HomeMy WebLinkAbout96-46
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
PRIOR LAKE, MINNESOTA
HELD: May 6, 1996
Pursuant to due call and notice thereof, a regular meeting
of the City Council of the City of Prior Lake, Scott County,
Minnesota, was duly held at the City Hall in said City on Monday,
the 6th day of May, 1996, at 7:30 o'clock ~.M. for the purpose
in part of providing for the sale of the $935,000 General
Obligation Improvement Bonds of 1996 of said City.
The following members were present:
Mayor Andren, Councilmembers Greenfield, Kedrowski, Mader and Schenck.
and the following were absent:
None
Member Greenfield
resolution and moved its adoption:
introduced the following
Resolution Number 96-46
RESOLUTION PROVIDING FOR THE SALE
OF $935,000
GENERAL OBLIGATION IMPROVEMENT BONDS OF 1996
A. WHEREAS, the City Council of the City of Prior
Lake, Minnesota (the "City"), has heretofore determined that it
is necessary and expedient to issue the City's $935,000 General
Obligation Improvement Bonds of 1996 (the "Bonds"), to finance
the construction of various improvements in the City; and
B. WHEREAS, the City has retained Juran & Moody,
Inc., in St. Paul, Minnesota ("Juran"), as its independent
financial advisor for the Bonds and is therefore authorized to
sell the Bonds by a private negotiation in accordance with
Minnesota Statutes, Section 475.60, Subdivision 2(9):
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Prior Lake, Minnesota, as follows:
1. Authorization: Findinqs. The Council hereby authorizes
Juran to solicit proposals for the sale of the Bonds.
2. Meeting: ProposalOoeninq. This Council shall meet at
the time and place specified in the Official Terms of Bond Sale
attached hereto as Exhibit A for the purpose of considering
sealed proposals for, and awarding the sale of, the Bonds. The
City Manager, or designee, shall open proposals at the time and
place specified in such Official Terms of Bond Sale.
3. Official Terms of Bond Sale. The terms and conditions
of the Bonds and the negotiation thereof are fully set forth in
the "Official Terms of Bond Sale" attached hereto as Exhibit A
and hereby made a part hereof.
4. Official Statement. In connection with said sale, the
officers or employees of the City are hereby authorized to
cooperate with Juran and participate in the preparation of an
official statement for the Bonds and to execute and deliver it on
behalf of the City upon its completion.
The motion for the adoption of the
duly seconded by member Mader
discussion thereof and upon a vote
following voted in favor thereof:
foregoing resolution was
and, after full
being taken thereon, the
and the following voted against the same:
Whereupon said resolution was declared duly passed and
adopted.
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STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF PRIOR LAKE
I, the undersigned, being the duly qualified and acting
Manager of the City of Prior Lake, Minnesota, DO HEREBY CERTIFY
that I have carefully compared the attached and foregoing extract
of minutes with the original minutes of a meeting of the City
Council of said City duly called and held on the date therein
indicated, which are on file and of record in my office, and the
same is a full, true and complete transcript therefrom insofar as
the same relates to said City's $935,000 General Obligation
Improvement Bonds of 1996.
WITNESS my hand as such
this 6th cay of May, 1996.
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EXHIBIT A
OFFICIAL TERMS OF
BOND SALE
$935,000
GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1996
CITY OF PRIOR .LAKE
SCOTT COUNTY
MINNESOTA
NOTICE IS HEREBY GIVEN that these bonds will be offered for sale
according to the following terms:
TIME AND PLACE:
Sealed proposals will be opened by the
City Manager, or designee, on Wednesday,
May 29, 1996, at 11:30 A.M., Central
Time, at the offices of Juran & Moody,
Inc., 400 North Robert Street, Suite
800, in Saint Paul, Minnesota 55101-
2091. Consideration of the proposals
for award of the sale will be by the
City Council at its meeting in the Prior
Lake Fire Hall beginning at __ __ _.M.,
on the same day.
TYPE OF BONDS:
Fully registered general obligation
bonds, $5,000 or larger denominations at
the option of the proposal maker.
DATE OF ORIGINAL
ISSUE OF BONDS:
June 1, 1996.
INTEREST PAYMENTS:
For the purpose of providing money to
finance the construction of various
improvements in the City.
June 1, 1997, and semiannually
thereafter on June 1 and December 1.
PURPOSE:
MATURITIES:
December 1 in each of the years and
amounts as follows:
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Year Amount
1997-1998 $ 75,000
1999 80,000
2000 85,000
2001 90,000
2002 95,000
2003 100,000
2004 105,000
2005 110,000
2006 120,000
All dates are inclusive.
Proposals for the bonds may contain a
maturity schedule providing for any
combination of serial bonds and term
bonds, subject to mandatory redemption,
so long as the amount of principal
maturing or subject to mandatory
redemption in each year conforms to the
maturity schedule set forth above.
REDEMPTION:
At the option of the Issuer, bonds
maturing on or after December 1, 2000
shall be subject to prior payment, on
December 1, 1999 and any interest
payment date thereafter, at a price of
par and accrued interest. Redemption
may be in whole or in part of the bonds
subject to prepayment. If redemption is
in part, the bonds remaining unpaid
which have the latest maturity date
shall be prepaid first and if only part
of the bonds having a common maturity
date are called for prepayment the
specific bonds to be prepaid shall be
chosen by lot by the Registrar.
BOND REGISTRAR:
Principal will be payable at the main
corporate office of First Trust National
Association, in St. Paul, Minnesota (the
"Registrar"). Interest will be payable
by check or draft of the Registrar
mailed to the registered holder of the
bond at his address as it appears on the
books of the Registrar. The Issuer will
pay reasonable and customary charges for
the services of the Registrar.
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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
shall constitute cause for a failure or
refusal by the Purchaser thereof to
accept delivery of and pay for the bonds
in accordance with terms of the purchase
contract. The CUSIP Service Bureau
charge for the assignment of CUSIP
identification numbers shall be paid by
the Purchaser.
DELIVERY:
Forty days after award subject to
approving legal opinion of Briggs and
Morgan, Professional Association, of St.
Paul and Minneapolis, Minnesota. Bond
printing and legal opinion will be paid
by the Issuer and delivery will be
anywhere in the continental United
States without cost to the Purchaser.
Legal opinion will be printed on the
bonds at the request of the successful
proposal maker.
TYPE OF PROPOSAL:
Sealed proposals of not less than
$917,235 and accrued interest on the
principal sum of $935,000 from date of
original issue of the bonds to date of
delivery must be filed with the
undersigned prior to the time of sale.
Proposals must be unconditional except
as to legality. A certified or
cashier's check (the "Deposit") in the
amount of $18,700 payable to the order
of the Finance Director of the Issuer,
or a Financial Surety Bond complying
with the provisions below, must
accompany each proposal, to be forfeited
as liquidated damages if proposal maker
fails to comply with accepted proposal.
Proposals for the bonds should be
delivered to Juran & Moody, Inc., and
addressed to:
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Ralph Teschner
Finance Director
Prior Lake City Hall
16200 Eagle Creek Avenue
Prior Lake, Minnesota 55372-1714
If a Financial Surety Bond is used, it
must be from an insurance company
licensed to issue such a bond in the
State of Minnesota, and preapproved by
the Issuer. Such bond must be submitted
to Juran & Moody, Inc. prior to the
opening of the proposals. The Financial
Surety Bond must identify each proposal
maker whose Deposit is guaranteed by
such Financial Surety Bond. If the
bonds are awarded to a proposal maker
using a Financial Surety Bond, then that
purchaser is required to submit its
Deposit to Juran & Moody, Inc. in the
form of a certified or cashier's check
or wire transfer as instructed by Juran
& Moody, Inc. 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 Issuer
to satisfy the Deposit requirement. The
Issuer 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 Issuer. No proposal
can be withdrawn after the time set for
receiving proposals unless the meeting
of the Issuer scheduled for award of the
bonds is adjourned, recessed, or
continued to another date without award
of the bonds having been made.
RATES:
All rates must be in integral multiples
of 1/20th or 1/8th of 1%. No limitation
is placed upon the number of rates which
may be used. All bonds of the same
maturity must bear a single uniform rate
from date of issue to maturity and no
rate of any maturity may be lower than
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INFORMATION FROM
PURCHASER:
QUALIFIED TAX
EXEMPT OBLIGATIONS:
NO CONTINUING
DISCLOSURE UNDERTAKING:
AWARD:
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the highest rate applicable to bonds of
any preceding maturities.
The successful purchaser will be
required to provide, in a timely manner,
certain information relating to the
initial offering price of the bonds
necessary to compute the yield on the
bonds pursuant to the provisions of the
Internal Revenue Code of 1986, as
amended.
The Issuer will designate the
bonds as qualified tax exempt
obligations for purposes of Section
26S(b) (3) of the Internal Revenue Code
of 1986, as amended.
The bonds are exempt from continuing
disclosure requirements of Rule 1Sc2-12
of the Securities and Exchange
Commission (as recently amended and
supplemented) because the bonds are
issued in the aggregate principal amount
of less than $1,000,000. Consequently,
the Issuer is not covenanting to provide
and will not provide annual financial
information, notices of certain material
events or any other disclosure or
information which would otherwise be
required by that Rule.
Award will be made solely on the basis
of lowest dollar interest cost,
determined by addition of any discount
to and deduction of any premium from the
total interest on all bonds from their
date to their stated maturity.
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The Issuer reserves the right to reject any and all proposals, to
waive informalities and to adjourn the sale.
Dated: May 6, 1996.
BY ORDER OF THE CITY COUNCIL
/s/ Frank Boyles
City Manager
Additional information
may be obtained from:
JURAN & MOODY, INC.
Minnesota Mutual Life Building
400 North Robert Street
Suite 800
St. Paul, Minnesota 55101-2091
Telephone No.: (612) 224-1500
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