99-24RESOLUTION NO. 99-24
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
OTSEGO, MINNESOTA
HELD: May 10, 1999
Pursuant to due call and notice thereof, a Crnincil meeting
of the City Council of the City of Otsego, Wright County,
Minnesota, was duly called and held at the City Hall in said City
on Monday, the 10th day of May, 1999, at 6s3Q o'clock p.M. for
the purpose, in part, of providing for the sale of $1,800,000
General Obligation Improvement Bonds of 1999, Series B of said
City.
The following members were present:
Mayor LArry Fournier, Vern Heidner, Virginia Wendel Plark Berning and Suzanne
Ackerman, Council M& bens.
and the following were absent:
No One
Member Mark Bernina introduced the following
resolution and moved its adoption:
RESOLUTION PROVIDING FOR THE SALE
OF $1,800,000
GENERAL OBLIGATION IMPROVEMENT BONDS OF 1999, SERIES B
A. WHEREAS, the City Council of the City of Otsego,
Minnesota (the "City"), has heretofore determined that it is
necessary and expedient to issue the City's $1,800,000 General
Obligation Improvement Bonds of 1999, Series B (the "Bonds"), to
finance the construction of various improvements within the City;
and
B. WHEREAS, the City has retained Juran & Moody, 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):
1046512.1
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Otsego, Minnesota, as follows:
1. Authorization. The Council hereby authorizes Juran to
solicit proposals for the sale of the Bonds.
2. Meeting; Proposal Opening. 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 Clerk, 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 foregoing resolution was
duly seconded by member Virg;,,;a Wendel and, after full
discussion thereof and upon -a vote being taken thereon, the
following voted in favor thereof:
Mayor Larry Fournier, Virginia Wendel, Vern Heldner, Mark Berning and
Suzanne Ackerman, Council M& bers
and the following voted against the same:
No One
Whereupon said resolution was declared duly passed and
adopted.
1046512.1 2
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF OTSEGO
I, the undersigned, being the duly qualified and acting
Clerk of the City of Otsego, 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 $1,800,000 General Obligation
Improvement Bonds of 1999, Series B.
WITNESS my hand as such Clerk this lot'' day of May, 1999.
1046512.1
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3
EXHIBIT A
OFFICIAL TERMS OF
BOND SALE
$1,800,000
GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1999, SERIES B
CITY OF OTSEGO
WRIGHT COUNTY
MINNESOTA
(Book Entry Only)
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 Clerk, or designee, on Monday, June
14, 1999, at 11:00 A.M., Central Time,
at the offices of Juran & Moody, 1100
Minnesota World Trade Center, 30 East
Seventh Street, in Saint Paul, Minnesota
55101-4901. Consideration of the
proposals for award of the sale will be
by the City Council at its meeting in
the Otsego City Hall beginning at 6:30
P.M., on the same day.
BOOK ENTRY SYSTEM: The bonds will be issued by means of a
book entry system with no physical
distribution of bond certificates made
to the public. The bonds will be issued
in fully registered form and one bond
certificate, representing the aggregate
principal amount of the bonds maturing
in each year, will be registered in the
name of Cede & Co. as nominee of
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 Issuer through U.S.
Bank Trust National Association, in St.
Paul, Minnesota (the "Registrar") to DTC
or its nominee as registered owner of
1046512.1 A-1
the bonds. Transfer of principal and
interest payments to participants of DTC
will be the responsibility of DTC;
transfer of principal and interest
payments to beneficial owners by
participants will be the responsibility
of such participants and other nominees
of beneficial owners. The successful
proposal maker, as a condition of
delivery of the bonds, will be required
to deposit the bond certificates with
DTC. The Issuer will pay reasonable and
necessary charges for the services of
the Registrar.
DATE OF ORIGINAL
ISSUE OF BONDS:
July 1, 1999.
PURPOSE:
For the purpose of providing money to
2003-2006
finance the construction of various
2007
improvements within the Issuer.
INTEREST PAYMENTS:
December 1, 1999, and semiannually
thereafter on June 1 and December 1 to
registered owners of the bonds appearing
of record in the bond register as of the
close of business on the fifteenth
(15th) day (whether or not a business
day) of the immediately preceding month.
MATURITIES:
December 1 in each of the years and
amounts as follows:
Year Amount
2000-2001
$170,000
2002
175,000
2003-2006
180,000
2007
185,000
2008-2009
190,000
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.
1046512.1 A-2
REDEMPTION: At the option of the Issuer, bonds
maturing after December 1, 2004, shall
be subject to prior payment on said
date, 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. If only part of the
bonds having a common maturity date are
called for prepayment, the Issuer 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 participant will
then select by lot the beneficial
ownership interests in such maturity to
be redeemed. Notice of such call shall
be given by mailing a notice thereof by
registered or certified mail at least
thirty (30) days prior to the date fixed
for redemption to the registered owner
of each bond to be redeemed at the
address shown on the registered books.
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. Legal
opinion will be paid by the Issuer and
delivery will be anywhere in the
continental United States without cost
to the Purchaser at DTC.
1046512.1 A-3
TYPE OF PROPOSAL: Sealed proposals of not less than
$1,773,000 and accrued interest on the
principal sum of $1,800,000 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 $36,000, payable to the order
of the Clerk 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, and
addressed to:
Elaine Beatty
Clerk
Otsego City Hall
8899 Nashua Avenue Northeast
Otsego, Minnesota 55330
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 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 in the form of
a certified or cashier's check or wire
transfer as instructed by Juran & Moody
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
1046512.1 A-4
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 1t. 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.
INFORMATION FROM The successful purchaser will be
PURCHASER: 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.
QUALIFIED TAX The Issuer will designate the bonds as
EXEMPT OBLIGATIONS: qualified tax exempt obligations for
purposes of Section 265 (b) (3) of the
Internal Revenue Code of 1986, as
amended.
CONTINUING DIS- The Issuer will covenant in the
CLOSURE UNDERTAKING: resolution awarding the sale of the
bonds and in a Continuing Disclosure
Undertaking to provide, or cause to be
provided, annual financial information,
including audited financial statements
of the Issuer, and notices of certain
material events, as required by SEC Rule
15c2-12.
AWARD: 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.
1046512.1 A-5
The Issuer reserves the right to reject any and all proposals, to
waive informalities and to adjourn the sale.
Dated: May 10, 1999. BY ORDER OF THE CITY COUNCIL
/s/ Elaine Beatty
City Clerk
Additional information
may be obtained from:
JURAN & MOODY
1100 Minnesota World Trade Center
30 East Seventh Street
St. Paul, Minnesota 55101-4901
Telephone No.: (651) 224-1500
1046512.1 A-6