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HomeMy WebLinkAbout01-191 CITY OF LAI~EVILLE RESOLUTION Date October 15, 2001 Resolution No. 01-191 Motion By Luick Seconded By Bellows RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $1,080,000 GENERAL OBLIGATION STATE-AID STREET BONDS, SERIES2001C BE TT RESOLVED by the City Council of the City of Lakeville, Minnesota. (the City), as ..follows: .SECTION 1. Pu se. The City Council has determined it to be in the best interests of the City to issue. its General Obligation State-Aid Street Bonds, Series 2001C in the principal amount of $1,080,000 (the Bonds) pursuant to Minnesota Statutes, Section 162.18 and Chapter 475, to .finance the cost of construction of the following state-aid street projects: (i) Pilot Knob. Road from County Road 46 to 170' Street; (ii) County Road 46 from Pilot Knob Road to Rosemount; and (iii) County Road 46 from one-quarter mile east of Pilot Knob Road. to one-quarter mile west of Pilot Knob Road (the Projects). The Bonds shall-be issued on terms such tom. at~he average • annual amount of principal and interest due in all subsequent calendar years on the Bonds shall not exceed 50 percent of the amount of the last annual allotment received by the City from the municipal state. aid fund. SECTION 2. Terms of Proposal. Springsted. Incorporated, financial. consultant to the City, has presented to this ,Council a form. of Terms of Proposal for sale of the Bonds, which. is attached. hereto and hereby approved and shall be placed on file with the City 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 advisors, 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 proposals for the purchase of the Bonds and of taking such action thereon as may be in the best interests of the City.. SECTION 4. Reimbursement of Costs from Proceeds of the Bonds. -All or a portion of the costs of the Projects may be paid by the City prior to the issuance of the Bonds to finance the Projects, and to the extent such costs are paid by the City prior to the issuance of the Bonds it is the. reasonable intent of the City to reimburse all or a portion of the costs of the Projects paid by the .City prior to the issuance of the Bonds from the proceeds of the Bonds. ~ , APPROVED AND ADOPTED thisl5~' day of October , 2001. • CITY OF LAKEVII.LE sy: t :Robert D. Johnso Mayor S: Charlene Friedges, City Jerk • • THE CITY HAS. AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING. BASIS: TERMS OF PROPOSAL $1,080,000 CITY OF LAKEVILLE, MINNESOTA. .GENERAL OBLIGATION STATE-AID STREET BONDS, SERIES 2001C (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, December 3, 2001, .until 10:00 A.M., Central Time, at the offices of Springstedlncorporated, 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 of 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS 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. 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 of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated December 1, 2001, as the date of original. issue, and will bear interest. payable on April 1 and October 1 of each .year, commencing April 1, 2002. Interest will be computed on the basis of a 360-day year of twelve 30-day months.: The Bonds will mature April 1 in the years and amounts as follows: 2002 $45,000 2007 $45,000 2012 $50,000 201.7 $65,000 .2003. $40,000 2008. $45,000 2013 $55,000 2018 $70,000 2004. $40,000 2009 $45,000 2014 $55,000 2019 $70,000 2005 $40,000 2010 $50,000 2015 $60,000. 2020 .$75,000 2006 $40,000 2011 $50,000 2016 $60,000 2021 $80,000 Proposals for .the Bonds may contain a maturity schedule providing for. a combination of serial bonds and term bonds,. provided that no serial bond. may mature on or after the first mandatory sinking fund redemption date of any term bond. All term bonds shall. be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth-above at a price. of par plus accrued interest to the date of redemption. In order to designate term bonds, the proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the spaces provided on the Proposal Form. • -i- 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; #ransfer 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 which shall be subject to applicable SEC regulations. The City will- pay for the services of the registrar. .OPTIONAL REDEMPTION The. City may .elect on April 1, 2011, and on any day thereafter, to prepay Bonds due on or after April 1, 2012. 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. 1f less than all Bonds of a maturity are called .for redemption, ##ae:-Gi#y wiA -notify-DTC a# the particular araaodn# -of such matur-ity to - be _-prepaid. - DTC will determine by lot the amount of each participants 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. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City wilt pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge State- aid allotments from the Minnesota Department of Transportation.. The proceeds will be used to finance the cost of constructing various State-aid street projects. TYPE OF PROPOSALS Proposals shall be for not less than $1,063,800 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 $10,800, ..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 #ransfer 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 -ii- . • f r 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 ail. proposals without cause, and, (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 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-shah be #he-respons+bility of tMe 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. 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 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 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 reason of the purchaser's non-compliance with said terms for payment. - iii - CONTINUING. DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City. will 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 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, 85 East Seventh Place, Suite. 1.00, 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 t5c2-12. 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 50 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-0f-distributing-copies -of__the Final Official Statemmt 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 15, 2001 BY ORDER OF THE CITY COUNCIL /s/ Charlene Friedges _ Clerk -iv-