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HomeMy WebLinkAbout1987-032 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 said City on Monday, July 27, 1987, commencing at 7:00 o'clock P.M. The following members were present: Mayor Benson, Council Members, Bisel, Marier, Bohjanen, Reinert. and the following were absent: None * * * The following written resolution was presented by Councilmember Bisel who moved its adoption, the reading of which had been dis- pensed with by unanimous consent: RESOLUTION NO. 32 - 87 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,650,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1987A 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): Project Designation & Description: 1987 Improvement Projects Project Cost Uhde $ 448,343 Erickson's 354,789 Trunk Water Improvements 618,260 4th Avenue Improvements 79,072 North Road 8,830 Deer Pass Trail 10,342 Subtotal $1,519,636 Cost of Issuance 18,500 Discount 16,500 Capitalized Interest 110,432 Subtotal $1,665,068 Less: Reinvestment Income (15,068) TOTAL BOND ISSUE: $1,650,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,650,000 General Obligation Temporary Improvement Bonds, Series 1987A (Bonds) pursuant to the Act to provide financing for the Improvements. 2. In order to provide financing for the Improvements, the City will therefore issue and sell Bonds in the amount of $1,633,500. In order to provide in part the additional interest required to market the Bonds at this time, additional Bonds shall be issued in the amount of $16,500. Any excess of the purchase price of the Bonds over the sum of $1,633,500 shall 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 Official Terms of Offering: • • OFFICIAL TERMS OF OFFERING $1,650,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES I987A Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday, August 24, 1987, at 11:00 A.M., Central Time, at the office of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101 -2143. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the some day. DETAILS OF THE BONDS The Bonds will be dated September 1, 1987, as the date of original issue, and will bear interest payable on March 1 and September 1 of each year, commencing March 1, 1988. Interest will be computed upon 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 his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature on September 1, 1990. • OPTIONAL REDEMPTION The City may elect on September 1, 1989 and March 1, 1990 to prepay Bonds due on September I, 1990. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the specific Bonds to be prepaid will be chosen by lot 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 levied against benefited property. The proceeds will be used to finance improvements within the City. TYPE OF BID A sealed bid for not less than $1,633,500 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $16,500, payable to the order of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. No bid shalt be withdrawn after the time set for opening bids unless the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to Onother date without award of the Bonds having been made. Rates offered by Bidders shall be in integral multiples of 5/100 or 1/8 of 1%. AWARD Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by 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. 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 urchaser at a place mutually satisfactory to the City and the Purchaser. Delivery will be subject to lieipt by the Purchaser of an approving legal opinion of LeFevere, Lefler, Kennedy, O'Brien & rawz, a Professional Association, 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 1:00 P.M., 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. At settlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the City, to the effect that the Official Statement did not as of the date of the Official Statement, and does not as of the date of settlement, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in Tight of the circumstances under which they were made, not misleading. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The Purchaser will be provided with 25 copies of the Official Statement. Dated July 27, 1987 BY ORDER OF THE CITY COUNCIL Is/ 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 cause the abbreviated notice of sale attached hereto as Exhibit A to be published in the manner required by law. The City Council will meet at 7:00 p.m. on Monday, August 24, 1987, to consider bids on the Bonds and take any other appropriate action. The motion for the adoption of the foregoing resolution was duly seconded by Council member Bohjanen and upon vote being taken thereon the following members voted in favor of the motion: Mayor Benson, Council Members Bisel, Bohjanen, REinert and the following voted against: Marier whereupon the resolution was declared duly passed and adopted. Benjami G. Benson, Mayor Marilyn G. Anderson, Clerk- Treasurer SEAL • • • • EXHIBIT A NOTICE OF BOND SALE $1,650,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1987A CITY OF LINO LAKES, ANOKA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the above Bonds will be received until 11:00 a.m., C.T. on Monday, August 24, 1987 at the offices of Springsted Incorporated at which time bids will be opened and tabulated for consideration by the City Council at a meeting at 7:00 p.m. on the same day. The Bonds are offered on the following terms. The Bonds will be dated September 1, 1987, will bear interest payable semiannually on each March 1 and September 1, commencing March 1, 1988, and will mature on September 1, 1990. The City may elect on September 1, 1989 and on March 1, 1990 to redeem and prepay Bonds of this issue at a price of par plus accrued interest to date of redemption. No rate of interest nor the net effective interest rate of the issue may exceed the maximum rate permitted by law on the day of sale. Bidders must specify a price of not less than $1,633,500 plus accrued interest. A legal opinion on the Bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneap- olis, Minnesota. The proceeds of the Bonds will be used to finance a portion of the costs of various assessable public improvements in the City. Bidders should be aware that the Official Terms of Offering 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 Terms of Offering bidders must comply with the terms of the latter. Dated: July 27, 1987. BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderson City Clerk- Treasurer