93-093
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EXTRACT OP MINUTES OP MEETING OP THE
CITY COUNCIL OP THE CITY OP SHOREWOOD,
HENNEPIN COUNTY, MINNESOTA
Pursuant to notice thereof, a regular meeting of the City Council
of the Ci ty of Shorewood, Hennepin County, Minnesota, was held at the Ci ty
Hall in said City on Monday, October 11, 1993, commencing at 7:30 p.m.
The fOllowing members were present:
Acting Mayor Daugherty, Council members Benson, Stover and Lewis
and the following were absent:
Ma~oi ~rancel
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The following resolution was presented by Member Stover
who moved its adoption:
RESOLUTION NO. 93-93
RESOLUTION PROVIDING POR THE ISSUANCE AND SALE OP
$325,000 GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 1993A
WHEREAS, in 1987, the City sold $875,000 General Obligation
Improvement Refunding Bonds, Series 1987A, which are subject to being
called for prior redemption on February 1, 1994, and
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WHEREAS, Springsted Incorporated, the City's financial advisor,
has reviewed the status of the sinking fund for these bonds and has
indicated that the City should issue improvement bonds to refund the
outstanding bonds which will mature over the period of time that the special
assessments supporting said prior 1987 bond issue will be collected, and
WHEREAS, the City has additional new improvement projects which
need to be funded, and
WHEREAS, the current bond market is very strong and it appears that
favorable interest rates can be obtained for definitive bonds,
NOW, THEREPORE, BE IT RESOLVED By the City Council of the City of
Shorewood, Hennepin County, Minnesota, as follows:
.1. It is hereby determined:
(a)
That the assessable public improvements (the
"Improvements") financed by the General
Obligation Improvement Refunding Bonds, Series
1987A, have been made and duly ordered and
contracts let for the construction thereof by the
(b)
City pursuant to the provlslons of Minnesota
Statutes, Chapter 429.
The outstanding bonds are subject to being called
on February 1, 1994, and can be financed in the
following manner:
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1993 Project Costs
Less: MnDOT Funds
City Cash Contribution
$293,000
(40,000)
(36,400)
Subtotal $216,600
Bonds to be Refunded 420,000
Less: City Funds for Refunding (333,228)
Total Bond Issue
$303,372
18,378
3,250
$325,000
Net Costs to be Financed
Plus: Costs of Issuance
Allowance for Discount Bidding
(c)
That it is necessary and expedient to the sound
financial management of the affairs of the City to
issue $325,000 General Obligation Improvement
Bonds, Series 1993A (the ftBondsft), to provide
financing for the Improvements and the
refinancing of the 1987 improvement bonds.
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(d) All Bonds shall be fully registered.
2. In order to provide financing for the Improvements, the City
shall issue and sell Bonds in the amount of $321,750; in order to provide in
part the additional interest required to market the Bonds at this time,
addi tional Bonds shall be issued in the amount of $3,250. Any excess of the
purchase pr ice of the Bonds over the sum of $321,750 shall be credi ted to the
debt service fund for the Bonds for the purpose of paying interest first
coming due on the Bonds. The Bonds shall be issued and sold in accordance
with the terms of the Terms of Proposal which is attached hereto and marked
Exhibit A.
3. The City hereby authorizes Springsted Incorporated to
negotiate the sale of the Bonds on its behalf in accordance with the
attached terms of proposal. Proposals shall be received until 12: 30 p.m.
on November 8, 1993. The City Council shall meet on Monday, November 8,
1993, at 7 :00 p.m. for the purpose of consider ing the proposals on the Bonds
and taking any other appropriate action.
The motion for the adoption of the foregoing resolution was duly
seconded by Member
Benson
and upon vote being taken thereon, the
. following voted in favor thereof:
~ and the following voted against:
whereupon said resolution was declared duly passed and adopted.
Approved and signed this Ilthday of October , 1993.
w~~~
Acting Mayor
Attest :~! ~
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, . ,v/\i'-&<i C .. . uv\lvtrl
City Administrator-Clerk
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Exhibit A
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$325,000*
CITY OF SHOREWOOD, MINNESOTA
GENERAL OBUGATION IMPROVEMENT BONDS, SERIES 1993A
Proposals for the Bonds will be received on Monday, November 8, 1993, until 12:30 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 December 1, 1993, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1994. Interest will
be computed on the basis of a 360-day year of twelve 3O-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:
1995 $40,000
1996 $40,000
1997 $40,000
1998 $40,000
1999 $40,000
2000 $35,000
2001 $30,000
2002 $20,000
2003 $20,000
2004 $20,000
* 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 $15,000 and will be made in multiples of $5,000 in any of the maturities. In the
event the principal amount of the Bonds is increased or reduced, any premium offered or any
discount taken will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
OPTIONAL REDEMPTION
The City may elect on February 1, 2001, and on any day thereafter, to prepay Bonds due on or
after February 1, 2002. 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
special assessments against benefited property. The proceeds will be used to finance
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Improvements within the City and to refund the 1995 through 2001 maturities of the City's
$875,000 General Obligation Improvement Refunding Bonds, Series 1987A, dated April 1, 1987.
TYPE OF PROPOSALS
Proposals shall be for not less than $321,750 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 $3,250,
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 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
falls 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: (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.
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.
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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 Wurst, Pearson, Larson,
Underwood and Mertz 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.
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 Statemenf 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 25 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 11, 1993
BY ORDER OF THE CITY COUNCIL
/s/ James C. Hurm
Administrator-Clerk
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