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Home My WebLink About6.d. 1993 Bond Issue, Authorize Issuance and Setting Bond Sale (1993C) L } CITY OF ROSEMOIINT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATEs June 15, 1993 AGENDA ITEM: 1993 Bond Issue - Authorizing AGENDA SECTION: Issuance and Setting Bond Sale (i993C) New Business PREPARED BY: AGENDA �M � � � Jeff May, Finance Director ATTACHMENTB: Resolution, Springsted AP VE : Recommendations (See Agenda Item # (o h. ) This item is on the agenda for your consideration in authorizing the issuance and setting the sale of General Obligation Water Revenue Refunding � Bonds. These refundings would cover an earlier bond issue, G.O. Water Revenue Bonds, Series 1989A. By refunding this issue, the City can expect an estimated net savings of $65,000. This is the actual dollar amount 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 $47, 000. This savings is the value, in today's dollars, that is projected using the present value 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 o� the Bonds will be by the City Council at 7:30 P.M. , Central Time, of the same day. Settlement of the Bonds will oacur within 40 days following the date of th� award. RECOMMlSNDLD ACTiON: Motion to adopt A RESOLUTION PR4VIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $945,000 GENERAL OBLIGATION WATER REVENtTE REFUNDING BONDS, SERIES 1993C. COUNCIL ACTION: CITY fJF ROSEMOIINT DAROTA COONTY, MINNESOTA RESOLIITION 1993 - A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALB QF $945,000 GENERAL OBLIGATION �ATER REVENIIE REFIINDING BONDB, SERIES 1993C WHEREAB, the City Council of the City of Rosemount, Minnesota (the °City��) , has heretofore determined that it is necessary and expedient to issue its $945,OOD General Obligation Water Revenue Refunding Bonds, Series 1993C (the "Bonds") to refund the 1998 through 2005 maturities of the City's $1,32Q, 000 General Obligation Revenue Water Bonds, Series 1989A, dated April i, 1989; and WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota ("Springsted") , as its independent financial advisar and is therefore authorized 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 C�.ty of Rosemount, Minnesota, as followss 1. Authorization: Findinc�s. The City Council hereby authorizes Springsted to solicit bids for the competitive negotiated sale ot the Bonds. 2. Meetinct; Bid �pening. 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 tirne 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 cornpetitive negotiated sale, the Administrator and other officers or employees of the City are hereby authorized t+� cooperate with Springsted and participate in the preparation of an official statement for the Bands, and to execute and deliver it on behalf of the City upon its completion. ADOPTED this 15th day of June, 1993. E.B. McMenomy, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted Against: Exhibit A i'HE CITY HAS AUTHORIZED SPRINGSTED tNCORPORATED TO NEGOTIATE THIS I�SUE ON ITS BEHA�F. PROPOSALS WILL BE RECEIVED ON THE FOLLOWlNG BASIS: TERMS OF PROPOSAL �945,Q00* CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 1993C Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday, July 20, 1993, unti! 10:30 A.M., Central Time, at the o�ces of Springsted incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds wili be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds wili be dated August 1, 1993, as the date of original issue, and will bear interest payabie on February 1 and August 1 of�each year, commencing August 1, 1994. Interest wil! be computed on the basis of a 360-day year of twelve 30-day months. Tfie Bonds witl be issued in the denomination of$5,000 each, or in integral multiples thereof, as requested by the purchaser, and futly registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by chsck or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding mon#h. The Bonds will mature February 1 in the years and amounts as fo{lows: 1998 $1OO,Q00 2041 $115,000 2004 $130,4�0 1999 $105,000 2002 $120,000 2005 $140,000 2000 $1 f Q,000 2003 $125,00� * The Ciry resenres ihe righi, after proposals are opened and prior to award, to increase or reduce the principa/ amount of the Bonds offered for sale. Any such increase or reduction wiH be in a total amouni not to exceed$50,000 and will be made in multiples of$5,000 in any of the maturities. tn the eveni ihe principal amouni of the Bonds is increased or reduced, any premium offered or any discouni taken will be increased or reduced by a percentage equal to the percentage by which the principal amouni of the Bonds is increased or reduced. OPTIONAL REDEMPTION The City may elect on February 1,2002, and on any day thereafter, to prepay Bonds due on or after February 1, 2003. Redernption may be in whole or in part and i#in part at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the Cit},r wiH pledge i#s fuU faith and credit and power#o levy direct general ad valorem taxes. In addition the Ci#y will pledge net revenues of the City's municipal water utility. The proceeds will be used to advance refund -i - . , . the 1998 through 2005 maturities of the City's $1,320,000 General Obligatian Revenue Water Bonds, Series 1989A, dated April 1, 1989. TYPE OF PROPOSALS Proposais shall be for not less than $935,550 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit {"�eposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $9,450, payable to the order of the City. If a check is used, it must accompany each proposal. ff a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the Sta#e of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Inco�porated priar to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is gua�anteed 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 Inco�porated in #he form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Centrat Time, on the next business day foliowing 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 witl accrue to#he purchaser.� M 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 propesals unless the mee#ing of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integraf multiples of 5/100 or 1/8 of 196; Rates must be in ascending order. Bonds ofi the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TlC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City wil! reserve the right ta: (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, (iiij reject any propasal which the Gity determines to have failed to comply with the terms herein. REGISTRAR The City will name the registrar which shall be subject to appficable SEC regula#ions. The City will pay for the services of the registrar. CUSIP NUMBERS (f the Bonds quaiify 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 consti#ute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSfP Senrice 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 wi11 be delivered without cost to the purchaser at a place mutuatly satisfactory to the. City and the purchaser. Delivery wi{1 be - ii A 1 } subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapoiis, Minnesota, which opinion wili be printed on #he Bonds, and of customary ciosing papers, including a no-litigation certificate. On the date of settiement payment for the Bonds shall be made in federal, or equivaient, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Centrat Time. Except as compiiance with the terms af payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shaA be liable to the City for any loss suffered by the City by reasbn of the purchaser's non-comptiance with said terms for payment. � OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement wiH serve as a nearly-final Official Statement wi#hin the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official 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 55t Q1, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda speci#ying the ma#urity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shap constitute a "Final C)fficial 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 propasal therefor, the City agrees that, na more than seven business days after.the date of such award, it shaA provide without cost to the senior managing underwriter o#the syndicate to which #he Bonds are awarded 40 copies of the Officiat Statement and the addendum or addenda described above. The City designates #he senior managing underwriter o#the syndicate to which the Bonds are awarded"as its agent for purposes of distributing cop�es of the Final Official Statement to each Participating Unden+vriter. Any underwriter delivering a propasa( with respect to the Bonds agrees thereby that i# 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 June 15, 1993 BY ORDER OF THE CITY COUNCII. /s/Susan M. Walsh Clerk � -iii -