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HomeMy WebLinkAbout1990-049 Council ResolutionExtract of Minutes of Meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota, was held at the City Hall in the City on Monday, July 9, 1990, commencing at 7:00 P.M. The following members of the Council were present: Neal, Kuether, Bisel, Reinert, Bohj anen and the following were absent: None * * * The following written resolution was presented by Member Reinert who moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 49 - 90 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,015,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1990B BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka 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): , orrt c fG,`ve4.,/�5'Gy�' (70 (47 Project Designation & Cost: Refinance $1,650,000 General Obligation Temporary Bonds, Series 1987A $ 809,138 Construction of Second Avenue Improvement Project 164,887 Capitalized Interest 18,037 Costs of Issuance 15,200 Subtotal $1,007,262 Discount 9,135 Less Investment Earnings (1,397) TOTAL $1,015,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,015,000 General Obligation Temporary Improvement Bonds, Series 1990B (Bonds) pursuant to the Act to provide temporary financing for the Improvements. 2. To provide temporary financing for the Improvements, the City will therefore issue and sell Bonds in the amount of $1,005,865. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $9,135. The excess of the purchase price of the Bonds over the sum of $1,005,865 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 accor- dance with the terms of the following Official Terms of Offering: OFFICIAL TERMS OF OFFERING $1,015,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1990B Sealed bids for the Bonds will be received by the City Administrator or his designee on Monday, August 13, 1990, 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 6:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated August 1, 1990, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1991. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months and will be rounded pursuant to rules of the MSRB. 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 August 1, 1993. OPTIONAL REDEMPTION The City may elect on August 1, 1992, and on any day thereafter to prepay Bonds due on August 1, 1993. Redemption may be in whole or in part and if in part by lot as selected by the registrar. All prepayments shall be at a price of par and 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 benefitted property. The proceeds will be used to refinance at maturity all of the outstanding bonds of the $1,650,000 General Obligation Bond Temporary Improvement Bonds, Series 1987A, dated September 1, 1987 and finance other local improvements within the City. TYPE OF BID Bids shall be for not less than $1,005,865 and accrued interest on the total principal amount of the Bonds, and shall be accompanied by a certified or cashier's check in the amount of $10,150, payable to the order of the City. No bid will be considered for which said check has not been received. 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 bid, said amount will be retained by the City. No bid can be withdrawn after the time set for receiving bids unless the meeting of the City scheduled for award of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Bidders shall specify a single rate of interest. Rates -i- shall be in integral multiples of 5/100 or 1/8 of 1%. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional bid will be accepted. AWARD The Bonds will be awarded to the bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non -substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid 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 bidder, 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 reasons 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 as required by Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement and the Official Bid Form 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 an Official Bid Form 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 40 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 executing and delivering an Official Bid Form with respect to the Bonds agrees thereby that if its bid 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 9, 1990 BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderson Clerk -Treasurer `-- 3. The Clerk -Treasurer is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Terms of Offering and to publish the abbreviated notice of sale attached hereto as Exhibit A in the manner required by law. The City Council will meet at 6:30 p.m. on Monday, August 13, 1990, to consider bids 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 Bohjanen , and upon vote being taken thereon the following members voted in favor of the motion: Neal, Kuether, Bisel, Reinert, Bohjanen. and the following voted against: None whereupon the resolution was declared duly passed and adopted. Exhibit A NOTICE OF BOND SALE $1,015,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1990B CITY OF LINO LAKES, ANOKA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 1:00, p.m., C.T. on Monday, August 13, 1990, in the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, at which time the bids will be opened and tabulated for consideration by the City Council at a meeting at 6:30 p.m. on the same day. The bonds are offered on the following terms. The bonds will be dated August 1, 1990, will bear interest payable semiannually on each February 1 and August 1, commencing August 1, 1991, and will mature on August 1, 1993. The City may elect on August 1, 1992 or on any date thereafter to redeem and prepay bonds of this issue in whole or in part by lot at a price of par plus accrued interest to date of redemption. Bidders must specify a price of not less than $1,005,685 plus accrued interest. A legal opinion on the bonds will be furnished by Holmes & Graven, Chartered, Minneapolis, Minnesota. The proceeds of the bonds will be used to finance a portion of the costs of various assessable public improvements in the City and to refinance at maturity certain temporary improvement bonds of the City. Bidders should be aware that the Official Statement to be distributed for the bonds may contain additional bidding terms and information relative to the bonds. In the event of a variance between statements in this Notice of Bond Sale and the Official Statement bidders must comply with the terms of the latter. BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderson City Clerk -Treasurer Dated: July 9, 1990. \.- STATE OF MINNESOTA ) COUNTY OF ANOKA ) CITY OF LINO LAKES ) I, the undersigned, being the duly qualified and acting Clerk -Treasurer of the City of Lino Lakes, 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, July 9, 1990, 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 $1,015,000 General Obligation Temporary Improvement Bonds, Series 1990B, of the City. WITNESS My hand as City Clerk -Treasurer and the corporate seal of the City this 25th day of July , 1990. City Clerk /` reasurer City of Lino Lakes, Minnesota (SEAL)