93-028 - 03-16 Authorize $325,000 Equipmnet Indebtedness Series 1993AResolution 93-28
March 16, 1993
Member Johnson introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$325,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES
OF INDEBTEDNESS, SERIES 1993A
BE IT RESOLVED by the City Council of the City of Golden Valley,
Minnesota (the City), as follows:
Section 1. Authorization. The City hereby authorizes the issuance and
sale of $325,000 General Obligation Equipment Certificates of Indebtedness,
Series 1993A (the Certificates), the proceeds of which shall be used to acquire
certain items of capital equipment for various City purposes.
Section 2. Terms of Proposal. Springsted Incorporated, financial con-
sultant to the City, has presented to this Council a form of Terms of Proposal
for the Certificates, which is attached hereto and hereby approved and shall be
placed on file by the Clerk. Each and all of the provisions of the Terms of
Proposal are hereby adopted as the terms and conditions of the Certificates and
of the sale thereof. Springsted Incorporated, as independent financial advi-
sers, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph
(9) is hereby authorized to solicit bids for the Certificates on behalf of the
City on a negotiated basis.
Section 3. Sale
6:30 o'clock P.M, for the
the Certificates, and of
interests of the City.
ATTEST:
Meeting. This Council shall meet on April 20, 1993, at
purpose of considering sealed bids for the purchase of
taking such action thereon as may be in the best
Shirley J.NtTsbn, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member
Russell; and upon a vote being taken thereon, the following voted in favor
thereof: Bakken, Johnson, Russell, Stockman and Thompson; and the following
voted against the same: none; whereupon said resolution was declared duly passed
and adopted, signed by the Mayor and his signature attested by the City Clerk.
Resolution 93-28 - Continued
March 16, 1993
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS
BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$325,000
CITY OF GOLDEN VALLEY, MINNESOTA
GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS,
SERIES 1993A
Proposals for the Certificates will be received by the City's Finance Director
or his designee on Tuesday, April 20, 1993, until 11:30A.M., Central Time, at
the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated.
Consideration for award of the Certificates will be by the City Council at 6:30
P.M., Central Time, of the same day.
DETAILS OF THE CERTIFICATES
The Certificates will be dated May 1, 1993, as the date of original issue, and
will bear interest payable on February 1 and August 1 of each year, commencing
February 1, 1994. Interest will be computed on the basis of a 360 -day year of
twelve 30 -day months. The Certificates 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 Certificate 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 Certificates will mature February 1 in the years and amounts as follows:
1995 $100,000 1996 $110,000 1997 $115,000
OPTIONAL REDEMPTION
The Certificates will not be subject to payment in advance of their respective
stated maturity dates.
SECURITY AND PURPOSE
The Certificates 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. The proceeds will be used to finance the purchase of equipment for
various City purposes.
TYPE OF PROPOSALS
Proposals shall be for not less than $323,375 and accrued interest on the total
principal amount of the Certificates. Proposals shall be accompanied by a Good
Faith Deposit ("Deposit") in the form of a certified or cashier's check or a
Financial Surety Bond in the amount of $3,250, payable to the order of the City.
If a check is used, it must accompany each proposal. If a Financial Surety Bond
is used, it must be from an insurance company licensed to issue such a bond in
Resolution 93-28 - Continued March 16, 1993
the State of Minnesota, and preapproved by the City. Such bond must be sub-
mitted to Springsted Incorporated prior to the opening of the proposals. The
Financial Surety Bond must identify each underwriter whose Deposit is guaranteed
by such Financial Surety Bond. If the Certificates are awarded to an underwriter
using a Financial Surety Bond, then that purchaser is 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 the next business day following the award. If such
Deposit is not received by that time, the Financial Surety Bond may be drawn by
the City to satisfy the Deposit requirement. 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 proposal, said amount will be retained by the City. No
proposal can be withdrawn or amended after the time set for receiving proposals
unless the meeting of the City scheduled for award of the Certificates is
adjourned, recessed, or continued to another date without award of the
Certificates having been made. Rates shall be in integral multiples of 5/100 or
1/8 of 1%. Rates must be in ascending order. Certificates of the same maturity
shall bear a single rate from the date of the Certificates to the date of
maturity. No conditional proposals will be accepted.
AWARD
The Certificates will be awarded on the basis of the lowest interest rate to be
determined on a true interest cost (TIC) basis. The City's computation of the
interest rate of each proposal, in accordance with customary practice, will be
controlling.
The City will reserve the right to: (i) waive non -substantive informalities of
any proposal or of matters relating to the receipt of proposals and award of the
Certificates, (ii) reject all proposals without cause, and, (iii) reject any
proposal 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 regu-
lations. The City will pay for the services of the registrar.
CUSIP NUMBERS
If the Certificates qualify for assignment of CUSIP numbers such numbers will be
printed on the Certificates, but neither the failure to print such numbers on
any Certificate nor any error with respect thereto will constitute cause for
failure or refusal by the purchaser to accept delivery of the Certificates. 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 Certificates will be deli-
vered 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
opinion will be printed on the Certificates, and of customary closing papers,
Resolution 93-28 - Continued
March 16, 1993
including a no -litigation certificate. On the date of settlement payment for
the Certificates 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
Certificates 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.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing per-
tinent information relative to the Certificates, 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 or for any additional information prior to sale, any prospective
purchaser is referred to the Financial Advisor to the City, Springsted Incor-
porated, 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 spe-
cifying the maturity dates, principal amounts and interest rates of the
Certificates, together with any other information required by law, shall consti-
tute a "Final Official Statement" of the City with respect to the Certificates,
as that term is defined in Rule 15c2-12. By awarding the Certificates 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, it
shall provide without cost to the senior managing underwriter of the syndicate
to which the Certificates are awarded 20 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 Certificates are awarded as
its agent for purposes of distributing copies of the Final Official Statement to
each Participating Underwriter. Any underwriter delivering a proposal with
respect to the Certificates agrees thereby that if its proposal is accepted by
the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Certificates
for purposes of assuring the receipt by each such Participating Underwriter of
the Final Official Statement.
Dated March 16, 1993 BY ORDER OF THE CITY COUNCIL
/s/ Shirley Nelson
Clerk