96-17Extract of Minutes of Meeting
of the City Council of the City
of Otsego, Wright County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council
of the City of Otsego, Wright County, Minnesota, was held at the City Hall in the
City on Monday, June 10, 1996, commencing at 7:30 o'clock P.M.
The following members of the Council were present:
Mayor Norman F. Freske, Councilmembers Ron Black, Suzanne Ackerman,
Larry Fournier, and Vern Heidner
and the following were absent: None
The following resolution was presented by Councilmember Black , who
moved its adoption:
RESOLUTION NO. Q6-17
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
$655,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1996A
BE IT RESOLVED By the City Council of the City of Otsego, Wright County,
Minnesota (City) as follows:
1. It is hereby determined that:
(a) the following assessable public improvements (the Improvements)
have been made, duly ordered or contracts let for the construction thereof,
by the City pursuant to the provisions of Minnesota Statutes, Chapter 429
(Act);
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Project Description Total Project Cost
Mississippi Shores and Island
View Estates
Project Costs $628,850
Costs of Issuance 19,000
Allowance for Discount Bidding 9,825
Less: Estimated Investment Earnings (2,675)
Total Bond Issue $655,000
(b) it is necessary and expedient to the sound financial management
of the affairs of the City to issue $655,000 General Obligation Improvement
Bonds, Series 1996A (Bonds) pursuant to the Act to provide financing for the
Improvements.
2. To provide financing for the Improvements, the City will issue and sell
Bonds in the amount of $645,175. To provide in part the additional interest required
to market the Bonds at this time, additional Bonds will be issued in the amount of
$9,825. The excess of the purchase price of the Bonds over the sum of $645,175 will
be credited to the debt service fund for the Bonds for the purpose of paying interest
first coming due on the additional Bonds. The Bonds will be issued, sold and
delivered in accordance with the terms of the following Terms of Proposal:
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ORATED TO
THE CITY HAS ALF OPROPOSALS WILL BE RECEIVED ON THE FOLLOWING NEGOTIATE S
ISSUE ON ITS BEHHNG BAS S�
TERMS OF PROPOSAL
$655,000
CITY OF OTSEGO, MINNESOTA
GENERAI_ OBLIGATION IMPROVEMENT BONDS, SERIES 1996A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday. July 8, 1996, until 12:00 Noon, 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
Bonds will be by the City Council at 6:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted.
Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal
price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal,
within a one-hour period prior to the time of sale established above, but no Proposals will be
received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules
of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be
obtained from PARITY and such fee shall be the responsibility of the bidder. For further
information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE,
Suite 100, Bellevue, Washington 98004, telephone (206) 635-3545. Neither the City nor
Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders
are advised that each Proposal shall be deemed to constitute a contract between the bidder
and the City to purchase the Bonds regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated August 1, 1996, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1997. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months.
The Bonds will mature February 1 in the years and amounts as follows:
1998 $60,000 2001 $85,000 2004 $50,000 2006 $55,000
1999 $75,000 2002 $90,000 2005 $50,000 2007 $60,000
2000 $80,000 2003 $50,000
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
It representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5.000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
principal and interest payments to beneficial owners by
responsibility of DTC; transfer of
lity of such participants and other nominees of beneficial
participants will be the responsibi
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
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.
OPTIONAL REDEMPTION
The City may elect on February 1, 2004, and on any day thereafter, to prepay Bonds due on or
After February 1, 2005. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each eemed All t prepayments
ill then paymentslect shall be atthe
a price of par plus accruuedinterests
int rest.
such maturity to be re p
SECURITY AND PURPOSE
The Bands 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
assessments against benefited property. The proceeds will be used for various public
improvement projects in the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $645,175 and accrued interest on the total principal amount
of the Bonds. 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 $6,550, 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
the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by sucn Financial Surety Bond. If the
Bonds 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 Bonds is adjourned, recessed, or continued to another date
without award of ateshm Bonds
be in ascending d ng derbeen e. Rates shall be in . Bonds of the samematurityurity sral hall les of /l
00 or
1/8 of 1 %. R ll bear asingle
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
AWARD
The Bonds 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 practioe, 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 Bonds, (ii) reject all proposals
without cause, and. (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
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.
SETTLEMENT
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 Kennedy & Graven,
Chartered of Minneapolis. Minnesota, 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
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-compliance with said
terms for payment.
CONTINUING DISCLOSURE
Participating underwriters need not comply with the continuing disclosure requirements of
Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934 (the "Rule"), because the offering is in a principal amount less than
$1,000,000. Consequently, the City will not enter into any undertaking to provide continuing
disclosure of any kind with respect to the Bonds.
OFFICIAL STATEMENT
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 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 a proposal therefor, the City agrees that, no
more than seven business days after the
fsuch
which the Bonds arepawadrded'25 copes of the
st to the
senior managing underwriter of the syndicate o
Official Statement and the addendum
addenda
which theBonds are awarded as is agent
senior managing underwriter of the syndicate to
purposes of distributing copies of the Final O�espectcial Statement
Bondseach
agaeesiahereby thatvift is
Any underwriter delivering a proposal withit shall
proposal is accepted by the City designationt such it
contractual relationship with aPartici ating Undrwrters of e Bnds for purposes ofassuring
the receipt by each such participating Underwriter of the Final Official Statement.
Dated June 14, 1996
-iv-
BY ORDER OF THE CITY COUNCIL
/S/ Elaine Beatty
City Clerk
3. Springsted Incorporated is authorized and directed to negotiate the
Bonds in accordance with the foregoing Terms of Proposal. The City Council will
meet at 6:30 o'clock P.M. on Monday, July 8, 1996, to consider proposals on the
Bonds and take any other appropriate action with respect to the Bonds.
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Heidner
, and upon vote being taken thereon the following
members voted in favor of the motion: Mayor Norman F. Freske, Councilmembers
Suzanne Ackerman, Ron Black, Larry Fournier and Vern Heidner
and the following voted against: NONE
whereupon the resolution was declared duly passed and adopted.
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