HomeMy WebLinkAbout2.b. 1999C G.O. Improvement Bond Issue CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: August 25, 1999
AGENDA ITEM: 1999C G.O. Storm Water Revenue Bond AGENDA SECTION:
Issue - Authorizing Issuance and Setting Bond Sale
PREPARED BY: Jeff May, Finance Director AGEND��p� � � �
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ATTACHMENTS: Resolution APPROVED BY:
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This item is on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation Storm Water Revenue Bonds for the Birger Pond Outlet Project - Project#262.
Bids will be opened Tuesday, September 21, 1999, 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
$855,000 GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 1999C.
COUNCIL ACTION:
CITY OF ROSEMOUNT
DAROTA COUNTY, MINNESOTA
RESOLUTION 1999-
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $855, 000 GENER.AL OBLIGATION STORM WATER REVENUE BONDS,
SERIES 1999C
WHEREAS, the City Council of the City of Rosemount, Minnesota,
has heretofore determined that it is necessary and expedient to
issue its $855, 000 General Obligation Storm Water Revenue Bonds,
Series 1999C (the "Bonds") to finance improvements to the storm
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:
l . Authorization; Findinas. The City Council hereby authorizes
Springsted to solicit bids for the competitive negotiated sale of
the Bonds .
2 . Meetincr; Bid Openinct. 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.
1077661.1
RESOLUTION 1999-
ADOPTED this 25th day of August, 1999 .
Cathy Busho, Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Second by:
Voted in favor:
Voted Against •
1077661.1 2
RESOLUTION 1999-
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
$855, 000 General Obligation Storm Water Revenue Bonds, Series
1999C.
WITNESS my hand this day of , 1999 .
Clerk
1077661.1 3
EXHIBIT A
THE CiN HAS �i.UTHORIZED A`S��T���E R��E VED �N THE FOLL W N�G AS S'�
{SSUE ON iTS BEl�I ALF. PRQPOS .
TERMS OF PROPOSAI-
$s5�,ao�
CITY O� ROSEMOUNT, MINNESOTA
GENERAL OBBONDS, SERIES�1 99C ER REY�NUE
' (BOOK ENTRY ONLY)
Proposals for the i�:londs will 6e received on Tuesday, September 21, 1999, until 12:00 Noon,
Central Time, at thr:� offiees of Springsted Incorporated, 85 �ast Se�enth P1ace, Suite 100, SBint
Paul, Minnesota, �r3er which time they will be opened and tabu{ated. Consideration for award
of the BortdS W��I bi:� by the City Council at 7:30 P.M., Gentral Time, of the same day,
SUBM1SSlON OF PROPOSALS
Proposals may bE;: submitted in a sealed enve{ope or by fax (65'f) 223-3002 to Spfingsted.
Signed PropGsals, ►Nithout final price or coupons, may be subm�tted to Springsted prior to the
time of sale. Z'he� bidder shall be responsible for submitEing to Sprirlgsted the final Proposal
price 8nd Coupoft�,�, by telephone (651) 223-3000 or f8x (651) 223-3002 fot indusion if1 t�e
submitted Propos�r:�i. Springsted �ri�� assume no liability for the inability of the bidder to reach
Sptingsted prior tc�� the time of sale specified above. All bidders are advised that e�ch Proposal
sha11 be deemed tr.� cotlstitute a contract between the bidder�nd the City t4 purchase the Bonds
regard�ess of the ri�anner of the Proposa( submitted-
DETAILS OF THE 80NDS
The Bonds wi11 b��: dated October 1, 1999, as the date of original i�sue, and wi�� bear interest
payable a ed on tl��e bas s of a 360 day year of twelve 30 day mo hs9Ust 1, 2000. Intetest wi{I
be comput
7he Bonds will m;:�ture February 1 in the years and amounts as f011ows,
2001 �30,000 2005 550,000 2009 560,000 2013 $70,OOQ
ZOd2 $45,000 2006 $50,000 2010 $60,000 2014 $75,000
2003 P45,000 2007 $55,OU0 2011 S65,000 2015 580,000
2004 $45,000 2008 S55,00� 20'f2 $70,000
�QOK ENTRY SYSTEM
The Bonds will I:�� issued by means of a book entry system v�rith no physical distribution of
Bonds made to I.he public. The Bonds will be issued in fully registered form and ane Bond,
representing th� aggregate principal amount of the Bonds rmaturing in each year, ,will be
registered in the name of Cede 8� Co. as nOminee of The Depository TruSt Corripany { DTC ),
New York, New'�'otiC, which will act as secu►ties depository of the Bonds. Individual purchases
of the Bonds ma��r be made in the principal amo+�nt of$5,000 or any multiple thereof of a singte
matutlty through� p0ok entries made on the books and records of DTC and its particip2nts.
Principal and int��rest are �ayable by the registrarto DTC or its nominee as registered owner of
the Bonds. Tr��nster of principal and interest payments to participants of DTC wi{I he th�
responsibitity of DTC; transfer of principal and interest payments to beneficial owners by
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participa�ts will be the responsibility of s ei ve a�of tfie Bonds, will be r qu ed to depos t the
ownecs- The purch,:�ser, as a condition of d rY .
Bonds with DTG, `
REGISTRAR
The City will name ��he reg+strar which sha11 be subject to applicable SEC regulations. The CrtY
will pay for the services of the reg+strar.
OPTIONAL REDEMPTI�N
The City may elect on February 1, 2008, be in wholedoryin�part and�i in p rt at�the opton of the
after February 1, 2�:�07_ Redemption may
City and in such m�anner as the City shall determine. lf less than all Bonds of a maturitY are
calted for redemptl�>n, the City will notify DTG of the particular amount of such maturity to be
pre�aid. PTC wi11 �:ietermine by �nttw I{ then se ect by lot hePt�en'efic alroWnersn p interests in
be redeemed and ..ach partic�pa
such maturity to bE!•redeemed. All prep�yments shall be at a price of par plus accn.�ed intecest.
SECURITY AND PURPOSE
The Bonds will be general flbligations of the City for which the City will pledge its fu�� faith and
credit 8nd power �I� IevU h�r tSt St4rma�a eraua lity. taThe p oceeds wi{ bertus dl poetlg a ce
revenues denved th�o g
improvernents to tl�ie storm water utility syst�m.
TYF'E UF PRQPOSALS
Proposals shall ber for not less th�n $844,740 and accrued interest on the total principa� amount
of the Bonds. PraaOsals shall be accornpanied by a Good Faith Deposit ("Depo��'o ��a abler o
of a certified or c�i�hier's cheek or � Firianeial Sucety B�Rn� the pao osal.�lf a Financial Surety
�the order of the City. lf a check is used, it must accompa y P
Bond is used, it rri��st b�from 2n insurance company licensed to issue SUch a bond in the State
of M�nnesota, arn:i p�eapproved by the City. Such bond must be submitted to S�►ringsted
lncorporated prio" t0 the opening of the proposals. The Financial Surety Bond must identify
each underwriter ��vhose Deposit is guaranteed by such Financial Surety Bond. lf the BondS are
awarded to an ui'�derwriter using a Financia{ Surety Bond, then that purchaser is required to
submit its Deposi�;to Springsted In�orporated in the form of a certified or cashie�'s check or wire
transfer as instru��ted by Springsted Incorporafed t�ot later than 3:30 P.M., Central7ime, on the
next business d�uy following the award- lf such ��posit is not received by that tyme, the
Financial Sur�ty I:i�nd may be drawn by the City to satisfy the Deposit requirement. The City
will deposit the ci'�eck Of the purci�aser, the amount oP which will be deducted at settlement and
no iflterest wilt a�:.crue tv the purchaser. ln the ev2nt the purchaser fails to comply with the
accepted propos�;l, said am0unt will be retained by the City. No proposal Cdn be withdrawn or
�rnended after tr�� time set for receiving proposals unless the meeting of the Issue� schedUled
for award of the �,:�bligations is adjourned, recessed, or continued to another date without award
of the Obligation::; having been m�de. Rat�s shall be in integral multiples of 5I10�or 1/8 of 1%.
Rates must be in level or ascending order. Bonds of the same maturity sha41 bea�a single rate
from the date of t.l�e Bvnds to the date of maturity. No conditional propoSals will be aCC�pted.
AWAFtb
The Bonds will ti��: 8warded on the basis of the lowest interesf rat� to be determined on a true
interest cost (TI�:;) basis. 7he City's cbmputat�on of the interest rate of eaCh proposal, �n
accordance with ��ustomary practice, will be controlling.
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7he C�ty wiil reseni e the right to: {i}waive noR-Substantive informalitiss of �r1y proposal or of
matters relating to the receipt of proposals and award of the Sonds, (ii) reject ail proposals
yvithaut cause, and, (iii) reject any proposal which the City determines to hav� failed to comply
with the tern'�s here�in.
CUSIP NUMBERS
If the B4nds quali•I�yr for assignment of CUSIP numbzrs such numbers will be printed on th�
Bonds, but nei�h�►' the failure to print such numbers on any Bond rtor any error with respect
thereto will constii;xte cause for failure or refusai by the purchaser to accept deliver'y of the
Bonds. The CUSI:;�' Se�ice eureau charge for the assignment of CUSIP identification numbers
shall be paid by th�:°� purchaser.
SETrLEMENT
Within 40 days fol'�uwing the date of their award, the Bonds wil! be delivered without cost to the
purchaser througti DYC in New York, New York. Delivery wil� be subject to receipt by the
purchaser of ar1 ��ipproving legal opinion of Briggs and Morgan, Professional AsSociation, of
Saint Paul and R�linneapolis, Minnesata, ar�d of customary closing papers, including a no-
litigation cettificatei, qn the date of settlement, payment for the Bands sh211 be rrl�de in federal,
or equivalent, furn�s which shall be reczived at the offices of the City or its designee not later
than 12:00 Noon, C;entral Time. Except as comp{iance with the terms of p8yment for the Bonds
shall have been rriade impossible by action of the City, or its agents, the purchaser shall b�
liable to the City f��:�r any loss suffered by the City by reason of the purchasers non-compliance
with said terms fo��p�yrnent.
CONTINUING DISCLOSURE
On the date of ac,tual iSSuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclo���ure Undertaking (the "Undertaking") wheraunder the G�ty will covenant for
the benefit of the �wners of the Bonds to provide certain finarlCial and Qther information about
the City and noti��es ef cett�in ocCUl'rences to infarmation repositories as specified in and
required by SEC I��;ule 15c�-1 Z(b)�5).
QFFICIAI.STATEMENT
The City has authorized the preparatlOn of an Official Statement containing perEinent
inform8tion relati��'to the Bonds, and said 4fFcial Statement vNiH serve as a near�y-final Official
Statement within the meanir�g of Rule 15c2-12 of the 5ecurities and Exchange CommisSion.
�or copies of tt�e Official Statement or for any additional information prior to sa{e, any
prospective purcf��aser is tefeRed t0 the Financial Advisor to the City, Springsted IncotpOrated,
a� East Seventh F}lace, Suite 100, Saint Paul, Minnesota 55101, t�lephone (651) 223-3000.
The Official StatE�irent, when further supplemented by 2n addendum or addenda spec'rfying the
maturity dates, �:�rincipal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitut� a "Final OfFcial Statement" of the City witr respect
to the Bonds, s:� that term is defined in Rule 15c2-12_ By awarding the Bonds to any
underwriter or �r��derwriting syndicate Submitting � proposal tnerefor, the City agrees that, no
more than seven business days after the date of such award, it shall ptavid8 without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 50 copies of the
U�cia) Statamer�t and the addendum or addenda deSCribed ab4ve. The City designates the
senior managing Lind�lwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distr�buting copies of the Final Official Statemen:to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is acceG�ted by the City (i) rt shall accep# suCh designation and (i� it shall enter into a
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contractual relation�;;hip with all Pa�ticipatine��ee of the F�nal Offic a�l Statementses of assuring
the receipt by each ��uch Participating Und
�ated August 25, 1':�99 BY ORPER OF TNE CITY COUNCIL
/g1 Susan M. Waish
City Clerk
art7rss�0:03 nrn
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