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HomeMy WebLinkAboutRES 88-019 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $875,000 GENERAL OBLIGATION-REVENUE WATER SYSTEM BONDS, SERIES 1988A Meeting Sheet ` IIIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 101611 Box: 21 Folder: RES 1988 Document: RES 88-019 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $875,000 GENERAL OBLIGATION-REVENUE WATER SYSTEM BONDS,SERIES 1988A iCERTIFICATION OF MINUTES RELATING TO $875, 000 GENERAL OBLIGATION-REVENUE WATER SYSTEM BONDS, SERIES 1988A Issuer : City of St . Anthony, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held on Tuesday, May 24, 1988, at 7: 30 o' clock P.M. , at the City Hall , in St. Anthony, Minnesota. Members present: Sundland, Makowske, Marks, Enrooth, Ranallo Members absent : none Documents Attached: Minutes of said meeting (pages ) : RESOLUTION NO. 88-019 • RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $875, 000 GENERAL OBLIGATION-REVENUE WATER SYSTEM BONDS, SERIES 1988A 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 this day of May, 1988. RC1 • ignat e Carol Lou Johnson City Clerk • �.,ember Ranallo introduced the following resolu- tion and moved its adoption : RESOLUTION NO. 88-019 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $875, 000 GENERAL OBLIGATION-REVENUE WATER SYSTEM BONDS, SERIES 1988A BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota, as follows : 1. Bond Authorization. It is hereby found and determined that it is necessary and expedient for the City to issue and sell its General Obligation-Revenue Water System Bonds, Series 1988A, in a principal amount not to exceed $875, 000, pursuant to Minnesota Statutes, Section 444 . 075 and Chapter 475, to finance a -temporary water filtration system and costs associated with certain litigation against the U.S. Army relating to contaminated ground water. 2 . Sale Terms . Springsted Incorporated, bond consul- tants to the City, has presented to this Council a form of Official Terms of Offering of the sale of the bonds, and a form of Notice of Sale for publication, which forms are attached hereto and shall be placed. on file in the office of the Clerk. Each and all of the provisions of the Official Terms of Offering are hereby adopted as the terms and conditions of said bonds and of the sale thereof, and shall be made available to all prospective purchasers of the bonds . The Clerk is authorized and directed to cause the Notice of Sale to be published once in the official newspaper of the City, and once in the Commercial West, a financial periodical published in Minneapolis, at least ten days before the date of sale . 3 . Sale Meeting. This Council shall meet on Tuesday, June 28, 1988, at 7 : 30 P.M. , to consider the bids received for the purchase of the bonds , and to take s actions thereon as is deemed in the best interests of the C ' y. Mayor Attest : &4,,4_e City Clerk— J . lerkJ • r • The motion for the adoption of the foregoing resolution was duly seconded by Member Enrooth and upon vote being taken thereon, the following voted in favor thereof : Ranallo, Enrooth, Sundland, Marks, Makowske and the following voted against the same : None whereupon said resolution was declared passed and adopted. • • . OFFICIAL TERMS OF OFFERING . $875,000* CITY OF ST. ANTHONY, MINNESOTA GENERAL OBLIGATION - REVENUE WATER SYSTEM BONDS, SERIES 1988A (CAPITAL APPRECIATION BONDS) Sealed bids for the Bonds will be opened by the City in the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143 on Tuesday, June 28, 1988, at 11 :00 A.M., Central Time. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated and shall bear interest from their date of settlement. Interest on the Bonds shall be compounded on January I, 1989, and semiannually thereafter on January I and July I of each year, and is payable, together with principal, only at maturity or upon prior redemption. The "original principal" as used herein is that principal amount which, when accreted at its associated interest rate until its scheduled maturity date, results in a payment described hereinafter as its "maturity value." These maturity values will be $5,000 denominations or integral multiples thereof. Payment of the accreted amount shall be payable at the main corporate office of the Registrar upon presentation and surrender for cancellation of the Bonds. OThe Bonds are being issued in the aggregate original principal amount of approximately $875,000*. The rate specified by the successful purchaser will determine the original principal amount of each Bond. The maturity value of approximately $1,200,000 will be paid on July I, 1993. The City reserves the right to increase or decrease the maturity value, in the multiple of $5,000, in order to result in an original principal amount which will not exceed $875,000*. Within 48 hours of award, the successful bidder shall provide a table of accreted values for a $5,000 maturity value as of each January I and July I through its maturity date based on semiannual compounding at the interest rate specified for such Bonds, from the assumed settlement date of July 25, 1988. In case of discrepancy, the City's calculation of accreted values shall be controlling. The City may elect on July I, 1992, or January I, 1993, to prepay Bonds due on July I, 1993. Redemption may be in whole or in part of the Bonds subject to prepayment. If ony part of the Bonds are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at the accreted value as of the date of redemption. 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 revenues of the water system, including anticipated payments from the U.S. Army. The proceeds will be used to finance the costs associated with a temporary water filtration system and associated legal fees in conjunction with litigation against the U.S. Army. Approximate, subject to adjustment, but in no event will the original principal amount exceed $875,000. Page 5 ., • TYPE OF BID A sealed bid shall be filed with the undersigned prior to the time set for the opening of bids which shall include the annual interest rate for the specified maturity and a purchase price for the Bonds which shall be no less than 98.5% of the original principal amount. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $8,750, 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. Bonds shall bear a single rate from the date of the Bonds to the date of maturity. 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. 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 Dorsey & Whitney, 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. Page 6 i e • 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 May 24, 1988 BY ORDER OF THE CITY. COUNCIL /s/ Carol Lou Johnson Clerk Page 7 NOTICE OF SALE CITY OF ST. ANTHONY, MINNESOTA $875, 000 GENERAL OBLIGATION-REVENUE WATER SYSTEM BONDS, SERIES 1988A (CAPTIAL APPRECIATION BONDS) Sealed bids for the purchase of these Bonds will be opened by the City at the office of Springsted Incorporated, 85 East Seventh Place, Suite 100, in St. .Paul , Minnesota, at 11 : 00 A.M. , Central Time, on Tuesday, June 28, 1988 . The Bonds will be dated and shall bear- interest from the date of settlement. Interest on the Bonds shall be compounded on January 1, 1989, and semiannually thereafter on January 1 and July 1 of each year, and is payable, together with principal , only at maturity or upon prior redemption. The Bonds will be issued in the aggregate original principal amount of approximately $875, 0'00 . The rate specified by the successful purchaser will determine the original principal amount of each Bond. The maturity value of approximately $1, 200 , 000 will be paid on July 1, 1993 . The City reserves the right to increase or decrease the maturity value, in the multiple of $5, 000, in order to result in an original principal amount • which will not exceed $875, 000 . The Bonds will be subject to redemption prior to maturity on July 1, 1992 and January 1, 1993 at their accreted value. Bidders must specify a price of not less than 98. 5% of the original principal amount. A legal opinion will be furnished by Dorsey & Whitney, of Minneapolis , Minnesota. The proceeds will be used to pay costs related to the operation of the City' s water system. BY ORDER OF THE CITY COUNCIL Carol Lou Johnson City Clerk Further information may be obtained from the Issuer ' s Financial Advisor, SPRINGSTED INCORPORATED, 85 East Seventh Place, St . Paul, Minnesota 55101, 612/223-3000 . •