HomeMy WebLinkAbout6.g. 2002B General Obligation Water and Storm Water Revenue Bond Issue - Authorizing Issuance and Setting Bond SaleAGENDA ITEM: 2002B G 0 Water and Storm Water Revenue
Bond Issue Authorizing Issuance and Setting Bond Sale
AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director
AGENDA NO.
6
ATTACHMENTS: Resolution (Recommendations with
Previous Agenda Item)
APPROVED BY:
CITY COUNCIL MEETING DATE May 21, 2002
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
This item is on the agenda for your consideration in authonzing the issuance and setting the sale of
General Obligation Water and Storm Water Revenue Bonds for the construction of improvements to
the water system (Well #12) and the storm water system (Brockway Draw)
Bids will be opened Tuesday, June 18, 2002, at 12 00 P 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
$1,195,000 GENERAL OBLIGATION WATER AND STORM WATER REVENUE BONDS, SERIES
2002B
COUNCIL ACTION:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $1,195,000 GENERAL OBLIGATION WATER AND STORM WATER
REVENUE BONDS, SERIES 2002B
WHEREAS, the City Council of the City of Rosemount, Minnesota, has heretofore determmed
that it is necessary and expedient to issue its S1,195,000 General Obligation Water and Storm
Water Revenue Bonds, Senes 2002B (the "Bonds to finance certain water and storm water
projects in the City, and
WHEREAS, the City has retained Spnngsted Incorporated, in Saint Paul, Minnesota
"Sprmgsted 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 Authonzation, Findings The City Council hereby authonzes Sprmgsted 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 considenng 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 Spnngsted 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
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ADOPTED this 21st day of May, 2002
ATTEST
Linda J Jentink, City Clerk
RESOLUTION 2002-
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Cathy Busho, Mayor
Motion by Seconded by
Voted in favor
Voted Against
Members Absent
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
RESOLUTION 2002-
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 transcnpt 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 $1,195,000 General
Obligation Water and Storm Water Revenue Bonds, Series 2002B
WITNESS my hand this day of 2002
Linda J Jentink, City Clerk
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
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EXHIBIT A
TERMS OF PROPOSAL
$1,195,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION WATER AND STORM WATER
REVENUE BONDS, SERIES 2002B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, June 18, 2002, until 12 00 Noon, Central
Time, at the offices of Spnngsted 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 (651) 223 -3046 to Spnngsted
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 Spnngsted will assume no liability for the inability of the bidder to reach
Spnngsted 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 of the Proposal submitted
DETAILS OF THE BONDS
The Bonds will be dated July 1, 2002, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 2003 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
2004 $40,000 2008 $70,000 2012 $80,000 2016 $100,000
2005 $50,000 2009 $70,000 2013 $90,000 2017 $100,000
2006 $70,000 2010 $80,000 2014 $90,000 2018 $110,000
2007 $70,000 2011 $80,000 2015 $95,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds, provided that no serial bond may mature on or after the first mandatory
sinking fund redemption date of any term bond 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
r
par plus accrued interest to the date of redemption In order to designate term bonds, the
proposal must specify "Last Year of Serial Maturities" and "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
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, 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 and its storm water utility system The proceeds will
be used to finance improvements to the water utility and storm water utility system in the City
TYPE OF PROPOSALS
Proposals shall be for not less than $1,181,258 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 $11,950,
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
1408361x1
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identify each underwnter 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 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
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
matters relating to the receipt of proposals and award of the Bonds, (n) 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, 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
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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 which 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
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)
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 50 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 (u) 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 May 21, 2002 BY ORDER OF THE CITY COUNCIL
1408361v1
SETTLEMENT
OFFICIAL STATEMENT
4
City Clerk
/s/ Linda Jentink
single rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
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 Authority's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The Authority 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 Authority 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 Authority has requested and
received a rating on the Bonds from a rating agency, the Authority 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 which shall be received at the offices of the Authority 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 Authority, or its agents, the purchaser shall
be liable to the Authority for any loss suffered by the Authority by reason of the purchaser's
non compliance with said terms for payment.
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the Authority will execute and deliver
a Continuing Disclosure Undertaking (the "Undertaking whereunder the Authority will covenant
for the benefit of the owners of the Bonds to provide certain financial and other information
about the Authority and notices of certain occurrences to information repositories as specified in
and required by SEC Rule 15c2- 12(b)(5).
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OFFICIAL STATEMENT
The Authority 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 Authority, 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 Authority 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 Authority 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 70 copies of
the Official Statement and the addendum or addenda described above. The Authority
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 Authority (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 May 21, 2002 BY ORDER OF THE BOARD OF COMMISSIONERS
/s/ Mary Ann Stoffel
Executive Secretary
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