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Home My WebLink About7.e. 1994 Bond Issue - Authorize Issuance and Set Bond Sale (1994B) 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 (1994B) New Business PREPARED BY: Jeff May, Finance Director AGENDA NO. �T��il # �� ATTACHMENTS: Resolution, Springsted Recommendations APPROVED BY: (See Agenda Item # �•d• ) This item is on the agenda for your consideration in authorizing the issuance and seting the sale of General Obligation Storm Water Revenue Bonds for three different projects. The projects are Project #245 - 145th Street Reconstruction Chili Avenue to Cameo Avenue; Project #251 - Shannon Hills 6th Addition; and Project #257 - Wachter 186A Outlet. Bids will be opened Tuesday, July 5, 1994, at 1 1 :00 A.M., Central Time, 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. 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 5335,000 GENERAL OB�IGATION STORM WATER REVENUE BONDS, SERIES 1994B. COUNCIL ACTION: �. FF�fi� BAIGG� & MOkGAN ST. PAUL 612-223-cia45 (THU106. 02' 94 13:05/ST. 13;00/N0. 3�60836172 P 9 � , , � � .:�, � �;��r crTY o� Ros�avrr�r DAKC3TA COUNTY, MINtVTESOTA RESO�,TJTION 1.49�4-_,_ A RESQLIITION PROVIDING FaR THE CQMPETITIVE 1�1EGt3'X'IATED SALE 8F $3�5,000 GEHERAL QSLZGATItfrl' S'I'ty�ZM WATER REVEN'tJ� SdNt�S, SEl7ZE8 1994B W�iEREAs, the City Councf.l of th� City o� Rase.mou�t, Minnesota, (th� ��City��) has hereto£are detexzained that it S�s necessary and expedien� to issue its $335,004 Gerl�ral Obli.gatian Storm WateX Revenue �oz�ds, S�ries 199�48 (the "Bond�R) to fin�nce variaus impr�vem�nts ta the City�s sto�a water system; and WHEREp,S, the C�,ty has retained Springsted In�orporat�d, in Saint P�ul, Minnesota ("Sp=f�qe�ted") , as its indegendent �inancial advisor and is th�refore aut�o=iz�d ta sell tY��se obl,igations by a competitive negoti.ated sale in accord�nee witt�► Mfnnesota S�atutes, S�cticn 4�5.60, Subdivis�ion 2(9) ; and NOW, THEPEFORE, HE IT RESQLVx:D by the City Council o� th� City of Rc►semcrunt, Minnescta, as follow�: 1. At�tha?-iaation, F�.ndS.ncLs. The City Council hereby authorizes Springst�d ta salicit bids for tk�e compe�itive negatiated sale of the Bonds. 2. Meetina; Bid t�oeninc�. This City Council shall meet at �he time and place speeifie�d in the Terms of P�tapas�l attached her�ta as Exh.£bit A for the g�ose of considering seal�d bids for, and aw�rdint� the s�le of, the Bonds. The Administrata�, or his designee, sh.a�I7. op� bids at th� time a�nd place speaified i�rt �uCh T�rms of Proposal. 3. Terms of Pro�ro. .sal. The terms and cr�nditions of the B�nds and the neqotia.tion the�eo� are fully set forth in the "Terms af Propasal'� attached l�ereto �s ExhS.b�.t A and hereby approved and made a gart heraof. 4. Official Stat�m�nt. In connection �iith saf,d comp+etit�.ve negotiat�d saie, the Adm�.nistrator and other Officers or �mplcxyees af tlxe City are her�by autho�iz�d to cooperate w��h Springsted and partici�rate in th� prep�.ratian af an afficial sta�.tement for the Bortd�, and ta exeeu�e an�. deliver it on behalf af the City upvn �.ts campl�tivn. ..,��... . , F�QM BAIGGS & MOkGAN ST. PAUL 61�-223-6645 (THU) 06. 02' 94 13:05/ST, 13:00/N0. 3560836172 P 10 ADOPTED tlzie� 7th day of Ju�e, 1994. E.B. McMenamy, Mayor ATTESfI': Susan M. Waish, C ty Cler�c Mation bY= s�con�ied by: _ Voted in favor: Voted Aq�inst. 2653i2,1 FF�OM BAIGGS & MOkGAN ST. PAUL 612-�23-6645 (THU) 06. 02' 94 13:05/ST, 13:00/N0, 3�608�6172 P 11 ` , E3�HIBIT A THE CITY �i,e,,$ A►U'�HORtZED SPRlNGSTED tl�C47R�RAT�D TO N�GOTIATE THIS tSSUE ON tTS BEHALF. PRQPOS�t.LS WI[.L BE R�CE1VEa QN TH� FQLLOWIN� BASIs: T�Rh11S OF RR4P�5AL $�35�Q00 GITY OE �iOSEM�UNT, MtNNESOTA GENERAL �BLI�ATIt�M STQFiN1 WpT,�R REYENUE BQNDS� SERIES 9g94B Propcsafs far tF1e Bands wiif be r�C�ived �n Tuesd�y, July 5, 1994, until 11:00 lk.h1(., Cerrtr�( Time, �t fhe v�ces of Springsted Incorporated, 85 East Seventh Plac�, Suite 1�Q, Saint Paul, Minnesota, �fte�urrhieh time they wil! b� o�ened and tabufated. Consideration for avuard of the Bands will be by the City Couneif at 7:3Q P.M., Cer�tral Time, af the same day. DETAlLS pF THE BQNDS The Bonds wil( 4�e dated August 1, 989�, as the date af originai issue, and wi(I bear interest payable on F�bruary 1 arrd August 'I af each year, commencing February 1, 1995, Interesti wifl be computed on the basis of a 360-day year pf tvrre(ve 30-day manths, The �vnd� wi11 [�e issued in the d�nomi�atran of$�,000 e�eh, ar in integraf multiptes fhereof, as requested by the purchaser� and fulfy registered as tq princip�l and interest_ Prirrcipal wilf be payabfe �t the main r.arporate office of the r�gistrar artd in{erest vn ea�h Bond wi11 be payable by check or dFaft of the registrar maif�d fo the registere+d ha�der ther�of at the halder's add�ss as it appears on the boaks �f tne registrar as of the c(ose of business on the 15th day of the immediately preced;ng manth. The Bands wiil mature Fel�ruaryr 1 in the years and amounts as fiollows: 1998 �60,000 2000 $3Q,000 2QQ� �30,OOQ 'i 997 $25,Qd0 2001 $35,OQ0 2aQA� �35,t100 - 19�8 �25,a40 20Q2 �30,OOo 2�05 �O,aaQ 19g9 $25,000 OPTI�NA� REO�MPTIQN The Cily may elect on Febfcrary 9, 2003, and an any day thereafter, to P�P�Y Bands due on or after Febn.ia�ryr 9, 2pp4. Redemption may be in whote or in part and �f in part, at fhe optPan af the City and in such arder as th�City shaf! determine and wjthin a maturify b� Iot as selecfed by the registrar. AI! prepayments shall be at a price af par plus accrued interest. SECURiTY aNd PUI�PC7SE Th� Bonds will be genera( ablig�tigns of the City for which the Cit�r wi(( pfedge its fUft faith �nd cradi� and pow�r t� le�ry direct general �d vaforem taxes. In �ddition th� Cify will pledge nEt rev�nues of the starm water utility. The proceeds wi(i E� used to #inanc� the costs of starrn wat�r impro�ement prajects withir� tl�e City TYPE t7F PRCIPOSA�S Prapas�ls shalt be for not less than $330�314 and accrued intere$t on fhe tota! princip�) amount +�f the Borrds. Proposafs shall be �Ccompanied by a Good Faith t7eposit ("Deposit") in the farm _i- . FA4M BRIGGS & MOAGAN ST. PAUL 612-223-6645 (THU) 06. 02' �4 13:06/ST. 13:00/N0, 3560836172 P 12 of a certified or cashiers cF�e�k or a Fin�nciai Surety Bond in the �mount of�3,350, payable to the arder of th� City. If � check i5 used� it must accomp�n�/ each propasal. (f a F�nancia! Surefy Band is used, it must be from art iRsuran�e �company (icensed to issue such a bond irt the State of Mirrneso#a, �nd preapproved by th� City_ Such bon0 must be subrrriited �+a Springstied Incorporated priar to the opening af fhe proposa(s. The Finar�cial Sure�ty Bcnd must identi�jr each underw�rrter whase �eposif is guaranteed by such Financia( �'uret� Bar�d. If the Bvnds are award+�d to �n underuvriter usirfg a Financia) Surety Bond, then that purchaser is requif�d to sukrmit its Depasit to Springsted Incorpordted �n the f�rm of a certified or C�shier's check ar wir�fransfer as instructed by Springsted lncorporated fiot later than 3:30 P.M., Certtrai( Time, rnt the next business day following the award. tf such Deposit is not received by that time, #he Financial Surety Bond may be drawn by the City to satisfy the Deposit requiremerrt. The Cif�r wri(f deposit the check af the pvrchaser, the amaunt of which wi(1 b� deducted at sef�fement and np interesx wi(! acerue to the pu�chaser_ In the etient the purch�ser fails to comply with the acaepted prapasa(, said amount wi11 be retained b� the� City, No proposal can be wit�drawn or amend� after fhe time set �Far rer,�iving prop�s�ls unless the meefit�g of t�e City schedu(ed for awrard af the Sends is adjoum�d, r�ec�sse�i, or cantinued to a�other daf.� without eward o'f the Bonds having b�en made. Rates sha!( be in integral multip(es of 511 QO ar 'f/8 af 9°ta. Ftates must be irr �scending order. Bands af the sat'tte maturity sha(! bear a singfe rate from the dat� of the Bdnds ta the date of maturity. No conditional proposals vril( 6e �cc;epted. AWARD The Bands will be ayvarded an the basis of the lowest intere�t rate to be determin�d on a true interest cast (TfC) basis. The City's comput.�tion of the int�res# r�te of eact� proposal, in accord�nce with custom�ry pract�ce, will be Controlling. The City will reserve the right ta: (i) waive non-subst�nti�e informalities of any praposal or of rrratters relating to the receipt of propos�ls and award of the Bonds, (ii) r�ject ait proposa(s without cause, antl, (iii� rejeet any praposal which the City d�termirres ta have faifed to �omp(y with the terms herein. REGISTRAR TFie �ity wilt nart�e the registrar which sh�ll be subject ta �pplicab(e SEC reguf�tions_ l'he City wi(1 p�r for the services of the registrar. CUS(P NUMBERS If the Bonds quafify fo�r assignmer�t of CUSIP numbers such numbers wi11 E�e printed on the Bcrnds, but neither the failure ta prirrt such numbers on any Bond nar any errar with respect thereto wi(I constifute� cause for failure or refusal by th� purchaser to accspt d�(ivery of the Bonds. The CUSlP Service Bureau cf�ra�rge for the assignrnent of CUSIP iderrtification numl�ers shaff bc� paid by the purc,h�ser. . SETfLEMENT V1Jithin 4p days fr�flowing the date of their aw�rd, the Bonds wil( be delivered without cos# t,o the �urchaser a� a place mufuafly safisfactory► #o the City and Yhe purohaser_ Detivety wili b� subject ta receipt by the purchaser of an �ppraving fegat apinior� of Briggs and Morgan, Professionaf qssoc"ration, of Saint p�ul and Minneapofis, Minneso�, which apinion wi(f be prirrted on the Bends, and of�ustom�ry cfasing papers, inc�uding a no-fitigation certificate. on the date of seftlement payment far fhe Bonds shati b� made in federal, vr equivalent, funds which shall be r�ceived aY Ehe offices of the City vr its designee not later than '12,00 Noon, Central Time. Exc�pt as compliance with the terms of paymsnt fvt ttte 8onds shall h�ve been made impossible by actian of the City, or its agents, ti�e purchaser sha(f be Iiable ta the Cityr for - ii- . FFrOM BAIGGS � MORGAN ST. PAUL 61L-LL3-6645 (THU) 06. 0�' 94 13:07/ST. 13:00/NQ, 3�60�36172 P l3 . , any lass suffered t�the �ity by reason of the purch�s,er's nonfiompliance with said terms for payment. OFFICIA�L STATEhAENT 'i'he Ci#y F��s authorfzed the prep�ratian df an C?�cial Statemerrt contairrirtg pertinerrt infarmatian relative to ti�e Bonds, and s�id QfFcia( Statemerrt wil) 5erve as a Rearty-fn�( Official St�tement uwithin the meaning of Rule 15C2-12 of the Securities and Exchange Commission. For copies of the �fficiai Statement or for any additional information prior to s�le, a�ry prosp�ctf�ve pur�has�r is r�f�erred to th� Financial Advisar to the City, Springsted lnGorporated, 85 East Seventh Place, Suife 1Q0, Saint Paul, Minnesota 55109, telephon� (612) Z23-30Q0. The Ufficial Statement, when further supp(emented by an addendum or addenda specifying the maturiiy dates� principal �mounts and in�erest r'�tes af the Bonds, together with arty other informatior� requ�red by law, shall canstitute a "Fina( Official Stateme�nt" of the City with respect ta the B�nds, as that tenn is defined in Ruie 15c2-12. By awarding the Bonds to any underv�vri�er or und�nwriting syndicsfe submitting � praposal therefar, the City egr�es that, no mar� tharr seven k�usiness days affer the date of such aw�rd, it shalf pr�ovide withdut cost to #he senidr m�nagirrg underwriter of the syrtdicaie to whi�ch the �onds are awarded 15 Capi�s of the Officiaf Statement and the addendum or addend� described abav�. The City designates the senior man�ging undertiw�iter of the syndic�fe to wt�ich the Bands are aw�rded as i�s agent for purpos�s of diatribufing copie$ of the �'ina( pfficiat St�atement to each Par�icipating Ur�derwrit�r. Any undervyriter delivering a proposal with rEspert to the Borrtts agrees thereby that if its proposaf is �ccepted by the City (i} it sh�fl acCept suCh �design�tion 2rrd (ii) it shalf enter into a cqntractuaf relatianship wifh all Participating Underwriters af the Bonds far purposes of assuring the receipt by each such Pa�ticipating Unde►writer of the Fina( Official Statement, Dated June 7, 7994 � BY DaDER OF THE CIT`f CdUNC(L , /s/Susan V1latsh City Clerk iii .