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HomeMy WebLinkAbout1994-130 CCR1 1 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, June 27, 1994, commencing at 7:00 P.M. and the following were absent: SNG71939 B11291 -125 The following members of the Council were present: Extract of Minutes of Meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota Todd Paulson, Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann; The following written resolution was presented by Councilmember Barb Kalligher who moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 94 130 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,830,000 GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1994A BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota (City) as follows: 1. It is determined that: (a) the City is authorized by Minnesota Statutes, Section 444.075 (Act) to issue and sell its general obligation bonds (Bonds) to finance all or a portion of the cost of the construction, enlargement and other improvements to its storm sewer system including mains, holding areas and ponds, and other appurtenances and related facilities for the collection and disposal of storm water (Facilities) 1 1 1 RESOLUTION NO. 94 -130 SNG71939 311291 -125 (b) the Bonds may be general obligations of the City if the City Council in the resolution awarding the sale of the Bonds covenants that it will impose rates and charges for the use of the Facilities at the times and in the amounts required to produce, together with any other revenues pledged for payment of the Bonds, net revenues (as defined by the Act) adequate to pay all principal and interest when due on the Bonds. (c) the City Engineer has informed this Council that contracts for the construction and related costs of construction and improvements to the Facilities (Costs) have been or will be incurred as follows: Project Designation Description: Total Project Project 94 -11 (Northwest Area) 555,400 Project 93 -18 (Gateway Pond /Park and Drainage Upgrades) 1,255,000 Subtotal $1,810,400 Costs of Issuance 20,295 Allowance for Discount Bidding 21,960 Less: Investment Earnings (22,655) Total $1,830,000 (d) it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,830,000 General Obligation Storm Sewer Revenue Bonds, Series 1994A (Bonds) pursuant to the Act to provide financing for the Project. 2. In order to provide financing for the Project, the City will therefore issue and sell Bonds in the amount of $1,808,040. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $21,960. The excess of the purchase price of the Bonds over the sum of $1,808,040 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 Proposal: 1 RESOLUTION NO. 94 -130 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,830,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1994A Proposals for the Bonds will be received on Monday, July 25, 1994, 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 August 1, 1994, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1995. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and amounts as follows: 1996 $110,000 1997 $155,000 1998 $165,000 1999 $170,000 2000 $180,000 2001 $190,000 2002 $200,000 OPTIONAL REDEMPTION 2003 $210,000 2004 $220,000 2005 $230,000 The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or after February 1, 2004. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. 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 from the City's Storm Drainage Enterprise Fund. The proceeds will be used to finance construction of storm drainage improvements within the City. TYPE OF PROPOSALS Proposals shall be for not less than $1,808,040 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 $18,300, i RESOLUTION NO. 94 -130 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 Minneosta, 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 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 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. 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: (1) 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. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. 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 City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, 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 City for any loss suffered by the City by reason of the purchaser's non compliance with said terms for payment. 1 1 RESOLUTION NO. 94 -130 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 (612) 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 75 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 June 27, 1994 BY ORDER OF THE CITY COUNCIL /s/ Mr. Gerald Splinter City Manager 1 1 1 RESOLUTION NO. 94 -130 3. Springsted Incorporated is authorized and directed to negotiate the Bond for sale in accordance with the foregoing Terris of Proposal. The City Council will meet at 7:00 p.m. on Monday, July 25, 1994, to consider proposals on the Bonds and take other appropriate action with respect to the Bonds. 4. In the resolution awarding the sale of the Bonds the City Council will set forth the covenants and undertakings required by the Act. June 27, 1994 Date ATTEST: MY( 1« rn ./t )h Deputy Clerk SNG71939 BA291 -125 Todd Paulson, Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene and upon vote being taken thereon, the following voted in favor thereof: Todd Paulson, Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. 1 1 RESOLUTION NO. 94 -130 STATE OF MINNESOTA CITY OF BROOKLYN CENTER COUNTY OF HENNEPIN I, the undersigned, being the duly qualified and acting City Manager of the City of Brooklyn 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, June 27, 1994, 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 $1,830,000 General Obligation Storm Sewer Revenue Bonds, Series 1994A of the City. WITNESS My hand as City Manager and the corporate seal of the City this 27th day of June 1994. SNC71939 38291 -125 (SEAL) £t rh 111111,., City Manag'� City of Brobklyn Center, Minnesota