HomeMy WebLinkAboutCity Council Resolution 2004-422CERTIFICATION OF MINUTES
Municipality: The City of Plymouth, Minnesota
Governing Body: City Council
Meeting: A meeting of the City Council of The City of Plymouth was held
on the 12th day of October, 2004, at 7:00 p.m. at Plymouth City
Center, 3400 Plymouth Boulevard, Plymouth, Minnesota.
Members present: Mayor Johnson, Councilmembers Neset, Hewitt, Slavik, Johnson,
Stein, and Black
Members absent: None
Documents: Resolution No. 2004-422 - Authorizing Issuance and Sale of
$13,140,000 General Obligation Water Revenue Bonds, Series
2004B
Certification:
I, Sandy Paulson, City Clerk of the City of Plymouth, Minnesota, do hereby certify the
following:
Attached hereto is a true and correct copy of a resolution on file and of record in the
offices of the City of Plymouth, Minnesota, which resolution was adopted by the Plymouth City
Council, at the meeting referred to above. Said meeting was a regular meeting of the Plymouth
City Council, was open to the public, and was held at the time at which meetings of the City
Council are regularly held. Member Black moved the adoption of the attached resolution. The
motion for adoption of the attached resolution was seconded by Member Slavik. A vote being
taken on the motion, the following voted in favor of the resolution:
All members voted in favor.
and the following voted against the resolution:
None.
Whereupon said resolution was declared duly passed and adopted by at least two-thirds
of the members of the City Council. The attached resolution is in full force and effect and no
action has been taken by the City Council of the City of Plymouth, Minnesota which would in
any way alter or amend the attached resolution.
Witness my hand officially as the City Clerk of the City of Plymouth, Minnesota this
day of October, 2004.
By:
Its City Clerk
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CITY OF PLYMOUTH
RESOLUTION 2004-422
AUTHORIZING ISSUANCE AND SALE OF $13,140,000
GENERAL OBLIGATION WATER REVENUE BONDS,
SERIES 2004B
BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the City), as
follows:
SECTION 1. PURPOSE. It is hereby determined to be in the best interests of the City to issue
its General Obligation Water Revenue Bonds, Series 2004B, in the principal amount of
$13,140,000 (the Bonds), pursuant to Minnesota Statutes, Section 444.075 and 475, to finance
improvements to the water facilities owned and operated by the City.
SECTION 2. TERMS OF PROPOSAL. 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 Clerk. 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 is hereby authorized, pursuant to Minnesota
Statutes, Section 475.60, Subdivision 2, paragraph (9), to solicit proposals 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 proposals for the purchase of the Bonds
and of taking such action thereon as may be in the best interests of the City.
This resolution shall be in fiill force and effect from and after its passage.
PASSED AND APPROVED this 12th day of October, 2004.
THE CITY OF PLYMOUTH, MINNESOTA
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE
FOLLOWING BASIS:
TERMS OF PROPOSAL
$13,140,000
CITY OF PLYMOUTH, MINNESOTA
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2004B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, November 9, 2004, until 12:00 Noon,
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
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 in which the Proposal is submitted.
(a) Seeded Biddinz Proposals may be submitted in a sealed envelope or by fax (651) 223-3046
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) 223-3046 for inclusion in
the submitted Proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY`. For purposes of the electronic bidding process, the time as maintained by PARITY`R'
shall constitute the official time with respect to all Bids submitted to PARITY`. Each bidder
shall be solely responsible for making necessary arrangements to access PARITY for pnrposes
of submitting its electronic Bid in a timely manner and in compliance irith the requirements Of
the Terms of Proposal. Neither the City, its agents nor PARITY`R' shall have any duty or
obligation to undertake registration to bid for any prospective bidder or to provide or ensure
electronic access to any qualified prospective bidder, and neither the City, its agents nor
PARITY`R, shall be responsible for a bidder's failure to register to bid or for any failure in the
proper operation of, or have any liability for any delays or interruptions of or any damages
caused by the services of PARITY`. The City is using the services of PARITY`R' solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY`R'is not
an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY`, this
Terms of Proposal shall control. Further information about PARITY`, including any fee
charged, may be obtained from:
PARITY`, 1359 Broadway, 2"a Floor, New York, New York 10018
Customer Support: (212) 849-5000
DETAILS OF THE BONDS
The Bonds will be dated December 1, 2004, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 2005.
The Bonds will mature February 1 in the years and amounts as follows:
2005
$1,050,000
2009
$760,000
2013
$860,000 2017 $ 995,000
2006
$ 715,000
2010
$785,000
2014
$890,000 2018 $1,030,000
2007
$ 725,000
2011
$805,000
2015
$920,000 2019 $1,075,000
2008
$ 745,000
2012
$830,000
2016
$955,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption
and must conform to the maturity schedule set forth above at a price of par plus accrued interest
to the date of redemption. In order to designate term bonds, the proposal must specify "Years of
Term Maturities" in the spaces provided on the Proposal Form.
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 that shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
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OPTIONAL REDEMPTION
The City may elect on February 1, 2014, and on any day thereafter, to prepay Bonds due on or
after February 1, 2015. 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 DTC of the particular amount of such maturity to be
prepaid. DTC 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 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 net
revenues of the City's water utility. The proceeds will be used to finance improvements to the
City's water treatment facility.
TYPE OF PROPOSALS
Proposals shall be for not less than $12,995,460 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 $131,400,
payable to the order of the City. If a check is used, it must accompany the 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 underwriter 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 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
Deposit received from the purchaser, the amount of which will be deducted at settlement and no
interest will accrue to the purchaser, will be deposited by the City. 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. Rates shall be in integral multiples
of 5/100 or 1/8 of 1%. Rates must be in level or ascending order. 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.
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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 that 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 underwriter, 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.
CUSIP N [_ M[BERS
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 through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Dorsey & Whitney LLP of Minneapolis, Minnesota,
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, fiends that shall be received at the
offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance
with the terms of payment for the Bonds has 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.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2 -12(b)(5), the City will undertake, pursuant to the resolution
awarding sale of the Bond, to provide annual reports and notices of certain events. A description
of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase
the Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery
of the Bonds.
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 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 (651) 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 a proposal 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 250 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 delivering a proposal with respect to the Bonds agrees thereby that if its
proposal 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 October 12, 2004
City Clerk
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BY ORDER OF THE CITY COUNCIL
/s/ Sandra Paulson