HomeMy WebLinkAbout6.g.2005D G.O Firestation Station Refunding onds Issue-Authorizing Issuance and Setting Bond SaleAGENDA ITEM: 2005D G.O. Fire Station Refunding
Bonds Issue Authorizing Issuance and
Setting Bond Sale
AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director
AGE G
ATTACHMENTS: Resolution (Recommendations Included
with Previous Agenda Item)
APPROVED BY:
RECOMMENDED ACTION: Motion to adopt A RESOLUTION PROVIDING F THE
COMPETITIVE NEGOTIATED SALE OF $1,120,000 GENERAL OBLIGATION FIRE
STATION REFUNDING BONDS, SERIES 2005D
4 ROSEMOUNT
City Council Meeting Date: September 6, 2005
SUMMARY
Recommend the above motion.
CITY COUNCIL
EXECUTIVE SUMMARY
ISSUE
The authorization to issue bonds for the refunding of bonds used to construct Fire Station #1.
BACKGROUND
This item m on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation Fire Station Refunding Bonds for the refunding of the ongmal debt issue for Fire
Station #1. Interest rates are favorable at this time and we should be able to save approximately $84,000
m net present value benefits over the hfe of the bonds.
Bids will be open until Tuesday, October 4, 2005, at 12:00 P.M. at the offices of Spnngsted Incorporated
The bids will be tabulated there and then consideration fot award of the Bonds will be by the City Council
at 7:30 P.M Central Tune, of the same day.
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CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2005
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $1,120,000 GENERAL OBLIGATION FIRE STATION REFUNDING BONDS,
SERIES 2005D
WHEREAS, the City Council of the City of Rosemount, Minnesota (the "City has heretofore
determined that it is necessary and expedient to issue its $1,120,000 General Obligation Fire
Station Refunding Bonds, Series 2005D (the "Bonds to refund the 2007 through 2016
maturities of the City's General Obligation Fire Station Bonds, Senes 1996A dated July 1, 1996;
and
WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota
"Spnngsted as its independent financial advisor and is therefore authorized to sell these
obligations by a competitive negotiated sale in accordance with Minnesota Statutes, Section
475 60, Subdivision 2(9); and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount,
Minnesota, as follows:
1. Authorization; Findings. The City Council hereby authorizes Springsted to solicit bids
for the competitive negotiated sale of the Bonds.
2. Meeting; Bid Opening. This City Council shall meet at the time and place specified in
the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed bids
for, and awarding the sale of, the Bonds. The Administrator, or his designee, shall open bids at
the time and place specified in such Terns of Proposal.
3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation thereof
are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby approved
and made a part hereof.
4. Official Statement. In connection with said competitive negotiated sale, the
Administrator, Finance Director and other officers or employees of the City are hereby
authorized to cooperate w ith Springsted and participate in the preparation of an official statement
for the Bonds, and to execute and deliver it on behalf of the City upon its completion.
ADOPTED this 6th day of September, 2005.
ATTEST:
Linda J. Jentink, City Clerk
Motion by: Seconded by:
Voted in favor:
Voted Against:
Members Absent
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William H. Droste, Mayor
EXHIBIT A
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE
FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,120,000*
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION FIRE STATION REFUNDING BONDS, SERIES 2005D
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, October 4, 2005, until 12 Noon, Central
Tine. at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, 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
Spnngsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above. 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 m which the Proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223 -3046
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 pnce and coupons, by telephone (651) 223 -3000 or fax (651) 223 -3046 for inclusion in
the submitted Proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY"' For purposes of the electronic bidding process, the time as maintained by PARITY
shall constitute the official time with respect to all Bids submitted to PARITY' Each bidder
shall be solely responsible for making necessary arrangements to access PARITY for purposes
of submitting its electronic Bid in a timely manner and in compliance with the requirements of
the Terms of Proposal Neither the City, its agents nor PARITY shall have any duty or
obligation to undertake registration to bid for any prospective bidder or to provide or ensure
electronic access to any qualified prospective bidder, and neither the City, its agents nor
PARITY shall be responsible for a bidder's failure to register to bid or for any failure in the
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proper operation of, or have any liability for any delays or interruptions of or any damages
caused by the services of PARITY The City is using the services of PARITY solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY is not
an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY, this
Terms of Proposal shall control. Further information about PARITY' including any fee
charged, may be obtained from:
PARITY 1359 Broadway, 2 Floor, New York, New York 10018
Customer Support: (212) 849 -5000
DETAILS OF THE BONDS
The Bonds will be dated November 1, 2005, as the date of original issue, and will bear interest
payable on August 1 and February 1 of each year, commencing August 1, 2006. Interest 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:
2007 90,000
2008 $100,000
2009 $105,000
2010 $110,000
2011 $110,000
2012 $115,000
2013 $115,000
2014 $120,000
2015 $125,000
2016 $130,000
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal
amount of the Bonds offered for sale Any such increase or reduction will be made in multiples of $5,000 in any
of the maturties In the event the principal amount of the Bonds is increased or reduced, any premium offered
or any discount taken by the successful bolder will be increased or reduced by a percentage equal to the
percentage by which the principal amount of the Bonds is increased or reduced
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All tern bonds shall be subject to mandatory sinking fund redemption
and must conform to the matunty schedule set forth above at a price of par plus accrued interest
to the date of redemption In order to designate tern bonds, the proposal must specify "Years of
Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued m fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
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 hidividual
purchases of the Bonds may be made m 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
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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 Bonds will not be subject tv payment in advance of their respective stated matunty dates.
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 The proceeds will be used to refund
the February 1, 2007 through February 1, 2016 matunties of the City's General Obligation Fire
Station Bonds, Series 1996A, dated July 1, 1996
Proposals shall be for not less than $1,112,440 and accrued interest on the total principal amount
of the Bonds Proposals shall be accompanied by a Good Faith Deposit "Deposit in the form
of a certified or cashier's check or a Financial Surety Bond in the amount of $11,200, payable to
the order of the City If a check is used, it must accompany the proposal If a Financial Surety
Bond is used, it must be from an insurance company licensed to issue such a bond in the State of
Minnesota, and preapproved by the City Such bond must be submitted to Springsted
Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify
each underwriter whose Deposit is guaranteed by such Financial Surety Bond. if the Bonds are
awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to
submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire
transfer as instructed by Springsted Incorporated not later than 3 P.M Central Time, on the
next business day following the award. If such Deposit is not received by that tune, the
Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The
Deposit received from the purchaser, the amount of which will be deducted at settlement and no
interest will accrue to the purchaser, will be deposited by the City. In the event the purchaser
fails to comply with the accepted proposal, said amount will be retained by the City No
proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made Rates shall be in integral multiples
of 5 /100 or 1/8 of 1% Rates must be m level or 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.
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TYPE OF PROPOSALS
iii
AWARD
The Bonds will 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
natters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and (in) reject any proposal that the City detemmmes 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 assigmnent of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be dehvered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving 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 that shall be received at the offices of the City or its designee not later than
12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has
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.
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CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking (the "Undertaking whereunder the City will covenant for
the benefit of the owners of the Bonds to provide certain financial and other information about
the City and notices of certain occurrences to information repositories 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 serve as a nearly final Official Statement
within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of
the Official Statement or for any additional information prior to sale, any prospective purchaser
is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101, telephone (651) 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 teen is defined in Rule 15c2 -12. By awarding the Bonds to any underwnter
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 50 copies of the Official
Statement and the addendum or addenda described above The City designates the senior
managing underwater 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 (n) it shall enter into a contractual
relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt
by each such Participating Underwriter of the Final Official Statement.
Dated September 6, 2005 BY ORDER OF THE CITY COUNCIL
]794375v1 v
/s/ Linda Jentink
City Clerk
STATE OF MINNESOTA
COUNTY OF DAKOTA ss
CITY OF ROSEMOUNT
IN WITNESS WHEREOF, I have hereunto set my hand and seal of said City this day of
September, 2005.
CERTIFICATE
I, Linda J. Jentink, duly appointed, acting and qualified City Clerk of the City of Rosemount do
hereby certify that I have examined the City of Rosemount records and the Minute Book of said
City for the meeting of the 6th of September, 2005 and that the attached copy of the
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF
S1,120,000 GENERAL OBLIGATION FIRE STATION REFUNDING BONDS, SERIES
2005D was approved and is a true and correct copy of the City Proceedings relating to said
Resolution.
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Linda J. Jentink, City Clerk
City of Rosemount
Dakota County, Minnesota