HomeMy WebLinkAboutResolution 2016-028Issuer: City of Lake Elmo, Minnesota
Governing Body- City Council
Kind, date, time and place of meeting: A regular meeting held on May 3, 2016 at 7:00 p.m. at
the Issuer offices.
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Members absent: N fow,
Documents Attached:
Minutes of said meeting (pages): I is (jjo OYv apoi-awJ;
ineeti given as required by law.
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WITNESS my hand officially as such recording officer on the 3rd day of May, 2016.
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City Administrator
Councilmernber introduced the following resolution and moved its
adoption, which motion was seconded by Councihnember �ry
E IT RESOLVED by the City Council of the City of Lae Elmo, Minnesota (the
"City"), as follows.
Section 1. Authorization- pi rposo; It is hereby determined to be in the best interests of
the City to issue its General Obligation Binds, 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 (afinancing improvements in the City, (b) financing
various water, sewer and storm water improvement in the City, and (c) funding casts of issuance
of the Bonds.
Section 2. Notice of Sale. Northland Securities, Inc., municipal advisor to the City, has
presented to this Council a fdnn 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 e of Sale are hereby adapted as the terms and conditions of the Bonds and
of the safe 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 Salo, The City Council shall meet at the tines 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 maybe in the best interest of the City.
and the following me nbers voted against the same:
whereupon the resolution was declared duly passed and adopted;
�NOTICE OF SALE
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:
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 begirating Tuesday, May 17, 2016 at 7:00 PM., CT.
Proposals may be,-
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a) submitted to the office of Northland Securities, Inc.,
b) taxed to Noithdand Securities, Inc. at 612-851-5918,
, for proposals _---____prior to the sal_ the fina. price and coupon rates may .~~~ submitted �~~
Northland Securities, Inc. by telephone at 612-85 t -5900 or 612-851-4920, or
d) submitted electronically,
Neither the City nor Northland Securities, Inc. assumes any liability if there is a malfunction of PARHY"' 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.
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-entty system with no physical distribution of bond certificates made
to the public. The Bonds will be issued in fully registered form and one bond ceitificate, representing the
aggregate principal aniount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as
nominee of Depository Trust Company ("ITC"), 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 Set vices, 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 ITC, The City
will pay reasonable and customary charges for the set -vices of the Paying Agent/Registrar.
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 valoreni 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.
INTE REST 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,
Principal is due annually on January 15, inclusive, in each of the years and amounts as follows:
Year
Amount
Year
Aniount
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 M Rates miLFt be in level or aseending
order. All Bonds of the same maturity must bear a single Lmiforin rate frown 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.
within each maturity to be redeemed shall be detennined by the City and if only part of the Bonds having a
common inaturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the
Bond Registran
If the Bonds qualify for assignment of CUSlP 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 CI SIP identification numbers shall be paid by the successful bidder,
Delivery of the Bonds will be witl-iin 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
3 800 Laverne Ave N.
Lake Elmo, Minnesota 55042
A good faith deposit (the "Deposit") in the amount of $197,200 in the fonn of a federal wire transfer
(payable to the order of the City) is only required fi-om 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 successfid 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 falls 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 tile City scheduled for award
of the Bonds is adjourned, rec&§sed, or continued to another date without award of the Bonds having
been made.
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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,
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 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, UNDERTAE1NG
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.
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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 quality for issuance of any policy of municipal bond insurance or commitment therefor at
the option of the successfal bidder, the purchase of any such insurance policy or the issuance of any
such corninitment 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, als, to waive informalities and to adjourn the sale,
x
Additional information may be obtained frorn-
Northland Securities, Inc.
5 South 7t" Street, Suite: 000
Minneapolis, Minnesota 55402
Telephone No.: 1 - 1-5 00