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HomeMy WebLinkAbout1998-190 CCRExtract of Minutes of Meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota, was held at the City Hall in the City on Monday, October 261998, commencing at 7:00 o'clock P.M. The following members of the Council were present: Myrna Kragness, Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert Peppe and the following were absent: The following written resolution was presented by Councilmember Lasman who moved its adoption, the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 98-190 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF APPROXIMATELY $1,585,000 GENERAL OBLIGATION STATE AID ROAD REFUNDING BONDS, SERIES 1998B BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota (City) as follows: SJB-151927 BR291-185 1. It is hereby determined that: (a) the City is authorized by the provisions of Minnesota Statutes, Chapter 475 (Act) and Section 475.67, Subdivision 13 of the Act to issue and sell its general obligation bonds to refund outstanding bonds when determined by the City Council to be necessary and desirable; (b) it is necessary and desirable that the City issue approximately $1,585,000 General Obligation State Aid Road Refunding Bonds, Series 1998B (Bonds) to refund in advance of maturity and at their redemption date, certain outstanding general obligations of the City; (c) the outstanding bonds to be refunded (Refunded Bonds) consist of the $3,000,000 General Obligation State Aid Road Bonds, Series 1991B, dated September 1, 1991, of which $1,550,000 in principal amount is callable on April 1, 2000. 2. To provide monies to refund in advance of maturity the Refunded Bonds, the City will therefor issue and sell Bonds in the amount of $1,573,905. In order to provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $11,095. The excess of the purchase price of the Bonds over the sum of $1,573,905 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on such additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms and conditions of the following Official Terms of Proposal: SJB-151927 BR291-185 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,585,000* CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION STATE AID ROAD REFUNDING BONDS, SERIES 19988 (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, November 23. 1998, until 10:30 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 Issuer 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 April 1 and October 1 of each year, commencing October 1, 1999. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature April 1 in the years and amounts as follows:. 2001 $240.000 2003 $255,000 2005 $280,000 2002 $245,000 2004 $270,000 2006 $295,000 The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $50,000 and w171 be made In multiples of $5,000 in any of the maturfties. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder wffl be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. 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 MCI, 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 Bond with OTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regu(ations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on April, 1, 2004, and on any day thereafter, to prepay Bonds due on or after April 1, 2005. Redemption may be in whole or In part and if in part at the option of the issuer 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 State-aid allotments from the Minnesota Department of Transportation. The proceeds will be used to refund in advance of maturity the 2001 through 2006 maturities of the City's $3,000,000 General Obligation State-Aid Road Bonds, Series 1991B, dated September 1. 1991. TYPE OF PROPOSALS Proposals shall be for not less than $1,573,905 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 $15.850, payable to the order of the Issuer. 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 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 Obligations 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. - H - 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 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 118 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. AWARD 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, (1i) reject all proposals without cause, and, (III) reject any proposal which 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 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 Issuer and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven, Chartered 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, 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 Issuer for any loss suffered by the City by reason of the purchaser's non-cori pliance with said terms for payment. - iii - 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 purchasers 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, Spdngsted 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, shalt constitute a "Final Official Statement" of the City with respect to the Bonds, as that tern 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 60 copies of the Official Statement and the addendum or addenda described above. The Issuer 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 N 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 26, 1998 BY ORDER OF THE CITY COUNCIL /s/ Sharon Knutson Clerk - iv - 1 3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance with the foregoing Terms of Proposal. The City Council will meet at 7:00 o'clock P.M. on Monday, November 23, 1998, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. October 26, 1998 Date ATTEST: J--laaw wdilvt City Clerk U Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Robert Peppe and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert Peppe; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. STATE OF MINNESOTA } COUNTY OF BENNEPIN ) CITY OF BROOKLYN CENTER ) I, the undersigned, being the duly qualified and acting Cllerk of the City of Brooklyn 1 Center, 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, October 26, 1998, 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 approximately $1,585,000 General Obligation State Aid Road Refunding Bonds, Series 1998B of the City. WITNESS My hand as City Clerk and the corporate seal of the City this 26th day of OctohPr 1998. City Clerk City of Brooklyn Center, Minnesota (SEAL) SJB-151927 BR291-185