HomeMy WebLinkAbout3. 1992 Bond Issue - Authorizing Issuance & Setting Bond Bail (1992D)EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: October 13, 1992
AGENDA ITEM: 1992 Bond Issue - Authorizing
AGENDA SECTION:
Issuance and Setting Bond Sale(1992D)
New Business
PREPARED BY:
AGENDA NO.
3
Jeff May, Finance Director 1
ATTACHMENTS: Council Resolution, Springsted
AP O BY;,-)
Recommendations(See Agenda Item # 2 )
This item is on the agenda for your consideration in authorizing
the issuance and setting the sale of General Obligation Improvement
Bonds, Series 1992D. These improvement bonds will be funding four
City projects. The four projects are: Project 232 - O'Leary's
Hills 5th Addition; Project 233 - Section 31 Trunk Sanitary Sewer
Improvements Project; Project 234 - Shannon Hills 4th Addition; and
Project 237 - National Guard Armory Water Improvements Project.
Bids will be opened Tuesday, October 27, 1992, 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 by the City Council at 8:00 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 $1,470,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1992D.
COUNCIL ACTION:
FROM BRIGGS AND MORGAN ST, PAUL 612 223 6645 (THU) 10, 08' 92 16:10 /ST, 15:44/' NO, 3360015-391 P, 13/17
CITY OF ROSBMOUNT
DAKOTA COUNTY, MIMEBOTA
RESOLUT1031 1992 - _
A RESOLUTION PROVIDING FOR TILE COMPETITIVE NEGOTIATED SALE
OF $1,470,000 GENERAL OBLIGATION IMPROVEMENT BONDSP
SERIES 1992D
WxzREAS, the City Council of the City of Rosemount, Minnesota,
has heretofore determined that it is necessary and expedient to
issue its $1,470,000 General Obligation improvement Bonds, Series
1992D (the "Bonds") to finance various improvement projects
within the City; 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, 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. Aut orization; Findinas. The City Council hereby authorizes
Springsted to solicit bids for the competitive negotiated
sale of the Bonds.
2. Meetinct; 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 of 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 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 herebyauthorized to cooperate
i
with Springsted and participate n the preparation of an
official statement for the Bonds, and to execute and deliver
it on behalf of the City upon its completion.
226890
FROM BRIGGS AND MORGAN ST, PAUL 612 223 6645 (THU) I0, 08' 92 16:11 /ST, 15:41/" NO, 3360015-391 P. 141,17 1
ADOPTED this 13th day of October, 1992.
E.B. McMenomy, Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Seconded bys
Voted in favor:
Voted Against:
226a9O
Z
• FROM BRIGGS AND MORGAN ST, PAUL 612 223 6645 (THU) 10, 08' 92 16:11 /ST, 15:441 N0,00360015-391 P, 15/17
Exhibit A
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF, PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,470,000
CIN OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 102D
Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday,
October 27, 1992, until 11.00 A.M.. Central Time, at the offices 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 will be by the City Council at 5:00 P.M.,
Central Time, of the same day,
DETAILS OF THE BONDS
The Bonds will be dated November 1, 1992, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1993. Interest will.
be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be
issued in the denomination of $5000 each, or in integral multiples thereof, as requested by the
purchaser, and fully 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 check 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 i 5th day of the immediately preceding
month.
The Bonds will mature February 1 in the years and amounts as follows:
1995 $165,400 1999 $145,000 2002 $145,000
1996 $145,000 2000 $145,000 2003 $145,000
1997 $145,000 2001 $145,000 2404 $145,000
1998 $145,000
OPTIONAL REDEMPTION
The City may elect on February 1, 2001, and on any day thereafter, to prepay Bonds due on or
after February 1, 2002. Redemption may be in whole or in part and if 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 City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge
special assessments against benefited property. The proceeds will be used to finance various
Improvement projects within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,455,300 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit CDeposit's in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $14,700,
-ROIs BHTGGS AND MORGAN ST, PAUL 612 223 6645 (THU) 10, 03' 92 16:11 /ST, 15:44 ' NO, 3360015-391 F, 161117
payable to the order of the City. If a check Is used, it must accompany each proposal. If a
Financial 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 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 Incorporated in the 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 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 will deposit the check of the purchaser, the amount of which will be
deducted at settlement and no interest will accrue to the purchaser. In 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 proposals unless 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. Rates shall be in integral
multiples of 5/144 or 1/8 of 1%. Rates must be in ascending order. Bonds of 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 (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
thorofor at tho option of tho undorwriter, thea purchases of any siich insiRAnr-A pnli y cir the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
REGISTRAR
The City will name the registrar which shall be subject to applicable 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 print such numbers on any Bond nor any error with respect
thereto will constitute 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
shall be paid by the purchaser.
FHGivi BRIGGS AND MORGAN ST, PAUL 012 223 6645 (THU) 10, 08' 92 16:12 /ST, 15:44/ NO, 33600 15-39 1 P. 17/17
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory 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 of customary closing papers, including a no -litigation certificate. On
the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds
which shall be received at the offices of the City or its designee not later than 12;04 Noon,
Central Time. Except as compliance with the terms of payment for the Bonds shall 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 to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within 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 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented 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, shall constitute a "Final Official 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 underwrtfing syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of 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
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 Official 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 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 October 13, 1992 BY ORDER OF THE CITY COUNCIL
/s/ Susan M. Walsh
Clerk