HomeMy WebLinkAbout6.f. 2001E G.O. Community Center Refunding Bond Issuance, Authorizing Issuance and Setting Bond Sale.. y,
CITY COUNCIL MEETING DATE: November 6, 2001
AGENDA ITEM: 2001E G.O. Community Center Refunding
AGENDA SECTION:
Bond Issue - Authorizing Issuance and Setting Bond Sale
Consent
PREPARED BY: Jeff May, Finance Director
AGENDA NO. 6F
ATTACHMENTS: Resolution and Recommendations (See
APPROVED BY:
Item (6E) for attached recommendations)
"I
This item is on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation Community Center Refunding Bonds for the refunding (refinancing) of the 1992C
Community Center bond issue. Interest rates are low enough at this point in time to justify this
refunding with an anticipated net present value savings of approximately $50,400 on this issue.
Bids will be opened Tuesday, December 4, 2001, 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
$725,000 GENERAL OBLIGATION COMMUNITY CENTER REFUNDING BONDS, SERIES
2001 E.
COUNCIL ACTION:
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $725,000 GENERAL OBLIGATION COMMUNITY CENTER
REFUNDING BONDS,
SERIES 2001E
WHEREAS, the City Council of the City of Rosemount, Minnesota, has heretofore determined
that it is necessary and expedient to issue its $725,000 General Obligation Community Center
Refunding Bonds, Series 2001E (the "Bonds ") to refund in advance of maturity the 2004 through
2013 maturities of the City's General Obligation Community Center Bonds, Series 1992C, dated
November 1, 1992; 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.
1339307vi
RESOLUTION 2001 -
ADOPTED this 6th day of November, 2001.
Cathy Busho, Mayor
ATTEST:
Linda J. Jentink, City Clerk
Motion by: Seconded by:
Voted in favor:
Voted Against:_
Members Absent:
1339307v1 2
RESOLUTION 2001 -
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 $725,000 General
Obligation Community Center Refunding Bonds, Series 2001E.
WITNESS my hand this day of , 2001.
Clerk
1339307v1 3
RESOLUTION 2001 -
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
$725,000*
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION COMMUNITY CENTER
REFUNDING BONDS, SERIES 2001E
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, December 4, 2001, until 12:00
Noon, 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
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. 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 of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated December 1, 2001, as the date of original issue, and will bear
interest payable on February 1 and August 1 of each year, commencing August 1,
2002. 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
$60,000
2008
$70,000
2005
$65,000
2009
$75,000 2012 $80,000
2006
$70,000
2010
$75,000 2013 $85,000
2007
$65,000
2011
$80,000
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RESOLUTION 2001 -
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 in a total
amount not to exceed $50,000 and will be made in multiples of $5,000 in any of the maturities. In the
event the principal amount of the Bonds is increased or reduced, any premium offered or any
discount taken by the successful bidder 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, 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 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 Bonds will not be subject to payment in advance of their respective stated maturity
dates.
1339307v1 11
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RESOLUTION 2001 -
proposals without cause, and, (iii) reject any proposal which the City determines to have
failed to comply with the terms herein.
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 City or its designee not later than 12:00 Noon, Central Time. Except
as compliance with the terms of payment for the Bonds shall have 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).
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.
-iv -
RESOLUTION 2001 -
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 (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 November 6, 2001 BY ORDER OF THE CITY COUNCIL
/s/ Linda Jentink
City Clerk
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