HomeMy WebLinkAboutResolution 2014-39 Authorizing Issuance and Sale of 6,235,000 GO Bonds, Series 2014ACERTIFICATION OF MINUTES RELATING TO
$6,235,000 GENERAL OBLIGATION BONDS, SERIES 2014A
Issuer: City of Lake Elmo, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held on June 3, 2014 at 7:00 p.m. at
the Issuer offices.
Members present: Pearson, Nelson, Smith, Bloyer, and Reeves
Members absent: None
Documents Attached:
Minutes of said meeting (pages): June 3, 2014 City Council Minutes Draft, Page 5
RESOLUTION 110.2014-39
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$6,235,000 GENERAL OBLIGATION BONDS, SERIES 2014A
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
Mayor Pearson introduced the following resolution and moved its adoption, which
motion was seconded by Councilmember Nelson:
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$6,235,000 GENERAL OBLIGATION BONDS, SERIES 2014A
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 2014A, in the approximate principal
amount of $6,235,000 (the "Bonds"), as authorized pursuant to Minnesota Statutes, Chapters
475, 444, 429 and 412.301, for the purpose of (a) financing various street improvements in the
City, (b) financing various water and sewer improvement in the City, (c) financing various items
of capital equipment and (d) funding costs of issuance of the Bonds.
Section 2. Notice of Sale. Northland Securities, Inc., financial 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 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. 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, Pearson, Nelson,
Smith, Bloyer, and Reeves
and the following members voted against the same: None
whereupon the resolution was declared duly passed and adopted.
$6,235,000*
GENERAL OBLIGATION BONDS, SERIES 2014A
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:
Proposals will be opened by the City Administrator, or designee, on Tuesday, June 17, 2014, at 11:30 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, June 17, 2014, 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 612-851-4920, or
d) submitted electronically.
Notice is hereby given that electronic proposals will be received via PARITYTM, or its successor, in the manner
described below, until 11:30 A.M., CT, on Tuesday, June 17, 2014. Proposals may be submitted electronically
via PARITYTM or its successor, pursuant to this Notice until 11:30 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
PARITYTM, or its successor, conflict with this Notice, the terms of this Notice shall control. For further
information about PARITYTM, or its successor, potential bidders may contact Northland Securities, Inc. or i-
Deale at 1359 Broadway, 2"d 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 PARITYTM 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 in fully 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 ("D'FC"), New York, New York, which will act as securities
depository of the Bonds.
Preliminary; subject to change. 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.
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.
July 15, 2014
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 475, 429, 444 and 412.301, as amended.
Proceeds will be used to finance (i) various street, water and sewer improvements in the City; (ii) various items
of capital equipment; and (iii) costs associated with Bond issuance. The Bonds are valid and binding general
obligations of the City and are payable from special assessments against all benefited properties, net revenues
of the sewer and water utility systems, and tax levies. 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 July 15, 2015, 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.
Principal is due annually on January 15, inclusive, in each of the years and amounts as follows:
Year
Amount
Year
Amount
Year
Amount
2016
$355,000
2021
$430,000
2026
$390,000
2017
415,000
2022
445,000
2027
400,000
2018
415,000
2023
445,000
2028
405,000
2019
420,000
2024
455,000
2029
420,000
2020
430,000
2025
380,000
2030
430,000
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 sdhedule set forth above.
All rates must be in integral multiples of 1/20th or 1/8th of I %. Rates must be in level or ascending order. All
Bonds of the same maturity must bear a single uniform rate from date of issue to maturity.
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, 2023 through 2030 are subject to redemption and prepayment at the option of
the City on January 15, 2022 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 of the Bonds will be within forty days after award, subject to an approving legal opinion by Dorsey &
Whitney LLP, 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.
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Proposals of not less than $6,172,650 (99.00%) and accrued interest on the principal sum of $6,235,000 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:
Dean Zuleger, City Administrator
Lake Elmo City Hall
3800 Laverne Avenue N.
Lake Elmo, Minnesota 55042
A good faith deposit (the "Deposit") in the amount of $124,700 in the form of a federal wire transfer (payable
to the order of the City)is onlquired from the apparent winnin bg idler, 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 Financial 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.
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 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.
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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.
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By awarding the Bonds to any underwriter or underwriting 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).
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 SBC 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 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: June 3, 2014 BY ORDER OF THE LAKE ELMO CITY COUNCIL
/s/ Dean Zuleger
City Administrator
Additional information may be obtained from:
Northland Securities, Inc.
45 South 7t' Street, Suite 2000
Minneapolis, Minnesota 55402
Telephone No.: 612-851-5900