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87-019 . . . EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF SHOREWOOD, HENNEPIN COUNTY, MINNESOTA Pursuant to due call and notice thereof, a meeting of the City Council of the City of Shorewood, Minnesota, was duly held at the Ci ty Hall in said City on Monday, the 23rd d9y of February, 1987, at ~Op.m. The following members of the Council were present: Brancel, Gagne, Stover, Haugen & Mayor Rascop and the following were absent: None * * * * * * * * * Councilmember Hauqen introduced the following resolution and moved its adoption: RESOLUTION NO. 19-87 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $875,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS SERIES 1987A WHEREAS, this Council previously sold $1,250,000 General Obligation Improvement Bonds Series 1984A dated December 1, 1984, and WHEREAS, the City has directed Springsted, Inc., the City's financial advisors, to investigate the feasibility of advance refunding the $1,250,000 General Obligation Improvement Bonds dated December 1, 1984, and WHEREAS, SPRINGSTED Incorporated advises that a refunding will generate a cash flow to pay the old bonds as they become due and will provide funds to redeem all the December 1, 1984, issue at the call date in 1994, and the City will achieve roughly $ 246.951 in savings after the payment of all expenses in refunding the issue, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA: 1. The advance refunding of the $1,250,000 General Obligation Improvement Bonds Series 1984A, is hereby determined to be necessary and desirable for the reduction of debt service costs to the City. . . . 2. The City shall issue and sell its General Obligation Improvement Refunding Bonds Series 1987A, in the aggregate principal amount of $857,000 for the above stated purposes. It is further determined that additional bonds in the amount of $18,000 shall be issued to represent the additional cost of marketing bonds, as authorized by Minnesota Statutes, Section 475.56, which amount does not exceed 2% of the amount otherwise authorized. All amounts received for the sale of said bonds in excess of $857,000 shall be credited to the sinking fund for the payment of interest on these obligations. 3. The Bonds shall be sold in accordance wi th the terms of the Notice of Sale attached and marked Exhibi t A. The source of funds to repay these Bonds shall be the special assessments received from the properties benefi ted by the improvements and general funds from ad valorem tax levies. 4. The City Clerk is hereby directed to cause Notice of Sale (Exhibit B) to be given by publication at least 10 days in advance of the sale, in the official newspaper and in Commercial West or some other financial paper published at Minneapolis, Minnesota, with general circulation throughout the State of Minnesota. 5. That sealed bids will be received for said bonds until 11:00 a.m. on Monday, March 23, 1987, at the office of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota, at which time they will be opened and tabulated; and the City Council will meet at 7: 00 p.m. on March 9th to consider the bids and to take such other action in respect thereto as may be found necessary or expedient. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Gagne , and upon vote being taken thereon, the following voted in favor thereof: All members and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. Mayor Attest: City Clerk . STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF SHOREWOOD I, the undersigned, being the duly qualified and acting City Clerk of the City of Shorewood, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a requ1armeeting of the City Council of said City held on February 23, 1987, with the original on file in my office and the same is a full, true and complete transcript therefrom. WITNESS My hand officially as such City Clerk and the corporate seal of the City this 23rd day of February , 1987. . ~~~ City Clerk . # ~ Exhibit A NOTICE OF SALE $875,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 1987A CITY OF SHOREWOOD HENNEPIN COUNTY, MINNESOTA Sealed bids for the Bonds will be opened by the City on Monday, March 23, 1987, at 11:00 a.m., Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143. 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 April 1, 1987, as of the date of or iginal issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1987. Interest will be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. 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 his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature February 1 in the amounts and years as follows: $65,000 1988-1994 $60,000 1995-2001* * The City reserves the right, after bids for the Bonds have been opened, to increase or decrease the principal amount of the Bonds by an amount not exceeding $50,000, as necessary to provide funds sufficient to defease the outstanding General Obligation Improvement Bonds and comply with applicable arbitrage regulations under the Internal Revenue Code. Any additional amount of Bonds will be added in the year 2001, in multiples of $5,000. Any decrease in the principal amount of Bonds will be subtracted in the year 2001, in multiples of $5,000. ~ If the principal amount of Bonds is increased or decreased, the purchase price of the successful bidder will be automatically increased or decreased so as to result in a purhcase pr ice, expressed in dollars, at the same percentage of principal as the purchase price stated in the bid. There will be no adjustment in the amount of the good faith check hereinafter referred to. The City will notify the successful bidder of any adjustment in the principal amount of the Bonds as soon as practical following the award of sale. . .' . OPTIONAL REDEMPTION The City may elect on February 1, 1994, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1995. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and 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 refund in advance of their stated maturity all of the City's outstanding General Obligation Improvement Bonds, Series 1984A dated December 1, 1984. TYPE OF BID A sealed bid for not less than $857,000 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, a certif ied or cashier's check in the amount of $8,750, payable to the order of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply wi th the accepted bid. The City will deposi t the check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids unless the meeting of the City scheduled for consid~ration 6f the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates offered by Bidders shall be in integral multiples of 5/100 or 1/8 of 1%. No rate for any maturity shall be more than 1% lower than any prior rate. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. AWARD The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par to, the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and (iii) reject any bid 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 pr inted on the Bonds, but neither the failure to pr int 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 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 1:00 p.m. 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. At settlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the City, to the effect that the Official Statement did not as of the date of the Official Statement, and does not as of the date of settlement, contain any untrue statement of a material fact or omit to state a mate rial fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request of the City's Financial Advisor prior to the bid opening. The purchaser will be provided with 15 copies of the Official Statement. Dated February 23, 1987 /s/ Sandra Kennelly Clerk BY ORDER OF THE CITY COUNCIL . .' . Exhibit B NOTICE OF SALE $875,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 1987A CITY OF SHOREWOOD HENNEPIN COUNTY, MINNESOTA These bonds will be offered on Monday, March 23, 1987. Bids will be received until 11: 00 a .m. at the office of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143, and the bids will be considered by the Shorewood City Council at 7:00 p.m. on said date. Dated April 1, 1987, the Bonds will mature on February 1 in the years and amounts as follows: $65,000 1988-1994 $60,000 1995-2001 * The City reserves the right to increase or decrease the amount of the issue by not more than $50,000; any adjustment will be made in the maturity year 2001. . . All Bonds of this issue maturing after February 1, 1994,.are subject to being called for prior redemption in inverse order of maturity date at the option of the City, on said date and any interest payment date thereafter at a price of par plus accrued interest to date of redemption. The City will appoint a Bond Registrar, Transfer Agent and Paying Agent. Interest will be payable on each February 1 and August 1, commencing August 1,1987, to the registered owners of the Bonds appearing of record in the bond register as of the 15th day of the immediately preceding month. No rate of interest nor the net effective rate of the issue may exceed the maximum legal rate determined pursuant to Minnesota Statutes, Section 475.55. An unqualified legal opinion will be furnished by Messrs. Wurst, Pearson, Larson, Underwood, and Mertz, of Minneapolis, Minnesota. The purpose of the bonds is to finance the advance refunding of $1,250,000 General Obligation Improvement Bonds, Series 1984A, dated December 1, 1984, and will be paid for by special assessments received from properties benefited by the improvements and, if necessary, from an.ad valorem tax levy. The full faith, credit and taxing powers of. the City are pledged to all Bonds. No bid of less than $857,000 will be considered. Bidders should be aware that the Official Terms of Offering to be published in the Official Statement for the Offering may contain additional bidding terms and information relative to the issue. In the event of a variance between statements in this Notice of Bond Sale and said Official Terms of Offering, the provisions of the latter shall control. BY ORDER OF THE CITY COUNCIL Sandra Kennelly City Clerk . City of Shorewood, Minnesota Dated February 23, 1987. Further information may be obtained from the Issuer's Financial Advisor SPRINGSTED INCORPORATED 85 East Seventh Place St. Paul, MN 55101 (612) 223-3000