HomeMy WebLinkAbout#13.2_2016A Certfication of MinutesCERTIFICATION OF MINUTES RELATING TO
$9,860,000 GENERAL OBLIGATION BONDS, SERIES 2016A
Issuer: City of Lake Elmo, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular rneetingheld on May 3, 2016 at 7:00 p.m. at
the Issuer offices.
Members present:
Members absent:
Documents Attached:
Minutes of said meeting (pages):
RESOLUTION NO. 2016-28
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$9,860,000 GENERAL OBLIGATION BONDS, SERIES 2016A
I, the undersigned, being the duly qualified and acting recording officer of the public
corporation issuing the bonds referred to in the title of this certificate, certify that the documents
attached hereto, as described above, have been carefully compared with the original records of
said corporation in my legal custody, from which they have been transcribed; that said
documents are a correct and complete transcript of the minutes of a meeting of the governing
body of said corporation, and correct and complete copies of all resolutions and other actions
taken and of all documents approved by the governing body at said meeting, so far as they relate
to said bonds; and that said meeting was duly held by the governing body at the time and place
and was attended throughout by the members indicated above, pursuant to call and notice of such
meeting given as required by law.
WITNESS my hand officially as such recording officer on the 3rd day of May, 2016.
City Administrator
Councilmember introduced the following resolution and moved its
adoption, which motion was seconded by Councilmember
RESOLUTION NO. 2016-28
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$9,860,000 GENERAL OBLIGATION BONDS, SERIES 2016A
BE IT RESOLVED by the City Council of the City of Lake Elmo, Minnesota (the
"City"), as follows:
Section 1. Authorization; Purpose. It is hereby determined to be in the best interests of
the City to issue its General Obligation Bonds, Series 2016A, in the approximate principal
amount of $9,860,000 (the "Bonds"), as authorized pursuant to Minnesota Statutes, Chapters
475, 444 and 429, for the purpose of (a) financing improvements in the City, (b) financing
various water, sewer and storm water improvement in the City, and (c) funding costs of issuance
of the Bonds.
Section 2. Notice of Sale. Northland Securities, Inc., municipal advisor to the City, has
presented to this Council a form of Notice of Sale for the Bonds which is attached hereto and
hereby approved and which shall be placed on file by the City Administrator. Each and all of the
provisions of the Notice of Sale are hereby adopted as the teens and conditions of the Bonds and
of the sale thereof. Northland Securities, Inc. is hereby authorized to solicit bids for the Bonds
on behalf of the City on a competitive basis.
Section 3. Award and Sale. The City Council shall meet at the times and places shown
in the Notice of Sale for the purpose of considering sealed bids for the purchase of the Bonds and
of taking such action thereon as may be in the best interest of the City.
Upon vote being taken thereon, the following members voted in favor thereof:
and the following members voted against the same:
whereupon the resolution was declared duly passed and adopted.
NOTICE OF SALE
89,860,000*
GENERAL OBLIGATION BONDS, SERIES 20I6A
CITY OF LAKE ELMO, MINNESOTA
(Book -Entry Only)
NOTICE IS HEREBY GIVEN that these Bonds will be offered for sale according to the following terms:
TIME AND PLACE:
Proposals will be opened by the City Finance Director, or designee, on Tuesday, May 17, 2016, at 10:30
A.M., CT, at the offices of Northland Securities, Inc., 45 South 7th Street, Suite 2000, Minneapolis,
Minnesota 55402. Consideration of the Proposals for award of the sale will be by the City Council at its
meeting at the City Offices beginning Tuesday, May 17, 2016 at 7:00 P.M., CT.
SUBMISSION OF PROPOSALS
Proposals may be:
a) submitted to the office of Northland Securities, Inc.,
b) faxed to Northland Securities, Inc. at 612-851-5918,
c) for proposals submitted prior to the sale, the final price and coupon rates may be submitted to
Northland Securities, Inc. by telephone at 612-851-5900 or 612-851-4920, or
d) submitted electronically.
Notice is hereby given that electronic proposals will be received via PARITY'', or its successor, in the
manner described below, until 10:30 A.M., CT, on Tuesday, May 17, 2016. Proposals may be submitted
electronically via PARITY'' or its successor, pursuant to this Notice until 10:30 A.M., CT, but no
Proposal will be received after the time for receiving Proposals specified above. To the extent any
instructions or directions set forth in PARITY'', or its successor, conflict with this Notice, the tenns of
this Notice shall control. For further information about PARITY'', or its successor, potential bidders
may contact Northland Securities, Inc. or i-Deal® at 1359 Broadway, 2' floor, New York, NY 10018,
telephone 212-849-5021.
Neither the City nor Northland Securities, Inc. assumes any liability if there is a malfunction of PARITY' or its
successor. 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 which the Proposal is submitted.
BOOK -ENTRY SYSTEM
• The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will
be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also
be adjusted to maintain the same gross spread,
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 he 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 City through Northland Trust Services, Inc.,
Minneapolis, Minnesota (the "Paying Agent/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 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 bidder, as a
condition of delivery of the Bonds, will be required to deposit the bond certificates with DTC. The City
will pay reasonable and customary charges for the services of the Paying Agent/Registrar.
June 1, 2016
DATE OF ORIGINAL ISSUE OF BONDS
AUTHORITY/PURPOSE/SECURITY
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429, 444 and 475, as amended.
Proceeds from issuance of the Bonds will be used to finance street, water, sewer and storm water
improvement projects and to pay costs associated with issuance of the Bonds. The Bonds are payable
from special assessments on benefitted properties, water, sewer and storm water revenues, and general
ad valorem taxes on all taxable property within the City. The full faith and credit of the City is pledged
to their payment and the City has validly obligated itself to levy ad valorem taxes in the event of any
deficiency in the debt service account established for this issue.
INTEREST PAYMENTS
Interest is due semiannually on each January 15 and July 15, commencing January 15, 2017, to registered owners
of the Bonds appearing of record in the Bond Register as of the close of business on the first day (whether or not a
business day) of the calendar month of such interest payment date.
MATURITIES
Principal is due annually on January 15, inclusive, in each of the years and amounts as follows:
Year Amount Year Amount Year Amount
2018 $690,000 2023 $730,000 2028 $490,000
2019 695,000 2024 745,000 2029 500,000
2020 710,000 2025 755,000 2030 510,000
2021 710,000 2026 770,000 2031 520,000
2022 725,000 2027 780,000 2032 530,000
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.
INTEREST RATES
All rates must be in integral multiples of 1/20th or 1/8th of 1°/0. Rotes must be in level ar ascending
order. All Bonds of the same maturity must bear a single uniform rate from date of issue to maturity.
ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER PROPOSALS
The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase
or decrease will be made in multiples of $5,000 and may be made in any maturity, if any maturity is
adjusted, the purchase price will also be adjusted to maintain the same gross spread. Such adjustments
shall be made promptly after the sale and prior to the award of Proposals by the City and shall be at the
sole discretion of the City. The successful bidder may not withdraw or modify its Proposal once
submitted to the City for any reason, including post -sale adjustment. Any adjustment shall be conclusive
and shall be binding upon the successful bidder.
OPTIONAL REDEMPTION
Bonds maturing on January 15, 2025 through 2032 are subject to redemption and prepayment at the option of the
City on January 15, 2024, and any date thereafter, at a price of par plus accrued interest. Redemption may be in
whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and principal amounts
within each maturity to be redeemed shall be determined by the City and if only part of the Bonds having a
common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the
Bond Registrar,
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 successful bidder 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 successful bidder.
DELIVERY
Delivery of the Bonds will be within forty days after award, subject to an approving legal opinion by
Dorsey & Whitney, LLP. The legal opinion will be paid by the City and delivery will be anywhere in the
continental United States without cost to the successful bidder at DTC.
TYPE OF PROPOSAL
Proposals of not less than $9,761,400 (99.00%) and accrued interest on the principal sum of $9,860,000
must be filed with the undersigned prior to the time of sale. Proposals must be unconditional except as to
legality. Proposals for the Bonds should be delivered to Northland Securities, Inc. and addressed to:
Cathy Bendel, City Finance Director
3800 Laverne Ave N.
Lake Elmo, Minnesota 55042
A good faith deposit (the "Deposit") in thc amount of $197,200 in the form of a federal wire transfer
(payable to the order of the City) is only required from the apparent winning bidder, and must be
received within two hours after the time stated for the receipt of Proposals. The apparent winning bidder
will receive notification of the wire instructions from the Municipal Advisor promptly after the sale. If
the Deposit is not received from the apparent winning bidder in the time allotted, the City may choose to
reject their Proposal and then proceed to offer the Bonds to the next lowest bidder based on the terms of
their original proposal, so long as said bidder wires funds for the Deposit amount within two hours of
said offer.
The City will retain the Deposit of the successful bidder, the amount of which will be deducted at
settlement and no interest will accrue to the successful bidder. In the event the successful bidder fails to
comply with the accepted Proposal, said amount will be retained by the City. No Proposal can be
withdrawn 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 the Bonds having
been made.
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 ()Utile interest rate of each Proposal, in accordance with customary practice, will be
controlling, In the event of a tie, the sale of the Bonds will be awarded by lot, 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.
INFORMATION FROM SUCCESSFUL BIDDER
The successful bidder will be 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.
OFFICIAL STATEMENT
By awarding the Bonds to any underwriter or undenvriting syndicate submitting a Proposal therefor, the City
agrees that, no more than seven business days after the date of such award, it shall provide to the senior managing
underwriter of the syndicate to which the Bonds are awarded, the Final Official Statement in an electronic format
as prescribed by the Municipal Securities Rulemaking Board (MSRB).
FULL CONTINUING DISCLOSURE UNDERTAKING
The City will covenant in the 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 City, and notices of certain material events, as required by SEC Rule 15c2-12.
BANK QUALIFICATION
The City will designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended.
BOND INSURANCE AT UNDERWRITER'S OPTION
lf the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at
the option of the successful bidder, the purchase of any such insurance policy or the issuance of any
such commitment shall be at the sole option and expense of the successful bidder of the Bonds. Any
increase in the costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by
the successful bidder, except that, if the City has requested and received a rating on the Bonds from a
rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility
of the successful bidder. Failure of the municipal bond insurer to issue the policy after the Bonds have
been awarded to the successful bidder shall not constitute cause for failure or refusal by the successful
bidder to accept delivery on the Bonds.
The City reserves the right to reject any and all Proposals, to waive informalities and to adjourn the sale.
Dated: May 3, 2016 BY ORDER OF THE CITY COUNCIL
/s/ Cathy Bendel
City Finance Director
Additional information may be obtained from:
Northland Securities, Inc.
45 South 7ffi Street, Suite 2000
Minneapolis, Minnesota 55402
Telephone No.: 612-851-5900