Resolution - #93-09-177 - 09/14/1993

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I I I I I I I I I I I I I I ! I I used to re~l~d 11~ advance of maturity the 1997 through 2007 maturities of the City's General Obligation '~' ~x I ,r~l~3rement Bonds, Series 1987A, dated August 1, 1987. TYPE OF PROPOSALS Proposals shall be for not less than $2,225,250 and accrued interest on the total principal amount of th~ Bends. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of ra~ ce~ified or cashier's check or a Financial Surety Bond in the amount of $22,500, payable to tile Order of the City. If a check is used, it must accompany each proposal. If a Financial Su~pty!;Bond is used, it must be from an insurance company licensed to issue such a bond in the~tate of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted :l~co~porated prior to the opening of the proposals. The Financial Surety Bond must identifyieaeh underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds ~r~ awarded to an underwriter'using a Financial Surety Bond, then that purchaser is required to s'l~bmlt Its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wi~e transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Timej on'~the next business day following the award. If such Deposit is not received by that time, tl~e ~inanclal Surety Bond may be drawn by the City to satisfy the Deposit requirement.! 'rbe City will deposit the check of the purchaser, the amount of which will be deducted at ,~ett~ment and no interest will accrue to the purchaser. In the event the purchaser fails to coml~lY With the accepted proposal, said amount will be retained by the City. No proposal car~ be withdrawn or amended after the time set for receiving proposals unless the meeting of tile ~ scheduled for award of the Bonds is adjourned, recessed, or continued to another dat~ wEhout award of the Bonds having been made. Rates shale be in integral multiples of ~/1{;~0 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity sha~! bear a single rate from the date of the Bonds to the date of maturity. No conditional 'F'op~sals will be accepted. AWARD The Bonds ~ 'ill 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, vith!customary practice, will be controlling. The City willtreserve the right to: (i) waive non-substantive informalities of any proposal or of matters rela~ng ;~o the receipt of proposals and award of the Bonds, (ii) reject all proposals without cau~, a~nd, (iii) reject any proposal which the City determines to have failed to comply with the terr~ herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bondslquelify for issuance of any policy of municipal bond insurance or commitment therefor at tl~e Option of the underwriter, the purchase of any such insurance policy or the issuance of a. ny Such commitment shall be at the sole option and expense of the purchaser of the Bonds.' !Any increased costs of issuance of the Bonds resulting from such purchase of insurance sllJall I~.e paid by the purchaser, except that, if the City has requested and received a rating on th~BO,nds from a rating agency, the City.,will pay that rating fee. Any other rating agency fee~ bhall be the responsibility of the purchaser. [ Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser Slljall r~ot constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. -ii-