HomeMy WebLinkAbout6.k. 2003 G.O. Water Revenue Bond Issue - Authorizing Issuance and Setting Bond Saler CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: June 3, 2003
AGENDA ITEM: 2003B G.O. Water Revenue Bond Issue -
AGENDA SECTION:
Authorizing Issuance and Setting Bond Sale
Consent
PREPARED BY: Jeff May, Finance Director
AGENDA a =
ATTACHMENTS: Resolution (Recommendations with
APPROVED BY:
Previous Agenda Item)
This item is on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation Water Revenue Bonds for the construction of improvements to the water system
(East Side Water Main Phase 2).
Bids will be opened Tuesday, July 1, 2003, at 10:00 A.M. at the offices of Springsted 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.
RECOMMENDED ACTION:
Motion to adopt a RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF
$1,170,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2003B.
COUNCIL ACTION:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $1,170,000 GENERAL OBLIGATION WATER REVENUE BONDS,
SERIES 2003B
WHEREAS, the City Council of the City of Rosemount, Minnesota, has heretofore determined
that it is necessary and expedient to issue its $1,170,000 General Obligation Water Revenue
Bonds, Series 2003B (the 'Bonds ") to finance improvements to the water utility system in the
City; and
WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota
( "Springsted "), 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 Terms 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 with 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.
1532650vl
RESOLUTION 2003-
ADOPTED this 3rd day of June, 2003.
William H. Droste, Mayor
ATTEST:
Linda J. Jentink, City Clerk
Motion by:
Voted in favor:
Voted Against:
Seconded by:
Members Absent:
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RESOLUTION 2003-
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
I, the undersigned, being the duly qualified and acting Clerk of the City of Rosemount,
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 the City's $1,170,000 General
Obligation Water Revenue Bonds, Series 2003B.
WITNESS my hand this day of , 2003.
Clerk
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RESOLUTION 2003-
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
$1,170,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2003B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, July 1, 2003, until 10:00 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
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 Bonds regardless of the
manner in 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 price and coupons, by telephone (651) 223 -3000 or fax
(651) 223 -3046 for inclusion in the submitted Proposal.
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(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
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
1532650v 1 A -1
RESOLUTION 2003-
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY is not
an agent of the City.
If any provisions of this Terns 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 ® , 40 West 23 Street, 5"' Floor, New York City, New York 10010, Customer
Support, (212) 404 -8102.
DETAILS OF THE BONDS
The Bonds will be dated July 1, 2003, as the date of original issue, and will bear interest payable
on February 1 and August 1 of each year, commencing February 1, 2004. 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:
2005 $105,000 2009 $115,000 2012 $125,000
2006 $105,000 2010 $115,000 2013 $130,000
2007 $110,000 2011 $120,000 2014 $135,000
2008 $110,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and tern bonds. All term bonds shall be subject to mandatory sinking fund redemption
and must conform to the maturity schedule set forth above at a price of par plus accrued interest
to the date of redemption. In order to designate term 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 in 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. 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.
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RESOLUTION 2003-
REGISTRAR
The City will name the registrar that 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, 2011, and on any day thereafter, to prepay Bonds due on or
after February 1, 2012. 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 net
revenues derived through its water utility system. The proceeds will be used to finance
improvements to the water utility system in the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,158,300 and accrued interest on the total principal amount
of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit ") in the fonn
of a certified or cashier's check or a Financial Surety Bond in the amount of $11,700, 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 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 3:30 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
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 51100 or 1/8 of I %. Rates must be in 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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RESOLUTION 2003-
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
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal that 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, 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 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 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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RESOLUTION 2003-
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, 85 East Seventh Place,
Suite 100, 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 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 45 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 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 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 June 3, 2003
BY ORDER OF THE CITY COUNCIL
/s/ Linda Jentink
City Clerk
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