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HomeMy WebLinkAbout1991-055 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, June 10, 1991, commencing at 6:30 P.M. The following members of the Council were present: Neal, Kuether, Bisel, Reinert, Bohjanen. and the following were absent: none. *** The following resolution was presented by Member Bohjanen who moved its adoption: RESOLUTION NO. 55 - 91 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $4,260,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1991A 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 City has previously issued and sold its $610,000 General Obligation Temporary Improvement Bonds, Series 1988B, dated October 1, 1988, which mature October 1, 1991 (Series 1988 B Bonds) pursuant to the provisions of the home rule charter of the City; (b) there will be insufficient funds available to pay principal and interest on the Series 1988B Bonds at maturity as follows: Principal due 10-1-91 $610,000 Interest due 10-1-91 18,910 Paying Agent Fee 500 Additional Project Costs (paving) 19,620 Subtotal $649,030 Less: Available Debt Service Fund Cash (427,890) Available Capital Proj. Fund Cash (84,730) Est. First-half Assessment Collections (8,500) Prepayments Received in 1991 (43,865) Total Temporary Refinancing $ 84,045 (c) 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: White Tail Ridge Brandywood Estates Pheasant Hills Pine Ridge Addition Reshenau Lake Sanitary Sewer Trunk Wenzel Farms Construction $ 50,600 790,015 620,747 630,326 1,080,676 973,800 $4,146,164 $4,146,164 (d) it is necessary and expedient to the sound financial management of the affairs of the City to issue $4,260,000 General Obligation Temporary Improvement Bonds, Series 1991A (Bonds) pursuant to the charter to provide temporary financing for the Improvements and to provide additional temporary financing for the improvements financed by the Series 1988B Bonds as follows: Total Refinancing and New Projects Plus: Underwriter's Discount ($7.50/bond) Less: Est. Investment Earnings $4,230,209 31 ,950 (2,159) Total 1991 Temporary Issue $4,260,000 2. To provide temporary financing for the Improvements and to provide additional temporary financing for the Series 1988B Bonds, the City will therefore issue and sell Bonds in the amount of $4,228,050. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $31,950. The excess of the purchase price of the Bonds over the sum of $4,228,050 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 $4,260,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1991A Sealed bids for the Bonds will be received by the City Administrator or his designee on Monday, July 8, 1991, until 10:00 A.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, 1991, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1992. 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, 1994. OPTIONAL REDEMPTION The City may elect on August 1, 1993, and on any day thereafter to prepay Bonds due on August 1, 1994. 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 benefited property. The proceeds will be used to refinance the City's $610,000 General Bond Temporary Improvement Bonds, Series 19888, dated October 1, 1988 and to finance various improvements within the City. TYPE OF BID Bids shall be for not Tess than $4,228,050 and accrued interest on the total principal amount of the Bonds. Bids 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 $42,600, payable to the order of the City. If a check is used, it must accompany each bid. 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 bids. The Financial Surety Bond must identify each bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder 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 -i- 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 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 Bonds 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 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: (1) 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 Toss 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 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 170 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 June 10, 1991 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, July 8, 1991, 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 Neal , and upon vote being taken thereon the following members voted in favor of the motion: Neal, Bisel, Kuether, Reinert, Bohjanen. and the following voted against: none. whereupon the resolution was declared duly passed and adopted. Exhibit A NOTICE OF BOND SALE $4,260,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1991A 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 10:00, a.m., C.T. on Monday, July 8, 1991, in the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota, after 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, 1991, will bear interest payable semiannually on each February 1 and August 1, commencing August 1, 1992, and will mature on August 1, 1994. The City may elect on August 1, 1993 or on any day thereafter to prepay bonds due on August 1, 1994. Redemption may be in whole or in part by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. Bidders must specify a price of not less than $4,228,050 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. 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: June 10, 1991. 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, June 10, 1991, 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 $4,260,000 General Obligation Temporary Improvement Bonds, Series 1991A of the City. WITNESS My hand as City Clerk -Treasurer and the corporate seal of the City this 4(1/ i, day of / (SEAL) L1:LN140.RAU , 1991. City C1erfE-Treasurer City of Lino Lakes, Minnesota