HomeMy WebLinkAboutCity Council Resolution 1991-417Extract of Minutes of Meeting
of the City Council of the City
of Plymouth, Hennepin County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City
Council of the City of Plymouth, Hennepin County, Minnesota, was held at the
City Hall in the City on Monday, July 22, 1991, commencing at 7:00 P.M.
The following members of the Council were present: Vasiliou, Zitur, Ricker
and Bergman
and the following were absent: Helliwell
The following resolution was presented by Councilmember Vasiliou who
moved its adoption:
RESOLUTION NO. 91-417
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $4,900,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1991A
BE IT RESOLVED By the City Council of the City of Plymouth, Hennepin
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:
Project No. Description
715 34th Ave./Annapolis Ln.
001 1990 Street Reconstruction
010 Medina Rd. - Brocton Ln. to CR 24
040 NW 17th
102 1991 Stree Reconstruction
106 Northwest Blvd. - 54th Avenue to
56th Avenue
Subtotal
Allowance for Discount
Issuance/Miscellaneous Costs
Total Bond Issue
$ 631,600
2,175,850
1,010,400
89,200
814,120
66,900
$4,788,070
49,000
62,930
$4,900,000
(b) it is necessary and expedient to the sound financial management
of the affairs of the City to issue $4,90(;,000 General Obligation
Improvement Bonds, Series 1991A (Bonds) pursuant to the Act to
provide financing for the Improvements.
— To provide financing for the Improvements, the City will issue and
sell Bonds in the amount of $4,83,750. To provide in part the additional
interest required to market the Bonds at this time, additional Bonds will be
issued in the amount of $61,250. The exce of the purchase price of the Bonds
over the sum ci $4,838,750 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
$4,900,000
CITY OF PLYMOUTH, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1991A
(BOOK ENTRY ONLY)
Sealed bids for the Bonds will be received t., the City Manager or his designee on Monday,
August 19, 1991, until 1:00 P.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.
DETAILS OF THE BONDS
The Bonds will be dated September 1, 1991, as the date of original issue, and will bear Interest
payable on February i and August 1 of each year, commencing August 1, 1982. Interest Wdl
be computed on the basis of a 360 -day year of twelve 30 -day months and will be rounded
pursuant to rules of the WAS.
The Bonds will mature February 1 in the years and amounts as follows:
1993 $200,000 1997 $780,000 2000 $370,000
1994 $855,000 1928 $455,000 2001 $140,000
1905 $8001000 1999 $370,000 1002 $140,000
1996 $790,000
BOOK ENTRY SYSTEM
The Bonds will be Issued by means of a book entry system with no physical distribution of
Bond Certificates made to the public. The Bonds will be issued in fully registered form and one
Bond Certificate, representing the aggregate principal amount of the BondsIn each
year, will be reeggistered In the name of Kray S Co. as nominee of Midwest Se�s Trust
Company ("MSTCj, Chicago, Illinois, which will act as securities depository of to 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
MSTC and its participants. Principal and interest are payable by the City to MSTC or ib
nominee as registered owner of the Bonds. Transfer of principal and Interest psymilm to
partioipants of MSTC will be the responsibility of MSTC; transfer of principal and Interest
payments to beneficial owners by participants will be the responsibility of such parodpaft and
other nominees of beneficial owners. The successful bidder, as a condition of delivery of the
Bonds, will be required to deposit the Bond Certificates with MSTC.
OPTIONAL REDEMPTION
The City may elect on February 1, 1998, and on any day thereafter, to prepay Bonds due on or
after February 1, 1999. Redemption may be in whole or in part and it in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redem tion, the City will notify (MSTC) of the particular amount of such maturity to be
prepaid. (MSTC will determine by lot the amount of each participant's interest in such maturity
to be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. 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 finance various
improvement projects in the City,
TYPE OF BID
Bids shall be for not less than $4,838,750 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 $40.000, 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 bartsfor as
Instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the nsod
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 w9l deposit
the check of the purchaser, the amount of which will be deducted at settlement and no kit~
will accrue to the purchaser. In the event the purchaser fails to comply with the 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 mads. Hates
shall be in integral multiples of 5/100 or 1 /8 of 196. Rates must be in ascending order. Bonds
of the some 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 interest rate to be determined on a
true interest cost (TIC) basis. The City's computation of the interest rate 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 maters
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 heroin.
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 huRm ee
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.
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 deNvery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shalt be paid by the purchaser.
SETTLEMENT
The Bonds will be delivered without cost to the purchaser within 40 days following the date of
their award. Delivery will be subject to receipt by the purchaser of an approving legal opinion
of Holmes & Graven, Chartered of Minneapolis, Minnesota, and of customary dosing 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 loss 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 pwdrant
information relative to the Bonds, and said Official Statement will some as a nearly -final Oflk:fal
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 W1 01,
telephone (812) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda spec ging the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official StatemeriV 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 thereby, the Cfty egres
that, no more than seven business days after the date of such awwd, It shall provide without
cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 200
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 (1) it shall accept such
designation and (iQ 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 July 22, 1991
BY ORDER OF THE CITY COUNCIL
lal Laurie Raurininhorst
City Clark
3. The Clerk 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 7:00 p.m. on Monday, August 19, 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 Zitur, and upon vote being taken thereon the following
members voted in favor of the motion: Vasiliou, Zitur and Bergman
and the following voted against: Ricker
whereupon the resolution was declared duly passed and adopted.
Exhibit A
NOTICE OF BOND SALE
$4,900,000
GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1991A
CITY OF PLYMOUTH,
HENNEPIN COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds
will be received until 1:00, p.m., C.T. on Monday, August 19, 1991, in the
offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul,
Minnesota, at which time the bids will be opened and tabulated for consideration
by the City Council at a meeting at 7:00 p.m., C.T. on the same day. The bonds
are offered on the following terms. The bonds will be dated September 1, 1991,
will bear interest payable semiannually on each February 1 and August 1,
commencing August 1, 1992, and will mature on February 1 in the years and
amounts as follows:
Year
Amount
Year
Amount
1993
$200,000
1998
$455,000
1994
855,000
1999
370,000
1995
800,000
2000
370,000
1996
790,000
2001
140,000
1997
780,000
2002
140,000
The Bonds will be issued by means of a book entry system with no physical
distribution of Bond Certificates made to the public. The Bonds will be issued
in fully registered form and one Bond Certificate, representing the aggregate
principal amount of the Bonds maturing in each year, will be registered in the
name of Kray b Co. as nominee of Midwest Securities Trust Company ("MSTC"),
Chicago, Illinois, 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 MSTC and its participants. Principal and interest are
payable by the City to MSTC or its nominee as registered owner of the Bonds.
The City may elect on February 1, 1998 and on any day thereafter, to prepay
Bonds due on or after February 1, 1999. Redemption may be in whole or in part
and if in part at the option of the City and in such manner as the City shall
determine. If less than all Bonds of a maturity are called for redemption, the
City will notify MSTC of the part:.cular amount of such maturity to be prepaid.
MSTC will determine by lot the amount of each participant's interest in such
maturity to be redeemed and each participant will then select by lot the
beneficial ownership interests in such maturity to be redeemed. All prepayments
shall be at a price of par and accrued interest.
0
Bidders must specify a price of not less than $4,838,750 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.
Dated: July 22, 1991.
0
BY ORDER OF THE CITY COUNCIL
/s/ Laurie Rauenhorst
City Clerk
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
CITY OF PLYMOUTH )
I, the undersigned, being the duly qualified and acting Clerk of the
City of Plymouth, 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, July 22, 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 $4,900,000 General
Obligation Improvement Bonds, Series 1991A of the City.
WITNESS My hand as City Clerk and the corporate seal of the City this
day of July, 1991.
City Clerk
City of Plymouth, Minnesota
(SEAL)
PL100116.RAU