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HomeMy WebLinkAbout00-167 r .CERTIFICATION OF MINUTES. RELATING TO $4,290,000 GENERAL OBLIGATION STATE-AID STREET BONDS, SERIES 2000E Issuer: City of Lakeville, Minnesota Governing Body:. City Council Kind, :date, time `and place. of meeting: A regular meeting held on July 17, 2000, at 7:00 o'clock p.m. at the City Hall. Members present: Members absent: Documents Attached: :Minutes of said meeting (pages): RESOLUTION NO. 2000-.167 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $4,290,000 GENERAL OBLIGATION STATE-AID STREET BONDS, SERIES 2000C TERMS OF PROPOSAL I the undersi ed bein .the dul ualified and r in f gn g y q acting ecord g o ficer 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 governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as ..required by law. WITNESS my hand officially as such recording officer on July 17, 2000. ity Clerk • Councihnember Luick introduced the following resolution and moved its adoption, which motion was seconded byCouncilmember Johnson RESOLUTION CALLING FOR THE SALE OF GENERAL OBLIGATION STATE-AID STREET BONDS, SERIES 2000C BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota (the City), as follows: SECTION 1. Purpose. 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 2000C in the principal. amount of $4,290,000 {the Bonds) pursuant to Minnesota Statutes, Section 162.18 and Chapter 475, to finance the cost of construction of various state-aid street projects (the Projects). The Bonds shall be issued on terms such that the average annual amount ofprincipal 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 Meetin .This Council shall meet at the time and lace shown. in the Terms -g p of Proposal, for the purpose of considering sealed proposals for. the purchase of the Bonds and of taking such action thereon as maybe 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 maybe paid by the City prior to the issuance,of the Bonds o 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 Proj ects paid by the City prior to the issuance of the Bonds from the proceeds of the Bonds. Upon vote being taken thereon,. the following voted in favor thereof: and the following voted against. the same: whereupon the resolution was declared duly passed and adopted. • THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS. BEHALF. PROPOSALS WILL'BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $4,290,000 _ CITY OF LAKEVILLE, MINNESOTA GENERAL OBLIGATION STATE-AID STREET BONDS, SERIES 2000C (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, August 21, 2000, until 11:00 A.M., Centrat Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100,: Saint Paul, Minnesota,aftertyhich 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 by which the Proposal is submitted. (a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3002 • ' 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) 223-3002 for inclusion in the submitted Proposal. OR b) Electronic Bidding. Electronic Bids may be submitted to Dalcomp/Parity (an "Approved Provider"). For purposes of the. electronic bidding process, the time as maintained by the Approved Provider shall constitute the official time with respect to all .Bids submitted to such Approved. Provider. Each bidder shall be solely responsible for making necessary arrangements to access the Approved .Provider for purposes of submitting its electronic Bid in a timely manner and in compliance with the ..requirements of the Nofice of Sale. Neither the City, its agents nor the Approved Provider 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 neitherthe City, its agents nor the Approved Provider 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 Approved Provider's service. The City is using the services of the Approved Provider solely as a communication mechanism to conduct the electronic bidding for the Bonds, and the Approved Provider is not an agent of the City. If any provisions. of this`Notice of Sale conflict with information provided by an Approved Provider, .this Notice of .Sale shall control.. Further information about the Approved Provider, including any fee charged, may be obtained from: Dalcomp/Parity, 395 Hudson .Street, New York City, New York 10014,. Customer Support, (212) 806-8304. _i_ DETAILS OF THE BONDS The Bonds will be dated September 1, 2000, as the date of original issue, and wilt bear interest payable April 1 and October 1 of each year, commencing April 1, 2001. 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: 2001 $105,000 2006 $160,000 2011 $210,000 2016. '$275,000 2002 $130,000 2007: $170,000. 2012. $22Q000 2017. $295,000 2003 $135,000 2008 $180,000 2013' $235,000 2018 $310,000 2004 $145,000 2009 $185,000 2014 $245,000 2019 $330,000 2005 $150,000 2010 $200,000 2015 $260,000 2020 $350,000. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided #hat 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. 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 Gede & 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 rr~ade on the books and records of DTC and its participants. Principal and interest are payable by tf~e 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, wilt 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, 2010, and on any day thereafter, to prepay Bonds due on or after:. April 1, 201:1. 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. • SECURITY AND PURPOSE The Bonds will be general obligations. of he City for which the City will pledge its full faith and credit -ii- 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. $4,234,230 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 $42,900, 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 firom 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 #orm 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 City will .deposit. the check of the purchaser, the amount of which will be deducted at settlement and no interest wiR accrue #o 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 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 lowesf 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 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 shatF 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#o accept delivery on the Bonds. • CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, - iii - but. neither the failure to print such numbers on any Bond nor any error with respect thereto will- constitute cause for failure or refusal bythe 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. CONTINUING DISCLOSURE )n 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 bond 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 100, Saint Paul, Minnesota 55.101, 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 bylaw, 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 175 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 July 17,2000 BY ORDER OF THE CITY COUNCIL /s/ Chariene Friedges Clerk.. • -iv-