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City Council Resolution 1997-46Extract 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, September 8, 1997, commencing at 7:00 o'clock P.M. The following members of the Council were present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen and the following were absent: None The following resolution was presented by Councilmember stumpf ,who moved its adoption: RESOLUTION NO. 9~-46 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $2,300,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997A 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 following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429 (Act); SJB130175 NIN190-65 97-46 Project Designation & Descriytion: 97-07C Trunk Storm Sewer-High School Project 97-04C Klein Farms 4th Addition Total Project Cost Project Costs $2,116,000 Discount (at 1.1%) 25,300 Issuance Costs 29,000 Capitalized Interest 130,000 Less: Investment Earnings (3001 Total Bond Issue: $2,300,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $2,300,000 General Obligation Improvement Bonds, Series 1997A (Bonds) pursuant to the Act to provide financing for the Improvements. 2. To provide financing for the Improvements, the City will issue and sell Bonds in the amount of $2,274,700. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $25,300. The excess of the purchase price of the Bonds over the sum of $2,274,700 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: SJB130175 MN190-65 lution 97-46 3 7HE CITY HA:~ AUTHORI~E© SPRINGSTED 1NrORPORATED TO NEGOTI~`.TE TMIS ISSUE ON ITS EiEHALF. PROPOSALS WILL BE RECEIVEp ON THE FOLLOWING BASIS; TERMS QF PROPOSAL $2,300,000 CITY OF MONTICELLO, MINNES07A GEi~ERAL OBLIGATIQN IMPROVEMENT BONDS, SERIES 1997A (BOOK ENTRY ONLY) Proposals for tYis Bonds will be received on Monday, October 27, 1997, until 11.CC A M-: Central Time, at .he offices of Springsted Incorporated, 85 East Seventh Place, Suite 194, 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 :40 P-M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may i)~ submitted in a sealed envelope or by fax (612} 223-3002 to Springsted. Signed Prop^sals, without final price or coupons, may be submittev to Springsted prior to the time of sale. T~~e bidder sha11 be responsible for submitting to Springsted the final Proposal price and roupc;ns, by telephone (512) 223.30CQ or fax (612) 223-3402 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of ±he bidder to reach Springsted prior to the tir'.~? of sale specifies above. Proposals may also be filed electronically via PARITY, in accordance with PARITY Rules of Participation anc~ the Terms of Proposal, within acne-ha. r period prior ±o the time of sale established above, but no Proposals ¢~ill be received after tl'ist time. If provisior;s in the Terms of i?roposal conflict vaith the PARITY Rules of Participation, ' he Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from I~'ARITY and such flee shall be the responsibility of the bidder- For further information about PARITY, potential bidders may contact PARITY at 5CC Main Street, Suite 1010, Fon. Worth., TX 761 C2, telephone (817) 855-8940. Neither the City nor Springsted Incorporated as:.umes any liability if there is a malfunc?icn of PARITY. All bidders are advised that each Prcpe:~al shall be deemed :o constitute a contract between the bidder and the City to purchase the B~~rds regardless of the manner of the Proposal submitted. DETAILS OF THE BONGS The Bonds ~,^;ill :~e dated November 1, 1997, as the date of original issue, and will bear interest payable on Fet•~'uary 1 and August 1 of each year, commencing August 1, 199$. Interest will be computed on the basis of a 364-day year of twelve 3C-day months. The Bonds will mature February 1 in the years and amounts as follows 2000 S800,00;~ 2C03 5250,000 2006 $50,000 2008 850,000 2001 5500,OOU 2004 5100,000 2007 $50,C00 2009 ~50,!~flG 2002 $400,OOt~ 2005 $ 50,000 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distrih:-rtion of Bonds made tc the public. The Bonds will be issued in fully registered form and one Bonds, representing t!-.~, aggregate principal amount of the Bonds maturing in each year, `.viii be solution 97-46 'Page 4 registered in the name of Cede g Co. as norn~nee of The Depository Trust Company ;"pTC"l, New York, New 'Fork, which wrll act as securities depository of the Bonds: Individual purchase of the Bonds ma~i be made in tt-~e principal amount of ~5:000 or any multiple thereof of a single maturity througl-, book entries made on the books and records of DTC and its participants: Principal and int~E rest are payable by the registrar to DTC or its nominee as registered owner of ti the Bonds. Transfer of principal and interest payrr,ents to participants of DTC wil4 be t. e responsibility of DTC,. transfer of principal and interest paymer:±s to beneficial owners 5y participants will be the responsibility of such participants and other nominees of beneficial owners. The p~. chaser, as a condition of delivery of the Bonds, will be required to deposit ±he Bonds with DTC. REGISTRAR The City will name tha registrar which shall be subject to applicable SEC regulations. The Git`1 will pay far the s~;rvices of the registrar. OPTIONAL REDEMPTION The City may elE:ct on iebruary 1, 2004; and on any day thereafter, to prepay Bonds due on or after February 1 2005. Redemption may be in whole or in part and if in part at the opt±cn of the City and in suc~, manner as the Git}r shall determine. ff -ess than all bonds of d maturity are Called for reder~~ption, the City will notify DTC ;;f the particu4ar amount of such maturit},r to be prepaid. DTC ti-~iil determine by !ot the amount of each participant's interest in such maturity to be redeemed and each participant will then seyect by lot the beneficial ownership interests m such maturity tc+ be redeemed. All prepaymEnts shall be at a price of par pins accrued interest. SECURITY AND PURPOSE The Bonds will 7e general obligations of the City for wi".iC!1 the City wil! pledga its full faith and credit and powE;r to levy direct general ad valorem taxes- In addition the City will pledge special assessments against benefited property. The proceeds will be used to finance var;ous improvements !~tithin the City. TYPE OF PROPOSALS Proposals shay! be for not less than $2,274,700 and accrued interest on the total principa! amount of the :3onds- Proposals shall be accompanied by a Good Faith Depo$i' (` Qepasit" in the form of a ct~rtified or cashier's check or a F;-uncial Surety Bond in the amount cr X23,000, payable to the order of the City. if a check is used, it must accompany each proposa+, If a Financia! Surer r Bond is used, it must be from an insurance :,ompany !iCensed to issue such a bond in the St~~,e of Minnesota, and preapproved by the City Such bond must be sut;mit±ed to Springsted Inc.~rporated prior to the opening o` the proposals. The Financial Surety Bond must identify each ~, iderwriter tNhose Deposit is guaranteed by such Financial Surety Bond. if the Bonds are aw_+rded to an underwriter using a Financial Surety Bond, then that purchaser .s required to sul:mit its Deposit to Springsted Incorporated in the form of a certified or rasher"s check or wire transfer as instructed by Springsted Incorporated net later than 3'30 P ~~-, Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bor:d may be draw^ by the Gity to satisfy the Deposit requirement. The City will ~: eposit the check of the purchaser, the amount of vuhich will be deducted at settlement anc; na interest will accrue to the purchaser In the event the purchaser fails to comply with th+, accepted proposal, said amount will be retained by the City. No proposal can be withdrawn c:r amended alter the tune set for receiving proposals un4ess the meet+ng of the City scheduler; for award of the Bonds is adjourned, recessed: or continued to another date without award ~f the Bonds having been made. Rates shall be in integral multiples of 51100 or 118 of 1 %. Rates must be in ascending order. Bonds of the same maturity shall bear a single ution 97-46 rate from the date of the Bonds to the date of .mat~~rty accepted. No conditional proposals will be AWAKD The Bonds will t~. awarded on the basis of the lowest interest rate to be determined on a true interest cost (Tls:. basis. The City's computation cf the interest rate of each proposal, in accordance with customary practice, wi!{ be controlling.. The City will ress:;ire the right to. (i} waive non-substantive informalities of any proposal or of matters relating tc tl•se receipt of proposals and award of the Bands. (ii) reject all propcsals without cause, ~ ~d ;iii} reject any proposal which the City deterr~ires to have failEd to comply with the terms h~: rein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qs- 31ify 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 su^h commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased casts of issuance of t'~e Bonds resulting from such purchase of insurance shall ~~e paid by the purchaser; except that. if the City has requested and received a rating on the Bs:nds from a rating agency, tf°ie City V'rill pay that rating fee. Any other rating agency fees sh~~ I be the responsibility of the purchaser. Failure of the m-~nicipsl bond insurer to issue the policy after Bonds have been awarded to the purchaser shall Ito`. constitute cause far failure or refusal t;y the purchaser to accept del+ve^f on the Bonds. CUSIP NUMBERS If the bonds quslify for assignment of CUSIP numbers such nurrsbers will be printed on the Bonds, but neit~~er the failure to pint such numbers on any Bonds nor ary error with respect thereto will cor,;ttitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CL+SIP Service Eureau charge for the assignment of CUSIP identification number$ shall be paid by the purchaser. SETTLEMENT Within ~0 days iollcwing 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 recsa~ pt by the purchaser of an approving lec~a! opinion of Kennedy ~ Graven, Chartered of M. ineapolis, Minnesota: and of customary closing papers, including a no-litigation certificate. On the date of settlement payment fc:r the Bends shall be maoe in federal, or equivalent, funds which shall be received at ±he offices of the City or its designee not later than 12:Q0 Noon, CE. ~tral Time. Except as compliance wth the tGrn,s of payment for the Bonds shall have been maci ~ impossible by action of the City, or its age^ts, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance -nrith said terms for paymEtnt. CONTINUING DtSC!_OSURE In accordance suith SEC Rule 15c2-12(b}(5}, the City will undertake, pursuant to the resolution awarding safe of the Bonds, tc provide annual reports and notices of certain events. A description of t~is undertaking :s set forth in the Official Statement. The purchaser's obligation to purchase th:: Bonds will be cond•,tioned upon receiving evidence of thss undertaking at cr prior to deliver) of the Bands. >lution 97-46 6 OFFICIAL STATEMENT The Gty has ~~uthorized the preparation of an Official Sta•,emEnt containing pertinent information resat ~~e to the Bards, and said Official Statement will serve as a nearly-final Gfficial Statement within the meaning of Rule 15c2-12 of the Securities and ExchangE Commission. For copies of 1 1e Official Statement or for a~ y additional information prior to sa-e, any prospective purc;~aser is referred to the Financial Advisor to the City, Springsted Incorporate4. 85 East Seventt-: Place, Suite 10~, Saint Pauf, I'~iinnesota 55101, telephone {612) 22~-3000. The Official Statement: when further supplemented by an adder dum nr addenda speGify~ng the maturity dates, ~r-ncipal amounts and interest rates of the Bonds, together with any other information req~' red by law, snail constitute a "Finn! Cf real Statement" of the City with respect to the Bonds, ~~s that term is defined in Rule 1 ~c2-12. By awarding the Bonds to any urdenr~riter qr a ~denNriting syndicate submitting a proposal therefor, the City agrees that, no more than seve.' business days af!er the date of such award, it shai; provide without cost to the senior managing underwriter of the syndicate to which the Sonds are awarded 95 copies of the Officia{ Stateme, ~t and the addendum or addenda described above. The City designates the senior managin,, underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of dis~~:'ibuting copies of the Final Official Statement ±o each Participating Underwriter. Any underwrite' delivering a prcpcsal with respect to the Bonds agrees thereby that if its proposal is acc~~ pted by the City ~i) it shall accept such desigr.atio^ and (ii) it shall enter into a contractual reia~ onship wsth all Participating Undervdriters of the Bonds for purposes of assuring the receipt by a;~ch such Participating Underwriter cf the Final Official Statement Dated Septemt~;r 8. 1997 BY ORDER OF THE CITY CC?UNCiL !s/ Richard Wolfsteller Administrator -w- lution 97-46 7 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 o'clock P.M. on Monday, October 27, 1997, 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 Thielen ,and upon vote being taken thereon the following members voted in favor of the motion: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen and the following voted against: None whereupon the resolution was declared duly passed and adopted. SJH130175 NAI190-65 ution 97-46 8 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, September 8, 1997, 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 $2,300,000 General Obligation Improvement Bonds, Series 1997A of the City. WITNESS My hand as City Administrator and the corporate seal of the City this 22nd day of september , 1997. City Administrator City of Monticello, innesota (SEAL) SJB130175 MN190-65