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HomeMy WebLinkAbout6.c. 2006A G.O. Equipment Certificates of Indebtedness - Authorizing Issuance and Setting Bond SaleAGENDA ITEM: 2006A G 0 Equipment Certificates of Indebtedness Authorizing Issuance and Setting Bond Sale AGENDA SECTION: Consent PREPARED BY: Jeff May, Finance Director AGE d t tn Li U ATTACHMENTS: Resolution and Recommendations APPROVED BY: RECOMMENDED ACTION: Motion to adopt a Resolution Providing for the Co petitive Negotiated Sale of $370,000 General Obligation Equipment Certificates of Indebtedness, Series 2006A. 4 ROSEMOUNT EXECUTIVE SUMMARY CITY COUNCIL City Council Meeting Date: April 18, 2006 ISSUE The authonzation to issue certificates for the purchase of equipment for the Pubhc Works Department. BACKGROUND This item is on the agenda for your consideration m authorizing the issuance and setting the sale of General Obhgation Equipment Certificates of Indebtedness for equipment for the Pubhc Works Department including mowers, a tractor, a shop hoist and pickup trucks. Bids will be open until Tuesday, April 18, 2006, at 12:00 P.M. at the offices of Spnngsted Incorporated. The bids will be tabulated there and then consideration for award of the Bonds will be by the City Council at 7 30 P.M., Central Time, of the same day. SUMMARY Recommend the above motion. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2006 RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $370,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2006A WHEREAS, the City Council of the City of Rosemount, Minnesota, has heretofore determined that it is necessary and expedient to issue its $370,000 General Obhganon Equipment Certificates of Indebtedness, Series 2006.A (the "Certificates to finance the acquisition of various items of capital equipment; and WHEREAS, the City has retained Sprmgsted Incorporated, m Saint Paul, Minnesota "Springsted as its independent financial advisor and is therefore authorized to sell these obhgations 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 Certificates. 2. Meeting; Bid Opening. This City Council shall meet at the tune and place specified m the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed bids for, and awarding the sale of, the Certificates. The Admuustrator, or his designee, shall open bids at the time and place specified m such Terms of Proposal 3. Terms of Proposal. The terms and conditions of the Certificates 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 compenuve negotiated sale, the Administrator, Finance Director and other officers or employees of the City are hereby authonzed to cooperate with Sprmgsted and participate in the preparation of an official statement for the Certificates, and to execute and dehver it on behalf of the City upon its completion. ADOPTED this 18th day of Apnl, 2006. ATTEST: James D. Verbrugge, Deputy City Clerk r William H. Droste, Mayor RESOLUTION 2006- Monon by: Seconded by: Voted m favor: Voted Against: Members Absent: 1892595v1 2 STATE OF MINNESOTA COUNTY OF DAKOTA ss CITY OF ROSEMOUNT 1892595v1 CERTIFICATE I, James D. Verbrugge, duly appointed, acting and qualified Deputy 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 meeung of the 18th of April, 2006 and that the attached copy of the Resolution 2006 RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $370,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2006A was approved and is a true and correct copy of the City Proceedings relating to said Resolution. IN WITNESS WHEREOF, I have hereunto set my hand and seal of said City this day of April, 2006. James D. Verbrugge, Deputy City Clerk City of Rosemount Dakota County, Minnesota OR 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 $370,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2006A (BOOK ENTRY ONLY) Proposals for the Certificates will be received on Tuesday, May 16, 2006, until 1200 Noon, Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which tune they will be opened and tabulated Consideration for award of the Certificates will be by the City Council at 7.30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Springsted 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 Certificates regardless of the manner in which the Proposal is submitted. (a) Sealed Bidding Proposals may be submitted m a sealed envelope or by fax (651) 223 -3046 to Springsted Signed Proposals, without final puce or coupons, may be submitted to Springsted prior to the tune of sale. The bidder shall be responsible for submitting to Springsted the final Proposal puce and coupons, by telephone (651) 223 -3000 or fax (651) 223 -3046 for inclusion in the submitted Proposal. (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 constitute the official time with respect to all Bids submitted to PARffY Each bidder hall he 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 Term 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 prospecuve 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 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 Certificates, and PARITY® is not an agent of the City. 1892595v A -1 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, 2nd Floor, New York, New York 10018 Customer Support (212) 849 -5000 DETAILS OF THE CERTIFICA1ES The Certificates will be dated June 1, 2006, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2007 Interest will be computed on the basis of a 360 -day year of twelve 30 -day months The Certificates will mature February 1 in the years and amounts as follows: 2008 $70,000 2009 $70,000 2011 $75,000 2010 $75,000 2012 $80,000 BOOK ENTRY SYSTEM The Certificates will be issued by means of a book entry system with no physical distribution of Certificates made/ to the pubhc The Certificates will be issued in fully registered form and one Certificate, representing the aggregate principal amount of the Ceruficates maturing m 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 Certificates. Individual purchases of the Certificates may be made m the principal amount of $5,000 or any multiple thereof of a single matunty 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 Ceruficates. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC, transfer of prmclpal and interest payments to beneficial owners by participants will be the responsibility of such parucipants and other nominees of beneficial owners. The purchaser, as a condition of dehvery of the Certificates, will be required to deposit the Certificates with DTC. REGISTRAR The City will name the registrar, which shall be subject to apphcable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The Ceruficates will not be subject to payment in advance of their respective stated matunty dates. SECURITY AND PURPOSE The Certificates will be general obhgations 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 finance the acquisiuon of various capital equipment for City purposes I892595v1 A -2 TYPE OF PROPOSALS Proposals shall be for not less than $364,080 and accrued interest on the total principal amount of the Certificates 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 $3,700, 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 hcensed to issue such a bond in the State of Minnesota, and preapproved by the City Such bond must be submitted to Sprmgsted Incorporated prior to the opening of the proposals. The Financial Suiety Bond must identify each underwater whose Deposit is guaranteed by such Financial Surety Bond. If the Certificates are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Sprmgsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later 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 Deposit received from the purchaser, the amount of which will be deducted at settlement and no mterest 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 Certificates is adjourned, recessed, or continued to another date without award of the Certificates having been made Rates must be in level or ascending order. Certificates of the same maturity shall bear a single rate from the date of the Certificates to the date of maturity. No conditional proposals will be accepted. AWARD The Certificates 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, m accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non substantive informahties of any proposal or of matters relating to the receipt of proposals and award of the Certificates, (u) reject all proposals without cause, and (iu) reject any proposal that the City determines to have failed to comply with the terms herein. CUSIP NUMBERS If the Certificates quahfy for assignment of CUSIP numbers such numbers will be printed on the Certificates, but neither the failure to print such numbers on any Certificate nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Certificates. The CUSIP Service Bureau charge for the assignment of CUSIP identtficauon numbers shall be paid by the purchaser. SE 1 I LEMENT Within 40 days following the date of their award, the Certificates will be delivered 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 1892595v1 A -3 certificate On the date of settlement, payment for the Certificates 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 comphance with the terms of payment for the Certificates has been made impossible by action of the City, or its agents, the purchaser shall be hable to the City for any loss suffered by the City by reason of the purchaser's non comphance with said terms for payment. 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 m and required by SEC Rule 15c2- 12(b)(5). OFFICIAL STATEMENT The City has authonzed the preparation of an Official Statement containing pertinent information relative to the Certificates, 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 prospecuve purchaser is referred to the Fifiancial 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 Ceruficates, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Certificates, as that term is defined in Rule 15c2 -12 By awarding the Certificates 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 Certificates are awarded 25 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Certificates are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Parucipaung Underwriter. Any underwriter dehvering a proposal with respect to the Certificates agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (u) it shall enter into a contractual relationship with all Parucipaung Undenvnters of the Certificates for purposes of assuring the receipt by each such Parucipaung Underwriter of the Final Official Statement. Dated April 18, 2006 BY ORDER OF THE CITY COUNCIL /s/ James D. Verbrugge Deputy City Clerk 1892595v1 A -4