RES 1990-88 - 00003999RESOLUTION NO. 88 - 1990
RESOLUTION PROVIDING FOR PUBLIC SALE OF $1,615,000 GENERAL
OBLIGATION WATER REVENUE BOQIDB, SERIES 1991A
BE IT RESOLVED by the City Council of the City of Fridley, Minnesota, as
follows:
1. It is hereby determined
(a) That the City has duly ordered the making of, and has
undertaken or will undertake, the following public
improvements (the "Improvements ") to the City's municipal
water system, pursuant to and in full conformity with
Minnesota Statutes, Section 444.075:
Water Storage Tank
Project Costs $1,593,994
Issuance Costs 19,362
Allowance for Discount 24,225
Less Investment Earnings (22,581)
Total $1,615,000
' (b) That it is necessary and expedient to the sound financial
management of the affairs of the City that the City issue its
bonds pursuant to Minnesota Statutes, Section 444.075 and
Chapter 475, to provide financial for the Improvements.
2. It is hereby found, determined and declared that the City should issue
$1,615,000 General Obligation Water Revenue Bonds, Series 1991A (the "Bonds "),
to finance the costs of the Improvements, and $24,225 of such amount shall
represent additional bonds issued pursuant to Minnesota Statutes, Section
475.56, as additional interest required to market the Bonds at this time.
3. This Council shall meet at the time and place specified in the attached
notice of the sale of the Bonds for the purpose of considering the bids for the
purchase, and awarding the sale, of the Bonds.
4. The City Clerk is hereby authorized and directed to cause the notice of the
sale of the Bonds to be published in the official newspaper of the City and in
Northwestern Financial Review not less than ten days in advance of date of sale,
as provided by law, which notice shall be in substantially the form set forth
in Exhibit A attached hereto.
5. The terms and conditions of the Bonds and the sale thereof are fully set
forth in the "Official Terms of Offering" attached hereto as Exhibit B.
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Page 2 — Resolution No. 88 - 1990
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 5TH DAY OF
NOVaMER, 1990,
WAIy It -
WILLIAM J. NEE 4Y-O—R�
ATI=:
SFlTRrEY A. IMAPALA - CXY CLERK
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215
EXH= A
NOTICE OF BOND SATE
$1,615,000
r �
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'91310010,11 • • • New a• ON a LALWH
Sealed bids for these Bonds will be received by the City Finance Director or his
designee at the offices of SPRY.= INCORPORATED, 85 East Seventh Place, Suite
100, Saint Paul, Minnesota 55101 -2143, on Monday, December 10, 1991, at 11:00
A.M., Central Time, after which time they will be opened and tabulated.
Consideration for award of the Bonds by the City Council will occur at a meeting
of the Council beginning at 7:30 P.M., Central Time, on the same day. The Bonds
will have a date of original issue of January 1, 1991, and interest will be
payable August 1, 1991, and semiannually thereafter. The Bonds will be general
obligations of the City for which its unlimited taxing powers will be pledged.
The Bonds will mature on February 1 in the amounts and years as follows:
All Bonds maturing after February 1, 2000, are subject to prior payment on said
date and on any date thereafter at a price of par and accrued interest. Sealed
bids for not less than $1,590,775 and accrued interest on the principal sum of
$1,615,000 will be accepted. An approving legal opinion will be furnished by
Briggs and Morgan, Professional Association, of St. Paul and Minneapolis,
Minnesota. The proceeds will be used to finance the costs of public
improvements to the City's municipal water system.
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 Bonds. In the
event of a variance between statements in this Notice of Bond Sale and said
Years
Amounts
Years Amounts
'
1992
$35,000
2002
$ 75,000
1993
45,000
2003
80,000
1994
45,000
2004
90,000
1995
50,000
2005
95,000
1996
55,000
2006
100,000
1997
55,000
2007
110,000
1998
60,000
2008
115,000
1999
65,000
2009
125,000
2000
70,000
2010
130,000
2001
75,000
2011
140,000
All Bonds maturing after February 1, 2000, are subject to prior payment on said
date and on any date thereafter at a price of par and accrued interest. Sealed
bids for not less than $1,590,775 and accrued interest on the principal sum of
$1,615,000 will be accepted. An approving legal opinion will be furnished by
Briggs and Morgan, Professional Association, of St. Paul and Minneapolis,
Minnesota. The proceeds will be used to finance the costs of public
improvements to the City's municipal water system.
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 Bonds. In the
event of a variance between statements in this Notice of Bond Sale and said
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Official Terms of Offering the provisions of the latter shall be those to be
died with.
Dated: November 5, 1990.
BY CEMM OF THE CITY COUNCIL
! l Richard D. Pribyl
City Finance Director
Further information may be
obtained from the Issuer's
Financial Advisor,
SPPJlr. ED INCORPORATED
85 East Seventh Place
Suite 100
St. Paul, Minnesota 55101
(612) 223 -3000
a:4U: Y
CrrY OF FRMIEY, uir:O
t:b I:i'I •::1 n• •I i (d' 9 A 1" :•I IF_ aA M, 1991A
Sealed bids for the Bards will be received by the City Manager or his designee
on Monday, December 10, 1990, until 11:00 A.M., Central Time, at the offices of
SPR -UrB ED 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 7:30 P.M., Central Time, of the same
day.
The Bonds will be dated January 1, 1991, as the date of original issue, and will
bear interest payable on February 1 and August 1 of each year, mincing August
1, 1991. Interest will be computed on 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 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:
1992 $35,000
1993 $45,000
1994 $45,000
1995 $50,000
1996 $55,000
1997 $55,000
1998 $60,000
1999 $65,000
2000 $70,000
2001 $75,000
2002 $75,000
2003 $80,000
2004 $90,000
2005 $95,000
• • 9 W F.11 MV DOD) a i• •
2006 $100,000
2007 $110,000
2008 $115,000
2009 $125,000
2010 $130,000
2011 $140,000
The City may elect on February 1, 2000, and on any day thereafter, to prepay
Bonds due on or after February 1, 2001. 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 and accrued interest.
70 • • . J: S•.-1
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 of the City's water utility. The
proceeds will be used to finance various improvements to the water utility
including the construction of a water storage tank.
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TYPE OF BID i 1 R
Bids shall be for not less than $1,590,775 and accrued interest on the total
principal amount of the Bonds, and shall be accompanied by a certified or
cashier's check in the amount of $16,150 payable to the order of the City. No
bid will be considered for which said check has not been received. 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 bid, said amount will be retained
by the City. No bid can be withdrawn after the time set for receiving bids
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 bid will be
accepted.
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.
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 bidder, 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 the purchase of insurance shall be paid by
the purchaser, except that, if the City has requested and received a rating on
the Bonds form 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.
The City will name the registrar which shall be subject to applicable SEC
regulations. The City will pay for the services of the registrar.
DWOOOailwa�:.
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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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 Briggs and Morgan, Professional Association, of Saint
Paul and Minneapolis, Minnesota, which opinion will be printed on the Bonds,
and of custcuary 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 -cca pliance with said terms for payment.
.•)yiic« iya& C- VYauID��Y
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
and the Official Bid Form 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 an Official Bid Form 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 65 copies of the Official Statement and 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 executing and delivering an Official Bid Form with
respect to the Bonds agrees thereby that if its bid is accepted by the City (i)
it shall accept such designation and (ii) it shall enter into 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.
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Dated November 5, 1990 BY • • • a OF ► i COUNCIL
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/s /Shirley A. Haapala
City Clerk
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