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Home My WebLink About6.l. CSAH 42 Right-Of-Way Acquisition, University Addition', ; "' CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION City Council Meeting Date: May 20, 1997 AGENDA ITEM: CSAH 42 Right-Of-Way Acquisition of a AGENDA SECTION: portion of Outlot C, University Addition Consent PREPARED BY: Dan Rogness, Community Development AGENDA NO. Director !'r� � L v L ATTACHMENTS: Draft Resolution, Survey Reduction, APPROVED BY: Correspondence Applicant: Dakota County Location: North side of CSAH 42, east ofBiscayne Avenue. Property Owner(s) University of Minnesota Area in Acres: Slightly more than 1 acre. Comp. Guide Plan Land Use Desig: Urban Residential Current Zoning: Industrial Park(IP) Planning Com. Action: Unanimous approval SUMMARY Mr. Mike Ring of the Dakota County Attorneys Office requested approval of a subdivision of property owned by the University of Minnesota. A sma11780 ft. x 90 ft. (at its widest) parcel will be removed from the University property and recombined with the CSAH 42 right-of-way(ROW). The purpose of the acquisition is to enhance visibility at the intersection with Biscayne Avenue. By itself, the parcel is unbuildible because much of it is occupied by pipeline easements or is af�ected by the pro�mity of CSAH 42. Visibility at the intersection will be enhanced by either regrading the parcel and lowering the elevation or cultivation with different and lower plant materials. On May 13, 1997, the Planning Commission conducted a public hearing as required by the subdivision ordinance. No one appeared or testified. After very brief discussion, the Planning Commission adopted a motion to recommend approval of the subdivision. RECOMMENDED ACTION: Motion to adopt a resolution approving the subdivision of Outlot C University Addition for CSAH 42 right-of-way acquisition. CITY COUNCIL ACTION: i City of Rosemount Resolution No. B- A RESOLUTION APPROVING THE SUBDIVISION OF OUTLOT C, UNIVERSITY ADDITION FOR CSAH 42 RIGHT-OF-WAY ACQUISITION WHEREAS,the City of Rosemount Planning Department received an application from Dakota County requesting approval of the subdivision of property located at the northeast intersection of CSAH 42 and Biscayne Avenue for CSAH 42 right-of-way acquisition, said property legally described as follows: Beginning at the southwest comer of said Oudot C;thence on an assumed bearing of North 75 degrees 17 minutes 26 seconds East along the souther(y line of said Outlot C 118.59 fee�thence continuing a(ong the southerly line of said OuUot C along a tangential curve,concave to the northwest having a radius of 879.95 feet and a central angle of 44 , degrees 22 minutes 04 seconds 681.40 feeh,thence South 56 degrees 25 minutes 02 seconds West 735.61 feet;thence ', West 33.21 feet more or less to the west line of said O�dot C;thence South OO degrees 17 minutes 30 seconds West , along the west line of Outlot C 22.13 feet more or7ess to the point of beginning,Dakota County,Minnesota;and '� WHEREAS, the Planning Commission of the City of Rosemount conducted a public hearing on I� May 13, 1997, as required by the Subdivision Ordinance for the purpose of receiving testimony regarding the requested subdivision; and, WHEREAS, the Planning Commission adopted a motion to recommend approval of the Subdivision of Outlot C, University Addition for CSAH 42 right-of-way acquisition; and WHEREAS, on May 20, 1997, the City Council of the City of Rosemount reviewed the recommendation forwarded by the Planning Commission; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rosemount hereby approves the subdivision of Outlot C University Addition for CSAH 42 right-of-way acquisition. ADOPTED, this 20th day of May, 1997, by the City Council of the City of Rosemount. Cathy Busho, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted against: Member absent: / ' ;-' � ___u __________�_ _.______� _______.__N ��1��___�_,_�__�_�_ _ ____ _._ ___ _. ___ ___ ___ __ ____ � ------ -- --- 45T�1-�T.—,, ---.--- � ---�---7 �-- .. .� . \ ____ ---- . _-� / . . . �\ j l� _/ / -__ /( . //, /i � / /� � , _� ; - - /, �; , i' % - � i� � , _ / /, � % �. I ,�, i �/ � \\� / / � .-------- - - -1-�--- �''`��'� ' � _ � ; . � y ; _ =��1.I� �- / � ______�____ �� _ � �, � 350 Buffer Q' %� \\\ � �' _----__ _- ---------------------------- -- �' 348005003000 ��j G'i �i j! N / ; �� ---/ i-' w � ._ . - �� ' � �l 5 - � .- _ ;..- - ..___ . _._ _ _ . _____. -- - _--- --------. .T _ ' _ __- -------- --- -- - --- _-------- _------__-_-- _____ I -_. - ------------ .. .�.. _ __ _. _!_ . C.S.A.H. NC7.42_____--------- -- _ . .----------- � \ I � � �� / /� �'� r OFFICE OF DAI�OTA COUNTY ATTORNEY JAMES C. BACKSTROM �� -�:..-� COUNTY ATTORNEY °;"'� � Dakota Coun►v Judicial Cen�er Telephone t 560 West Highway 55 (6121 a�38-4438 Hasiings.Minneso�a 55033-2392 FAX: t61�►-�38-a5o01Cnminal Di�•ision� Charles.�i. Diemer. Chief Depucy F,�X:16 t ZI a�38-a�7910ther Divisionsl April 17, 1997 MR RICK PEARSON PLANNER CITY OF ROSEMOUNT 2875 - 145TH STREET WEST POBOX510 ROSEMOUNT MN 55068 RE: Minor Subdivision of Outlot C -IJrTIVERSITY ADDITION Our File No.: C-96-323 Dear NIr. Pearson: I spoke with you by telephone on April 10, 1997, regazding the process to obtain a minor subdivision approval or a pazcel-split approval from the City of Rosemount for a site corner acquired by Dakota County from Outlot C,ITNIVERSITY ADDITION. Enclosed with this letter please find a copy of the deed executed by the University of Minnesota conveying to Dakota County a portion of Outlot C, tTr1IVERSITY ADDITION. Enclosed, also, you will find three copies of a map showing the pazcel being acquired by the County to proteet the site distance for the intersection at County Road 42 and Biscayne Avenue. From the map it is apparent that this site comer directly abuts the existing right of way for CSAH 42 and that substanrial portions of this site comer aze subject to easements for a metropolitan interceptor sewer and pipelines belonging to Northern Natural Gas Company and Mid-America Pipeline Company. In order to record the deed conveying the site corner to Dakota County, I will need a letter from the City of Rosemount approving a subdivision split of Outlot C, IJNIVERSITY ADDITION. That is a requirement of Minnesota law enforced by the County Auditor's Office. Since Rosemount does have subdivision regulations and the parcel being conveyed is less than five acres, City approval is required to split the existing tax parceL Criminal Division Juventle and Famtly Services Division Civil Division Philtip D. Proko{�wicz DonaW E.Brucc.He�d Karen:�.Schaf(er.Fiead Officc Managcr �ctinv wirness Coordinator iA'� Norma J.Zabel Patricia Ronken 30%post-consumer An Equal Opportuniry Employer S`"�;'r NIr. Pearson ' Page 2 ' April 17, 1997 ' As a representa.tive of the Dakota County Plat Commission, I have seen a preliminary plat submitted by the University of Minnesota. for development of Outlot C. I don't know if the University is actively pursuing that plat. I would assume that once this minor subdivision is approved and the deed to the County is of record, the setback lines for any development on Outlot C, as replatted, will be ' measured from the boundary between the University property and the site corner which has been conveyed to Dakota County. Thank you for your assistance in this matter. Would you please call me after you have a chance to ' review this letter and the enclosed drawing to provide some sort of timetable on the procedure to be ' followed by the City in acting on this subdivision split and the tentaxive timetable for City approval. ' tru s, II � ; . e �!I Michael R. Ring �I Assistant County Attorney I MRR:smm � Enclosures LET/C96-323 f , Recommendations For City of Rosemount, Minnesota �2,800,000 General Obligation Improvement Bonds, Series 1997A Presented to: Mayor Cathy Busho Members, City Council Mr. Thomas Burt, Administrator Mr. Jeffrey May, Finance Director �� City of Rosemount ! 2875 145th Street West ' Rosemount, MN 55068 SPRINGSTED Public Finance Advisors Study No.: R0704G4 SPRINGSTED Incorporated May 14, 1997 f ' RECOMMENDATIONS Re: Recommendations for the Issuance of $2,800,000 General Obligation Improvement Bonds, Series 1997A Proceeds of the bonds will be used to finance the assessable portion of four improvement projects within the City: Project 277 (street and utility reconstruction for Canada Avenue, Cameo Avenue, 145th Street and 143rd Street), Project 275 (Hawkins Pond), Project 280 (Geronime Pond) and Project 282 (McNamara Addition). In addition to the bond proceeds, the : City will contribute available funds from its street maintenance fund, storm core and storm utility funds, sanitary sewer core and utility funds and water core and utility funds to pay for the above projects. Additional funds are also allocated in the City's 1997 Capital Improvement Plan budget. We recommend the following for the bonds: 1, Action Requested To establish the date and time of receiving bids and establish the terms and conditions of the offering. 2. Sale Date and Time Tuesday, June 17, 1997, at 11:00 A.M., with award that evening at 7:30 P.M. 3. Authority and Purpose for the Bond/ssue The bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, to finance various street and utility improvement projects within the City. 4. Principa/Amount of Offering $2,800,000 5. Repayment Term The first interest payment on the bonds is due February 1, 1998. Principal will be due February 1, 2000 through 2009. 6. Source of Payments Since income from special assessments will not be received until 1999, capitalized interest, totaling $213,524, has been added to the principal account of the issue and will be used to make interest payments due through February 1, 1999. Thereafter, the bonds will be repaid from special assessments against benefited property. 7. Prepayment Provisions The bonds maturing February 1, 2005 through 2009 wilf be callable on February 1, 2004 and any day thereafter at a price of par plus accrued interest. 8. Credit Rating Comments This issue will require a rating application to assure continuation of the rating. Moody's has recently expanded its bond rating symbols. Issuers who previously were assigned an "A," such as the City, will now be assigned either an "A2" or an "A3" rating. The City's rating designation will be determined in conjunction with the rating review of this issue. . . City of Rosemount, Minnesota � May 14, 1997 9. Bank Qualification The City does not expect to issue over $10,000,000 of tax-exempt obligations in 1997, and therefore this issue will be bank- qualified. Issues which are bank-qualified receive interest rates which are lower than issues which are not bank-qualified. 10. Rebate Requirements This issue is subject to the federal arbitrage requirements. However, we understand the City can meet the two-year spend exemption and thus be exempt from rebating arbitrage earnings to the federal government. 11. Bona Fide Debt Service Fund The City must maintain a bona fide debt service fund for the bonds or be subject to yield restriction. A bona fide debt service fund is a fund for which there is an equal matching of revenue to debt service expense, with a carry-over permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. 12. Economic Life The average life of the bonds cannot exceed 120°fo of the economic life of the projects to be financed. The economic life of the street and utility improvements is 20 and 40 years, respectively. The bonds are therefore within the economic life requirements. 13. Federal Reimbursement Regulations Federaf reimbursement regulations require the City to make a declaration, within 60 days of the actual payment, of its intent to reimburse itself frorn expenses paid prior to the receipt of bond proceeds. It is our understanding the City has taken whatever actions are necessary to comply with the federal reimbursement regulations. 14. Continuing Disclosure This issue is subject to the continuing disclosure requirements. These SEC rules require the City to undertake an annual update of its O�cial Statement information and report any material events to the national repositories. Springsted currently provides continuing disclosure services for the City under separate contract. An amendment to that contract adding this issue has been provided to City staff. 15. Attachments Assessment income Schedule Debt Service Schedule Terms of Praposal Page 2 City of Rosemount, Minnesota � May 14, 1997 DISCUSSION The composition of the issue is as follows: � Project 277 (Street and Utility Reconstruction) $ 292,700* Project 275 (Hawkins Pond) 1,103,855" Project 280 (Geronime Pond) 700,900* Project 282 (McNamara Addition) 492,300* Subtotal $2,589,755 Capitalized Interest 213,524 Less: Investment Earnings (3.279) Total Bond Issue $2.800.000 '' Represents assessable portion of the project costs, which include costs of issuance and the underwriters discount allowance. Page 4 shows the projection of special assessment income. Assessments totaling $2,803,279 of principal are expected to be filed on or about October 15, 1998. Assessments will be spread over a term of 10 years in even annual installments of principal with interest charged on the unpaid balance at a rate of 2% over the net interest rate on the bonds. For structuring purposes we have estimated the assessment rate to be 7%, Capitalized interest has been included in the principal amount of the assessments. The debt service schedule for this issue is shown on page 5 of these recommendations. Columns 1 through 6 show the years and amounts of principal and estimated interest due on the bonds. Column 7 shows the capitalized interest included in the issue to make interest payments due prior to the first collection of assessments in 1999. Column 8 shows the net amount required to pay 100% of the debt service, with column 9 showing the 5% overlevy required by State statute. The overlevy is required by State Statute as a protection to the City and the bondholder in the event of delinquencies in the collection of special assessments for repayment of the bonds. Column 10 shows the projection of assessment income shown on page 4. The annual surplus of assessment income over the debt service requirement at 105% is shown in Column 11. Respectfully submitted, y � �j�,� 2�z.�� SPRIN STED Incorporated jmm , Provided to Staff: �I a) Amendment to Continuing Disclosure Contract ' Page 3 , City of Rosemount, Minnesota Prepared May 14, 1997 Assessment Income By SPRINGSTED Incorporated PROJECTED ASSESSMENT INCOME Assessment Income Filing Date: 10/15/1998 Filing Collect Interest Year Year Principal � 7.000� Total 1998 1999 280,328 238,164a 518,492 1999 2000 280,328 176,607 456,935 2000 2001 280,328 156,984 437,312 2001 2002 280,328 137,361 417,689 2002 2003 280,328 117,738 398,066 2003 2004 280,328 98,115 378,443 2004 2005 280,328 78,492 358,820 2005 2006 280,328 58,869 339,197 2006 2007 280,328 38,246 319,574 2007 2008 280,327 19,623 299,950 TOTALS 2,803,279 1 ,121 ,199 3,924,478 a) Includes interest f rom filing date to 12/31/1999. Page 4 City of Rosemount, Minnesota Prepared May 14, 1997 General Obligation Improvement Bonds, Series 1997A By SPRINGSTED Incorporated Dated: 7- 1 -1997 Mature: 2- 1 First Interest: 2- 1 -1998 Total Capital- Net Assessment Year of Year of Principal ized Levy 105� Income Annual Levy Mat. Principal Rates Interest & Interest Interest Required of Total Surplus (1) �2) �3) �4I �5) (6) (7) �8) (9) (10) (11) 1997 1999 0 0.00� 213,164 213,164 213,524 0 0 0 360 1998 2000 335,000 4.55� 134,630 469,630 0 469,630 493,112 518,492 25,380 1999 2001 295,000 4.65� 119,387 414,387 0 414,387 435,106 456,935 21 ,829 2QU0 2002 290,000 4.70� 105,669 395,669 0 395,669 415,452 437,31"2 21 ,860 2001 2003 285,000 4.75� 92,039 377,039 0 377,039 395,891 417,689 21 ,798 2002 2004 280,000 4.80� 78,501 358,501 0 358,501 376,426 398,066 21 ,640 2003 2005 275,000 4.85� 65,Q61 340,061 0 340,061 357,064 378,443 21 ,379 2004 2006 270,000 4.90� 51 ,723 321 ,723 0 321 ,723 337,809 358,820 21 ,011 2005 2007 265,000 4.95As 38,493 303,493 0 303,493 318,668 339,197 20,529 2Q06 2008 255,000 5.00� 25,375 280,375 � 280,375 294,394 319,574 25,180 2007 2009 250,000 5.05� 12,625 262,625 0 262,625 275,756 299,950 24,194 70TALS: 2,800,OU0 936,667 3,736,667 213,524 3,523,503 3,699,678 3,924,478 Bond Years: 19,223.33 Annual Interest: 936,667 Avg. Maturity: 6.87 Plus Discount: � 28,000 Avg. Annual Rate: 4.873� Net Interest: 964,667 T.I.C. Rate: 5.041� N.I.C. Rate: 5.018� Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. � v co m cJ, . ' THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIA7E THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $2,800,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997A (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, June 17, 1997, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. Proposals may also be filed electronically via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal, within a one-hour period prior to the time of sale established above, but no Proposals will be received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For further information about PARITY, potential bidders may contact PARITY at 500 Main Street, Suite 1010, Fort Worth, TX 76102, telephone (817) 885-8900. Neither the City nor Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposat submitted. DETAILS OF THE BONDS � The Bonds will be dated July 1, 1997, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1998. tnterest will be computed on the basis of a 360-day year of twelve 30-day months, The Bonds will mature February 1 in the years and amounts as follows: 2000 $335,000 2004 $280,000 2007 $265,000 2001 $295,000 2005 $275,000 2008 $255,000 2002 $290,000 2006 $270,000 2009 $250,000 2003 $285,000 BOOK ENTRY SYSTEM The Bonds wi11 be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each ysar, will be I Page 6 r ' a registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC'), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2004, and on any day thereafter, to prepay Bonds due on or after February 1, 2005. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessment against benefited property. The proceeds will be used for street and utility improvements within the City. TYPE OF PROPOSALS Proposals shall be for not less than $2,772,000 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Finaneial Surety Bond in the amount of $28,000, payable to the order of the City. If a check is used, it must accompany each proposaL If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a ce�tified ar cashier's check or wire transfer as instructed by Springsted Incorporated not Iater than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can , be withdrawn or amended after the time set for receiving proposals unless the meeting of the ' City scheduled for award of the Bonds is adjourned, recessed, or continued to another date withouf award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. Page 7 � ' AWARD The Bonds wiil be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, bu# neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an appro�ing legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not tater than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of the actuat issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to be provided, annual financial information, including audited financial statements of the City, and notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5). OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will senre as a nearly-final O�ciat Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commissian. Pa e 8 I� 9 c � For co ies of the Official Statement or for an additional information p� y prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted fncorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, teJephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded up to 115 copies of the O�cial Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shal( enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated May 20, 1997 BY ORDER OF THE CITY COUNCIL Jsl Susan Walsh City Clerk Page 9