088-069 - 07-05 Issuance & Sale of $610,000 GO Bonds Series 1988A Resolution 88-69 July 5, 1988
P�ember Johnson introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $610,000
GENERAL OBLIGATION IMPROVEPIENT BONDS, SERIES 1988A
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota,
as follows:
Section 1. Purpose. It is hereby determined to be in the best interests
of the City to issue its General Obligation Improvement Bonds, Series 1988A, in
the principal amount of $610,000 (the Bonds), pursuant to P°1innesota Statutes,
Chapter 429, to finance the following public improvement projects:
Legal -
Construction Engineering Admin. Total
Project Cost @ 2% @ 2% Cost
Welcome Circle - Phoenix St.
( '86 SI 11) $ 90,000 $ 9,000 $ 1,800 $100,800
Ellis Lane ( '86 SI 12) 20,000 2,000 400 22,400
Florida Avenue North ( '87 SI 5) 30,000 3,000 600 33,600
Welcome t�venue ( '87 SI 7) 10,000 1,000 200 11,200
Rhode Island Avenue between
Olympia Street-Duluth Street
( '88 SI 5) 75,000 7,500 1,500 84,000
Sumter Avenue between Olympi a
Street-Duluth Street ( '88 SI 6) 75,000 7,500 1,500 84,000
Kyle Avenue between Bassett Creek
Drive-27th Avenue North
( '88 SI 7) 165,000 16,500 3,300 184,800
P1ary Hills Drive between Golden
Valley Road-Bassett Creek Drive 60,000 6,000 1,200 67,200
Total 1988 Projects $525,000 $52,500 $10,500 $588,000
Add: Costs of Bond Issuance 12,850
Bond Discount 9,150
Total Bond Issue 610,000
Section 2. Terms of Bond Sale; Notice. Springsted Incorporated, financial
consultants to the City has presented to this Council a form of Official Terms
of Offe ring for the Bonds, and abbreviated notice fo r publication, which shall
be placed on 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 the Bonds
and of the sale thereof. The Clerk is authorized and directed to cause the
abbreviated notice to be published once in the official newspaper and once in a
bond trade publication at least 10 days prior to the date on which bids for the
purchase of the Bonds will be received.
Section 3. Sale P1eeting. This Council shall meet at the City Hall on
Tuesday, August 2, 1988, at 7:30 o'clock P.h�. for the purpose of considering
sealed bids for the purchase of the aonds, and of taking such action thereon as
may be in the best interests of the City.
Resolution 88-69 - Continued July 5, 1988
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P� ry E. derson, F�ayor
ATTEST:
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Shirley Nel� , City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by
P�ember Thompson and upon a vote being taken thereon, the following voted in
favor thereof: Anderson, Bakken, Johnson, Stockman, Thompson; and the following
voted against the same: none; whereupon sai� resolution was declared duly
passed and adopted, signed by the Playor and her signature attested by the City
Clerk.
Resolution 88-69 - Continued July 5, 1988
OFFICIAL TERMS OF OFFERING
$610,000
CITY OF GOLDEN VALLEY, MIPdNESOTA
GENERAL OBLIGATION Ih1PROVEP�ENT BONDS, SERIES 1988A
Sealed bids for the Bonds will be opened by the City on Tuesday, August 2, 1988,
at 11:00 A.f�1. , Central Time, at the offices of SPRINGSTED Incorporated, 85 East
Seventh Place, Suite 100, St. Paul , Minnesota, 55101-2143. Consideration for
award of the Bonds will be by the City Council at 7:30 P.M. , Central Time, of
the same day.
DETAILS OF THE BONDS
The bonds will be dated September 1, 1988, as the date of original issue, and
will bear interest payable on February 1 and August 1 of each year, commencing
August 1, 1989. Interest will be com�uted 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 ful ly regi stered 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 as years as follows :
$125,000 1990 $55,000 1991-1997 $50,000 1998-1999
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 6onds subject to prepayment. If redemption is in
part, those Bonds remaining unpaid which have the latest maturity date will be
prepaid fi rst. If only part of the Bonds havi ng a common maturity date are
called fo r 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 assessment against benefitted property.
The proceeds will be used to finance the costs of various improvements within
the City.
Resolution 88-69 - Continued July 5, 1988
TYPE OF QI D
A sealed bid for not less than $600,850 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 $6,100, 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 6idde rs shall be in integral multiples
of 5/100 or 1/8 of 1%. No rate specified for a maturity shall exceed the rate
specified for any subsequent maturity. Bonds of the same maturity shall bear a
single rate from the date of the Qonds 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, fran, 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 informaliti�s of
any bid or of matters relating to the receipt of bids and award of the Bonds,
(ii ) reject all bids �vithout 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 88-69 - Continued July 5, 1988
SETTLEMEPJT
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, Minnesota, which
opi ni on ��i 11 be pri nted on the Bonds, and of cu stoma ry cl os i ng pape rs, i ncl udi ng
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 terrns of payment for the Bonds shall have been
rnade 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
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
25 copies of the Official Statement.
Dated July 5, 1988 BY ORDER OF THE CITY COUNCIL
/s/ Shirley Nelson, Clerk
Resolution 88-69 - Continued July 5, 1988
NOTICE OF SALE
City of Golden Valley, P�linnesota
$610,000 General Obligation Improvement Bonds, Series 1988A
These Bonds will be offered for sale on sealed bids on Tuesday, August 2, 1988.
Bids will be accepted until 11:00 o'clock A.M. , Central Time, at the offices of
Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul , Minnesota.
The Qonds will be issuable in the denomination of $5,000 or any integral multiple
thereof, will be dated, as originally issued, as of September 1, 1988, will bear
interest payable semiannually on each February 1 and August 1 to maturity,
commencing August 1, 1989, and will mature on February 1 in the following years
and amounts:
Year Amount
1990 $125,000
1991-1997 55,000
1998-1999 50,000
Bidders must specify a price of not less than $600,850 plus accrued interest.
A legal opinion on the Bonds will be furnished by Dorsey & Whitney, of
Minneapolis, Minnesota.
Bidders should be aware that the Official Terms of Offering to be published in
the Official Statement fo r the Offe ring may contain additional bidding terms and
information relative to the issue. In the event of a variance between stater�ents
in this Notice of Bond Sale and said Official Terms of Offering, the provisions
of the latter shall control.
Dated: July 5, 1988 BY ORDER OF THE CITY COUNCIL
Shirley Nelson
City Clerk