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HomeMy WebLinkAbout2017-037 BondingRESOLUTION AUTHORIZING ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS, SERIES 2017A BE IT RESOLVED by the City Council of the City of Lake Elmo, Minnesota (the `City"), as follows: Section 1. Auithori atiop Pu.uuose. It is hereby determined to be in the best interests of the City to issue its General Obligation Bonds, Series 2 17A, in the approximate principal amount of $9,880,000 (the "Bonds"), as authorized pursuant to Minnesota Statutes, Chapters 475, 444, 429 and.: 412.301, for the purpose of (a) financing various improvements in the City, b) financing various water, stormwater, and sewer improvements in the City, (c) financing various iterns of capital equipment and (d) funding crusts of issuance of the Bonds. Section . Notice 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 adapted as the terms 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. Adjustment of Principal Amount of Bonds. The principal amount of the Bond: issue shall be adjusted in accordance with staff recommendations upon receipt of bids for the financed projects; provided that the principal amount shall not exceed , 80,000. Section 4. Award and sate. 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: APPROVED by the Lake Elmo City Council on this 18t" clay of April, 2017. Mike Pearson Mayor ATTEST: Julie Johnson City Clerk NOTICE OF SALE $9,880,000. GENERAL OBLIGATION BONDS, SERIES 2017A CITY OF LAKE ELMO, MINN SC (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's Administrator, or designee, on Tuesday, May 16, 2017, 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 16, 2017, at 7:00 P.M., CT. 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 612-851-4945, 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 16, 2017. 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 terms of this Notice shall control, For further information about P,AarryTM, or its successor, potential bidders may contact Northland Securities, Inc. or i-Deal' at 1359 Broadway, 2`1 floor, New York, NY 10018, telephone 212-849-502 1. Neither the City nor Northland Securities, Inc. assumes any liability if there is a malfunction of PARITyT1' 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. 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 irefully 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{" New York, New York, which will act as securities depository of the Bonds. 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, bidividual 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 ITC 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 13TC will be the responsibility of ITC; 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 ITC. The City will pay reasonable and custornary charges for the services of the Paying Agent/Registrar. Date of Delivery (Estimated to be June 8; 2017 The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 444 and 475 and. Section 412.301. Proceeds will be used to finance an improvement project, an equipment purchase, a water project, a sewer project, storm water project, and to pay the coasts associated with the issuance of the Bonds: The Bonds are payable from special assessments against benefited property, sewer, water and storm water revenues, and additionally secured by 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 ser ian wally on each. ,January 15 and July 15, commencing January 15, 2018, 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 business clay) 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 2019 $725,000 2024 $805000 2029 $355,000 2020 740,000 2025 820,000 2030 370,000 021 750,000 2026 845,000 2031 380,000 2022 770,000 2027 870,000 2032 395,000 2023 785,000 2028 855000 2033 415,000' 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 %. Rates must be in level or ascending Circler, 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, Bonds maturing on January 15, 2026 through 2033 are subject to redemption and prepayment at the option of the City on January 15, 2025 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 assignine nt 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 fora, 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 of the Bonds will be within forty days after award, subject to an approving legal opinion by Dorsey & Whitney LLC, Bond Counsel. 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. Proposals of not less than $9,781,200 (99.00%) and accrued interest on the principal sum of $9,880,000 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: Kristina Handt, City Administrator Lake Elmo City Hall 3800 Laverne Ave. N. Lake Elmo, Minnesota 55042 A good faith deposit (the "Deposit") in the amount of $197,600 in the form of a federal wire transfer (payable to the order of the City) is only required from the apparent wir�Lmng li�idder, 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 aniount 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, The Bonds will be awarded on the basis of the lowest interest rate to be deteni-tined on a true interest cost (TIC) basis. The City's computation of the 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. 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. By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal there -for, 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 Rulernaking Board (MSRB). The City will covenant in the resolution awarding the sale of the Bonds 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. 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. If the Bonds qualify for issuance of any policy of municipal bond insurance or con initment therefor at the option of the successful bidder, the purchase of any such insurance policy or the issuance of any such conitititinent 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 inunicipal 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: April 18, 2017 BY ORDER OF THE LAKE ELMO CITY COUNCIL /s/ Kristina Handt City Adn-dnistrator Additional information may be obtained from-, Northland Securities, Inc. 45 South 7' Street, Suite 2000 Minneapolis, Minnesota 55402 Telephone No.: 612-851-5900