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HomeMy WebLinkAbout90-121 Councilmember Harvey introduced the following • resolution and moved its ado tion: P RESOLUTION NO. ~0-121 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $2,900,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1990A BE TT .RESOLVED by the City Council of the City of Lakeville, Minnesota (the City), as follows: Section 1. Purpose. It is hereby determined to be in the best interests of the City to issue its General Obligation Improvement Bonds, Series 1990A, in the principal amount of $2,900,000 (the Bonds), pursuant to Minnesota Statutes, Chapters 429 and 475, to finance the following public improvement projects: Project Estimated Cost See attached Appendix I • Section 2. Terms of Bond Sale: Notice. Springsted Incorporated, financial consultant to the City, has presented to this Council a form of Official Terms of Offering for the Bonds and an abbreviated notice for publication, which shall be placed on file by the Clerk. Each and all of the provisions of the Official Terms of Offering are hereby adopted as the terms and conditions of the Bonds and of the sale thereof. The Clerk is authorized and directed to cause the abbreviated notice to be published once in the official newspaper and once in a bond trade publication at least 10 days prior to the date on which bids for the purchase of the Bonds will be received. Section 3. Sale Meeting. This Council shall meet at the City Hall on Monday, November 5, 1990, at 7:00 o'clock P.M, for the purpose of considering sealed bids for the purchase of the Bonds, and of taki g such action thereon as may be in the best interests of the City. M yor Attest: ' , Clerk The motion for the adoption of the foregoing resolution was duly • seconded by Councilmember Ruhmann and u n vote bein taken P° g thereon, the following voted in favor thereof: Sindt, Mulvihill, Harvey, Ruhmann and the following voted against the same: N/A whereupon the resolution was declared duly passed and adopted. • -2- NOTICE OF SALE City of Lakeville, Minnesota • $2,900,000 General Obligation Improvement Bonds, Series 1990A These Bonds will be offered for sale on sealed bids on Monday, November 5, 1990. Bids will be accepted until 11:00 o'clock a.m., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101-2143, at which time the bids will be opened and tabulated for presentation to the City Council for action thereon at a meeting to be held at the City Hall at 7:00 P.M, on the same day. No bid. submitted can be withdrawn before the Council meeting. The Bonds will be issuable as fully registered bonds in denominations of $5,000 or any integral multiple thereof, will be dated, as originally issued, as of November 1, 1990, will bear interest payable semiannually on each February 1 and August 1 to maturity, commencing August 1, 1991, and will mature on February 1 in the following years and amounts: Year Amount Year Amount 1992 $120,000 2003 $100,000 1993 120,000 2004 100,000 1994 180,000 2005 75,000 1995 160,000 2006 75,000 1996 245,000 2007 75,000 • 1997 215,000 2008 75,000 1998 220,000 2009 75,000 - 1999 225,000 2010 75,000 2000 230,000 2011 75,000 2001 235,000 2012 75,000 2002 100,000 2013 50,000 Bidders must specify a price of not less than $2,862,300 plus accrued interest. A legal opinion on the Bonds will be furnished by Dorsey & Whitney, of Minneapolis, Minnesota. Proceeds will be used to finance various improvement projects in the City. Bidders should be aware that the Official Terms of Offering to be published in the Official Statement for the Bonds may contain additional bidding terms and information relative to the issue. In the event of a variance between statements in this Notice of Sale and said Official Terms of Offering, the provisions of the latter shall control Dated: October 1,1990. BY ORDER OF THE CITY COUNCIL /s/ Charlene Friedges City Clerk OFFICIAL TERMS OF OFFERING • 52,900,000 CITY OF LAKEVILLE, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1990A Sealed bids for the Bonds will be received by the City's Finance Director or his designee on Monday, November 5, 1990, 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 7:00 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated November 1, 1990, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1991. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued in the denomination of $5,000 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 15th day of the immediately preceding month. . The Bonds will mature February 1 in the years and amounts as follows: 1992 $120,000 1998 $220,000 2004 $100,000 2009 $ 75,000 1993 $120,000 1999 $225,000 2005 $ 75,000 2010 $ 75,000 1994 $180,000 2000 $230,000 2006 $ 75,000 2011 $ 75,000 1995 $160,000 2001 $235,000 2007 $ 75,000 2012 $ 75,000 1996 $245,000 2002 $100,000 2008 $ 75,000 2013 $50,000 1997 $215,000 2003 $100,000 OPTIONAL REDEMPTION The City may elect on February 1, 1999, and on any day thereafter, to prepay Bonds due on or after February 1, 2000. 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 and accrued interest. SECURITY AND PURPOSE The Bonds will be general Bonds 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 a portion of the costs of various improvements within the City. TYPE OF BID Bids shall be for not less than $2,862,300 and accrued interest on the total principal amount of • the Bonds, and shall be accompanied by a certified or cashier's check in the amount of $29,000, payable to the order of the City. No bid will be considered for which said check has not been received. 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 bid, said amount will be retained by the City. No bid can be withdrawn after the time set for receiving bids unless the meeting of the City scheduled for award of the bids is adjourned, 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 /S of 196. 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 bid will be accepted. AWARD The Bonds will be awarded to the bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, ff any, from, or the addition of any amount less than par, to the total dollar interest on the Bonds Nom their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice,. will be controlling. The City will reserve the right to: (i) waive non- substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the bidder, 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, ff 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 ff 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. 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 Dorsey & Whitney of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no-litigation certficate. 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 12:00 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 reasons 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 as required by Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement and the Official Bid Form or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 135 East Seventh Place, Suite 100, Saint Paui, 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 underwriting syndicate submitting an Official Bid Form 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 120 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 executing and delivering an Official Bid Form .with respect to the Bonds agrees thereby that if its bid is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with ail Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. 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