HomeMy WebLinkAbout8.a. 1997 Bond Issue - Authorizing Issuance and Setting Bond Sale (1997A) CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: May 20, 1997
AGENDA ITEM: 1997 Bond Issue -Authorizing Issuance and AGENDA SECTION:
Setting Bond Sale New Business
PREPARED BY: Jeff May, Finance Director AGEND��p�� � �
� �
ATTACHMENTS: Resolution and Recommendations APPROVED BY•
This item is on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation Improvements Bonds for four projects: (1) Project#275 - Hawkins Pond;
(2) Project#277 - 1997 Street & Utility Reconstruction; (3) Project#280 - Geronime Pond; and
(4) Project#282 - McNamara Addition. All four of these projects are beginning construction or will be
beginning construction shortly.
Bids will be opened Tuesday, June 17, 1997, at 11:00 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 NEG071ATED SALE OF
$2,800,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997A.
COUNCIL ACTION:
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ADOPTED this 20th day of May, 1997 .
Cathy Busho, Mayor
ATTEST:
Susan M. Walsh, City. Clerk
Motion by: Seconded by:
Voted in favor:
Voted Against:
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THE C1TY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTlATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASiS:
TERMS OF PROPOSAL
$2,800,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLlGATION IMPROVEMENT BONDS, SERIES 1997A
(BOOK ENTRY ONLY)
Proposals for the Bonds wili be received on Tuesday, June 17, 1997, until 11:00 A.M., Central
Time, at the offices of Springsted Incorporated, 85 East Seventh Piace, 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 (612) 223-3002 to Springsted.
Signed Proposais, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsibie for submitting to Springsted the final Proposal
rice and cou ons b tele hone 612 2 - -
P , 23 3000 or fax 1
P Y p ( ) (6 2) 223 3002 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. Pro osals ma also be filed electronicall
P Y Y
via PARITY, in accordance with PARITY Rules of Partici ation and the Terms of Pro osaf
P p ,
within a one-hour period prior to the time of sale established above, but no Proposals will be
received after that tim .
e If provisions in the Terms of Proposal conflict with the PARITY Rules
of Pa i '
rt cipation, the Terms of Pro osal shall controf. The normal fee for use of PARITY m
P ay be
obtained from PARITY and su h
c fee shall be the responsibility of the bidder. For further
information about PARITY, potential bidders may contact PARITY at 500 Main Street,
Suite 1010 Fort Worth TX 7610 -
2 tele h n
o e 817 885 8900. Neither the Cit nor S rin sted
p t ) Y P 9
Incorporated assumes any liability if there is a malfunction of PARITY. All bidders are advised
that each Pro osal shall be deemed to constitute a contrac
P t between the bidder and th
e Cit to
urchase the Bonds r I
Y
p e ard ess of the manner of
9 the Pro osal submitted.
P
DETAILS OF THE BONDS
The Bonds 'Will be dated July 1, 1997, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1998. Interest wiD
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:
' 2000 �335,000 2004 $280,000 2007 $265,000
2001 $295,000 2005 $275,000 2008 $255,000
2002 �290,000 2006 $270,000 2009 $250,000
2003 $285,000 '
BOOK ENTRY SYSTEM ',
The Bonds will be issued by rneans 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
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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, 2004, and on any day thereafter, to prepay Bonds due on or
after February 1, 2005. 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 matu�ity 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 generat 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 special
assessment against benefited property. The proceeds will be used for street and utility
improvements within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $2,772,000 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 $28,000,
payable to the order of the City. If a check is used, it must accompany each 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 preapp�oved 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 City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. 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 matle. Rates shall be in integral multiples of 5/100 or
1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shalf 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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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, (ii) 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. I
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 I
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 at a place mutually satisfactory to the City and the purchaser. 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 the actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to be
provided, annual financial information, including audited financial statements of the City, and
notices of certain material events, 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.
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For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is refeRed to the Financiai Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 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 up to 115 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 undennrriter 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 May 20, 1997 BY ORDER OF THE CITY COUNCIL
/s/Susan Walsh
City Clerk
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