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HomeMy WebLinkAbout06-120 CITY OF LAKEVILLE RESOLUTION` NO. 06-120 RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2006A WHEREAS, .the City Council intends to issue its General Obligation Equipment Certificates of Indebtedness, Series 2006A (the Certificates), in the- aggregate principal amount of $1,585,000, pursuant to the Minnesota Statutes, Sections 412.301- and Chapter 475.. The proceeds of the Certificates will be used,, together with any additional funds of the City which might be required, to finance the costs of acquiring the items of capital equipment further described in Exhibit I. BE IT RESOLVED by the City Council of the City of Lakeville,. Minnesota as follows:. SECTION 1: ISSUANCE OF CERTIFICATES AUTHORIZED. It is hereby determined to be in the best interests of the City to issue the Certificates. SECTION 2. TERMS OF PROPOSAL. Springsted Incorporated, financial advisor to the City, has presented to this Council a form of Terms of Proposal for the Certificates which is attached hereto and hereby approved and shall be placed on file by the City Clerk. Each and all • of the provisions of the Terms of Proposal are hereby adopted as the terms and conditions of the Certificates and of the sale thereof. Springsted Incorporated, as independent financial advisor, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9) is hereby authorized to solicit bids for the Certificates 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 Certificates and of taking such action thereon as maybe in the best interests of the City. APPROVED AND ADOPTED this 5t" day of September, 2006. CITY OF LAKEVILLE, MI NESOTA B Y Robert D. Johns ,Mayor AT ST: C arlene Frie ges, C Clerk • -i- • EXHIBIT THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,585,000 CITY OF LAKEVILLE, MINNESOTA GENERAL OBLIGATION EQULPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2006A (BOOK ENTRY ONLY) Proposals for the Gertificates will be received on Monday, October 2, 2006, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time. they will be opened and tabulated. Consideration for award of the Certificates will be by the Gity Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Springstedwill assume no liability for the inability of the bidder to reach Springsted prior to the • time of sale specified :above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Certificates regardless of the manner in which the Proposal is submitted_ (a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to Springsted.. Signed Proposals, without final price or coupons, may be .submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to .Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted Proposal OR (b) Electronic Biddin .Notice is hereby given that electronic proposals will be received via PARIT For purposes of the electronic bidding process, the time as maintained by PARITY° shall constitute the official time with respect to all Bids submitted to PARITY'. Each bidder shall be .solely.. responsible for making necessary arrangements to access PARITY' for purposes. of submitting its electronic Bid in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither. the City, its agents nor PARITY® shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor PARITY' shall be responsible for a bidder's failure to register to bid or for any .failure in the proper. operation of, or have any liability for any delays or interruptions of or any .damages caused by-the services of PARITY'. The City is using the services of PARITY° solely as a communication mechanism to conduct the electronic bidding for the Certificates, and PARITY' is not an agent of the City. • If any provisions of this Terms of Proposal conflict with information provided by PARITY', this Terms of Proposal shall .control. Further information about PARITY', .including any. fee charged, may be obtained from: -ii- PARITYY~', 1359 Broadway, 2~d Floor, New York, New York 10018 . Customer Support: (212) 849-5000 DETAILS OF THE CERTIFICATES The Certificates will be dated .October 15, 2006, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2007. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Certificates will mature February 1 in the years and amounts as follows: 2008 $360,000 2009 $395,000 2010 $405,000 2011 $425,000 BOOK ENTRY SYSTEM The Certificates will be .issued by means of a book entry system with no physical distribution of Certificates. made to the public. The Certificates will be issued in fully registered. form and one Certificate, representing the aggregate principal amount of the Certificates. maturing in each year, will be registered in the name of Cede & Co. as .nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Certificates. Individual purchases of the.Certificates may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on 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 Certificates. Transfer 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 be the responsibility of such • participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Certificates, will be required to deposit the Certificates with DTC. 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. OPTIONAL REDEMPTION The Certificates will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Certificates 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. The proceeds will be used to finance the acquisition of capital equipment for various City departments. TYPE OF PROPOSALS. Proposals shall be for not less than $1,576,282 and accrued interest on the total. principal amount of the Certificates. 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 $15,850, payable to the order of the City. If a check is used, it must accompany the • 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 - iii - Surety Bond must. identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Certificates are awarded to an underwriter using a Financial Surety Bond, i 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 Deposit received from the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the. purchaser, will be deposited by .the City. 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 fore receiving proposals unless the meeting of the City scheduled for. award of the Certificates is .adjourned, recessed, or continued to another date without award of the Certificates having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 Rates must be in level or ascending order. Certificates of the same maturity shall bear a single rate from the date of the Certificates to the date of maturity. No conditional proposals will be accepted. AWARD The Certificates 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. The City will reserve the right to: (i) .waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Certificates, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. • BOND INSURANCE AT PURCHASER'S OPTION If the Certificates qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any suchcommitment shall be at the sole option and expense of the purchaser. of the Certificates. Any increased costs of issuance of the Certificates 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 Certificates. 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 Certificates have been awarded to the purchaser shall not constitute cause for. failure or refusal by the purchaser to accept delivery on the Certificates. CUSIP NUMBERS. If the Certificates qualify for assignment of CUSIP numbers such numbers will be printed on the Certificates, but neither the failure to print such numbers on any Certificate nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Certificates. 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 Certificates will be delivered without cost to the purchaser through DTC in New York, New York. 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 Certificates shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Certificates has been made impossible by action - iii - 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. CONTINUING. DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Certificates, 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 Certificates will be conditioned upon receiving evidence of this undertaking at or prior to delivery of .the Certificates. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Certificates, 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, 380 Jackson Street, Suite 300, Saint Paul, .Minnesota 55101, telephone (651) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Certificates, together with any other information .required by law, shall constitute a "Final Official Statement" of the City with respect to the Certificates, as that term is defined in Rule 15c2-12. By awarding the Certificates 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 Certificates are awarded 65 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 Certificates 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 Certificates 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 Certificates for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated September 5, 2006 BY ORDER OF THE .CITY COUNCIL /s/ Charlene Friedges City Clerk -iv-