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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 140836iv1 ADOPTED this 21st day of May, 2002 ATTEST Linda J Jentink, City Clerk RESOLUTION 2002- 1408361v1 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 1408361v] THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: 1408361v1 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 -2- 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 1408361v1 -3- 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). Page 28 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 Page 29