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HomeMy WebLinkAbout1988-062 Council Resolution• - Extract 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 special meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota, was held at the City Hall in the City on Thursday, August 25, 1988, commencing at 8:00 A.M. The following members of the Council were present: Bisel, Bohjanen, Reinert, Neals and Benson 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 dispensed with by unanimous consent: RESOLUTION NO. 62 -88 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,480,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1988A 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 the City's home rule charter (Act) : Project Designation & Description: Total Project Cost Permanent financing for 1985 Bonds $ 1,298,602 Construction: Ash Street (less prepayments) 94,316 Main Street (less prepayments) 46,859 Costs of Issuance 18,023 Subtotal $ 1,457,800 Discount 22,200 TOTAL $ 1,480,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,480,000 General Obligation Improvement Bonds, Series 1988A (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 $1,457,800. 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 $22,200. The excess of the purchase price of the Bonds over the sum of $1,457,800 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 Official Terms of Offering: • OFFICIAL TERMS OF OFFERING $1,480,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1 988A Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday, September 26, 1988 at 12:00 Noon, Central Time, at the offices 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 same day. DETAILS OF THE BONDS The Bonds will be dated October 1, 1988, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1989. 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 February 1 in the amounts and years as follows: • $ 50,000 1990 $150,000 1993 $200,000 1996 $ 50,000 1991 $150,000 1994 $245,000 1997 $125,000 1992 $150,000 1995 $360,000 1998 OPTIONAL REDEMPTION The City may elect on February 1, 1995, and on any interest payment date thereafter, to prepay Bonds due on or after February I, 1996. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is.in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment 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 properties. The proceeds will be used to refinance the City's $ 1,850,000 General Obligation Temporary Improvement Bonds, Series 1985, dated November 1, 1985, and to finance the construction of various improvement projects within the City. TYPE OF BID A sealed bid for not less than $1,457,800 and accrued interest on the total principal amount of the 4ionds shall be filed with the undersigned prior to the time set for the opening f bids. Also prior to e time set for bid opening, a certified or cashier's check in the amount of 514,800, 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 shall 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 another 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%. No rate for any maturity shall be more than I% lower than any prior rate. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No bid may be conditioned upon award of any other offering of obligations by the City. ID 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 Tess 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 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 Lefevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association 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 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. 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 August 25, 1988 BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderson Clerk- Treasurer • • 3. The Clerk- Treasurer is authoriz @d 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, September 26, 1988, 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: Bisel, Bohjanen, Reinert, Neal and Benson and the following voted against: None whereupon the resolution was declared duly passed and adopted. • EXHIBIT A NOTICE OF BOND SALE $1,480,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1988A 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 12:00 Noon, - C.T. on Monday, September 26, 1988, in the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101 -2143, at which time the 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 October 1, 1988, will bear interest payable semiannually on each February 1 and August 1, commencing August 1, 1989, and will mature on February 1 in the years and amounts as follows: Year Amount Year Amount 1990 $ 50,000 1995 $150,000 1991 50,000 1996 200,000 1992 125,000 1997 245,000 1993 150,000 1998 360,000 1994 150,000 The City may elect on February 1, 1995 or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1996 at a price of par plus accrued interest to date of redemption. Bidders must specify a price of not less than $1,457,800 plus accrued interest. A legal opinion on the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneapolis, Minnesota. The proceeds of the bonds will be used to permanently finance the City's $1,850,000 General Obligation Temporary Improvement Bonds, Series 1985, dated November 1, 1988, and to finance a portion of the costs of various assessable public improvements in 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. Further information may be obtained from the Issuer's Financial Advisor, Springsted Incorporated, 85 East Seventh Place, St. Paul Minnesota 55101, 612/223 -3000. BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderson City Clerk- Treasurer Dated: August 25, 1988 • • 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 special meeting of the City Council of the City held on Thursday, August 25, 1988, 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 $1,480,000 General Obligation Improvement Bonds, Series 1988A of the City. WITNESS My hand as City Clerk- Treasurer and the corporate seal of the City this (SEAL) L5:05270888.RAU day of September , 1988. J City ! Clerk- Treasurer City of Lino Lakes, Minnesota