HomeMy WebLinkAbout6.c. 1993 Bond Issue, Authorize Issuance and Setting Bond Sale (1993B) . �
CITY OF ROSEM4IINT
E%ECUTIVE SUMMARY F4R ACTION
CTTY COUNCIL MEETING DATE: June 15, 1993
AGENDA ITEM: 1993 Bond Issue - Authorizing AGENDA BECTION:
Issuance and Setting Bond Sale (1993B) New Business
PREPARED BY: AGEND
Jeff May, Finance Director ���� # �
ATTACHMENTB: Resolution, Springsted APP VE Y•
Recommendations (See Agenda Item # (� b, )
This item is on the agenda for your consideration in authorizing the
issuance and setting the sale of General Obligation Improvement Refunding
Bonds. These refundings would cover two earlier bond issues, G,4J.
Improvement Bonds, Series 1987A, and G.O. Improvement Bonds, Series 1989B.
By refunding these issues, the City can expect an estimated net savings of
$439, 00. This is the actual dollar amount that the City will save (based
on estimated bond sale interest rates) , over th� remaining course of the
two issues and the new issue. The present value savings is estimated to be
$134,000. 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 beinq 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 Cauncil
at 7:30 P,M. , Central Time, of the same day.
Settlement of the Bonds will accur within 40 days following the date of the
award.
RECOMMENDED ACTION:
Motion to adopt A RESOLUTION PROVIDING FOR THE COMPETITSVE NEGOTIATED
SALE OF $1,415,Q00 GENERAL OBLIGATION IMPRdVEMENT REFUNDING BONDS,
SERIES 1993B.
COUNCIL ACTION:
CITY OF ROSEMOIINT
DAKOTA COIINTY, MINNESOTA
RESOLUTIdN 1993 -
A RESOLIITION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF
$1,415,008 GENERAL OBLIGATION ZMPROVEMENT
REFIINDING BONDS, SERIES 1993B
WHEREAS, the City Counail of the City of Rosemount, Minnesota
(the "City'�) , has heretofore determined that it is neeessary and
expedient to issue its $1,415,000 General Obligation Improvement
Refunding Bonds, Series 1993B (the "Bonds") to refund the 1997
through 1999 maturities of the City�s $4,995,000 General
(?bligation Improvement Bonds, Series 1987A, dated August 1, 1987
and the 1996 through 2001 maturities of the City's General
Obligation Improvement Bonds, Series 1989B, dated July 1, 1989;
and
WHEREAs, the City has retained Springsted Incorporated, in Saint
Paul, Minnesota (��Springsted") , as its independent financial
advisor and is therefore authorized to sell these obligations by
a competitive negotiated sale in accordance with Minnesota
Statutes, Seetion 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: Findings The City Council hereby
authorizes Springsted to solicit bids for the competitive
negotiated sale of the Bonds.
2 . Meeting; Bid Opening This City Council shall meet at
the time and place specified in the Terms of Proposal attached
hereto as Exhibit A for the purpose o� considering sealed bids
for, and awarding the sale of, the Bonds. The Administrator, or
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 Exhiba,t A and hereby
approved and made a part hereof.
4. Offieial Statement In eonnection with said
competitive negotiated sale, the Administrator and other officers
or employees of the City are hereby authori2ed to cooperate with
Springsted and participate in the preparation af an official
statement for the Bonds, 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 C1erk
Motion bY� Seconded bys
Voted in favor:
Voted Against:
, �
Exhibi� A
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLQWING BAStS:
TEAMS OF PROPOSAL
51,415,000*
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT REFUNDiNG BONDS,
SERtES 19938 .
Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday,
July 20, 1993, untii 10:30 A.M., Centrai Time, at the o�ices 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 wiN be by the City Council at 7:30 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS -
The Bonds will be dated August 1, 1993, as the date of originai issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, i 994. Interest will
be computed on the basis of a 360-day year of twelve 30-day months. The Bonds wili be
issued in the denomination of$5,OQ0 each, or in integral multiples thereof, as requested by the
purchaser, and fuily registered as to principal and interest. Principal wiil be payabte at the main
corporate office of the registrar and interest on each Bond wili be payabie by eheck or draft of
the registrar maiied 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
month.
The Bonds will mature February 1 in the years and amounts as folfows:
1996 $165,000 1998 $325,OQ0 2Q00 $165,000
1997 $325,OQ0 1999 $ 30,000 2001 $135,OOQ
* The Ciry reserves the right, after proposals are opened and prior to award, to increase or reduce ihe
principa/ amount of the Bonds offered for sa/e. Any such inerease or reduciian will be in a tofa/
amount not to exceed$50,000 and will be made in multip/es of$5,000 rn any of the maiurities. In the
event the principal amouni of fhe Bonds is increased or reduced, any premium offered or any
discount taken will be increased ar reduced by a percentage equal to the percentage by which the
principa/amount of the Bonds is increased or reduced.
OPTIONAL REDEMPTtON
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURfTIf AND PURPOSE
The Bonds will be general obligations of the City for whieh the City witl pledge its ful! faith and
credit and power to levy direct general ad valarem taxes. In addition the City will pledge
special assessments against bene�ted property. The proceeds will be used to aduance refund
ihe 1997 through i 999 maturities of the City's $4,995,000 General Obligation {mprovement
Bonds, Series 1987, dated August 1, 1987 and the t996 through 2001 maturities of the City's
$2,575,000 General Obligation fmprovement Bonds, Series 19898, dated July 1, 1989.
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TYPE Of PROPOSALS
Proposais shail be for not less than $1,403,680 and accrued interest on the total principai
amount of the Bonds. Proposals shail 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 $14,150,
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 Ineorporated prior to the opening of the proposals. The Financial Surety Bond
must identity each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If
the Bonds are awarded to an underwriter using a Financial Surety Bond, #hen tha# purchaser is
required to submit its Deposit to Springsted incarporated in tMe form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M.,
Central Time, on the next business day foflowing 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 �ity wiil deposit the check of the purchaser, the amount of which will be
deducted at settiement and no interest wi11 accrue to the purchaser. In the event the purchaser
fails to comply with the accepted proposai, said amount wili be retained by the City. No
proposai can be withdrawn or amended after the time �set for receiving proposals uniess the
meeting 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. flates shali be in integrai
multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the sarne
maturity shail bear a single rate from the date of the Bonds to the date of mafurity. No
conditional proposais 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 (fIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, wil! be controHing.
The Ci#y wili reserve the right to: (i) waive non-substantive informalities of any proposai ar of
matters relating to the �eceipt of proposais and award of the Bonds, (ii) reject a11 proposais
without cause, and, (iii) reject any proposal which the City determines to have failed to camply
with the terms herein. �
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
wil! pay for the services of the registrar.
CUS1P NUMBERS
If the Bonds quality for assignment of CUSIP numbers such numbe�s wi11 be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will canstitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shatl be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bands will be delivered without cost to the
purchaser at a place mutually satisfaetory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be
printed on the Bonds, and af customary closing papers, including a no-iitigation certi�cate. On
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the date of settlement payment for the Bonds shall be made in federai, or equivalent, funds
which shall be received at the offices of the City or its designee not later than 12:00 Noon,
Cen#ra! Time. Except as compNance with the terms of payment for the Bonds shall have been
made impossible by action ofi 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-complianee with said terms for
payment.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Staternent containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final 4�cial
Statement within the meaning of Ru{e 15c2-i 2 of the Securities and Exchange Commissian.
for copies of the Officiat Statement or fo� any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorparated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, #elephane {612) 223-3000.
The Off'icial Statement, when further supplemented by an addendum or addenda specifiying #he
maturity da#es, principai amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final fJfficiai Statement" of the City with respect
to the Bonds, as #hat term is defined in Rule 15c2-t2. By awarding the Bonds to any
undervvriter o� underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date o#such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 60 copies of the
Of�icial Statement and the addendum or addenda described above, The City designates the
senior managing undervvciter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Officiai Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shaN accept such designation and {ii} it shali enter into a
contractual relationship with all Participating Underwriters af 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 COUNCIL
/s/Susan M. Walsh
Clerk
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