2007-09-26 CC Packet - Laserfiche WebLink

Home Browse Search

TERM BOND OPTION 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. BOOK ENTRY FORMAT The Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will act as securities depository for the Bonds, and will be responsible for maintaining a book-entry system for recording the interests of its participants and the transfers of interests between its participants. The participants will be responsible for maintaining records regarding the beneficial interests of the individual purchasers of the Bonds. So long as Cede & Co. is the registered owner of the Bonds all paymenls of principal and interest will be made to the depository which, in turn, wiil be obligated to remit such payments to its participants for sUbsequent disbursement to the beneficiai owners of the Bonds. TYPE OF BID A sealed bid for not less than $ 2,549,500 pius accrued interest on the total principai amount of the Improvement Bonds, shall be filed with the City prior 10 the time set for the opening of bids, together with a certified or cashier's check payable to the order of the City Clerk in the amount of $ 50,500 (the "Deposi!") or a Financial Surety Bond. If a check is used, it must accompany such bid. The check is a guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages if the bidder fails to take up and pay for the Improvement Bonds. No interest shall be allowed on the good faith deposit, and deposits of the unsuccessful bidders will be promptiy returned to each bidder. The 900d faith deposit of the successful bidder will be cashed immediately upon acceptance of the bid by the City Council and payment for the balance of the purchase price of the Improvement Bonds shall be made payable on the date of settlement. 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 such bond must be submitted to the City prior to the opening of the bid. The Financial Surety Bond must identify each bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Improvement Bonds are awarded to a bidder utilizing a Financial Surety Bond, then the successful bidder is required to submit its Deposit to the City in the form of a cashier's check (or wire transfer such amount as instructed by the City) to satisfy the Deposit requirement. No interest on the Deposit will accrue to the successful bidder. The Deposit will be applied to the purchase price of the Improvement Bonds. In the event the successful bidder falls to honor Its accepted bid, the Deposit will be retained by the City as liquidated damages. Envelopes containing bids should be marked "Bid for $ 2,600,000 General Obligation improvement Bonds, Series 2007A". Interest rates offered by bidders should be expressed in integral multiples of 1/8th or 1/20th of one percent in ascending order. Neither the rate nor the net effective rate for the entire issue of the Improvement Bonds shall exceed the maximum rate permitted by law. Improvement Bonds of the same maturity shail bear a single rate from the date of the Improvement Bonds to the date of maturity. AWARD The Improvement Bonds will be awarded to the bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from or the addition of any amount iess than par to the totai dollar interest cost on the Improvement Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controiling. The City reserves the right to: (i) waive non substantive informalities of any bid or ot matters related to the receipt of bids and award of the Improvement Bonds; (Ii) reject all bids without cause; (iii) reject any bid in which the City determines that the bidder failed to comply with the terms herein; and (iv) adjourn the sale if deemed expedient. THE BOND REGISTRAR The City has selected U.S. Bank National Association to act as the bond registrar, transfer agent, authenticating agent and paying agent (the "Bond Registrar") for the Improvement Bonds. The City will pay the reasonable and customary charges for the services of the Bond Registrar. The City reserves the right to remove the Paying Agent/Bond Registrar and to appoint a successor. CUSIP NUMBERS If the Improvement Bonds qualify for assignment of CUSIP numbers, such numbers will be printed on the Improvement Bonds, but neither the failure to print such numbers on any Improvement Bonds nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept deiivery of the Improvement Bonds. The CUSIP Service Bureau's charge for the assignment of CUSIP Identification numbers shall be paid by the purchaser. Application for CUSIP numbers is the obligation of the purchaser. )o/- CITY OF CENTERVILLE JOHN W. MEYER PAGE 5 of 20