HomeMy WebLinkAboutResolution 99-30RESOLUTION 99-30
CERTIFICATION OF MINUTES RELATING TO
$525,000 GENERAL OBLIGATION TEMPORARY
IMPROVEMENT BONDS, SERIES 1999A
Issuer: City of Lake Elmo, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held on May 4, 1999, at 7:00 o'clock
P. M. at the City Hall.
Members present:
Members absent:
Documents Attached:
Minutes of said meeting (pages):
RESOLUTION NO. 99-
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $525,000 GENERAL
OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1999A
TERMS OF PROPOSAL
I, the undersigned, being the duly qualified and acting recording officer of the public
corporation issuing the bonds referred to in the title of this certificate, certify that the documents
attached hereto, as described above, have been carefully compared with the original records of said
corporation in my legal custody, from which they have been transcribed; that said documents are a
correct and complete transcript of the minutes of a meeting of the governing body of said
corporation, and correct and complete copies of all resolutions and other actions taken and of all
documents approved by the governing body at said meeting, so far as they relate to said bonds; and
that said meeting was duly held by the governing body at the time and place and was attended
throughout by the members indicated above, pursuant to call and notice of such meeting given as
required by law.
WITNESS my hand officially as such recording officer May 4, 1999.
City Administrator
Councilmember �'��`� introduced the following resolution and moved its
adoption, which motion was seconded by Councilmember _Ayi \ S t-f 0r. ;
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $525,000 GENERAL
OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1999A
BE IT RESOLVED by the City Council of the City of Lake Elmo, Minnesota (the City),
as follows:
Section 1. Purpose. It is hereby determined to be in the best interests of the City to issue
its $525,000 General Obligation Temporary Improvement Bonds, Series 1999A (the Bonds),
pursuant to Minnesota Statutes, Chapters 429 and 475 to provide funds sufficient, together with
other City funds on hand, to retire on September 1, 1999, the outstanding $650,000 General
Obligation Temporary Improvement Bonds, Series 1996A, dated September 1, 1996 (the 1996A
Bonds). The 1996A Bonds were issued to temporarily finance sanitary sewer and water services
for the SE 1/4 of Section 33 along with upgrading the system to provide for potential expansion
of the Municipal Urban Service Area for an additional 280 acres.
Section 2. Terms of ro osat. Springsted Incorporated, financial consultant to the City,
has presented to this Council a form of Terms of Proposal for the Bonds which is attached hereto
and hereby approved and shall be placed on file by the City Administrator. Each and all of the
provisions of the Terms of Proposal are hereby adopted as the terms and conditions of the Bonds
and of the sale thereof. Springsted Incorporated, as independent financial advisers, pursuant to
Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9) is hereby authorized to solicit
bids for the Bonds on behalf of the City on a negotiated basis.
Section 3. Sale Meeting. This Council shall meet at the time and place shown in the
Terms of Proposal, for the purpose of considering sealed bids for the purchase of the Bonds and
of taking such action thereon as may be in the best interests of the City.
Upon vote being taken thereon, the following voted in favor thereof:"` -''
and the following voted against the same:
whereupon the resolution was declared duly passed and adopted.
I&ISill a 0:11a 4W 7171
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$525,000
CITY OF LAKE ELMO, MINNESOTA
GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1999A
Proposals for the Bonds will be received on Tuesday, June 1, 1999, until 11:00 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 7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (651) 223 -3002 to Springsted.
Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal
price and coupons, by telephone (651) 223 -3000 or fax (651) 223 -3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. All bidders are advised that each Proposal
shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds
regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated July 1, 1999, as the date of original issue, and will bear interest
payable on January 1 and July 1 of each year, commencing January 1, 2000. Interest will be
computed on the basis of a 360 -day year of twelve 30 -day months.
The Bonds will mature on July 1, 2002,
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC "),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
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.
OPTIONAL REDEMPTION
The City may elect on July 1, 2001, and on any day thereafter to prepay Bonds due on July 1,
2002. Redemption may be in whole or in part and if in part, the City will notify DTC of the
particular amount to be prepaid, DTC will determine by lot the amount of each participant's
interest to be redeemed and each participant will then select by lot the beneficial ownership
interests to be redeemed. All prepayments shall be at a price of par plus 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 a portion of
the City's General Obligation Temporary Improvement Bonds, Series 1996A, dated
September 1, 1996 and to finance sewer and watermain improvements within the City,
TYPE OF PROPOSALS
Proposals shall be for not less than $520,800 and accrued interest on the total principal amount
of the Bonds. Proposals 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 $5,250, payable to
the order of the City. If a check is used, it must accompany each proposal. 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 proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an under,n rri4 ®r t i it n 1 Surety B that
under ,,A U�a ,y a Financial 1J �� Wind, then 1 aL purchaser cl IaSEr 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 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 proposal, said amount will be retained by the City. No proposal can
be withdrawn or amended after the time set for receiving proposals 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. A single rate of interest shall be specified.
Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of
maturity. No conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
CU8IPNUK8BERS
If the Bonds qualify for assignment OfCUS/P 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 [efu3al 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 80OdS will be delivered VvbhOVi cost to the
purchaser at G place nlLku8Uy satisfactory to the [bv and the purchaser. Delivery will be
subject to receipt by the purchaser of8n approving |*go) opinion of Dorsey & Whitney LLP O
f M/nneGpo|iG. Minnesota, and of customary closing papers, including 3 OO-UUgaƒjOn certificate,
On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds VhiCh shall be received at the offices of the City Or its designee not later than 12:00 Noon, Time. Except GS compliance with the terms Of payment for the Bonds Sh8U have been
' n@deinpoSSib|abyB[tionOf\he City, or its agents, the purchaser shall b' liable to the City for
any suffered by the City by reason Ofthe purchaser's non-compliance with said terms '~payment,
CONTINUING DISCLOSURE
Participating underwriters need not COn1p|y with the continuing disclosure requirements of
Rule 15c2-12 pnnrDW|A8t8d by the Securities and Exchange COnlrnhs8/VO under the Securities
Exchange Act of 1934 (the "RU|e"), because the offering is in a principal amount |eeS than
$1.000.000. ODOaeqUe)tk/, the City will will not enter into any undertaking h} provide continuing
disclosure di��8Ur� of any kind with respect to the 8Dndg.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information reiative to the Bonds, and Said Dffic(e) Statement will serve as a nearly-final Official
| Gtaten9Dtvithin the meaning 0f Rule 15c2-12 of the Securities and Exchange CVODiSSiOn ' Fo[ copies of the Official Statement Or for any additional information prior to S@\e' any prOSpe[tive purchaser is referred to the Financial Advisor to the City, SpriOgSted |nCorpOated' 85E8StSeVenth Place, Suite 100. Saint Paul, Minnesota 551O1. telephone /651\223-3O
The Official Statement, when further supplemented by an addendum or addenda
specifying the
ih^
e maturity dates, principal amounts and interest rates Of the Bonds' together with any other infornat(on required by law, shall constitute @ "Final Official Statement" of the City with respect the Bonds, as that term is defined in Rule 15C2 12 , By awarding the Bonds to aDy undermriterOrundenmhting syndicate Submitting 8 proposal therefor, City agrees that ' no
more than seven business days after the date of such award, it shall provide ~hhOUdC0Sthuthe
senior managing underwriter of the syndicate to which the Bonds are awarded 25 copies of the
Official Statement and the addendum Or addenda described above. T'- CdeSignateS the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final {ffiCie| Statement to each Participating Undenwriter . Any underwriter delivering a proposal with respect t o th e Bonds agrees
thereby that if its
proposal in accepted by the City (j) it shall accept such designation and (ii) it shall enter into
a
contractual relationship with all Participating Underwriters of the Bonds for purposes o f assuring
Dated May 4, 1999 BY ORDER OF THE CITY COUNCIL
b/ MgryKueffD8r
City Administrator
4/20/99 9:23 AM