the "Escrow Account" and "Debt Service Account",
respectively.
12
(i) Escrow Ac~Qun%. The Escrow Account shall be maintained
as an escrow account with Firstar Trust Company (the "Escrow
Agent") in Milwaukee, Wisconsin, which is a suitable financial
institution within the State whose deposits are insured by the
Federal Deposit Insurance Corporation and whose combined capital
and surplus is not less than $500,000. Ail proceeds of the sale
of the Bonds shall be received by the Escrow Agent and applied to
fund the Escrow Account or to pay costs of issuing the Bonds.
Proceeds of the Bonds not used to pay costs of issuance are
hereby irrevocable pledged and appropriated to the Escrow
Account, together with all investment earnings thereon. The
Escrow Account shall be invested in securities maturing or
callable at the option of the holder on such dates and bearing
interest at such rates as shall be required to provide sufficient
funds, together with any cash or other funds retained in the
Escrow Account, (i) to pay when due the interest to accrue on
each Bond herein authorized to and including August 1, 1993~ and
(ii) to pay when called for redemption on August 1, 1993, the
principal amount of each of the Prior Bonds. From the Escrow
Account there shall be paid (1) all interest on the Bonds herein
authorized to and including August 1, 1993, and (2) the principal
of the Prior Bonds due by reason of their call for redemption on
August 1, 1993. The Escrow Account shall be irrevocable
appropriated to the payment of the principal of and interest on
the Bonds herein authorized until the proceeds of the Bonds are
applied to payment of the Prior Bonds. The moneys in the Escrow
Account shall be used solely for the purposes herein set forth
and for no other purpose, except that any surplus in the Escrow
Account may be remitted to the City, all in accordance with an
agreement (the "Escrow Agreement") by and between the City and
Escrow Agent, a form of which agreement is on file in the office
of the Manager. Any moneys remitted to the City upon termination
of the Escrow Agreement shall be deposited in the Debt Service
Account.
(ii) Debt Service Account. To the Debt Service Account
there is hereby pledged and irrevocable appropriated and there
shall be credited: (1) any collections of all taxes herein or
hereafter levied for the payment of the Bonds and interest
thereon~ (2) any balance remitted to the City upon the termina-
tion of the Escrow Agreement~ (3) any balance remaining on August
2, 1993, in the Debt Service Account of the General Obligation
Bonds of 1984 Fund created by the Prior Resolution~ (4) any
collections of all taxes heretofore levied for the payment of the
Prior Bonds and interest thereon which are not needed to pay the
Prior Bonds as a result of the Refunding~ (5) all investment
earnings on funds in the Debt Service Account~ and (6) any and
all other moneys which are properly available and are
appropriated by the governing body of the City to the Debt
225525
13
Service Account. The amount of any surplus remaining in the Debt
Service Account when the Bonds and interest thereon are paid
shall be used consistent with Minnesota Statutes, Section 475.61,
Subdivision 4.
The moneys in the Debt Service Account shall be used solely to
pay the principal of and interest on the Bonds or any other bonds
hereafter issued and made payable from the Fund. 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 Fund (or any other
City account which will be sued to pay principal and interest to
become due on the Bonds) in excess of amounts which under the
applicable federal arbitrage regulations may be invested without
regard as to yield shall not be invested in excess of the appli-
cable yield restrictions imposed by the arbitrage regulations on
such investments after taking into account any applicable
"temporary periods" or "minor portion" made available under the
federal arbitrage regulations. In addition, the proceeds of the
Bonds and 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 federal Internal Revenue Code of 1986, as amended (the
"Code").
16. Prior Bonds; Security. Until retirement of the
Prior Bonds, all provisions theretofore made for the security
thereof shall be observed by the City and all of its officers and
agents.
17. Tax Lew; CoveraGe Test: Cancellation Of certain
Tax Levies. 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:
225525
14
Year of Tax Year of Tax
Levy Collection Amount
The tax levies are such that if collected in full they,
together with estimated collections of other revenues herein
pledged for the payment of the Bonds and sums held in the Escrow
Account, 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.
Upon payment of the Prior Bonds, the taxes levied in
Paragraph 16 of the Prior Resolution authorizing the issuance of
the Prior Bonds, in the years 1992 through 1997 for collection in
1993 through 1998 shall be cancelled.
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 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, subject to sale and/or reinvestment, to pay
all amounts to become due thereon to maturity.
225525
15
19. General Obliaation Pledge. For the prompt and
full payment of the principal of 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 Escrow Account or Debt Service Account is
ever insufficient to pay all principal and interest then due on
the Bonds payable therefrom, the deficiency shall be promptly
paid out of any other accounts of the City which are available
for such purpose, and such other funds may be reimbursed without
interest from the Escrow Account or Debt Service Account when a
sufficient balance is available therein.
20. Securities; Escrow Agent. Securities purchased
from moneys in the Escrow Account shall be limited to securities
set forth in Minnesota Statutes, Section 475.67, Subdivision 8,
and any amendments or supplements thereto. Securities purchased
from the Escrow Account shall be purchased simultaneously with
the delivery of the Bonds. The City Council has investigated the
facts and hereby finds and determines that the Escrow Agent is a
suitable financial institution to act as escrow agent.
21. Redemption of Prior Bonds. The Prior Bonds which
mature in 1994 and thereafter shall be redeemed and prepaid on
August 1, 1993, in accordance with the terms and conditions set
forth in the Notice of Call for Redemption attached hereto as
Exhibit A, which terms and conditions are hereby approved and
incorporated herein by reference. Said Notice of Call for
Redemption shall be mailed to the paying agent or agents for the
Prior Bonds prior to said redemption date therefor and to the
registered owner of each Prior Bond at the address shown on the
registration books kept by the registrar for the Prior Bonds
pursuant to the Escrow Agreement.
22. Escrow Agreement. On or prior to the delivery of
the Bonds the Mayor and Manager shall, and are hereby authorized
and directed to, execute on behalf of the City an Escrow
Agreement. The Escrow Agreement is hereby approved and adopted
and made a part of this resolution, and the City covenants that
it will promptly enforce all provisions thereof in the event of
default thereunder by the Escrow Agent.
23. P~rchase of SLGS. The Finance Director, or anyone
designated by the Finance Director to act in his or her behalf,
is hereby authorized and directed to purchase the appropriate
United States Treasury Securities, State and Local Government
Series, from the proceeds of the Bonds in accordance with the
provisions of this resolution and to execute all such documents
(including the appropriate subscription form) required to effect
225525
16
such purchase in accordance with the U.S. Treasury Regulations
(31 CRF Part 344).
24. Certificate of Reaistration. The Manager is
hereby directed to file a certified copy of this resolution with
the County Auditor of Scott 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, that the tax levy for the
Prior Bonds has been canceled, and that the tax levy required by
law for the Bonds has been made.
25. 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 re furnished,
shall be deemed representations of the City as to the facts
recited therein.
26. Neqative Covenant as to Use of Proceeds and
Proiect. The City hereby covenants not to use the proceeds of
the Bonds or to use the Project, or to cause or permit them to be
used, or to enter into any deferred payment arrangements for the
cost of the Project, 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.
27. 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.
225525
17
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 is not reasonably expected to exceed $5,000,000, all
within the meaning of Section 148(f)(4)(D) of the Code.
Furthermore:
(i) each of the Prior Bonds was issued as part of
an issue which was treated as meeting the rebate
requirements by reason of the exception for govern-
mental units issuing $5,000,000 or less of bonds;
(ii) the average maturity of the Bonds does not
exceed the remaining average maturity of the Prior
Bonds; and
(iii) no maturity of the Bonds has a maturity
date which is later than the date which is thirty (30)
years after the dates the Prior Bonds were issued.
28. Designation of Oualified Tax-Exempt Obligations.
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;
(b) the Bonds are not "private activity bonds" as
defined in Section 141 of the Code;
(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
z255z5
18
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 1992 will not exceed $10,000,000;
(e) not more than $10,000,000 of obligations
issued by the City during this calendar year 1992 have
been designated for purposes of Section 265(b)(3) of
the Code; and
(f) the aggregate face amount of the Bonds does
not exceed $10,000,000.
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.
29. Supplemental Resolution. The Prior Resolution is
hereby supplemented to the extent necessary to give effect to the
provisions of this resolution.
30. 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.
31. Headinas. 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:
adopted.
Whereupon said resolution was declared duly passed and
19
STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF PRIOR LAKE
I, the undersigned, being the duly qualified and acting
Manager of the City of Prior Lake, 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 authorizing the issuance of, and awarding the sale of,
$175,000 General Obligation Crossover Refunding Bonds of 1992A of
said City.
WITNESS my hand and the seal of said City this 21st day
of September, 1992.
(SEAL)
Manager
2255z5
2O
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION BONDS OF 1984
CITY OF PRIOR LAKE,
SCOTT COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the
City of Prior Lake, Scott County, Minnesota, there have been
called for redemption and prepayment on
August 1, 1993
those outstanding bonds of the City designated as General Obliga-
tion Bonds of 1984, dated April 1, 1984, having stated maturity
dates in the years 1994 through 1999, and totalling $165,000 in
principal amount. The bonds are being called at a price of par
plus accrued interest, plus a premium of one percent (1.00%) of
par to August 1, 1993, on which date all interest on said bonds
will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment, at
First Trust National Association (formerly, First Trust Company
of Saint Paul), 180 East Fifth Street, 3rd Floor - Bond Drop
Window, or if by mail, to P. O. Box 64111, in Saint Paul,
Minnesota 55164-0111, on or before August 1, 1993.
Dated: September 21, 1992.
BY ORDER OF THE CITY
COUNCIL
/s/ Dav%d Unmacht
Manager
Important Notice: Under the Interest and Dividend Compliance Act
of 1983, 20% will be withheld if tax identification is not
properly certified.
Additional information
may be obtained from:
JURAN & MOODY, INC.
Minnesota Mutual Life Building
400 North Robert Street
Suite 800
St. Paul, Minnesota 55101-2091
Telephone No.: (612) 224-1500
Attn.: Lori A. Denker
Public Finance Department
000000000000000
00000000
00000000
~00000
0
0
REFPRIO1
09/21/92
CITY OF PRIOR LAKE, MINNESOTA
GO CROSSOVER REFUNDING GONDS OF 1992
MAT SCHEDULE - NEN BONOS : NEN ISSUE
168,900.00
B0.61
APPLICATION OF FUNDS
Acquired Obligations
Beginning Escrow Cash
Under,riter's Discount 1.96~ 3,430.00
Rating Agency Fee 0
Bond Counsel 2,500.00
Bond Printing 372.00
Paying Agent/Registrar (PP) 1,590.00
Escrow Agent (PP) 1,000.00
Escrow Verification (CPA) 1,250.00
Financial Advisor Fee 0
Less Accrued Interest
Cash From City
(292.25)I
(3,B30.36)I
$175,000.00
NE~ BOND ISSUE PAR AMOUNT
1 I Dated Date: 10/01/92
YEAR PRINCIPAL RATE ~ Est. Closing Date: 10/15/92
.................... I 1st Interest Pymt Date: 08/01/93
1992 I Final Maturity Date: 08/01/99
1993 ~ Months 1st Period: 10
1994 25,000 3.601 I Purchase Price: 171,570.00
1995 25,000 3.90~ I Average Rate: 4.4450~
1996 30,000 4.20~ ~ Net Effect Rate: 4.8788Z
1997 30,000 4.40~ ~ Aver Life (Years): 4.5190
1998 30,000 4.60~ I Call Date ~ Par NC
1999 35,000 4.B0~ :
I OLD 80NOS
I Call Date 08/01/93
I Call Price 101.00
I Last Payment Date: 08/01/92
~ Est. Closing Date: 10115192
I Next Payment Date: 02101/93
~ Months Since Last Pymt: 2
I Days Since Last Pymt: 74
I Principal Outstanding: 185,000
~ Average Rate: 10;03825
I Aver Life (Years): 4.6212
I Principal Refunded: 165,000
$175,000 I
SLG DATES
Prior Maturity Date: 08/01/92
Settlement Date: 10/15/92
First Maturity Date: 02/01/93
Second Maturity Date: 08101/93
PRESENT VALUE SUMMARY I DEBT REDUCTION SUMMARY
Present Value - Refunded Debt 191,329.69 I Total Payments - Old Debt 266,237.50
Present Value - Ne, Debt 170,640.6~ : Total Payments - New Debt (242,322.50)
GROSS PV REDUCTION 20,689.05 I GROSS REDUCTION 2~,915.00
Cash From City (3,830.36)I Cash From City (3,830.36)
NET PV REDUCTION 16,858.69 I NET REDUCTION 20,084.64
AS PERCENT OF OLD DIS B.8151
JURAN & MOODY, INC.
Steven J. Mattson
400 N. Robert, St. Paul, MN
PREPARED BY:
612-224-1500
800-950-4666
55101
Page 1
REFPRI01 CITY OF PRIOR LAKE, MINNESOTA
OLD BONDS - Debt Service
S295,000 General Obligation Bonds of lgB4
Maturity Semi-Annual P.V.
Date Prin Rate Interest Payment Expon
02/01/93 g,216.25
OB/Ol/g3 20,000 9.75% 9,216.25
02/01/94 B,241.25
OB/OI/g4 20,000 9.75% B,241.25
02/01/95 ?,266.25
OB/Ol/9S 25,000 9.75% 7,266.25
021011% 6,047.50
0B/01/96 25,000 10.00% 6,047.50
02/01/97 4,797.50
OB/O1/g? 30,000 10.10% 4,797.50
02/OI/gB 3,2B2.50
OB/O1/gB 30,000 10.10% 3,2B2.50
02/Ol/gg 1,767.50
OB/OI/g9 35,000 10.10% 1,767.50
9216.25
29 216.25
8 241.25
2B 241.25
? 266.25
32266.25
6 047.50
31 047.50
4 797.50
34 797.50
3,2B2.50
33,2B2.50
i,767.50
36,767.50
0.59
1.59
2.59
3.59
4.59
5.59
6.59
7.59
8.59
9.59
10.59
11.59
12.59
13.59
Cost To Call a
101.00 166,650.00
Callable
Principal
Dn
0B/01/93
20,000
25,000
25,000
30,000
30,000
35,000
TOTAL lBS,000
B1,237.50 266,237.50
76,540.42 762.49
165,000
Page 2
REFPRI01 CITY OF PRIOR LAKE, MINNESOTA
NEN BONDS - Debt Service
* - Paid By Escrow
Maturity
Date Principal Rate Interest
02/01/93
0B/01/93
02/01/94
0B/01/94 25,000 3.60Z
02/01/95
08/01/95 25,000 3.901
02/01/96
0B/01/96 30,000 4.20Z
02/01/97
08/01197 30,000 4.40Z
02/01/9B
08/01/98 30,000 4.60~
02/01/99
0B/01/99 35,000 4.805
262.50
,757.50
757.50
307.50
307.50
820.00
820.00
2,190.00
2,190.00
1,530.00
1,530.00
840.00
B40.O0
Yield of Bonds:
Maximum Allowable Yield:
Semi-Annual
PaymerL
(176,69B.40)
6 262.50
3 757.50
28 757.50
3 307.50
28 307.50
2.820.00
32 820.00
i,530.00
31,530.00
840.00
35,840.00
4.2277766~
4.B259394Z
Present
Value
6,057.77
3,559.42
26,677.60
3,004.77
25,184.16
2,456.92
28,002.38
1,829.B5
26,339.51
1,226.01
24,742.36
645.52
26,972.14
0.01
TOTAL 175,000 35,152.50 210,152.50 176,698.41
MAXIMUM ALLONABLE YIELD: YIELD OF REFUNDING BONDS + ((25,000*YIELD OF REFUNDING BONDS)/NET BOND PROCEEDS)
Page
REFPRIO! CITY OF PRIOR LAKE, MINNESOTA
Debt Service Comparison
Old Issue New Issue Combined Old DIS CUMM N.P.V. Computed at Yield
Maturity Debt Debt New Debt Debt Decrease Decrease of Bonds ~ 4.2277766%
Date Service Service Service Service (Increase) (Increase) New Old
02/01/93 9,216.25
08/01/93 29,216.25
02/01/94 3,757.50
08/01/94 28,757.50
02101195 3,307.50
OBIOI/gS 28,307.50
02/01/96 2,820.00
08/01/96 32,820.00
02/01/97 2,190.00
08/01/97 32,190.00
02/01/98 1,530.00
08/01/98 31,530.00
02/01/99 840.00
08/01/99 35,840.00
9,216.25
29,216.25
3,757.50
28,757.50
3.307.50
28.307.50
2.820.00
32820.00
2.190.00
32.190.00
1530.00
31 530.00
840,00
35,840.00
81
28.
32
31
4
34
3
33
1
36
216.25
216.25
241.25 4,483.?5
241.25 (516.25)
266.25 3,958.75
266.25 3,958.75
047.50 3,227.50
047.50 (1,772.50)
797.50 2,607.50
797.50 2,607.50
282.50 1,752.50
282.50 1,752.50
767.50 927.50
767.50 927.50
4,483.75
3,967.50
7,926.25
11BB5.00
15 112.50
13 340.00
15947.50
lB 555.00
20.307.50
22.060.00
22987.50
23915.00
3559.42
26 677.60
3 004.77
25 184.16
2 456.92
28 002.38
1829.85
26339.51
1,226.01
24,742.36
645.52
26,972.14
?,B06. B1
26,198.69
6,601.17
28,706.12
5,268.86
26,490.06
4,008.54
28,473.10
2,630.31
26,117.59
i,358.29
27,670.15
T0TAL 38,432.50 203,890.00 242,322.50 266,237.50 23,915.00
170,640.64 191,329.69
Page 4
REFPRI01 CITY DF PRIOR LAKE, MINNESOTA
ESCROW CASH FLOW
Debt
Maturity Service
02/01/93
0B/01/93 172,912.50
Other
Income
Yield of Acquired Oblig.:
Maximum Allo#able Yield:
Uariance in Present Ualue:
2.g113040%
4.B259394%
0.01
Net "SLG' Total
Payment Prin Rate Interest Received
.............................................. 16B900.00
172,912.50 16B,900 2.93% 3,931.90 172,831.90
Balance P.V. Present
.......... Exponent Value
B0.61 ....................
80.61 0.59239
0.01 1.59239 168,900.01
TOTAL
172,912.50 172,912.50 16B,gO0
3,931.90 172,B31.g0
16B,900.01
Page 5
REFPRI02
09/21/92
CITY OF PRIOR LAKE, MINNESOTA
60 CROSSOVER REFUNDING BONOS OF 1992
APPLICATION OF FUNDS : MAT SCHEDULE - NEW BONDS ~ NEW ISSUE
1.96%
Acquired Obligations
Beginning Escrow Cash
Underwriter's Discount
Rating Agency Fee
Bond Counsel
Bond Printing
Paying Agent/Registrar
Escrow Agent
Escrow Verification (CPA)
Financial Advisor Fee
839,500.00 : 1 ) Dated Date: 10101/92
91.07 : YEAR PRINCIPAL RATE ~ Est. Closing Date: 10/15/92
~ .................... ~ 1st Interest Pymt Date: 06/01/93
16,856.00 : 1992
0 I 1993 ) Months 1st Period: 8
2,500.00 : 1994 130,000 3.60% : Purchase Price: 843,144.00
493.00 : 199§ 130,000 3.90% ~ Average Rate: 4.4143%
1,590.00 { 1996 150,000 4.20% I Net Effect Rate: 4.8261%
1,000.00 { 1997 150,000 4.40% : Aver Life (Years): 4.759?
1,250.00 ) 1998 150,000 4.60%
0 : 1999 150,000 4.80%
I : OLD BONOS
(1,429.17)) ) Cai! Date 12/01/93
(1,850.90)~ ) Call Price 100.00
............ ) ~ Last Payment Date: 06/01/92
$860,000.00 ) ) Est. Closing Date: 10/15/92
....... = .... : : Next Payment Date: 12/01/92
: I Months Since Last Pymt: 4
I I Days Since Last Pymt: 134
I : Principal Outstanding: 1,025,000
I : Average Rate: 6.5164%
: : Aver Life (Years): 4.8031
: : Principal Refunded: 825,000
$860,000
) I SLB O~TcS
I : Prior Maturity Date: 06/01/92
: : Settlement Date: 10/15/92
: I First Maturity Date: 12/01/92
Less Accrued Interest
Issuer Cash Received (Applied)
NEW BOND ISSUE PAR AMOUNT
~. : : Second Maturity Date: 06/01/93
~ ................................................. I ..................
PRESENT VALUE SUMMARY
Present Value - Refunded Debt
Present Value - New Debt
GROSS PV REDUCTION
Issuer Cash Received (Applied)
NET PV REDUCTION
AS PERCENT OF OLD DIS
: DEBT REDUCTION SUMMARY
846,737.53 I Total Payments - Old Debt 1,312,412.50
827,317.94 I Total Payments - New Debt 1,290,207.50
19,419.59 I GROSS REDUCTION 22,205.00
(I,850.90)) Issuer Cash Rec. (Applied) (1,850.90))
17,568.69 : NET REDUCTION 20,354.10
2.07%I
PREPARED BY:
612-224-1500
800-950-4666
JURAN & MOODY, INC.
Steven J. Mattson
400 N. Robert, St. Paul, MN
55101
Page 1 - 21-Sep-92
REFPRI02 CITY OF PRIOR LAKE, MINNESOTA
OLD BONDS - Debt Service
$1,175,000 BO IMP BONDS OF 19B9
Maturity
Date
12/01/92 t00,000 6.20% 32
06/01/93 29
12/01/93 100,000 6.25% 29
06/01/94 26.
12/01/94 125,000 6.30% 26,
06/01/95 22.
12/01/95 125,000 6.40% 22.
06/01/96
12/01/96 125,000 6.40%
06/01/97 14
12/01/97 150,000 6.50% 14
06/01/9B 9
12/01/9B 150,000 6.50% 9
06/01/99 4
12/01/99 150,000 6.60% 4
Semi-Annual
Prin Rate Interest Payment
862.50 132,B62.50
762.50 29,762.50
762.50 129,762.50
63?.50 2663?.50
637.50 151~637.50
?00.00 22.?00.00
700.00 147 700.00
?00.00 lB ?00.00
700.00 143 700.00
700.00 14 700.00
700.00 164 ?00.00
B25.00 9 B25.00
B25.00 159,B25.00
950.00 4,950.00
950.00 154,950.00
Cost To Call
100.00
B25,000
Callable
Principal
On
12101/93
125,000
125,000
125,000
150,000
150,000
150,000
TOTAL 1,025,000
2B?,412.50 1,312,412.50
B25,000
Page 2 - 21-Sep-92
REFPRI02 CITY OF PRIOR LAKE, MINNESOTA
NEW BONDS - Debt Service
* - ?,id By Escrow
Maturity
Bate Principal Rate Interest
12/01/92
06/01/93
12/01/93
06101194
12/01/94 130,000 3.80%
08/01/95
12101195 130,000 3.90%
08/01/98
12/01/% 150,000 4.20%
08/01/97
12/01/97 150,000 4.40%
1210119B 150,000 4.60%
08/01/99
12/01/99 150,000 4.80%
24 500.00
18 375.00
lB 375.00
18.375.00
1&035.00
13500.00
i3.500.00
10 350.00
10 350.00
? 050.00
7,050.00
3,600.00
3,600.00
Yield of Bonds:
Maximum Allowable Yield:
Semi-Annual
Payment
(868,?20.5?)
24 500.00
18 375.00
18375.00
14B 375.00
16 035.00
148 035.00
13 500.00
183 500.00
i0,350.00
180,350.00
7,050.00
157,050.00
3,600.00
153,800.00
4.1998044%
4.3204&04%
Present
Value
23. B89.03
17.533.60
17.173.00
135817.20
14.376.00
12B.233.41
I1 610.58
137 724.B1
B 539.06
129 572.73
5 579.67
121 739.B5
2,733.21
114,21B.44
TOTAL 860,000 1B0,695.00 1,040,695.00 B68,720.57
MAXIMUM ALLOWABLE YIELD = YIELD OF REFUNDING BONDS + {(25,000*YIELD OF REFUNDING BONDS)/NET BOND PROCEEDS)
Page 3 - 21-Sep-92
REFPRI02 CITY OF PRI0R LAKE, MINNESOTA
Debt Service Comparison
Maturity
Oate
12101/92
06/01/93
12/01/93
06/01/94
12/01/94
06/01/95
12/01/95
06/01/96
12/01/96
06/01/97
12/01/97
06/01/98
12/01/98
06/01/99
12101/99
Old Issue
Debt
Service
132,862.50
29,762.50
129,762.50
New Issue
Debt
Service
IB 375.00
148 3?5.00
16 035.00
146 035.00
13 500.00
163.500.00
10 350.00
160 350.00
7,050.00
157,050.00
3,600.00
153,600.00
Combined Old DIS CUMM
Ne, Debt Oebt Decrease Oecrease
Service Service (Increase) (Increase)
132,862.50 132,862.50
29,762.50 29,762.50
129,762.50 129,762.50
18,375.00 26,637.50 B,262.50 B,262.50
148,375.00 151,637.50 3,262.50 11,525.00
16,035.00 22,?00.00 6,665.00 18,190.00
146,035.00 147,100.00 1,665.00 19,855.00
13,500.00 1B,?O0.O0 5,200.00 25,055.00
163,500.00 143,700.00 (19,B00.00) 5,255.00
10,350.00 14,700.00 4,350.00 9,605.00
160,350.00 164,700.00 4,350.00 13,955.00
7,050.00 9,825.00 2,775.00 16,730.00
157,050.00 159,825.00 2,775.00 19,505.00
3,600.00 4,950.00 1,350.00 20,855.00
153,600.00 154,950.00 1,350.00 22,205.00
N.P.V. Computed at Yield
of Bonds ~ 4.1996044%
New Old
17 173.00
135 817.20
14 376.00
128 233.41
I1 610.56
137~724.81
B.539.06
129572.?3
5579.67
121,739.85
2,733.21
114,218.44
24
138.
20.
129
16.
121
12
133
?
123
3
115
895.02
803.57
351.43
695.45
082.77
046.21
127.94
087.79
775.93
890.94
.758.16
222.32
TOTAL 292,387.50 997,820.00 1,290,207.50 1,312,412.50 22,205.00
827,317.94 846,737.53
Page 4 - 21-Sep-92
RURAL SERVICE AREA POLICY AMENDMENT
Policy 2 - The rural service area of .Prior Lake will serve a
holding and/or transition zone permitting open space land uses.
The objective is to preserve large tracts of land which will
accommodate future urban planned development.
While agricultural land sometimes has been described as open
space for.adjoining urban development, it continues to be a part
of the Pr$or Lake economy. Although farming is still the major
land use in the rural areas of Prior.Lake, a definite transition
is occurring. The major large land holdings have been purchased
by developers and investors in anticipation of a significant
demand in urban land in the years ahead. The Mdewakanton Sioux
Community is also active in acquiring land adjacent to o7 clo~e
to the existing reservation land. These areas will continue :o
raise crops as a transition use between the rural and urban
environment. The conversion of agricultural land for opeh space
recreational uses can be a permitted part of the rural service
area as long as they can function economically, physically, and
environmentally independent of urban services. Such uses however
should be planned and designed to facilitate the transition to
urban services. Such uses may include golf courses, stables and
riding academies, and public parks.
! siting of private waste water treatment plants.in the .rural
a will be evaluated on a case by case basis. In lieu of
cifically disallowing all of the requests for such treatment
nts, MPCA's 7080 regulations will be followed for all on-site
.~treatment plants and all other types of systems serving
)individual uses. Standards for the generation of private waste
/water treatment p%ants will include specific operation and
~aintenance requirements for each such system. The
esponsibility for continued function of such plants in
ccordance with MPCA standards rests with the City of Prior Lake.
n the event a private waste water treatment plant fails, prior
ke will be the responsible government unit to provide service.
However, the basic City policy of encouraging construction where
public se?ices are available wall be accomplished through a
rural service density of 4 unitS - per quarter/quarter section
preferably on non-t~llable land. Prior Lake's rural area policy
is no~ a preserve for purely agricultural "uses but may bs
described as a holding zone which permits among other uses, open
space land uses designed for orderly transition to urban
services.
f ,,cPO211.
WATER RESOURCE MANAGEMENT PLAN
The eleven lakes, multiple waterways, wetlands and streams
located within the corporate limits of Prior Lake are the
principle 9atural resource of the community. The City of Prior
Lake is unlque due to the existence of the water bodies which are
an integral component of the history, identification and growth
of Prior Lake. The water bodies provide tremendous
opportunities for water-based recreation and unique residential
environments for people who choose to live in or visit the City.
The recreational use of local water resources has a distinct
economic benefit for local business. The water resources provide
opportunities for people to collectively enjoy a sense of place
and to become part of a greater "Lake Community."
Sound storm water management practices and water q~.ality
standards are .paramount in preserving the water oriented
environment of Prior Lake residents. Furthermore, sound water
management practices will not only accrue to the benefits of
Prior Lake residents but the region as a whole. To that end,
Prior Lake will adopt the storm water management standards found
in the Minnesota Pollution Control Agency's "Best Management
Practices" manual titled "Protecting Water Quality in Urban
Areas". To reduce contamlhant loadings from surface water
runoff,- Prior Lake will adopt stormwater pond design standards
from the National Urban Runoff Program as stated in Chapter Four
of MCPA's "Best Management Practices".
RESOLUTION 92-32
RESOLUTION REJECTING ALL BIDS RECEIVED FOR
HOLLY CIRCLE IMPOUNDMENT STRUCTURE
(PROJECT 92-12)
MOTIONED BY
SECONDED BY
WHEREAS, pursuant to an advertisement for bids for the
installation of an impoundment structure in Block 2 of
Holly Court; bids were received, opened, and tabulated
according to the law, and the following bids were
received complying with the advertisement:
CONTRACTORS
JAY BROTHERS, INC.
RYAN CONTRACTING~ INC.
RICE LAKE CONTRACTING
BASE BID
$ 82,966.00
$ 84,128.00
$102,361.00
TOTAL BID
(BASE & ALTERNATES)
$ 93e775.00
$ 96e829-00
$110t533.00
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
PRIOR LAKE, MINNESOTA, that
The Mayor and City Manager are hereby authorized to
reject all bids received.
The city Manager is hereby authorized and directed to
return forthwith to all bidders the deposits made with
their bids.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Passed and adopted this
Andren
Fitzgerald
Kedrowski
Scott
White
21st day of September , 1992.
YES
Andren
Fitzgerald
Kedrowski
Scott
White
NO
{Seal}
David J. Unmacht
City Manager
City of Prior Lake
September 16, 1992
Mr. David J. Unmacht
City Manager
City of Prior Lake
4629 Dakota Street
Prior Lake, MN 55372-1714
Deer Mr. Unmacht:
Enclosed, as requested, are six additional copies of our proposal for the Prior Lake Space and
Supplemental Staffing Needs Analysis. As per our discussion, we have agreed to complete the
workscope described in our proposal for a fee not to exceed $16,000.
We appreciate the opportunity to be of service to the City of Prior Lake and we are prepared to
commit our most experienced staff to your project.
Executive Vice-President
Boarman Kroos Pfister & Associates, Inc.
2-prior
BOA RMA N KROOS P FISTE R & ASSOCIATES
ARCHITECTURE INTERIOR DESIGN ENGINEERING
222 North Second Street · Minneapolis Minnesota 55401 · Fax 339-6212 Phone 612-339-3752
Equal Opportunity Employer
AGENDA NUMBER:
PREPARED BY:
SUBJECT:
DATE:
9
KAY SCHMUDLACH, ASSISTANT CITY MANAGER
CONSIDER RECOMMENDATION ON SPACE AND STAFFING
NEEDS ANALYSIS
SEPTEMBER 21, 1992
INTRODUCTION:
BACKGROUND-.
On May 18, 1992 staff received approval from
the City Council to proceed with a Space and
Staffing Needs Analysis. On July 6, 1992 the
City Council approved the RFP for the project.
Staff has proceeded with the selection process
for hiring a consultant and the purpose of
this item is to consider a recommendation to
hire a firm.
In 1991 staff identified a Space and Staffing
Needs Analysis as a priority for 1992, stating
limited space and growing service demands as
rational for completing a comprehensive study.
The 1992-1996 Capital Improvement Program
reflects this request at an estimated cost of
$15,000. See attached project description
CIP - 5 from the 1992-1996 document.
On July 6, 1992 staff requested approval to
proceed with the study and prepared a draft
RFP for Council review. The City Council
approved the RFP and directed staff to
distribute the request to interested parties.
The distribution included 13 firms; 11
proposals were returned. The fee proposals
ranged from around $13,000 to a high of
$50,000. A wide cross section of bids,
experience and proposals were received.
A committee of staff and Councilmember
Kedrowski reviewed all 11 proposals and
reduced the number of firms to be interviewed
to 6. The following 6 firms were interviewed:
Schrader Engineering, The Alliance, KKE
Architects, Boarman Kroos Pfister &
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY F. MPLOYER
RECOMMENDATION:
ALTERNATIVES:
Associates, Thorbeck Architects Ltd., and
Buetow and Associates, Inc. Ail 6 companies
sent 2-3 representatives for a 30-45 minute
interview which was conducted on Tuesday,
September 8, 1992. (A local firm, Schrader
Engineering, was interviewed, but is not being
recommended based on their performance with
respect to the evaluation criteria.)
The four staff members involved in the
interview process were: Bill Mangan, Steve
Schmidt, Kay Schmudlach, and David Unmacht.
The firms were evaluated based on the
following: 1) experience, 2) costs, 3) ability
to complete work in a timely fashion, 4)
methodology, 5) familiarity with ADA and other
state and federal mandates, and 6)
presentation format and content.
The staff team universally agreed on Boarman
Kroos Pfister & Associates as the number one
firm. The cost submitted in the proposal was
$18,840. City Manager Unmacht negotiated a
reduction in fee to be more in line with our
estimated cost. Enclosed is a letter from
David Kroos committing the firm to a fee
~roposal not to exceed $16,000. Also enclosed
lSa copy.of the Design Services Proposal.
For a review of the study methodology see
pages 10-13. David Kroos will be available to
answer any questions on their proposal at the
meeting.
Staff recommends Council agree to contracting
with Boarman Kroos Pfister & Associates to
perform the Space and Staffing Needs Analysis
for an agreed upon fee not to exceed $16,000.
The City Council has the following
alternatives:
The City Council can agree to contract
with Boarman, Kroos, Pfister and
Associates for the completion of the
Space and Staffing Needs Analysis at a
price of $16,000. Funds for this project
would be from the general fund balance.
The City Council can request staff to
renegotlate an agreement for the
completion of the Space and Staffing
Needs Analysis with Boarman, Kroos,
Pfister and Associates or another
interested firm.
2
ACTION REQUIRED:
3. The City Council can decline to proceed
with the Space and Staffing Needs
Analysis at this time.
A motion by the City Council to approve
Boarman Kroos Pfister & Associates to complete
the Space and Staffing Needs Analysis at a fee
not to exceed $16,000. Staff will follow up
to the Council with a formal agreement at a
future meeting.
I
i
I CIP-5
I. Description and Location:
Facilities Space Needs Analysis
(CITY HALL)
(UBRAnY)
(PARKS)
(PUBUC WORKS)
II. Purpose:
Evaluate current and future office space and
maintenance facilities space requirements for the
purpose of planning strategic expansion of cap-
ital plant and buildings in terms of location and
size.
Department:
Project Title:
C y- de
Space Study
Project Number:.
Project Useful Life:
IlL Needs Assessment:
Priority Ranldng:
10-20 years
High
(1)
IV. Cost/Benefit Impact Statement:
Professional use of outside expertise/con-
sultants to identify and quantify departmental
space needs will provide the City with a plan
of direction and funding alternatives for op-
timum cost containment.
Project Financing 1992 1993 1994 1995 1996
?roperty 'Fax
Special Assessments
Federal
State
County
City MSA Funds
Fund Balance 15,000.00
Equipment Cert~cates
Grant/Contributions
Other
Total 15,000.00 ,
Project Expenditures 1992 1993 1994 1995 1996
Constru~o~ (New)
Renovatlons/Repalm
l~qd Acquisition
Buildings & Plant
Equipment
Vehlde~
Other 15,000.00
Total 15,000.00
September 16, 1992
Mr. David J. Unmacht
City Manager
City of Prior Lake
4629 Dakota Street
Prior Lake, MN 5.5372-1714
Dear Mr. Unmacht:
Enclosed, as requested, am six additional copies of our proposal for the Prior Lake Space and
Supplemental Staffing Needs Analysis. As per our discussion, we have agreed to complete the
workscope described in our proposal for a fee not to exceed $16,000.
We appreciate the opportunity to be of service to the City of Prior Lake and we are prepared to
commit our most experienced staff to your project.
Executive Vice-President
Boarman Kroos Pfister & Associates, Inc.
2.prior
BOA RMA N KROOS PFISTE R ~ ASSOCIATES
A R
C H I T E C T U R E I N T E R I O R D E S I G N E N G I N E E R I
222 Norti~ Second Street · Minneapolis Minnesota 55401 · Fax 339-6212 Phone 612-339-3752
F_c~aL Opport~Jnity' Emp!o,,er
N G
AGENDA NUMBER :
PREPARED BY:
SUBJECT:
DATE:
10
JOEL RUTHERFORD, ENGINEERING TECHNICIAN
CONSIDER BIDS FOR PROJECT 92-12 HOLLY
IMPOUNDMENT STRUCTURE
SEPTEMBER 21, 1992
CIRCLE
INTRODUCTION:
BACKGROUND:
DISCUSSION:
The purpose of this Agenda item is to consider
the bids received for Project 92-12.
On August 3, 1992, Council authorized $40,000
from the Trunk Reserve Fund to pay for the
installation of an impoundment structure
($33,400 for construction and $6,600 for
engineering and testing.) 50% of the project
cost, up to $22,615, was to be reimbursed from
the Minnesota Board of Water and Soil
Resources (MBWSR).
The bid opening for Project 92-12 was held on
Tuesday, September 15, 1992 at 10:00 A.M.
Three bids were received at the bid opening on
September 15:
Contractor
Total base Bid
Jay Brothers
Ryan Contracting
Rice Lake Contracting
$ 82,966.00
84,128.00
102,361.00
The Engineer for this project, Valley
Engineering, estimated the construction costs
to be $33,400. The low bid by Jay Brothers is
almost 2 1/2 (two and one-half) times the
engineer's estimate.
Staff feels the permanent structure is needed
to control the discharge rates of the wetland
east of Holly Court. However, the bids
received for this project are too excessive to
complete the project at this time.
Staff is considering readvertising for Bids
either this fall or next spring. Staff will
discuss this option in more detail at the
Council Metting.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 ! Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
RECOMMENDATION:
ALTERNATIVES. ·
BUDGET IMPACT:
Prior to the Council Meeting, Staff
investigate the following:
will
I1) Reducing the size of the project,
2) Conducting Bid opening next spring to
receive more competitive bids,
(3) Extending the pro~ect completion due date
set by the MBWSR an order to receive the
matching funds, and
(4) Seeking funds from the property owner to
the south of the proposed structure.
Once the structure is built, there are
three lots to the south that will then
have access to them and make them
buildable lots.
Staff feels by implementing items (1) and (2),
the cost to the City will be less, even if the
approved grant is not extended.
The recommendation is still being prepared and
will be presented to the Council, at the
Meeting.
The alternatives are as follows:
Alternatives will be discussed during the
Council Meeting.
Council authorized $40,000 from the Trunk
Reserve Fund. Total costs to design the
roject and advertise for bids are about
3,300. These funds have come from the Trunk
Reserve Fund. If the City should pursue
completing the project later this year, or
early next year, another request for
authorizing the funds will be presented to the
Council at that time.
ACTION REQUIRED: Dependant on discussion at Council Meeting.
RESOLUTION 92-32
RESOLUTION REJECTING ALL BIDS RECEIVED FOR
HOLLY CIRCLE IMPOUNDMENT STRUCTURE
(PROJECT 92-12)
MOTIONED BY
SECONDED BY
WHEREAS, pursuant to an advertisement for bids for the
installation of an impoundment structure in Block 2 of
Holly Court; bids were received, opened, and tabulated
according to the law, and the following bids were
received complying with the advertisement:
CONTRACTORS
JAY BROTHERSt INC.
RYAN CONTRACTINGt INC.
RICE LAKE CONTRACTING
BASE BID
$ 82~966.00
$ 84~128.00
$102~361.00
TOTAL BID
(BASE & ALTERNATES)
$ 93~775.00
$ 96t829.00
$110~533.00
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
PRIOR LAKE, MINNESOTA, that
The Mayor and City Manager are hereby authorized to
reject all bids received.
The City Manager
return forthwith
their bids.
is hereb~ authorized and directed to
to all bidders the deposits made with
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Passed and adopted this
Andren
Fitzgerald
Kedrowski
Scott
White
21st day of September , 1992.
YES
Andren
Fitzgerald
Kedrowski
Scott
White
NO
{Seal}
David J. Unmacht
City Manager
City of Prior Lake