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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