HomeMy WebLinkAbout97-194 CERTIFICATION OF MINLTT' ORAR
BONDS,OSERIES 1997A
• $5,480,000 GENERAL OBLIGATION TEMP
Issuer: City of Lakeville, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held on September 2, 1997,
at 7:00 o'clock P. M. at the City Hall.
Members present: Holberg, Johnson, Mulvihill, Sindt and Mayor Zaun
Members absent: None
Documents Attached:
Minutes of said meeting (pages):
RESOLUTION NO. 97-194
RESOLUTION RELATING TO $5,480,000 GENERAL OBLIGATION
TEMPORARY BONDS, SERIES 1997A; AUTHORIZING THE
• ISSUANCE AND CALLING FOR THE SALE THEREOF
TERMS OF PROPOSAL
I, the undersigned, being the duly qualified and acting recording officer of the public
corporation issuing the bonds referred to in the title of this certificate, certify that the
documents attached hereto, as described above, have been carefully compared with
the original records of said corporation in my legal custody, from which they have
been transcribed; that said documents are a correct and complete transcript of the
minutes of a meeting of the governing body of said corporation, and correct and
complete copies of all resolutions and other actions taken and of all documents
approved by the governing body at said meeting, so far as they relate to said bonds;
and that said meeting was duly held by the governa ga above,th ursuant topcall and
was attended throughout by the members ind P
notice of such meeting given as required by law.
WITNESS my hand officially as such recording officer on September 2, 1997.
Clerk /
A
Councilmember Johnson introduced the following resolution and moved its
• adoption, which motion was seconded by Councilmember Sindt
RESOLUTION RELATING TO $5,480,000 GENERAL OBLIGATION
TEMPORARY BONDS, SERIES 1997A; AUTHORIZING THE
ISSUANCE AND CALLING FOR THE SALE THEREOF
BE IT RESOLVED by the City Council of the City of Lakeville,
Minnesota (the City), as follows:
Section 1. Pur ose. It is hereby determined to be in the best interests of
the City to issue its General Obligation Temporary Bonds, Series 1997A, in the
aggregate principal amount of $5,480,000, pursuant to Minnesota Statutes, Chapters
429 and 475 and Section 444.075, to refund the outstanding General Obligation
Temporary Improvement Bonds, Series 1994A and to finance the construction of
the various improvement projects within the City, as more fully described in
Exhibit A attached hereto.
Section 2. Terms of Proposal. Springsted Incorporated, financial consultant
to the City, has presented to this Council a form of Terms of Proposal for the Bonds
which is attached hereto and hereby approved and shall be placed on file by the
Clerk. Each and all of the provisions of the Terms of Proposal are hereby adopted as
• the terms and conditions of the Bonds and of the sale thereof. Springsted
Incorporated, as independent financial advisers, pursuant to Minnesota Statutes,
Section 475.60, Subdivision 2, paragraph (9) is hereby authorized to solicit bids for
the Bonds on behalf of the City on a negotiated basis.
Section 3. Sale Meeting. This Council shall meet at the time and place shown
in the Terms of Proposal, for the purpose of considering sealed bids for the purchase
of the Bonds and of taking such action thereon as may be in the best interests of the
Clty.
Upon vote being taken thereon, the following voted in favor thereof: xolberg,
Johnson, Mulvihill, Sindt and Mayor Zaun
and the following voted against the same: None
whereupon the resolution was declared duly passed and adopted.
•
EXHIBIT A
•
City of ~.akeville, Minnesota
General Obligation Temporary Bonds, 3erles 1997A
Composition of Issue
Altocatbn of Costs and Special Water Sanitary Storm Ad Valorem
Revenue sources: Assessments Trunk Trunk Trunk Taxes Total
91-3 - County Rd 46 R~~finencing 1,609,329 146,500 31,700 511,228 1,906,905 4,205,662
96-6 Kingswood Esta'ta Addition 483,425 70,515 583,940
97-11 Valley Christian ~:hurch Add'n 540,855 50,45D 28,730 17,765 637,600
Subtotals 2,643,409 196,950 130,945 526,993 1,906,905 5,407,202
Additions:
Costs of Issuanc;~~ 16,838 1,254 834 3,368 34,438
Bvnd Discount 18 753 1.387 928 3,753 38,360
Total bond Issue 2,678,996 199,602 132,708 536,115 1,906,905 5,480,000
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
• ISSUE ON ITS BI?HALF. PROPOSALS WILL 8E RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$5.480,000
CITY Oli IAKEVILLE, MINNESOTA
GE=NERAL OE~LIGATION TEMPORARY BONDS, SERIES 1997A
(BOOK ENTRY ONLY).
Proposals for the Bonds will be received on Monday, Octaber 6, 1997, until 1:00 P.M., Central
Time, at the officE:s of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, after'+rhich time they will be opened and tabulated. Consideration for award of the
Bonds will be by 1;I~e City Council at 7:00 P.M., Gentral Time, of the same day.
SUBMISSION OF PROPOSALS
proposals may r~: submitted in a sealed envelope or by fax (612) 223-3002 to Springsted.
Signed Proposal~~, without final price or coupons, may be submitted to Springsted prior to the
time of sale. Th~~ bidder shall be responsible for submitting to Springsted the final Proposal
price and coupoi,s, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior 1~~ the time of sale specified above. Proposals may also be filed electronically
via PARITY, (n ~i;.cordance with PARITY Rules of Participation and the Terms of Proposal,
within none-hour' period prior to the time of sale established above, but no Proposals well be
received after th~r: time. 1f provisions in the Terms of Proposal conflict with the PARITY Rules
of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be
obtained from P,~,R1TY and such fee shall be the responsibility of the bidder. For further
information abo~r: PARITY, potential bidders may contact PARITY at 500 Main Street,
Suite 1010, Fort 1lVorth, TX 76102, telephone {817) 885-8900. Neither the City nor Springsted
Incorporated assi,mes any liability if there is a malfunction of PARITY. All bidders are advised
that each Propos<<I shall be deemed to constitute a contract between the bidder and the City to
purchase the Bornis regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will dated October 1, 1997, as the date of original issue, and will bear interest
payable on April '1 and October 1 of each year, commencing October 1, 1998. Interest wi{) be
computed on the I~asis of a 360-day year of twelve 30,day months.
The Bonds will m,;.ture as follows:
April 1, 2000 $ 315,000
October 1, 2000 $5,165,000
BOOK ENTRY SYSTEM
The Bonds will b+: issued by means of a book entry system with no physical distribution of
Bonds made to ttie public. The Bonds will be issued in fully registered form and one Bond,
representing the aggrega#e principal amount of the Bonds maturing in each year, will be
registered in the ~~ame of Cede ~ Co. as neminee of The Depository Trust Company ("DTC"),
• New York, New Ynrk, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made an the books and records of DTC and its participants.
• Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds, Tra.i~sfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will Ise the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the searvices of the registrar.
OPTIONAL REDEMPTION
The City may el~3ct on April 1, 1999, and on any day thereafter, to prepay Bonds due on
October 1, 2000. Redemption may be in whole or in part and if in part, the Ci#y will notify DTC
of the particular amount to be prepaid. DTC will determine by lot the amount of each
participant's interest to be redeemed and each participant will then select by lot the beneficial
ownership intere.<.ts to be redeemed. 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 ful! faith and
credit and power ';o levy direct general ad valorem taxes. In addition the City will pledge special
assessments ag~iinst benefited property. The proceeds, with other available funds, will be used
to refund the T+;mporary Improvement Bonds, Series 1994A and finance construction of
additional improvr;ment projects.
TYPE OF PROPOSALS
• Proposals shall I:~e for not less than $5,441,640 and accrued interest on the total principal
amount of the Bci ids. Proposals 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 $54,800,
payable to the oi•~er of the City. If a check Is used, it must accompany each proposal. If a
Financial Surety Elond 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 una~:rwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarcl~d 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 3:3d P.M., Central
Time, on the ner: business day following the award. !f such Deposit is not received by that
time, the Financi~:l Surety Bond tray be drawn by the City to satisfy the Deposit requirement-
The City will deKfosit the check of .the purchaser, the amount of which will be deducted at
settlement and n+~ interest will accrue to the purchaser. In the event the purchaser fails to
comply with the si:cepted proposal, said amount will be retained by the City. No proposal can
be withdrawn or ;:mended after the time set for receiving proposals unless the meeting of the
City scheduled fur 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 5/140 or
1 /S of 1 Rate~~ 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 wilt be
accepted.
AWARD
The Bonds will bf; awarded on the basis of the lowest interest rate to be determined on a true
interest cos# (TIt;) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will ~res+_rve the right to: (i) waive non-substantive informalities of any proposal ar of
• matters relating to the receipt of proposals and award of the Bonds, (ii) reject ail proposals
without cause, ard, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qu~3lify for issuance of any policy of municipal bond insurance or commitment
therefor at the al~tion of the underwriter, the purchase of any such insurance policy or 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 Boi°ds 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 nc+t constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds_
CUSIP NUMBERS
If the Bonds qualify for assignment of CUStP numbers such numbers will be printed on the
Bonds, but neith~:r 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-
SETTLEMENT
Within 40 days fol owing 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 Dorsey ~ Whitney LLP of
Minneapolis, Minnesota, and of customary closing papers, including a no,litigation certificate.
On the date of settlement payment for the Bonds shalt be made in federal, or equivalent, funds
which shall be received at the offices of the City or its designee not later than 12:00 Noon,
Central Time_ Except as compliance with the terms of payment for the Bonds shall have been
made impossible t+y action of the City, or its agents, the purchaser shall be liable to the City for
any loss suffered ~y the City by reason of the purchaser's non-compliance with said terms for
payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the Clty wilt undertake, pursuant to the resolution
awarding sale of the Bonds, to provide annual reports and notices of certain events. A
description of this undertaking is set forth in the Official Statement. The purchaser's obligation
to purchase the E?onds will be conditioned upoh receiving evidence of this undertaking at or
prior to delivery of the Bonds.
OFFICIAL STATEMENT
The City has ai, thorized the preparation of an Official Statement containing pertinent
information relativ~:~ 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 th~:~ 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 F+ ace, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Staterr~ent, 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, a::s that term is defined in Rule 15c2-12. By awarding the Bonds to any
• underwriter or underwriting 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 100 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 OfFcial Statement to each Participating
Underwriter. An•y~ undewriter delivering a proposal with respect to the Bonds agrees .thereby
that if its propos~rl is accepted by the City (i) it shall accept such designation and (ii) it shall
enter into a contrrctual relationship with all Participating Underwriters of the Bonds for purposes
of assuring the rEr~eipt by each such Participating Underwriter of the Final Official Statement.
Dated September 2, 1997 BY ORDER OF THE CITY COUNCIL
!s/ Charlene Friedges
City Clerk