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HomeMy WebLinkAbout04-170 M +/R . CITY OF LAKEVILLE RESOLUTION Date September 7, 2004 Resolution No. 04-170 Motion By Luick Seconded By Rieb RESOLUTION ADOPTING THE 5-YEAR CAPITAL IMPROVEMENT PLAN 2004-2008 AND AUTHORIZING THE ISSUANCE AND SALE OF $14,445,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS, SERIES 2004A. WHEREAS, during the course of the preparation and review of the 5-Year Capital Improvement Plan 2004-2008 (the CIP) the City Council (the Council) of the City of Lakeville, Minnesota (the City) has considered, for each capital improvement and for the CIP overall: the condition of the City's existing infrastructure, including the projected need :for repair or replacement; the likely demand for the improvement; the estimated cost of the improvement; the available public resources; the level of overlapping debt in the City; the relative benefits and costs of alternative uses of the funds; operating costs of the proposed improvements; and alternatives for providing services most efficiently through shared facilities with other cities or local government units; and WHEREAS, the CIP covers at least afive-year period beginning with the date of its adoption; sets forth the estimated schedule, timing, and details of specific capital improvements by year, together with the estimated cost, the need for the improvement, and sources of revenue to pay for the improvement;-and WHEREAS, pursuant to Minnesota Statutes, Section 475.521 the City has published notice of its intent to adopt the CIP and to issue capital improvement plan bonds thereunder and the time and date of the hearing to obtain public comment on the matter at least fourteen (14) but not more than twenty-eight (28) days prior to the date hereof; and WHEREAS, the City has, on September 7, 2004, held a public hearing on the CII' and to obtain public comment on its intent to issue the capital improvement plan bonds. BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota as follows: SECTION 1: ADOPTION. The CIP is hereby adopted. SECTION 2. PURPOSE. It is hereby determined to be in the best interests of the City to issue its General Obligation Capital Improvement Plan Bonds, Series. 2004A, in the aggregate principal amount of $14,445,000, pursuant to Minnesota Statutes, Section 475.521 and Chapter 1 i ~ 475, to finance the construction of a central maintenance facility, as more fully described in Exhibit A attached hereto. SECTION 3. TERMS OF PROPOSAL. Springsted Incorporated, financial consultant to the City, has presented to this Council a form of Terms ofProposal. for the Bonds 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 ofProposal 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 4. SALE MEETING. This Council. shall meet at the time and place shown in the Terms ofProposal, for the purpose of considering sealed bids for the purchase of the Bonds and of taking such action thereon as maybe in the best interests of the City. APPROVED AND ADOPTED this 7th day of September, 2004. CITY OF LAKEVILLE, By: Robert D. John ,Mayor TEST: Charlene Friedges, City erk 2 i Exhibit A Construction of a central maintenance facility consisting of a 124,600 square foot building. Capital Water Storm Cert. Improvement Trunk Sewer of Building Total Bond Fund Trunk Indebt. Fund Land acauistion 2,318,937 2,037,830 281,107 179th Street improvements 167,482 107,039 60,443 Contract Contract -base bid 10,408,250 10,285,014 123,236 Canopy 58,000 58,000 Salt/sand building 434,000 434,000 Infrared heating 83,300 83,300 Bi-fold doors 134,500 134,500 Other -provided by City Demolition 49,486 49,486 Trees -acauistion 20,460 20,460 Trees -transport 18,700 18,700 Trees -heal, mulch, water .5,867 5,867 Low voltage wiring 40,000 40,000 Furniture -GOP 75,000 75,000 Remstar 35,656 35,656 Generator .163,350 163,350 Phone system 26,000 26,000 Shop equipment 60,429 60,429 Fork lift 23,574 23,574 Floor Sweeper 46,145. 46,145 Other Architectural fees 776,000 776,000 Architectural reimburseables 40,000 40,000 SAC, bldg permit surcharge, etc. 110,530 110,530 SAC credit (10,675) (10,675) Soil borings 14,725 14,725 Testing and inspections 45,000 45,000 Bond issuance costs 314,643 314,643 Contingency 250,000 250,000 - - - - Total $ 15,709,359 $ 14,445,000 $ 341,550 $ 123,236 $ 23,574 $ 776,000 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $14,445,000 CITY OF LAKEVILLE, MINNESOTA GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS, SERIES 2004A (BOOK ENTRY ONLY) Proposals for .the Bonds will be received on Monday, October 18, 2004, until 10:00. 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. SUBMISSION OF PROPOSALS Springsted will 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 Bonds regardless of the manner in which the Proposal is submitted. (a) Sealed Biddin_g. 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 PAR/Th for purposes of submitting its electronic Bid in a timely manner and in compliance with the requirements of fhe 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® solel as a communication mechanism to conduct the electronic bidding for the Bonds, 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: PARITY, 40 West 23rd Street, 5th Floor, New York City, New York 10010, Customer Support, (212) 404-8102.. -i- . DETAILS OF THE BONDS The. Bonds will be dated November 1, 2004, as the date of original issue, and will bear interest ! payable on February 4 and August 1 of each year, commencing August 1, 2005. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts as follows: 2007 $100,000 2013 $280,000 2019 $545,000 2025 $ 935,000 2008 $125,000. 2014. $320,000 2020 $600,000 2026 $1,015,000 2009 $155,000 2015 $360,000 2021 $660,000 2027 $1,105,000 2010 $185,000 2016 $400,000 .2022 $720,000. 2028 $1,195,000 2011 $215,000 2017 $445,000 2023 $790,000 2029 $1,295,000 2012 $245,000 2018 $495,000 2024 $860,000 2030 $1,400,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above of a price of par plus accrued interest to the date of redemption. In order to designate term bonds, the proposal must specify "Years of Term Maturities" in the spaces provided on the Proposal Form. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with. no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds 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 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. 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 Bonds. 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 Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar that shall be subject to applicable. SEC regulations. The City will pay for the services of the registrar OPTIONAL REDEMPTION The City may elect on February 1, 2015, and on any day thereafter, to prepay Bonds due on or after February 1, 2016. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount. of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. -ii- 1 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. The proceeds will be used to finance the construction of a central maintenance facility for the City. TYPE OF PROPOSALS Proposals shall be for not less than $14,261,000 and accrued interest on the total principal amount of the Bonds. 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 $144,450,. 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 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 nexf 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 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 5/100 or 1/8 of 1%. Rates must be in level or 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. 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 Bonds, (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 Bonds 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 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. - iii - ~ 'f 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. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser. through DTC in New York,. New York. Delivery will be subject o 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 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 Bonds has 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. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bond, 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 Bonds will be conditioned upon. receiving evidence of this undertaking at or prior to delivery of the Bonds. 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, $5 East Seventh Place, Suite 100, 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 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 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 250 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 September 7, 2004 BY ORDER OF THE CITY COUNCIL /s/ Charlene Friedges City Clerk - iv -