HomeMy WebLinkAbout7.f. 1994 Bond Issue - Authorize Issuance and Set Bond Sale (1994C) M � a CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: June 7, 1994
AGENDA ITEM: 1994 Bond Issue - Authorizing Issuance AGENDA SECTION:
and Setting Bond Sale (1994C) New Business
PREPARED BY: Jeff May, Finance Director AGENDA NO.
�TEM # �'
ATTACHMENTS: Resolution, Springsted Recommendations APPROVED BY:
(See Agenda Item # 7.d. )
This item is on the agenda for your consideration in authorizing the issuance and seting the sale
of General Obligation State Aid Street Bonds for Project #245 - 145th Street Reconstruction
Chili Avenue to Cameo Avenue. The issuance of these bonds will enable us to complete this
project and pay off the debt over time as the MSA funds become available to us.
Bids will be opened Tuesday, July 5, 1994, at 11 :00 A.M., Central Time, at the offices of
Springsted Incorporated. The bids will be tabulated there, and then cansideration for award of
the Bonds wiil be by the City Council at 7:30 P.M., CentraF Time, of the same day.
Settlement of the Bonds will occur within 40 days following the date of the award.
RECOMMENDED ACTION:
Motion to adopt A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF
$700,000 GENERAL OBLIGATION STATE AID STREET BONDS, SERIES 1994C.
COUNCIL ACTION:
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ci�� aF �osn�taox�r
DAROfiA COUNTY, MINNESQTA
1xES�LUTIC�T�i 1994- �
A RESQIrUT2QN PRQVIDING FOR T$E COMPETITIVE NEGt?TIAT�D
Si�LE OF $700,d0�] GENERAL OBLIGATIC�N STAT,E AID STREET
BC?ND�, SERIES 1994C
WHEREAB, the City Council af the city of �tt►semauxtt,
�Sinnesota, {the "City�') h.as he�+�tofore d��ermin�d t�x�t it �s
n�ces�gry and expediert� to issue i�s $7�O,o00 General Ob].igatiaxt
State Aid Street gonds, S�r3es 1994C (the "Bonds"y ta financ� the
cor�struGtian t�t variaus stireet improv�ments; and
wHER�A3, the City has zetained Spri�g�ted Incorgorat�d, in
Saint Paul, Minnesota ("Springsted") , as its indep�nclent
fireancia� adv�sor ar�d is therefore authorized to �e1Z �h�se
oblis�ations bX a camgetitiv� neg+�tiated sale in accardance raith
Minnesota St�tutes, Sectian 475.60, Subdivi.sica Z (9) ; �nd
N�W, THEREFORE, BE IT RESqLVEfl by the �ity Council of the
City of Rosemourzt, Minnesota, as fc�ll.ows: '
1. Authoriz�tion: FindirQs. The City Counci], hereby
autharizes Sprirtgst�d to �alicit bids far the comgetitive
n�got�.at�d sale c+f t,he Bonds.
2. i�eti�g; Bid Oner►in-�r . This city CaunciZ sk�all maet at
' the time �,nd place sgecified in the Terms af Propcs2�i attached
hereto �,s Es�hibit A �'or the p�arpos�e vf considerinq sealed bid�
�vr, and awa=dinq t2�e sale o�, the Bonds. Th� Administratar, vr
his des�ig�►ee, shall open bids at the time and place speci�i�d in
suc�. Terms of Propc�sal.
�. T�s�s o ro�osal. The terms and cen:ditians af the
Honds and the negotiatf.on thereof are ful7.y set fozth in the
' "Teriac� af Propc�al" attached hereta as Exh�.bit A and hereb�r
apprave� and made � part herevf.
4. S7fficial St�.tement. Zn coxtnecti�n witYi said
competitive r�eqotiated sal�, the Admfnistxator and ather of�f,cers
o� employee,s af the C�,ty are hereby authori�ed to caaperate with
Spr,ingsted and part5.cipate in the preparation af an official
statemen� foar the 8ands, and ta exec�xte arrd de],iver it an bet��.lf
o� the City upan its evmpletfon.
?.�i5375.1
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EXHIBIT 1,�
THE CITY HAS AUTHORIZED SPRftVGSTED IwCQRPO�►TED TO �IEGOTIAI'E TWIS
ISSU� C1N ITS BEHALF. pR�3POSALS WtLL BE RECE1t/�D i7N THE Ft7LL�W►NC� BASIS:
T�RMS aF PRQPaSAL
�i00,000
CtTY OP ROSEM�UNT� M(NN�SOTA
GENERAL �BLlCA�TIQM STATE AID STREET BC�NDS,
SEFtI�S 1g94C
Proposals for the 8onds will be r'eceived on Tuesda�r, ,luly 5, '1994, unti( �1:00 A.M_, Centra(
Tirne, at the offices af Springsted lncorp4rated, �5 East Seventh Place, Suite 1�0, Saint Paul,
Minnesata, after whichr time they�+rill be c�pened arrd tabulated. Consideration f�r award of the
Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day_
DETAILS OF THE B4NL1S
The Bonds wi(I be d�ted August 1, 1994, as the date of ariginal issue, and wi(I bear interest
pay�ble on Aprt( 1 and ��tober 1 �f each year, �ommencing April 'i, 1995. trrterest wifl be
computed on the basis of a 384�-day year of�welve 30-day rr�onths, The 6ands vt�iA be issued in
the denominati�n of �5,OQ0 each, or in integral mulfiples Yhereaf, as requested by the
purchaser, arld fully registered as to prmcipal and interest_ Principal will E�e payab(e at kh� main
corpor,�e o�ce af the registrar and int�rest on each �ond wiil be payable b�r check or draft of
the r�gisfrar m�iled to the regisfered hofder thereof�t the halders �ddress as it appears on ttte
baoks of the regis#rar as of�he cJose of business on thE '!5th day of the immediatefy p�eceding
month.
The Bands vvil( m�ture Aprj1 1 in the ye�rs and amounts as follows:
1995 �65,OOt7 1999 $65,040 2d02 $75,d00
9996 $�0,00� �000 $7(I,Q�00 2003 $80,000
1g97 $�O.OaO �041 $75,�00 2QQ4 �85,�OQ
1998 �$5,000
�PTI(�fr1�L REDEMPTIt�N
The City may eie� an Aprt( 1, Z00�3, �nd on any day thc�reaft�r, to prepay Bonds due on or after
Apri( 1, 2004. Redemption may be in whofe or in part artd if in p�rt� at the option of the City and
in such order as the Gity shaff determine and within a m�turity (�y lot as S+�I�cted by fhe
registr2rr. A(I prepayments shal! be at a price of par p(us accrued interest.
SECURI7Y ANp PURPC�SE
The Bonds will be gener�l oblig�tiir�rts of the City for wfrich the Cify wil! pledge its fu(! faith and
cr�dit and pc�vuer to (evy direct gen�raf ad valorem t�xes_ The proceeds wi11 be u�sed for str�et
impravements.
TYPE C3F PR4POSA�S
Proposals sha(f be fvr not I�ss tha� �690,2Q0 and ��crued interest ort the totat principal amount
of thre 8orlds. P�oposafs sh�(( be accompanied i3y 2 Gaed �aith �eposit ("D�posit") in the farm
of a cerEifred or cashier's r,heck ar a Financi�f Surety Band in the �mourrt of $7,004, payabie to
i
rR9M �AI GGS & MOAGAN ST. PAUL 612-223-6645 (THU}06. 02' 94 13:09/ST. 13:00/N0, 3560836172 P l?
the �rder of �he City. (f a check is used, it must accampany each proposal. !f a� Financial
Sure�t'y Bond is used, it must be from aR insurance cornpany licen�ed to issue suctr a band in
the State of Mirrnesofa, and preapproved by the City. Such bond must be submitted to
Springsted Inr,orporated priar to the apenirtg of th� propasals, i'he Financial Surety gvnd must
identify each undenarriter whase Depasit is g�aranteed by such FinanCi�l Surety Bond, tf the
Bon�ls �re awarded td an underwriter using a Firtancial Sutety Bond, then that purchaser ;s
required ta submit ifs Deposit ko Springsted Incorpor�ted in the form af a certified ar c3shier's
check or wire transfer as instructet! by Sprit�gsted inaorporated nat lafer th�n 3:3d P.M., Cenfrat
Trme, �n the next business day following #hE awar,d. If such Deposit is not received b� th�t
tirne, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City wi11 deposit the check of the purchaser, the amount of which will be dedu�ted at
settlement and no interest wiif accrue to the pur�ha��r. In the event the purchasec fails to
comply with the �ccepted prapasal, said amount wi(f be retained by the City. I�o proposa( can
be withdr�wun or amended after the time set for r�ec�ivirfg proposals un(e�s the me�ting bf the
Cify schedu►�d fot award of the Bonds is adjoumed, recessed, or continued to �n�ther date
without �ward of th� Bonds having been m�de. Rates shall be in in#egral rttu(fiples of 5!'t0� pr
116 of 9%_ F��tes must be irt ascending order. 8onds af the same maturi#y sha(( bear a single
rate from the dat� of the Bonds to the date of ma#u�ifiy. No cAnditiona( proposals will be
�ccept�d.
AWARD
i'he Bonds wi(! be awarried on the basis of the lowest interest r�te to be dete�mirred on a true
ir�terest cost (T1C� basis. Th� City's colnputation of the inter�st rate of eacFr prapasal, in
aecord�nce vrrith custom�ry pr�ctice, wilf be contrvlfing_
The Ci#y wi(I r�serve th� right #o: (ij waive nan-substantive infarmalities at any proposal or of
matters relating to the receipt af pro{�asa(s and award of the Bonds, (ii) rejecf a!( propc�s�ls
wifhout cause, and, {ii+) reject any prapasa( which the City determines to have f�i(ed to comply
with the terms herein.
REGfSTRAR
The City wilf narrte th� registrar uvhich shaf( be subject to app(ic�ble SEC re�u(ations. The Ci#y
wi(! pay far the senric.es of the re�istrar.
CUStP NUMBERS
If the Bands qualify for assignm�rtt af CUSIP numb�rs such nurnber� will be printed on the
Bonds, but neither fhe failure to print suCh number� on any Bond nor any error with respect
thereta wi!( constitute cause for fai(ure or r�fusal by the purchaser to a�cept d�livery of the
Borr�is. Tf�re CUS(P Service Bureau charge for the assi�nment of CUSIP identificaYic�n numb�rs
shalf be paid by the pu�chaser_
SETTLEMENT
Vlfithin 40 dayg following ttie date of their award, the Bonds wj0 be delivered with4ut cost to the
purchaser at a pJace mutually satisfacfory to the Ciiy and the purchaser. Delivery wil( be
subject ta receipt by the purchaser of an �pproving Iega1 opinion of Bt�ggs �nd' Ma�rgan,
s
Professionai Assoaation, of Saint P�u! and Minneapolis, Minnesota, whfch ppinian wifl be
print�d on the Bonds, and of customary clasing aapers, ihctuding a no-litigation certificate_ Qn
trie d�te of settl�ment papment for the Bvnds shal( be made in federal, or equiv�lent, funds
which shalf be received �t the offces of the City o[ its designee nof (at�r than 12:Q0 (Vo�n,
Central Tim�. Except as camp�iartce with the terms of paymertt far the �an�s shall have been
made irrrpossible by action of trre Ci{y, or ifs agents, the purchaser shall be fiable to the City far
�ii-
.
FA�M Br�IGGS & MOAGAN ST. PAUL 612-2�3-6645 (THU) 06. 02' 94 13:09/ST. 13:00/N0. 3��,0836172 P 1�
�tn� loss suffered by the �ity by reason of the purchaser`s non�-camp(iance with said terms fcr
pa�rment .
OFFf�I�hL STATEMENT
The �ify has authorized the preparation of an Offtcia( Statement containirtg p�rtirrent
informafiorr relative to th� Bon�ls, and said Official S�tement will setve �s a nearly-finaf �ffrcia!
Sfatement within the meaning of Ru(e 15c2-12 of the SecuritieS and Exch�nge �ommissian.
�ar c+�pies of the Officia! Statemerrt or far any additional infarmation prior to sale, any
prospective putchase� is refer��d ta the� Firl�tncial hdvisor to the City, Sprirrgsted Incotporated,
85 East Seventh plaCe, Suit�e 100, Saint Paui, Minnesata 55101, telephane (612� 22S�3Q0�.
Tl�e Officiai St�tement, when furth�r suppl�mented by�n adderrdum or addenda specifyir�g the
rnaturity dates, principal amaunts and interest r�es of the Bonds, to�ether urrith any ather
information requireQ by lavrr, shall cor�stitute a "Finai 4fFicial State�ment" of the City rnrith r�sp�ct
ta the B'ands, as that term is defined irr Rule 15�2-12. By awarrlirrg tfte gonds to any
urrderwriter or underuuriting syndicate submittirtg a proposa( therefor, the Cify agrees that, no
more than seven business d�ys after the date of such aw�rd, it shep provid�wit�rout cast to the
senior m2�naging underwriter of tl�e syndica#e to which the Bonds a�e awarded 30 copi�s of the
OfFcia( Statement and the addendum �r a�denda described above_ Ti�te Git� designates the
senior mana+�ing underwrit�r af the syndicate to which the Borrds are awarded 2s ifs agerrt fc�r
purpose�s of distrif�uting cap�es af the Fna( Officia( Statement ta each Rarticipating Underuvrite�.
Arry underwriter deliverirtg a proposal wi�h r�spe�f ta the Bonds agrees ther�by that if i�s
propos�l is ac�ept�d by the City {i) it shalf accept such designation 2nd (ii) it shal( enter inta a
contractua( refationship with alf Participating Underwriters of the Bands for purpose� of assuring
the r�ce'rpt by ea�h such Participafing Urtderwriter af the Finaf C7fficia! St�tement,
Dated June 7, 199�4 BY QRaER OF THE CITY COUNCiL
/s/ Sus�tn Wafsh
City Clerk
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