City Council Resolution 1993-42Extract of Minutes of Meeting
of the City Council of the City
of Monticello, Wright County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council
of the City of Monticello, Wright County, Minnesota, was held at the City Hall in the
City on Monday, November 8, 1993, commencing at 7: 00 P . M .
The following members of the Council were present: Herbst, Anderson, Oben, File
and Mayor Maus
and the following were absent: none
The following resolution was presented by Councilmember
moved its adoption:
RESOLUTION NO. 93-42
Anderson who
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF APPROXIMATELY $980,000 GENERAL OBLIGATION
IMPROVEMENT REFUNDING BONDS, SERIES 1994A
BE IT RESOLVED By the City Council of the City of Monticello, Wright
County, Minnesota ( City) as follows:
1. It is hereby determined that:
(a) the City is authorized by the provisions of Minnesota Statutes,
Chapter 475 (Act) and Section 475.67, Subdivision 13 of the Act to issue and
sell its general obligation bonds to refund outstanding bonds when determined
by the City Council to be necessary and desirable;
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(b) it is necessary and desirable that the City issue approximately
$980,000 General Obligation Improvement Refunding Bonds, Series 1994A
(Bonds) to refund in advance of maturity and at their redemption date,
certain outstanding general obligations of the City;
(c) the outstanding bonds to be refunded ( Refunded Bonds) consist
of the $1,625,000 General Obligation Improvement Bonds, Series 1988A, dated
June 1, 1988, of which $1,035, 000 in principal amount is callable on February
1, 1996.
2. To provide moneys to refund in advance of maturity the Refunded
Bonds, the City will therefore issue and sell Bonds in the approximate amount of
$971,180. In order to provide in part the additional interest required to market the
Bonds at this time, additional Bonds will be issued in the amount of $8,820. The
excess of the purchase price of the Bonds over the sum of $971,180 will be credited
to the debt service fund for the Bonds for the purpose of paying interest first
coming due on such additional Bonds. The Bonds shall be issued, sold and delivered
in accordance with the terms and conditions of the following Terms of Proposal:
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$980,000*
CITY OF MONTICELLO, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 1994A
Proposals for the Bonds will be received by the City Administrator on Monday, December 6,
1993, until 1:00 P.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 January 1, 1994, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1994. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months. 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:
1997 $1151000 2000 $1201000 2003 $1301000
1998 $115,000 2001 $120,000 2004 $135,000
1999 $120,000 2002 $125,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total
amount not to exceed $25,000 and will be made in multiples of $5,000 in any of the maturities. In the
event the principal amount of the Bonds is increased or reduced, any premium offered or any
discount taken will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
OPTIONAL REDEMPTION
The City may elect on February 1, 2002, and on any day thereafter, to prepay Bonds due on or
after February 1, 2003. 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 plus accrued interest.
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. In addition the City will pledge
special assessments against benefited property. The proceeds will be used to refund in
advance of maturity the 1997 through 2004 maturities of the City's $1,825,000 General
Obligation Improvement Bonds, Series 1988, dated June 1, 1988.
TYPE OF PROPOSALS
Proposals shall be for not less than $971,180 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 $9,800,
payable to the order of the City. If a check is used, it must accompany each 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 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 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 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 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 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
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 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 Holmes & Graven,
Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, 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.
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 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 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 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 November 8, 1993
BY ORDER OF THE CITY COUNCIL
/s/ Rick Wolfsteller
Administrator
3. Springsted Incorporated is authorized and directed to negotiate the
Bonds in accordance with the foregoing Terms of Proposal. The City Council will
meet at 7: 00 p.m. on Monday, December 6, 1993, to consider proposals on the Bonds
and take any other appropriate action with respect to the Bonds.
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Olsen , and upon vote being taken thereon the following
members voted in favor of the motion: Herbst, Anderson, Olsen, Fyle and Mayor Maus
and the following voted against: none
whereupon the resolution was declared duly passed and adopted.
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STATE OF MINNESOTA )
COUNTY OF WRIGHT }
CITY OF MONTICELLO )
I, the undersigned, being the duly qualified and acting City Administrator of
the City of Monticello, Minnesota, hereby certify that I have carefully compared the
attached and foregoing extract of minutes of a regular meeting of the City Council
of the City held on Monday, November 8, 1993, with the original minutes on file in
my office and the extract is a full, true and correct copy of the minutes, insofar as
they relate to the issuance and sale of approximately $980,000 General Obligation
Improvement Refunding Bonds, Series 1994A of the City.
WITNESS My hand as City Administrator, and the corporate seal of the City this
r
day of November, 1993.
(SEAL)
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I - w;&,
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City Administ ator
City of Monticello, Minnesota