HomeMy WebLinkAbout7.d. 1994 Bond Issue - Authorize Issuance and Set Bond Sale (1994A) CITY OF ROSEMOUNT
EXECUTIVE SUMMARY fOR ACTION
• CITY COUNCIL MEETING DATE: June 7, 1994
- AGENDA JTEM: 1994 Bond Issue - Authorizing Issuance AGENDA SECTION:
and Setting Bond Sale (1994A) New Business
PREPARED BY: Jeff May, Finance Director AGENDA ��� � �
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ATTACHMENTS: Resolution, Springsted Recommendations APPROVED BY:
for Series 1994A, 1994B, 1994C and Port Authority 1994A ,,
This item is on the agenda for your consideration in authorizing the issuance and seting the sale
of General Obligation Improvement Bonds for six different projects. The projects are Project
#245 - 145th Street Reconstruction Chili Avenue to Cameo Avenue; Project #242 - West Ridge
5th Addition; Project #248 - Shannon Pond 3rd Addition; Project #251 - Shannon Hills 6th
Addition; Project #253 - O'Leary's 7th Addition; and Project #254 - O'Leary's 8th Addition.
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 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
51,605,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1994A.
COUNCIL ACTION:
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FA�}M BAIGGS & MOAGAN ST, PAUL 612-�?3-6645 (THU) 06. 0�' 94 13:0�/ST. 13:00/N0. 3560�36172 P 4
CtTY OF R�SEMOUNT
` DAKOTA �OUNTY, MINNESt]TA
RESOLTJ'TION 1994-
A RESOLUTION P�2,�VIDING FQR TFiE coMPET�TIVE NEGOTSRTED
SALE OF $�.,605,00� GEN�'RAL OSLIGATI�N IMPROV�i�iEl'1T
BONDS, SERZ�S 1�94A
wHEi�EAS, the �City CounciT of th� City of Rosemaunt,
Mi.nxxesota, (the "Cf.tiy") has her�tc►�'ore determined. that it i.s
neCe�sary ar�d expedient to issue ,its $1,605,pC1a General
Obiiqatioa Imprav�ment Sonds, Se�ies 1994A (th� "Bonds") to
f�n�nce the const�uction of vari�us improvem�nts in the Cit�; and
WHEREAS� th� City has retained Sprinc�st�d Tncorperrat�d, in
Saint Paul, Minn�sata ("3pringsted") , as its independetit
fin�.nci.al adv�.sor and is the�efore sutharized ta se11 these
abliga�ions by a e�mp�titive negoti�.ted sale i.n accordance with
Minnesota Statutes, Secti.vn 475.6p, suba.�vision 2 ��) ; and
N4W, THEREFORE, SE IT RESOLVED by the City Cau�cii of th�
City cf Ras�mount, Minnesota, as follc�ws:
1. �utherizat.ion• indinus. The city Cc�un�il hereby
�uthorizes Sprzngsted to sol�.cit bids for the compet�tiv�
negatiated sale of the Bonds.
2. Meetina: Bid Openina. This City Council sha�.l meet at
the t,ime anfl place s��cified in the Terms of Praposa7, attac.hed
heretv as Exhibit A for the purpose af consider3.ng sealed bids
faz, and awarding the sa].e ot, the Bands. The Administrator, or
hi.s designee, sha11 og�en bids a.t the t�zne and p],ace sp�cified in
such Terms of Pra�osal.
3 . �.erms af �onos�1. The t�rms and cond�.tians of the
�vnds and the negotiation thereof are fully set farth in the
"Terms of P�opasal" �-�tach�d hereta as Exhibit A and hereby
appraved and m3de a part h�reof.
�. O��iciai Statemer,�t. In connectian w�,th sa�d
competitive negctiated sa7.�, the Administrator and other �,��icers
v= emPlcyees oi� the City ar� nereby a.utY�ori2ed to coc�p�rate with
Springst�d and paz�ticipate in th� preparatir�� af an ofgieS.al
statemer�t £ar the Bonds, and to ex�cute and delivex it on behalf
of the City► upon its campletion.
Fk�M BkIGGS & MOAGAN ST. PAUL 612-223-6645 (THU) 06. 02' 94 13:03/ST, 13:00/N0. 3560�36172 P 5
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- ADOP�'ED thf.s 7th day o� .Ttial�r 1994.
E.S. McMenomy, Mayor
ATTEST: �
Susan M. walsh, C ty Clerk
Motion bY= S�aor�ded by=
itot�d in f avor:
Voted Against:
26¢370,1
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FRaM BAIGGS & MOkGAN ST. PAUL 612-2�3-6645 (THUi Q6. 0�' 94 13:03/ST. 13:00/NQ. 3�60836172 P 6
�xxzBr.T A
' THE CITY HAS AUTHQRIZED SPRItVGSTED IN�CQF�PORAT'�D TO NEGOT(ATE THlS
ISSUE ON f'i'S B�HALF. PROP�7Sp►L3 WtLL BE R�GEIYED QN THE FOLL��IIfth1G BAStS:
TERM3 OF PROPOSAI�
$1,6�6,004
CITY OF RC?SEMOUNT, MtNNE$OTA
GENEI�AL a�L(GATtpN IMPRQVEM�NT BONDS, SERt�S 19�4A
Proposals €or the �or�ds wifl be� recefved on Tuesday, �uly 5, '1994, until 11:Q0 A.N1., Centra)
Trme, at#he offices af Springsted lncorpar�ted, 85 East Sev�nttt P(ace, Suife '104, Saint P�uI,
Minnesota, �fter uvhich time they wil[ be opened �nd tabulated. Gonsideration for aw�rd of the
Bands wilf be (�y the Cit�Councif at 7:30 P.M., Gentral Time, of the same d�y.
DETAILS OF TME BONDS
The Bc�nds wifl be dated August 1, 1994, as the date af original issue, �nd will bear int�rest
pay�ble t�n Febru�ry '� and Auguat '1 �f ea�Ft year, commencing Fet�ru�ry 1, 1995. Interest urril!
be c�mpt.�ed an �he basis ot a 36p-day yAar of twelve 30-day montha. �'he Bonds rruill be
issued in the denominatian of S5,Q00 ea�h, or in integra( multipfes thereof, �s requesfed by the
purchas�;r, arrd fuf(y registered as ta princip2�! and interest. Prinripal wi(I be payable at the main
corporate office of the registrar and interest on e�Ch Band will be p�ayable by check or draft of
the registrar mai(ed to the registered helder threr�of at tFre ho(de�s address as it appears on th�
boaks�af the registrar as of the close of busiRess on the '15th day of the immediat�ly preceding
month.
The Bonds wi(I mature February 1 in the years and amounts as follows:
1997 $13a,OQ4 2001 $155,400 2004 $78�,00�
199$ $135,Q00 2002 �160,000 2005 �'t90,Q00
9999 $14p,00d 2003 �170,QOQ 2Q06 �200,000
200Q $145,ODQ
4PTlp(4AL R�DEMPT(C)N
Tl�e City n�ay etiect on February 'I, �p03, 2r1d on any day thereafter, ta prepay Bonds due on or
after February 1, 2pQ4. Redempfiorr may be in whofe or in part and if in parf, �t#he option of
the City and in such arder as the City shall defermine and within a maturity by (ot as selected by
the registr�r. AI( ptepayments shaU Ese at a price of par p(us accrued�nterc�st,
�ECUfiITY AND PURPOSE
The Bands wifl be g�neraf abligations of the City for which the Ci#y will ptedge ifs fu(f fai�h and
credit and power to levy direct genera! ad valarem taxea. In addi�ion fhe City will p(edge special
assessmenfs againsf benefrtted properfy_ The proceeds will b� used for street improv�ments in
the City.
TYPE OF PROP4SALS
Proposals sh�p be fr�r nat tess than $1,582,53p and accrued interest on the totaf princip�l
amo�rnt of the Bvnds. Proposals sh�f! be accompanied by a Good Faifh Depasi# {"�eposit"� in
the form o#a certifred or cashie�s check or a F'rnancial Sure#y Bond in the amoun4 of$16,t150,
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FA�M BRI GGS & P�OAGAN ST. PAUL �i 12-223-6645 (THU) 06. 02' 94 13:03/ST. 13.00/N0. 35b0$3b 17� p 7
� payable to the� order of ifie Cify, lf a check is used, it must aGComp�ny each proposai. !# a
Fnarrcial Suret�r Bond is used, i� must b�e from an insurance company licensed to issue st,r�h a
, bond in the S�fate of Minnesota, anci preapproved by the City_ Such band mu�t be suk�rriiifed to
Spring�5ted (ncorporat�d prfor ta the apening af the propasals. 7he Financi�l Sur�t}/ Borrd must
identify each underWriter whdse Deposit is guaranteed by such F�nar�ciaF Sur�ty Band, If the
Bands ars� av�uuarded ta ar� underwriter u�ing a Fineneial Surety Band, then that purch�ser is
requfred to submit its Depc►s�t to Springsted (ncorporated in �1�re form.af a certift�d or r,�sMiers
check ar wire transfer as i�structed by Sprirrgsted Incorporated n�ti later than 3:30 P.M., �enfral
Time, on the nezt 6usiRess d��r foflowing the award. If sudt Depasit is n�t r�ceiWed by that
tim�, #he Financial Sur�ty Bond may be drawn by the Cify to satisf�r the Depasit requir�ment.
Th� City wi(( deposit the cheek of fhe purchaser, the 2�maunt of which wi(! be deducted at
settlement and rro inter�st wilt ac;crue ta the purchaser. In t�e event th� purchaser fails to
comply with the accepted pr�posaf, said amaunt w'rq be retained by #he City_ No pmposa( can
be withdrawn or amended �ft�r the time set for rece;ving proposafs unless the meefing of the
Gity scheduled for award of the Bonds is �djourned, recesse�i, ur contirtued ta another date
withaut �ward of the Bands having been rn�de. Rates shall be i� integral multipfes o�f 5/90p or
'll8 of 9%. R�tes rnu�t be irt ascending order. Bonds of the same m�turfty shal( bear a singfe
rai�e frcrm �he date of the Bonds fo the date of maturify. No co�ditiorral proposafs will be
acceptc�d.
AWARD
The Bor�ds wiH be awarded on t1'�e basis of the lowest interest rate to be determined on a true
interest cost {T1C� basis. The City's c�omputation of the interest rate af each prop�sa(, in
accordance with cusfomary practir,e, w'rif be contro(ling.
The City rivill resenre the right to: (i} waive non-substarttive inforrnaiities of any proposal or of
matte�rs relating to the receipt af prnposats and award of the Bonds, (ii} rej�ct al( proposa(s
wtth�rut cause, and, (ifi) r�ject any praposal which the Gity determines ta have faifed to compfy
wifh the terrns hereFn.
REGiSTRAR
The City wil! name the r�gistrar which shalt be subject to app(icable SEG regulations. The City
wi(I p�y fot the services o�f the registrar.
CUSIP NUMBERS
(f the Bonds qualify for assignrnent af GUSiP numbers sueh numbers will be prinfed on the
8ands, but neither fhre faifure ta print such number� on any 8ond npr 2ny errvr wifh resp�ct
th�reto wif( constitute cause for fai(ure ar refusal by the purchaser to accept delit�ery of the
Bonda. The CUStP S�rvice Bureau charge for the asai�nmant of CUSfP identification nurnbers
shal! be paid by fhe purchas�r.
SETTLEMENT
Wifhin �0 days fallowing the date af their award, the Bonds will bE de(ive�red witnaut cast to the
purchaser at a pface mutually se�sfactory to the City and the� purchas�r. D�(iriery vuilf be
SubjeCt ta reC�ipt by the purchaser of an approving lega� opinion o'f Briggs and Morgan,
Prafessiana! Associatian, of Saint Paut and Minrreapolis, Mirrnesata, which opinidn wi(( be
prirrted on the Eonds, aad of cust�mary c(osing papers, including a rra-(itigation certificate. Qn
fhe d�te af sett(ement payment for fhe Borads shall be made in federal, or eqtriva(ent, �funds
whiEh sh`21f be received at the offices of th� City or its designee no# later than 1�:00 Noon,
Cent�al Tim�. Except as campliance with tfte terms af payment for the Bonds shal! have been
made impvssilsle by ar�ion of the �ity, or its agents, the purchaser sha!! be fiabfe to �he City for
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FAc�M BRIGGS & MOAGAN ST. PAUL 612-2�3-6645 (THU) 06. 02' 94 13:04/ST. 13:00/N0, 3560�3617L P 8
' any losa suffered I�y the City by reason �f the purchaser's �on-compfiance with said terms far
payment.
� 4FF1C6A�STATEMENT
The City has aufhorized the preparation of an OfFciai Stat�ment corrtaining pertinent
infonnatfon r�faYive to the Bonds, and said t�ifrcial Sfiat�ment wriH serve as a n�arly-finaf �fficiaf
Stafiement within the meanirrg of Rule 1�c2-12 of tFre S�curities and Exch�nge �ammission.
For cq�pi�s af �he Officiat Statement or fat any addi�ionaf infonnatiar� prior tt� sale, �ny
prospeetive purchaser is referred ta the FinBnCiat Advisor ta the City, Sprir�gsted tncorparated,
85 �ast Seventh Pface, Suife 10a, S�int Paut, Minnesota 55401, telephone (612) 223-3000.
The c�fficiaf Statemerrt, when further supplemented by an addendum or addenda specifying fhe
maturity dates, prirtcipal amounts and inf�rest rates of the Bc�nds, together with an� other
rflform�tion r�quired by law, chaJl cfinstifuto a "Fin�! Offioial Sfr�tamen�'� of ti,� C;cy w�tt, r��peci
to the Bonds, as that term is deftned in Ruie 15c2-1�. By awerding the Bonda to any
vnderrrvriter or underwriting syndicate submittinQ a proposaf ther�nr, rr�P r.ity ag��aQ tir,�t, no
more tnan severr business days after ttte date af such award, it �half provide withou#cost to the
senior managing underwrifer of the syndicate to which the Bonds ar� awarded 65 copie� af the
Ufficial Sfatem�nt artd tJ�� �ddendum ar �ddend� describ�d abo�e. The �ity desigrrates the
senior managing uttderwriter�f the syndicate to which the Bands are aw2rded as ifs �gent for
purposes of distributing copies af the Final �7ffieial Statement to eac� Participafiang Underwriter.
Any underwriter de(ivering a prapasa! witlh respecf ta the Bonds a�rees thereb,� that if its
propogal is accepted by the City (i) it shall accept such d�esignation and (ii) it shafl ent�r inta a
cantractual refafianship witM at1 Pa�ficipating Underwriters of the Bonds for purposes-c�a�su�it�g
th� receipt by each such Participating Underwriter af the Finaf Official 5t�tement.
Dated June 7, 1994 BY OR�ER�F THE C17'�COUNCf�.
/s/Susan Walsh
City Cferk
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