HomeMy WebLinkAboutCity Council Resolution 1998-653CITY OF PLYMOUTH, MINNESOTA
RESOLUTION NO. 98-653
RESOLUTION AUTHORIZING SOLICITATION OF PROPOSALS
FOR SALE OF GENERAL OBLIGATION
ACTIVITY CENTER BONDS, SERIES 1998C
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 Activity Center Bonds, Series 1998C, in the aggregate principal amount of $4,500,000 (the
Bonds), pursuant to Minnesota Statutes, Chapter 475, for the purpose of constricting, equipping and
fiirnishing buildings to be used as an activity center, field house and for other public purposes, as approved by
the electors at a special election duly called and held on May 19, 1998.
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 City 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 as independent financial advisers, pursuant to Minnesota Statutes, Section 475.60, Subdivision
2, paragraph (9) is hereby authorized 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 proposals for the purchase of the Bonds and of taking such action
thereon as may be in the best interest of the City.
SECTION 4. EFFECTIVE DATE. This Resolution shall be in fiill force and effect from and after the date
hereof.
Adopted by the City Council on October 21, 1998
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$4,500,000
CITY OF PLYMOUTH, MINNESOTA
GENERAL OBLIGATION ACTIVITY CENTER BONDS, SERIES 1998C
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Wednesday, November 18, 1998, until 10:00 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 December 1, 1998, as the date of original issue, and will bear interest payable on
February I and August I of each year, commencing August 1, 1999. Interest will be computed on the basis of
a 360 -day year of twelve 30 -day months.
The Bonds will mature in the years and amounts as follows:
2000
$205,000
2004
$265,000
2008
$310,000 2012 $360,000
2001
$240,000
2005
$275,000
2009
$320,000 2013 $375,000
2002
$245,000
2006
$285,000
2010
$335,000 2014 $390,000
2003
$255,000
2007
$295,000
2011
$345,000
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 filly registered form and one Obligation, 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
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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 to participant's 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 Finance Director of the City will serve as registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2007 and on any day thereafter, to prepay Bonds due on or after February
2008. 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 for which the City will pledge its fill faith and credit and power to levy
direct general ad valorem taxes. The proceeds will be combined with other existing fiends of the City for the
purpose of constricting, equipping, and fi rnishing buildings to be used as an activity center, field house and
for other public purposes.
TYPE OF PROPOSALS
Proposals shall be for not less than $4,441.500 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
cashiers check or a Financial Surety Bond in the amount of $45,000, 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 pre -approved by the City.
Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial
Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form in
the form of a certified or cashier's check or wire transfer as instructed by 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
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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 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 which the City determines to have failed to comply with the terms herein.
CUSIP NUMBERS
If the Bonds quality for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither
the failure to print such numbers on any Obligation 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 opinoin 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 equivilent, fiends 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 Obligations shall
have been made impossible by action of the Issuer, or its agents, the purchaser shall be liable to the Issuer for
any loss suffered by the Issuer 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 Bonds, 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
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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, St. Paul, Minnesota 55101, telephone (651) 223-
3000.
The Official Statement, when further supplemented by an addendum or addenda speccifying the maturity
dates, principal amounts and interests 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 180 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 21, 1998 BY ORDER OF THE CITY COUNCIL
/2/ Laurie Ahrens
City Clerk
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