HomeMy WebLinkAbout5.F.5. Setting Improvement Bond Sale-Res. No. 6626
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s: F.:J.
CONSENT
CITY OF SHAKOPEE
Memorandum
TO: fyor and Council
FROM: ]ark McNeill1 City Administrator
Jregg Voxlandl Finance Director
SUBJ: No. 6626
Setting Improvement Bond Sale Res.
DATE: J ne 25 1 2007
Introduc tion
Council Fction is needed for setting the sale of improvement
bonds fo~ the 2007 Recon and Pike Lake Road Ave. projects.
Back rou d
Attached is a resolution prepared by bond counsel that sets the
sale of improvement bonds. This is a routine event. The bonds
to be sold are in the amount of $1/445/000. The financed
projects are 2007 Recon and Pike Lake Road Ave. projects.
The bond sale schedule is set to adopt this resolution on July
17thl se[l the bonds on August 21st with settlement in about 30
days.
Action
Offer Rerolution No. 6626 A Resolution Providing For The Issuance
and Sale of $1/445/000 General Obligation Improvement Bonds 1
Series 2007B, and move its adoption.
Gr~vo land
Finance irector
h\finance\ca h\bonds\07Bbonds
.
Extractof~inutesof~eeting
of the City Council of the City
of Shako pee, Scott County, ~innesota
1uant to due call and notice thereof a regular meeting of the City COlUlcil of the City of
Shakopee, cott County, ~innesota, was held at the City Hall in the City on Tuesday, July 17,2007,
commenCin[ at 7:00 o'clock P.M.
Th following members of the Council were present:
and the foll, wing were absent:
*** *** ***
The following resolution was presented by Councilmember who moved its
adoption:
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RESOLUTION NO. 6626
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
$1,445,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 2007B
BE IT RESOLVED By the City Council of the City of Shakopee, Scott County, Minnesota
(the "City") as follows:
1. It is hereby determined that:
(a) the following assessable public improvements (the "Improvements") have been
made, duly ordered or contracts let for the construction thereof, by the City pursuant to the
pro-hsions of Minnesota Statutes, Chapter 429 (the "Act"):
j Total Project Cost Paid with
Project Des gnation & Description: Bond Proceeds
2007 R'~ctiOn Project $&58,035
Pike Lake oad Project 550,957
Costs ofIsslllance 23,725
underwri1' s Disconnt 12.283
Total $1.445,000
(b) it is necessary and expedient to. the sound financial management of the affairs of
the City to issue $1,445,000 General Obligation Improvement Bonds, Series 2007B
(the "Bonds") pursuant to the Act to provide financing for the Improvements.
2. In order to provide financing for the projects described above, the City will therefore
issue and se I Bonds in the amount of $1,445,000. The excess of the purchase price ofthe Bonds over the
sum of $1,432,718 will be credited to the debt service fund for the Bonds for the purpose of paying
interest firs~ coming due on the additional Bonds, unless otherwise provided in the resolution awarding
sale of the ; onds. The amounts cited above are subject to adjustment in accordance with the Terms of
Proposal. 'I1he Bonds will be issued, sold and delivered in accordance with the terms of the following
Terms ofPr'posal:
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THE CI1Y HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE TillS
ISSUE 0 ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,445,000
CITY OF SHAKOPEE, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2007B
(BOOK ENTRY ONLY)
Proposals or the Bonds will be received on Tuesday, August 21,2007, until10:00 A.M., Central Time, at
the office~of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which
time they Mill be opened and tabulated. Consideration for award of the Bonds will be by the City Council
at 7:00 P. ., Central Time, ofthe same day.
l . SUBMISSION OF PROPOSALS
Springsted ~ ill assume no liability for the inability of the bidder to reach Springsted prior to the time of
sale specifi d above. All bidders are advised that each Proposal shall be deemed to constitute. a contract
between thj bidder and the City to purchase the Bonds regardless of the manner in whicb the Proposal is
subrnltted. -
(a) Seale Biddin. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the
time of saIl The bidder shall be responsible for submitting to Springsted the final Proposal price and
coupons, b telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted Proposal.
OR
(b) Electro ic Biddin . Notice is hereby given that electronic proposals will be received via PARITY@.
For purposes of the electronic bidding process, the time as maintained by PARITY@ shall constitute the
official tim9 with respect to all Bids submitted to P ARJ.1'y@. Each bidder shall be solely responsible for
making ne~ssary arrangements to access P AR1~ for purposes of submitting its electronic Bid in a
timely man ler and in compliance with the requirements of the Terms of Proposal. Neither the City, its
agents nor ~ shall have any dnty or obligation to undertake registratinn to bid for any prospective
bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City,
its agents n r PARITY@ shall be responsible for a bidder's failure to register to bid or for any failure in
the proper oberation of, or have any liability for any delays or interruptions of or any damages caused by
the serviCe] of pARfI'y@. The City is using the services of pARfI'y@ solely as a communication
mechanism 0 conduct the electronic bidding for the Bonds, and P ARITY@ is not an agent of the City.
If any provi . ions of this Terms of Proposal conflict with information provided by P ARITY@, this Terms
of Proposal thall control. Further information about pARfI'y@, including any fee charged, may be
obtained fro :
PARITY@, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
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DETAILS OF THE BONDS
The Bond~ will be dated September 1, 2007, as the date of original issue, and will bear interest payable on
February 1 and August 1 of each year, commencing August 1, 2008. futerest will be computed on the
basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
2009 $120,000 2011 $145,000 2013 $140,000 2015 $150,000 2017 $155,000
2010 $14b,000 2012 $145,000 2014 $145,000 2016 $150,000 2018 $155,000
Proposals tr the Bonds may contain a maturity schedule providing for a combination of serial bonds and
term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus
accrued intbrest to the date of redemption and must conform to the maturity schedule set forth above. fu
order to dlsignate term bonds, the proposal must specify "Years of Term Maturities" in the spaces
provided 0 the Proposal Form.
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 a~ount of the Bonds maturing in each year, will. be registered in the name of Cede & Co. as
nominee oflThe Depository Trust Company ("DTC"), New York, New York, which will act as securities
depository of the Bonds. fudividual purchases of the Bonds may be made in the principal amount of
$5,000 or ary multiple thereof ofa single maturity through book entries made on the books and records of
DTC and itf participants. Principal and interest are payable by the registrar to DTC or its. nominee as
registered ofller of the Bonds. Transfer of principal and interest payments to participants of DTC will be
the respons~bility of DTC; transfer of principal and interest payments to beneficial owners by participants
will be the esponsibility 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 City wi I name the registrar, which shall be subject to applicable SEC regulations. The City will pay
for the servires of the registrar.
l OPTIONAL REDEMPTION
The City m y elect on February 1, 2016, and on any day thereafter, to prepay Bonds due on or after
February 1, f017. Redemption may be in whole or in part and if in part at the option of the City and in
such manne as the City shall determine. If less than all Bonds of a maturity are called for redemption,
the City Will;:Otify DTC of the particular amount of such maturity to be prepaid. DTC will determine by
lot the amo t of each participant's interest in such maturity to be redeemed and each participant will
then select ~y 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 rll be general obligations of the City for which the City will pledge its full faith and credit
and power t I levy direct general ad valorem taxes. In addition, the City will pledge special assessments
against bene Ited properties. The proceeds will be used to finance various improvement projects within
the City.
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TYPE OF PROPOSALS
Proposals shall be for not less than $1,432,718 and accrued interest on the total principal amount of the
Bonds. oposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or
cashier's heck or a Financial Surety Bond in the amount of $14,450, payable to the order of the City. If
a check is used, it must accompany the proposal. If a Financial Surety Bond is used, it must be :from an
insurance 40mpany licensed to issue such a bond in the State of Minnesota, and preapproved by the City.
Such bon must be submitted to Springsted fucorporated prior to the opening of the proposals. The
Financial ~urety 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 lis 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 te next business day following the award. If such Deposit is not received by that time, the
Financial ,urety Bond may be drawn by the City to satisfy the Deposit requirement. The Deposit
received frbm the purchaser, the amount of which will be deducted at settlement, will be deposited by the
City and ~ interest will accrue to the purchaser. In the event the purchaser fails to comply with the
accepted p oposal, said amount will be retained by the City. No proposal can be withdrawn or amended
after the tiTe set for receiving proposals unless the meeting of the City scheduled for award of the Bonds
is adjournetl, recessed, or continued to another date without award of the Bonds having been made. Rates
shall be in I.ntegral multiples of 5/100 or 1/8 of 1%. Rates must be in level or ascending order. Bonds of
the same aturity 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 J '11 be awarded on the basis of the lowest interest rate to be determined on a true interest cost
("TIC") ba lis. The City's computation of the interest rate of each proposal, in accordance with customary
practice, will be controlling.
The City w'll reserve the right to: (i) waive non-substantive informalities of any proposal or of matters
relating to he receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and
(iii) reject a y proposal that the City determines to have failed to comply with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bond qualify for issuance of any policy of municipal bond insurance or commitment therefor at the
option of t Wlderwriter, tile purchase of any such insurance policy or the issuance of any sucb
commitmen shall be at the s~le option and expense of th~ purchaser of the Bo~ds. Any increased costs of
issuance of the Bonds resulting from such purchase of Insurance shall be paId by the purchaser, except
that, if the 9ity has requested and received a rating on the Bonds from a rating agency, the City will pay
that rating fro Any other rating agency fees shall be the responsibility ofthe purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser
shall not co Istitute 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 f: ilure to print such numbers on any Bond nor any error with respect thereto will constitute
cause for fai~ure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau
charge for th 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 tJ ough DTC in New York, New York. Delivery will be subject to receipt by the purchaser of
an appw1ng 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 sha~ be made in federal, or equivalent, funds that shall be received at the offices of the City or its
designee n ,t later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the
Bonds has peen 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.
CONTINUING DISCLOSURE
In accorda~ce 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 conditio ed upon receiving evidence of this undertaking at or prior to delivery of the Bonds.
OFFICIAL STATEMENT
The City ha authorized the preparation of an Official Statement containing pertinent information relative
I
to the Bonds, and said Official Statement will serve as a nearly final Official Statement within the
meaning ofl Rule l5c2-12 of the Securities and Exchange Commission. For copies of the Official
Statement o[ for any additional information prior to sale, any prospective purchaser is referred to the
Financial ~(ivisor to the City, SpringstedIncorporated, 380 Jackson Street, Suite 300, Saint Paul,
Minnesota 5, 101, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the maturity
dates, princi al amounts and interest rates of the Bonds, together with any other information required by
law, shall c nstitute a "Final Official Statement" of the City with respect to the Bonds, as that term is
defined in ule 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, t shall provide without cost to the senior managing underwriter of the syndicate to which the
Bonds are atarded 60 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 fot purposes of distributing copies of the Final Official Statement to each Participating
Unde>Writerb Any unde>'Writ= delivecing a propo,a) willi respect tu the Bonds agrees thereby that if its
proposal is a I cepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual
relationship "th all Participating Underwriters of the Bonds for purposes of assuring the receipt by each
such partiCiPrting Underwriter of the Final Official Statement.
Dated July 17,2007 BY ORDER OF THE CITY COUNCIL
/s/ Judy Cox
City Clerk
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3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance
with the :tI regoing Terms of Proposal. The City Council will meet at 7:00 o'clock P.M. on Tuesday,
July 17, 2ob7, to consider proposals on the Bonds and take any other appropriate action with respect to
the Bonds.
4. The law firm of Kennedy & Graven, Chartered, as bond counsel for the City, is
authorized 0 act as bond counsel and to assist in the preparation and review of necessary documents,
certificates and instruments relating to the Bonds. The officers, employees and agents of the City are
hereby aut orized to assist Kennedy & Graven, Chartered in the preparation of such documents,
certificates, and instruments.
(The remainder of this page is intentionally left blank.)
ó
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e motion for the adoption of the foregoing resolution was duly seconded by Councilmember
, and upon vote being taken thereon the following members voted in favor of the motion:
and the fo 1 owing voted against:
whereupo the resolution was declared duly passed and adopted.
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STATE fF MINNESOTA )
)
COUNT OF SCOTT )
)
CITY 0 SHAKOPEE )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Shakopee,
Minnesot , 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 Tuesday, July 17,2007, 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 t e issuance and sale of$I,445,000 General Obligation Improvement Bonds, Series 200m of the
City.
rss My hand as City Clerk and the corporate seal of the City this _ day of
,2007.
City Clerk
City of Shakopee, Minnesota
(S AL)
SH155-189 (J ) /
313997vl
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