HomeMy WebLinkAboutResolution 2012-47 Authorizing GO CIP Plan Bonds 2012B - $4,000,000Ciry of Corcoran
County of Hennepin
State of Minnesota
RESOLUTION NO. 2012-47
Extract of Minutes of Meeting
of the City Council of the City
of Corcoran, Hennepin County, Minnesota
September 13, 2012
Pursuant to due call and notice thereof a regular meeting of the City Council of the City
of Corcoran, Hennepin County, Minnesota, was held at the City Hall in the City on Thursday,
September 13, 2012, cominencing at 7:00 P.M.
The following members of the Council were present: Mayor Guenthner, Council
Members Aselson, Cossette, Gmach and Milbrandt.
and tlle following were absent: None
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The following resolution was presented by CoLlncilmember Cossette who moved its
adoption:
RESOLUTION N0. 2012-47
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
APPROXIMATELY $4,000,000 GENERAL OBLIGATION CAPITAL
IMPROVEMENT PLAN BONDS, SERIES 2012B
BE IT RESOLVED By the City Council of the City of Corcoran, Hennepin County,
Minnesota (the "City") as follows:
1.01. The City is authorized by Minnesota Statutes, section 475.521 (the "Act") to
finance certain capital improvetnents under an approved capital improvement plan by the
issuance of general obligation bonds of the City payable from ad valorein taxes if no petition
requesting a referendum regarding issuance of such bonds is filed within 30 days after the date of
the public hearing regarding such bonds. Capital improvements include acquisition or
bettennent of public lands, buildings or other improvements for the purpose of a city hall,
library, public safety facility and public works facilities (excluding light rail transit ar any
activity related to it, or a park, road, bridge, administrative building other than a city hall, or land
for any of those activities).
1.02. On the date hereof the City Council held a duly noticed public hearing regarding a
five year capital improvement plan (the "Plan") in accordance with the Act. The Plan authorizes
issuance of bonds to pay the cost of the construction and equipping of a public works facility in
the City (the "Project"). On the same date, the City Council approved the Plan providing for
issuance of bonds (the "Bonds") in the maximum principal amount of $4,000,000 as required by
the Act.
1.03. As i-equired by the Act, the City has determined that:
(i) the expected useful life of the Project will be at least five years; and
(ii) the amount of principal and interest due in any year on all outstanding bonds
issued by the City under the Act, including the Bonds, will not exceed 0.16 percent of the
taxable market value of property in the City for taxes payable in 2012.
2. In order to provide iinancing for the Project, the City will therefore issue and sell
Bonds in the amount of $3,952,000. To provide in part the additional interest required to market
the Bonds at this time, additional Bonds will be issued in the amount of $48,000. The amounts
cited above are subject to adjustment in accordance with the Notice of Sale. The Bonds will be
issued, sold and delivered in accordance with the terms of the following Notice of Sale:
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NOTICE OF SALE
$4,000,000�
GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS, SERIES 2012B
CITY OF CORCORAN, 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's Administrator, or designee, on Thursday, October 25,
2012, 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 be�inning Thursday, October 25, 2012
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 prioi- to the sale, the final price and coupon rates may be submitted
to Northland Securities, Inc. by tele�hone at 612-851-5900 or 612-851-4920, or
d) submitted electronically.
Notice is hereby given that electronic proposals will be received via PARI"I'Y��', or its successoi,
in the manner described below, until 10:30 A.M., CT, on Thursday, October 25, 2012. Proposals
inay 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 insti•uctions or dii•ections set forth in PARITYTry'� or its successor,
conflict with this Notice, the terms of this Notice shall control. Foi- fiu°ther information about
PARITY�M, or its successor, potential bidders may contact Northland Securities, Inc. or i-Deal �� at
1359 Broadway, 2"d floor, New Yorl<, NY 10018, telephone 212-849-5021.
Neither the City nor Northland Securities, Ine. assumes any liability if there is a malfunetion of
PARITY��� or its suecessor. 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 inanner in
which the Proposal is subinitted.
� The City reserves the right to increase or decrease the principal amount of the Boncis. Any such increase or decrease will be
made in multipies of $�,000 and i�ay be macle in any maturity. If any maturity is adjusted. the purchase price will also be
acljusted ro maintain the same gross spread.
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I300K-ENTRY SYSTEM
The Bonds will be issued by means of a book-entry system with no physical disti•ibution of bond
certificates made to the public. The Bonds will be issued in fully registered fon11 aild one bond
certificate, i°epi-esenting the aggregate principal amount of the Bonds maturing in each year, will be
t�egistered in the name of Cede & Co. as noininee of Depositoiy Trust Company ("DTC"), New
York, New York, which will act as securities depository of the Bonds.
Individual purchases of the Bonds inay 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 iizterest are payable by the City tlzrough Northland Trust
Services, Inc. Minileapolis, Minnesota (the "Paying Agent/Registrar"), to DTC, or its nominee as
registered owner of the Bonds. Transfez° 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 othel° 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 Payii�g Agent/Registrai•.
Novembel� l, 2012
DAT� OF ORIGINAL ISSUE OF �30NDS
AUZ'HORITY/PURPOSE/SECURITY
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 475, as amended. Proceeds
will be used to (i) iinance the construction and equipping of a public works facility within the
City and (ii) pay costs associated with the issuance of the Bonds. The Bonds are valid and
binding general obligations of the City and are payable solely fi-oin ad valorem taxes. The fiill
faith and credit of the City is pledged to their payment and the City has validly obligated itself to
levy ad valorem taxes to pay all principal and interest payments on this issue upon all of the
taxable property within the City and without limitation of amount.
IN'TERES'I' PAYMENTS
Interest is due seiniaiulually on each Febi-uary 1 and August 1, commencing August 1, 2013, to
registered owners of the Bonds appeat-ing of record in the Bond Register as of the close of business
on the fifteenth day (whether or not a business day) of the calendar month preceding such interest
payment date.
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MATURI'I'IES
Principal is due annually oi1 Febt�uaiy 1, inchlsive, in each of the years and amounts as follows:
Year Amount Year
2015
2016
2017
2018
2019
2020
2021
2022
$40,000
40,000
80,000
65,000
12 5,000
130,000
150,000
150,000
2023
2024
2025
2026
2027
2028
2029
2030
Amount Year
$155,000
160,000
165,000
170,000
175,000
180,000
18 5,000
195,000
2031
2032
2033
2034
2035
2036
2037
2038
Amount
$200,000
210,000
215,000
225,000
230,000
240,000
250,000
265,000
Proposals for the Bonds may contain a maturity schedule providing for any combination of serial
bonds and term bonds, subject to mandatoi-y redemption, so long as the amount of piincipal
maturing or subject to mandatory redemption in each yeai- conforms to the maturity schedule set
forth above.
INTEREST RA'TES
All rates nzust be in integral i�iultiples of 1/20th or 1/8th of 1%. Rates must be in level o�°
czscending o�°der. All Bonds of the same maturity nlust bear a single unifonn 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 matui•ity is adjusted, the purchase price will also be adjusted to maintain the same gross
spread. Such adjustments sha11 be made promptly after• tlle 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 concllisive and shall be binding upon the successful
bidder.
OPTIONAL R�DEMPTION
Bonds maturing on February l, 2022 tluough 2038 are subject to redeTnption and pi°epayment at
the option of the City on February 1, 2021 and any date thereafter, at a price of par plus acctlied
interest. Redemption inay be in whole or in part of the Bonds subject to prepayment. If redemption
is in part, the maturities and principal ainounts withill each manirity to be redeenzed shall be
determined by the City and if only part of the Bonds having a cornlnon matui-ity date are called for
prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar.
410457v1 MNI CR100-14
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CUSIP NUMI3�RS
If the Bonds qualify for assignment of CUSIP nuinbers such ntunbers will be printed on the Bonds,
but neither the failure to print such n�.tmbers on any Bond nor any error with respect thereto shall
constitute cause for a failure or refusal by the successfiil bidder thereof to accept delivery of and
pay for the Bonds in accordance with terms of the purchase conh•act. The CUSIP Seivice Bureau
charge for the assignment of CUSIP identification numbers shall be paid by the successfu] bidder.
D�LIV�I2Y
Delivery of the Bonds will be within forty days after award, subject to an approving legal
opinion by Kennedy and Graven, Chartered, Bond Counsel. The legal opinion will be paid by the
City and delivery will be anywl�ere in the continental United States without cost to the successful
bidder at DTC.
TYP� OI' PROPOSAL
Proposals of not less than $3,952,000 (98.80°Io) and acerued interest oi1 the principal sum of
$4,000,000 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, Ine. and addressed to:
Daniel Donahue, City Adniinistrator
Corcoran City Hall
8200 County Road 116
Corcoran, Minnesota 55340
A good faith deposit (the "Deposit") in the amount of $80,000 in the form of a federal wire
transfer (payable to the order of the City) is onlv required from the apparent winnin� bidder, and
must be received within two hours after the time stated for the receipt o� 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 ehoose to reject their Proposal and then proceed to offer the
Bonds to the next lowest bidder based on the terins of their original proposal, so long as said
bidder wires funds for the Deposit ainount within two hours of said offer.
The City will retain the Deposit of the successful biddei-, the anzount of which will be deducted at
settleinent and no interest will acerue to the successful bidder. In the event the successful bidder
fails to comply with the accepted Proposal, said amotu7t will be retained by the City. No Proposal
can be withdrawn after the time set foi- receiving Proposals Lu�less the meeting of the City
scl�eduled for award of the Bonds is adjoul•i�ed, recessed, or continued to another date without
award of the Bonds having been inade.
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AWARll
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a h�ie
interest cost (TIC) basis. The City's coinputation oF the interest rate of each Proposal, in
accordance with custoinary 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 teims herein.
INFORMATION FROM SUCCESSFUL I3IDD�R
The successful bidder will be required to provide, in a timely n�anner, certain information relating
to the iiutial offering pt�ice of the Boi�ds necessary to compute the yield on the Bonds pursuant to
the provisions of the Internal Revenue Code of 1986, as amended.
OFFICIAL STAT�MENT
By awarding the Bol�ds 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 sei7ior mana�ing 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).
LIMITEll CONTINUING DISCLOSURE CERTIFICATE
The Cit�� will covenant in the resolution awarding the sale of the Bonds and in a Continuing
Disclosure Certificate to provide, or cause to be provided, annual financial information, including
audited financial statemeuts of the City, and notices of certain inaterial events, as required by SEC
Rule 15c2-12.
I3ANK QUALIFICA'TION
The City wi11 designate the Bonds as qualitied tax-exempt obligations for purposes of Section
265(b)(3) of the Inten�al Revei�ue Code of 1986, as amended.
BONI) INSURANCE A7' UNDERWRITER'S OPTION
If the Bonds qLlalify for issuance of any policy of municipal bond insurance or commitment
therefol° at the option of 1he successful bidder, the purchase of any such insurance policy or the
issuailce of any such conzinitment 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 successfiil bidder, eYCept 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
410457v1 MN[CRI00-14 ,�
bond insurer to issue the policy after the Bonds have been awarded to the successfiil bidder shall
not constitute cause for failure or i-efusal by the successful bidder to accept delivery on the
Bonds.
The City i°eserves the right to reject any and all Proposals, to waive informalities and to adjourn
the sale.
Dated: September 13, 2012 BY ORDER OF THE CORCORAN CITY COUNCIL
Kel�neth Ciuenthner, Mayor
/s/ ni a
City Administrator
Additional information may be obtained from:
Northland Securities, Inc.
45 South 7`�' Street, Suite 2000
Minneapolis, Minnesota 55402
Telephone No.: 612-851-5900
a�oa;��i �iNi crzioo-l� g
3. Northland Securities, Inc. is authorized and directed to negotiate the Bonds in
accordance with the foi-egoing Notice of Sale. The City Council will meet at 7:00 P.M. on
Thursday, Octobei• 25, 2012, to consider proposals on the Bonds and take any other appropriate
action with respect to the Bonds, provided that no petition requesting� a referendum on the
question of issuing the Bonds has been filed within 30 days aiter the date hereof.
4. The law firm of Kennedy & Graven, Chairtered, as bond counsel for the City, is
authoi-ized 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 docLU7lents, certificat�es, and instruments.
5. In the resolution awarding the sale of the Bonds the City Council will set forth the
covenants and Luldertakings required by the Act.
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The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Ginach, and upon vote being taken thereon the following members voted in
favor of the motion: Guenthner, Asleson, Cossette, Gmach, and Milbrandt
and the following voted against: None
whereupon the resolution was declared dLily passed and adopted.
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STATE OF MINNESOTA )
)
COUNTY OF HENNEPIN )
)
CITY OF CORCORAN )
I, the undersigned, being the duly qualitied anc� acting City C1erk of the City of Corcoran,
Minnesota, hereby certify that I have carefizlly con7pared the attached and foregoing extract of
iniinites of a regular meeting of the City Council of the City held on Thursday, Septembei° 13,
2012, with the original minutes on file in n1y office and the extract is a full, true and correct copy
of the minutes, insofar as they relate to the issuance and sale of approximately $4,000,000
Genei-al Obligation Capital Improvement Plan Bonds, Series 2012B of the City.
WITNESS My hand as City Clerk and the corporate seal of the City this 19th day of
September, 2012.
.
• `�������
J nie Heinecke
ity Clerk
City of Corcoran, Minnesota
(SEAL)
4104�7v1 MNf CR100-14