The URL can be used to link to this page

Home My WebLink About6.e. 1993 Bond Issue, Authorize Issuance and Setting Bond Sale (1993D) r ` CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATEs June 15, 1993 AGENDA ITEM: 1993 Bond Issue - Authorizing AGENDA SECTION: Issuance and Setting Bond Sale (1993D) New Business PREPARED BYs AGENDA�� t, � � Jeff May, Finance Director �f ATTACHMENTB: Resolution, Springsted AP D Y: Recommendations {See Agenda Item # (o •�. ) This item is on the agenda for your consideration in authorizing the I!, issuance and setting the sale of General Obligation Municipal Building , Refunding Bonds. These refundings would cover an earlier bond issue, G.O. Municipal Building Bonds, Series 1986. By refunding this issue, the City can expect an estimated net savings of $39,000. This is the actual dollar amaunt that the City will save (based on estimated bond sale interest rates) , over the remaining course of the old issue and the new issue. The present value savings is estimated to be $32,000. This savings is the value, in today's dollars, that is projected using the present vaiue method. This method is believed to be a truer picture of the actual savings, although the net savings does reflect the actual dollars that are being saved. Bids will be opened Tuesday, July 20, 1993 at 10:30 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: Motian to adopt A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $845, 000 GENERAL OBLIGATIQN MUNICIPAL BUILDING REFUNDING BaNDS, SERIES 1993D, COIINCIL ACTION: ' e CZTY OF ROSEMOIINT DAROTA COIINTY, MINNESt)TA RESOLOTION 1993 - A RESOLIITION PROVIDING FOR THL COMPETITIDE NEGOTIATED SALE OF $845,000 GENERAL OBLIGATION MtJNICIPAL BUILDING REFIINDING BONDS� BERIES 1993D WHEREAB, the City Council of the City of Rosemount, Minnesota (the "City") , has heretofore determined that it is necessary and expedient to issue its $845,000 General Obligation Municipal Building Refunding Bonds, Series 1993D (the "Bonds") to refund the 1996 through 2002 maturities of the City's $1,300,000 GeneraZ Obligation Municipal Building Bonds, series 1986, dated April 1, 1986; and WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota ("Springsted") , as its independent financial advisor and is therefore autharized 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: 1. Authorization; Findinqs. The City Council hereby authorizes Springsted to solicit bids for the competitive negotiated sale of the Bonds. 2. Meeting; Bid Openi.ncr. 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, ar 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 and other officers or employees of the City are hereby authorized to cooperate with Springsted and participate in the preparation of an afficial statement for the Bonds, and to execute and deliver it on behalf of the City upon its completion. � x ADOPTED this 15th day of June, 1993. E.B. McMenomy, Mayor ATTEST: Susan M. Wa1sh, City Clerk Motion bY� Seconded by: Voted in favor• Voted Against: . � t � Exhibit A THE CiTY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PRQPOSALS WtLL BE RECENED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $845,000* CITY OF ROSEMOUNT, MINNESOTA GENERAL OBUGATION MUNICIPALBUILDING REFUNDING BONDS, SERIES 1993D Proposals for the Bonds wili be �eceived by the City Administrator or his designee on Tuesday, July 20, 1993, until 10:30 A.M., Central Time, at the offices of Springsted incorporated, 85 East Seventh Place, Suite 100, Saint Paui, Minnesota, after which time they wili be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Centrat Time, of the same day. DETAILS OF THE BONDS The Bonds wili be dated August 1, 1993, as the date of originai issue, and wiN bear interest payabie on February 1 and August i of each year, commencing August 1, 1994. Interest wiU be cornputed on the basis of a 360-day year of tweive 3Q-day months. The Bonds will be issued in the denomination of$5,000 each, or in integra! muitiples thereof, as requested by the purchaser, and fuliy registered as to principai and interest. Principal wili be payable at the main corporate o�ce of the registrar and interest on each Bond will be payable by check ar draft of the registrar mailed to the registered hoider thereof at the holder's address as it appears on the books of the registrar as of the close af business on the 15th day of the immediately preceding month. The Bonds wiil mature February 1 in the years and amaunts as follows: 1996 $110,000 1999 $120,000 2001 $130,000 1997 $110,000 20Q0 $125,000 20Q2 $135,000 1998 $115,000 * The City reserves the right, after propasals are opened and prior to award, to incresse or reduce tt►e principai amount of the Bonds offered for sale. Any such increase or reduction wiil be in a totai amaunt not to exceed$50,000 and witl be made in muttiples of$5,000 in any of the mafurifies. In the event the principa! amount of the Bonds is increased or teduced, any premium affered or arry discount taken wiN be increased or reduced by a percentage equa/ to the percentage by which the principal amount of ihe Bonds is increased or�educed. OPTIONAL REDEMPTION The Bonds wiil not be subject to payment in advance o#their respective stated maturity dates. � SECUA(TY AND PURPOSE The Bonds will be generai obtiga#ions of the City for which the City wiA pledge its fu11 faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to advance refund the 1996 through 2002 maturities of the City's $1�300,004 General Obiigation Municipal Building Bonds, Series 1986, dated April 1, 1986. -i - � � a TYPE OF PROPOSALS Proposa(s shaii be for not less than $837,395 and accrued intecest on the total principal amount of the Bonds. Propasals 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 $8,450, payable to the order of the City. if a check is used, it must accompany each proposaL If a Financiai Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved 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 Finaneial Sure#y 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 t�ansfer as instructed by Springsted Incorporated not later than 3:30 P.iV1,, 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 wiil deposit the check of the purchaser, the amount of which will be deducted at setttement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the aecepted 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 adjoumed, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1 j8 .of 1%. Rates must be in aseending order. Bonds of the same maturity shall bear a single rate from the date of #he Bonds to the date af maturity. No conditional proposals wili be accepted. 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 camputation of the interes# rate of each proposaf, in aecordance with customary practice, will be controlfing. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receip# of propasals 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#erms herein. REG ISTRAR The City will name the registrar which shall be subject to appli�able SEC regulations. The City will pay for the services of the registrar. CUSIP NUMBERS If the Bonds qualify.for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to prinf such numbers on any Bond nor any error with respect the�eto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The GUSIP Service Bureau charge for the assignmen# of CUSIP identi�cation numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of#heir award, the Bonds will be delivered withaut cost ta the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery wil( be subject to receipt by the purchaser of an approving legal opinion of Bciggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesotat which opinion wifl be printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On - ii - , . . the date of settlemen# payment for the Bonds shail be made in federal, or equivalent, funds which shal{ be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compiiance with the terms of payment for the Bonds shali 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. ' OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative ta the Bonds, and said O�icial Statement wili serve as a neariy-fina( Official Statement within the meaning of Rule i 5c2-12 of the Securi#ies and Exchange Commission. For copies of the Officiai Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone(612) 223-3000. The Officiai Statement, when further suppiemented 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, shaii constitute a "Final Officiai Statement" of the Ciiy with respect to the Bonds, as that #erm is defined in Rule 15c2-12. By awarding the Bonds to any underwrite� or underwriting syndicafe submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such awa�d, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 35 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 Offciai Statement to each Participating Underwriter. Any underwriter delivering a proposal wi#h 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 Undervvriters of the Bonds for purposes of assuring the receipt by each such Participating Undervvriter of the Final Official Statement. Dated June 15, 1993 BY QRDER OF 7HE CITY COUNCtL /s/ Susan M. Walsh Clerk - iii -