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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. 1794375v1 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 1794375v1 2 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 1794375v1 i 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 1794375v1 it 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. 1794375v1 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. 1794375v1 1V 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. 1794375v1 Linda J. Jentink, City Clerk City of Rosemount Dakota County, Minnesota