87-002 - 01-06 Authorize $2,075,000 Storm Sewer Improvement Refunding Bonds, Series 1987DResolution 87-2
January 6, 1987
Member Bakken introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $2,075,000
GENERAL OBLIGATION STORM SEWER IMPROVEMENT REFUNDING BONDS, SERIES 1987D
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota
(the Issuer), as follows:
1. Authorization. The issuer presently has outstanding the following
issues of general obligation bonds issued pursuant to Minnesota Statutes,
Sections 444.16 - 444.21 and Chapter 475:
Original Outstanding
Date of Principal Principal
Title Issue Amount Amount
G.O. Storm Sewer
Improvement Bonds of
1983. 12-1-83 $2,000,000 $1,890,000
The Issuer presently estimates that it can effect a substantial debt service
savings by refunding said outstanding bonds in advance of their maturity in
accordance with Minnesota Statutes, Section 475.67; and the Issuer hereby
authorizes the issuance and sale of $2,075,000 principal amount of general
obligation storm sewer improvement refunding bonds, the proceeds of which,
together with other moneys of the Issuer, shall be used for this purpose,
pursuant to Minnesota Statutes, Section 475.52.
2. Terms of Bonds; Sale fleeting. Springsted Incorporated, bond consultants
to the Issuer, have presented to this Council forms of an Official Terms of
Offering, and a notice of sale for publication, which are attached hereto, and
which are hereby approved and shall be placed on the file by the Clerk. Each
and all of the provisions of the Official Terms of Offering are hereby adopted
as the terms and conditions of said bonds and of the sale thereof; and this
Council shall meet at the time and place specified therein for the purpose of
considering sealed bids for the purchase of said bonds.
3. Publication of Notice. The Clerk is authorized and directed to cause
the notice of sale to be published once in the official newspaper, which is a
legal newspaper having a general circulation within the Issuer, and once in the
Commercial West, a financial periodical published in Minneapolis, both publications
to be at least ten days before the date of said meetin .
. (dz�
ay B. toc man, Mayor Pro Tem
ATTEST:
Shirley Nel, on, City Clerk
Resolution 87-2 - Continued
January 6, 1987
The motion for the adoption of the foregoing resolution was seconded by Member
Thompson and upon a vote being taken thereon, the following voted in favor
thereof: Bakken, Johnson, Stockman and Thompson; and the following was
absent: Anderson; and the following voted against the same: none, whereupon
said resolution was declared duly passed and adopted, signed by the Mayor Pro
Tem and his signature attested by the City Clerk.
Resolution 87-2 - Continued January 6, 1987
OFFICIAL TERMS OF OFFERING
$2,075,000
CITY OF GOLDEN VALLEY, MINNESOTA
GENERAL OBLIGATION STORM SEWER IMPROVEMENT REFUNDING BONDS, SERIES 1987D
Sealed bids for the Bonds will be opened by the City on Tuesday, February 3,
1987, at 11:00 All, 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 7:30 PM, Central Time, of
the same day.
DETAILS OF THE BONDS
The Bonds will be dated March 1, 1987, as the date of original issue, and will
bear interest payable on February 1 and August 1 of each year, commencing
February 1, 1988. 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:
$100,000 1989-1990 $120,000 1993 $140,000 1997 $160,000 2000
$105,000 1991 $125,000 1994 $145,000 1998 $180,000 2001-2002
$110,000 1992 $130,000 1995-1996 $155,000 1999 $195,000 2003
OPTIONAL REDEMPTION
The City may elect on February 1, 1996, and on any interest payment date thereafter,
to prepay Bonds due on or after February 1, 1997. 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 Register. 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 a special storm sewer district tax levy as authorized
by Minnesota Laws of 1979, Chapter 303, Section 15. The proceeds will be used
to refund in advance of their stated maturity all of the City's outstanding
Bonds of its $2,000,000 General Obligation Storm Sewer Improvement Bonds of
1983, dated December 1, 1983.
Resolution 87-2 - Continued
TYPE OF BID
January 6, 1987
A sealed bid for not less than $2,043,875 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
certified or cashier's check in the amount of $20,750, 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 with the accepted
bid. The City will deposit 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 consideration of 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. No bid may be conditioned upon
award of any other offering of obligations by the City.
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
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.
Resolution 87-2 - Continued
SETTLEMENT
January 6, 1987
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 Dorsey & Whitney of Minneapolis and Saint Paul,
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 PM,
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 Purchasers'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 the date of
settlement, contain any untrue statement of a material fact or omit to state a
material 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 to the City's
Financial Advisor prior to the bid opening. The Purchaser will be provided with
15 copies of the Official Statement.
Dated January 6, 1987 BY ORDER OF THE CITY COUNCIL
/s/Shirley Nelson, City Clerk
Resolution 87-2 - Continued January 6, 1987
NOTICE OF BOND SALE
City of Golden Valley
Hennepin County, Minnesota
$2,075,000 General Obligation Storm Sewer Improvement
Refunding Bonds, Series 1987D
Sealed bids for the purchase of these Bonds will be received at the offices of
Springsted, Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota,
until 11:00 AM, Central Time, Tuesday, February 3, 1987. The Bonds will be
dated March 1, 1987, will bear interest payable semiannually commencing February
1, 1988, and will mature on February 1 in the following years and amounts:
Year Amount
1989-90
$100,000
1991
105,000
1992
110,000
1993
120,000
1994
125,000
1995-96
130,000
1997
140,000
1998
145,000
1999
155,000
2000
160,000
2001-02
180,000
2003
195,000
The minimum price which may be bid for the Bonds is $2,043,875. No interest
rate, nor the net effective average rate of the issue, may exceed the maximum
then permitted by law. A legal opinion on the issue will be furnished by Dorsey
& Whitney, of St. Paul and Minneapolis, Minnesota. The proceeds of the Bonds
will be used to refund certain outstanding general obligation bonds of the City.
Dated: January 6, 1987 BY ORDER OF THE CITY COUNCIL
Shirley Nelson, City Clerk