HomeMy WebLinkAbout2015-031 Council Resolution•
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RESOLUTION NO. 15-31
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE
OF GENERAL OBLIGATION BONDS, SERIES 2015A, IN THE
PROPOSED AGGREGATE PRINCIPAL AMOUNT OF $3,645,000
BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota
(the "City") as follows:
1. Abatement Bonds.
(a) The City has determined to acquire, construct, and equip a new fire hall in the
City, including the construction of necessary public infrastructure (the "Project").
(b) Under Minnesota Statutes, Chapter 475, as amended, and Sections 469.1812
through 469.1815 (collectively, the "Abatement Act"), the City is authorized to grant a property
tax abatement on specified parcels in order to accomplish certain public purposes, including the
provision or construction of public infrastructure.
(c) Pursuant to a resolution adopted by the City Council of the City on the date
hereof (the "Abatement Resolution") following a duly noticed public hearing, the City Council
approved a property tax abatement (the "Abatements") for certain property in the City (the
"Abatement Parcels") over a period of ten (10) years, in an amount sufficient to pay the principal
amount of and interest on bonds issued to finance the Project in a maximum principal amount of
$495,000.
(d) In the Abatement Resolution, the City found and determined that the Project
benefits the Abatement Parcels, and that the maximum principal amount of bonds to be secured by
Abatements does not exceed the estimated sum of Abatements from the Abatement Parcels for the
term authorized under the Abatement Resolution.
(e) It is necessary and expedient to the sound financial management of the affairs of
the City to issue its obligations in the aggregate principal amount of $495,000 (the "Abatement
Bonds") pursuant to the Abatement Act, to provide financing for the Project.
2. Street Reconstruction Bonds.
(a) At a duly called special election held on November 4, 2014, the voters of the City
approved the issuance and sale by the City of general obligation bonds in the maximum aggregate
principal amount of $3,150,000, pursuant to Minnesota Statutes, Chapter 475, as amended (the
"Municipal Debt Act"), to provide funds for street reconstruction and related upgrades of the
existing storm water management system designated as the Shenandoah Area Improvements
described in the City's Five -Year Street Reconstruction Plan (2015-2019) (the "Street
Reconstruction").
(e) It is necessary and expedient to the sound financial management of the affairs of
the City to issue its obligations in the aggregate principal amount of $3,150,000 (the "Street
Reconstruction Bonds"), pursuant to the Municipal Debt Act, to provide financing for the Street
Reconstruction.
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3. Sale of Bonds.
(a) It is necessary and expedient to the sound financial management of the affairs of
the City to issue its General Obligation Bonds, Series 2015A (the "Bonds"), in the proposed
aggregate principal amount of $3,645,000, pursuant to the Abatement Act and the Municipal Debt
Act (collectively, the "Act') to provide financing for the Project and the Street Reconstruction.
The Bonds will be issued, sold, and delivered in accordance with the Terms of Proposal attached
hereto as EXHIBIT A (the "Terms of Proposal").
(b) The City is authorized by Section 475.60, subdivision 2(9) of the Act to negotiate
the sale of the Bonds, it being determined that the City has retained an independent financial
advisor in connection with such sale.
4. Authority of Municipal Advisor. Springsted Incorporated is authorized and directed to
negotiate the Bonds on behalf of the City in accordance with the Terms of Proposal. The City Council
will meet at 6:30 P.M. on Monday, April 27, 2015, to consider proposals on the Bonds and take any other
appropriate action with respect to the Bonds.
5. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, as bond
counsel for the City, is authorized to act as bond counsel and to assist in the preparation and review of
necessary documents, certificates and instruments relating to the Bonds. The officers, employees and
agents of the City are hereby authorized to assist Kennedy & Graven, Chartered in the preparation of such
documents, certificates, and instruments.
6. Covenants. In the resolution awarding the sale of the Bonds the City Council will set
forth the covenants and undertakings required by the Act.
7. Official Statement. In connection with the sale of the Bonds, the officers or employees of
the City are authorized and directed to cooperate with Springsted Incorporated 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.
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Approved by the City Council of the City of Lino Lakes, Minnesota, this 23rd day of March, 2015.
The motion for adoption of the foregoing resolution was introduced by Council Member Roeser
was duly seconded by Council Member Kusterman and upon a vote being taken thereon, the
following voted in favor thereof:
Roeser, Kusterman, Rafferty, Stoesz, Reinert
The following voted against same:
none
Jeff Reinert, Myr
Attest:
City C-1erk }
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458637v1 JAL LN140-115
EXHIBIT A
TERMS OF PROPOSAL
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THE CM' HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTLATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
S3.645000*
CITY OF LINO LAKES, MINNESOTA
GENERAL OBLIGATION BONDS, SERIES 2015A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday. April 27. 2015_ until 10.00 AM,. Central Time. at
the offices of Spruigsted Incorporated, 330 Jackson Street Suite 300. Sarni Paul. Mimiesotaafter which
tune proposals vill 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
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of
sale specified above. 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 in winch the proposal is
submined.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651)223-3046 to
Springsted. Sianed proposals_ without final pnce 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 pnce and
coupons. by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the subnutted proposal
OR
(b) Electronic Biddinr. Notice is hereby given that electromc proposals will be received via PARITY".
For purposes of the electronic bidding process, the time as maintained by PARITY shall constitute the
official time with respect to all proposals subnutted to PARITY". Ear 1,rticier :J:0;1 he solci:v reTonsib;e
1 -or ipaki?:ff 12eCeSSM:l- 07T(Plgemenrs ro access PARITY' for ploposes of siibmirrtqf eircrronic proposal
in a r:nle:y manner CPid in coinplicnce it the VCC/ilfreMeflrs of ri;e Terms of proposal. Neither the City,
its agents nor PARFI-1-t shall have any dut or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to alIV qualified prospective bidder. and
neither the City_ its agents nor PARITY" shall be responsible for a bidder's failure to register to bid or for
any failure in the proper operation of or have any liability for any delays or interruptions of or any
damages caused by the services of PARIT14. The City is using the services of PARE -1'i solely as a
coinununcation mechanism to conduct the electronic bidding for the Bonds. and PARITYis not an agent
of the City
If any provisions of this Terms of proposal conflict with information provided by PARITY". this Terms
of proposal shall control. Further information about PARITY". including any fee charged. may be
obtained from:
PARITY'. 1359 Broadway 2'" Floor New York. New York 10013
Customer Support (212)349-5000
PreL'mmar), :1ect changc
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DETAILS OF THE BONDS
The Bonds be dated as of the date of delivery and wil.1 bear interest payable an FebmarY 1 and
August 1 of each year. commencing February 1 2016. Interest will he 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:
2017 S230.000 2020 8040.000 2023 5—f 5.000 2026 5770.000 2029 5235.000
2018 835.000 2021 8245 000 2024 825 5 000 2027 8220 000 2030 8240 000
2019 5235.000 2022 8250 000 0005 5265.000 2025 5225 000 2031 5245.000
nit' C 7 tuerte; rile 7117112% a.1474.77% propos;.1is are opened ani pror al% 271:7=e or reduce the prinpai
mormr r;leB or the ame:w of any MX717-7S1 711 27-1U;17p:CSo 8.4-‘,000 17;24.1 erC717 the Cllnalint r.P1,1
771,Viivirri0 0aggregale purcha;e pnce 11711 be :0 7'4.%:liji 171 714C .;aFt:c yre,ss :;;.,,eaa per
Si 000 of Bo ?•;I:zt r;:e orIginai propeseri Gro07Q1212 1.1iC 212fC71,2:1.21, bentV 7 cp:77d ;0 ;he
C2r) me icw 1::2;o and the prk-es at which. the :ecvrmes 77721.2711.1 0.5'7 C.: 1:2 7,72i7 12-i'C7.21777f,";71/!2,;/C
Proposals for the Bonds may contain a manuitv schedule providing for a combination of serial bonds and
term bonds_ All term bonds shall be subject to nruidatory sinking fund redemption at a price of par plus
accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above.
In order to desiEniate term bonds the proposal must specify Years of Term Maturities- in the spaces
provided on the proposal form
BOOK ENTRY SYS I EM
The Bonds will be issued by means of a book entry system with no physical distnbution of Bonds made
to the public. The Bonds will be issued in fully registered form and one Bond. represent= the aggregate
principal ainount of the Bonds maturing ui each year, will be registered in the name of Cede .k 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 ui the principal amount of
85.000 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 pas -able by the registrar 10 DTC or its nommee
as
registered owner of the Bonds Transfer of pnncipal 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 nomniees of beneficial owners. The purchaser, as
a condition of delivers- of the Bonds. will be required to deposit the Bonds with Dlr.
REGISTRAR
The City will name the registrar which shall he subject to applicable SEC regulations The City will pay
for the services of the registrar.
OPTIONAL REDEMPTION
The City limy elect on Febniary 1, 2023 and on any day thereafter. to prepay Bonds due on or after
February 1. 2024. Redemption may be m whole or in part and if in part at the option of the City and in
such manner as the City shall deternune If less than all Bonds of a nianinty 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 ui such mammy to be redeemed and each participant will then
select by lot the beneficial ownerslup interests m such inaninty to be redeemed. All prepayments shall be
at a price of par plus accrued interest.
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SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and credit
and power to levv direct general ad valorem taxes. In addition. the City will pledge abatement revenues
from identified properties. The proceeds will be used to finance (i) various street reconstruction proiects
as identified in the City's 2015-2019 Street Reconstruction Plan. and (u) various other road and street
improvements within the City.
BIDDLNG PARAME 1ERS
Proposals shall be for not less than S3_603,550 plus accrued interest_ if any. on the total principal amount
of the Bonds. No proposal can be withdrawn or amended after the tune 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 the Bonds haying been made Rates shall be in integral multiples of 1 100 or 1 S of
106 The uutial price to the public for each maturity must be 9S0`vo or greater. Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity, No conditional
proposals will be accepted.
GOOD FAITH DEPOSIT
To have its proposal considered for award_ the lowest bidder is required to subnut a good faith deposit to
the Cin; in the amount of S$6,450 (the --Deposit-) no later than 1-00 P.M.. Central Tune on the dal; of
sale The Deposit may be delivered as described herein in the form of either (i) a certified or cashier's
check parable to the City: or (u) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the City nor Springsted
Incorporated have any liability for delays in the receipt of the Deposit, If the Deposit is not received by
the specified tune. the COY may. at its sole discretion reject the proposal of the lowest bidder. direct the
second lowest bidder to subnut a Deposit_ and thereafter award the sale to such bidder,
Cerr7fied or Casier's Check. A Deposit made by certified or cashier's check will be considered tunelv
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
$S0 Jackson Street. Suite 300. St. Paul, Minnesota 55101 by the specified time,
tVTrc Tra,7sfer. A Deposit made by wire will be considered timely delivered to the City upon subnussion
of a federal wire reference number by the specified tune. Wire transfer instructions vi.11 be available from
Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must
send an e-mail including the follow -mg information: (r) the federal reference number and tune released.
(n) the amotmt of the wire transfer. and (in.) the issue to which it applies.
Once an award has been made. the Deposit received from the lowest bidder (the --purchaser-) will be
retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase pnce. In the event the purchaser fails to comply with the
accepted proposal, said amount will be retained by the City.
AWARD
The Bonds vi1I be awarded on the basis of the lowest interest rate to be determined on a true interest cost
(TIC) basis calculated on the proposal prior to any adjustment made by the City The City's computation
of the interest rate of each proposal. in accordance with customary practice. will be controllmg.
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. (n) reject all proposals without cause and
(iii reject any proposal that the City deternnnes to have failed to comply with the terms herein.
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BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre -approved a conmutment for anv policy of nuuncipal bond insurance
with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder desires to
purchase a policy. such indication the maturities to be mstued_ and the name of the desired insurer must
be set forth on the bidder's proposal. The City specifically reserves the right to reject any bid specifying
municipal bond insurance. even though such bid may result in the lowest TIC to the City. All costs
associated with the issuance and administration of such policy and associated ratings and expenses (other
than ans mdepeudent rating requested by the Car) shall be paid by the successful bidder. Failure of the
municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for
failure or refusal by the successful bidder to accept delivery of the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but
neither the failure to pnnt 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
On or about May 28. 2015. the Bonds will be delivered without cost to the purchaser through DTC
New York, New York. Dehvery will be subject to receipt by the purchaser of an approving legal opunon
of Kennedy & Graven, Chartered of Mumeapolis, Minnesota and of customary closing papers, includuig
a no -litigation certificate. On the date of senlement, payment for the Bonds shall be made in federal. or
equivalent fluids that shall be received at the offices of the Ciry or its designee not later than 12'00 Noon.
Central Tune Unless compliance with the terms of payment for the Bonds has been made impossible by
action of the City, or as agents, the purchaser shall be liable to the C'iry for any loss suffered by the City
by reason of the purchaser's non-comphance with said terms for payment_
CONTIYLffNG DISCLOSURE
In accordance ‘vith SEC Rule I5c2-12(b)(5), the City will luidertake. pursuant to the resolution awardmg
sale of the Bonds. to provide annual reports and notices of certam events. A description of this
undertakmg is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will
be conditioned upon receiving evidence of this undertaking at or prior to dein-en- of the Bonds.
OFFICIAL STATEMENT
The C'itv has authorized the preparation of a Preliminary Official Statement containing pertinent
infomuition relative to the Bonds, and said Preliminary Official Statement will serve as a nearly final
Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Cotunussion. For
copies of the Preliminary Official Statement or for any additional information prior to sale_ any
prospective purchaser is referred to the Municipal Advisor to the City. Springsted Incorporated.
380 Jackson Street, Suite 300. Saint Paul. Minnesota 55101, telephone (651) 223-3000
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A Final Official Statement (as that tents is defused in Rule 15c2-1.2) will be prepared_ specifyme the
maturity dates_ principal amounts and interest rates of the Bonds. together with any other reformation
required by law. By award= the Bonds to an underwnter or underwntuig syndicate. the City agrees
that_ no more than seven business days after the date of such award. it shall provide without cost to the
sole underwater or to the senior managing underwriter of the syndicate (the ` Undenvriter for purposes
of this paragraph) to which the Bonds are awarded up to 25 copies of the Final Official Statement The
City designates the Underwriter of the syndicate to winch the Bonds are awarded as its agent for purposes
of distnibutuig copies of the Final Official Statement to each Participating Underwriter. Such Underwater
agrees that if its proposal is accepted by the Cin-. (0 it shall accept designation and (u) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the
receipt by each such Participating Underwriter of the Final Official Statement.
Dated March 23. 2015 BY ORDER OF Tl -1 CITY COUNCIL
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s' Julie Bartell
C'itt' Clerk
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STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes,
Minnesota (the "City"), hereby certify that I have carefully compared the attached and foregoing extract
of minutes of a regular meeting of the City Council of the City held on Monday, March 23, 2015, with the
original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar
as they relate to the issuance and sale of the City's General Obligation Bonds, Series 2015A, in the
proposed aggregate principal amount of $3,645,000.
WITNESS My hand as City Clerk and the corporate seal of the City this 24th day of
March, 2015.
(SEAL)
458637v1 JAE LN140-115
City Clerk
City of Lino Lakes, Minnesota
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STAFF ORIGINATOR:
MEETING DATE:
TOPIC:
VOTE REQUIRED:
INTRODUCTION
CITY COUNCIL
AGENDA ITEM 2B
Al Rolek
March 23, 2015
Consider Resolution No. 15-31 Providing for the issuance and
Sale of General Obligation Bonds, Series 2015A, in the Proposed
Aggregate Principal Amount of $3,645,000
Simple Majority
The City of Lino Lakes will be undertaking street reconstruction projects and other street and
improvements projects in 2015. The construction cost of these projects will need to be
financed through the issuance of debt. The City has retained Springsted, Inc. to advise on the
type and amount of debt to be issued for these projects.
BACKGROUND
In November, 2014 the voters of the City of Lino Lakes approved a referendum to issue up to
$3,150,000 in Street Reconstruction bonds to reconstruct streets in the Shenandoah area.
Additionally, the construction of a new fire station facility has made it necessary to add turn
lanes and extend sewer trunk utility in the Birch Street and Centerville Road area. Earlier this
evening the City Council held a public hearing and took action to approve tax abatements to
finance the fire station infrastructure improvements.
The City's fiscal advisor, Springsted, Inc., has made its recommendations for the issuance
General Obligation bonds to finance these improvements. Terri Heaton of Springsted, Inc. will
be present to explain the process for issuing the bonds and to answer any questions that the City
Council may have relative to the recommended financing. Approval of Resolution 15-31
provides for the issuance and sale of General Obligation Bonds, Series 2015A, in the proposed
aggregate principal amount of $3,645,000.
RECOMMENDATION
Staff is recommending approval of Resolution No. 15-31.
ATTACHMENTS
Resolution 15-31
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Extract of Minutes of Meeting
of the City Council of the City of
Lino Lakes, Anoka County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Lino
Lakes, Anoka County, Minnesota, was held at the City Hall in the City on Monday, March 23, 2015,
commencing at 6:30 P.M.
The following members of the Council were present: Roeser. Rafferty, Kusterman, Stoesz, and
Reinert
and the following were absent: None
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