HomeMy WebLinkAboutResolution 2012-48 Providing for Issuance and Sale of GO CIP Bond $445,000�Cit�� of Corcorcrn
Cozrr�ry of Hennepin
St�rte of �9innesota
RESOL UTION NO. 2012-48
Extract of Minutes of Meeting
of the City Council of the City
of Corcoran, Hennepin County, Minnesota
Septen�ber 13, 2011
Pursuant to due call and i�otice tllereof a regulai- meeting of tlle City Council of the City of
Corcoran, Hennepill Cotu�ty, Minnesota, was held at the City Hall in the City on Thursday, September 13,
2012, commencing at 7:00 P.M.
The following members of the Council were present: Mayor Guenthner, Council Members
Asleson, Cossette, Gmach �nd Milbi-andt
and the following were absent: None
**� �*=� �*�
The following resolution was prese»ted by Councilmember Gmach who moved its adoption:
RESOLUTION N0. 2012-48
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
APPROXIMATELY $445,000 GENERAL OBLIGATION EQUIPMENT
CERTIFICATES OF INDEBTEDNESS, SERIES 2012A
BE IT RESOLVED By the City Council of the City of Coi-coran, Hennepin County, Mini�esota
(tl�e "City") as follows:
It is hereby deteri��ined that:
a) the City is authorized by Minnesota Statutes, Section 412,301 (the "Act") to issue
its genera] obligatio» certificates of indebtedness (the "Certificates") on s�ich terms and in such
ma��ner as the City determines to fii�ance the purchase of items of capital equipment
(t]Ie "Equipment"), subject to certain ]imitations co�ltained in the Act;
(b) the City wil( purchase and acquire va�-ious items of Equipment, which items and
the cost thereof, are listed on Exhibit A, attached hereto and made a part hereof;
(c) as required by the Act,
(i) the expected useful life of each item of Equipment is or will be at least as
long as the tei-m of the Certificates; and
(ii) the pi-ii�cipal ai��ount of Certificates to be issued in tlle year 2012 will
exceed 0.25 percent of the marl<et value of taxable p�°operty in the City for the
year 2012;
(d) it is necessai-y and expedient to the sound financial management of the affairs of
the City to issue appi-oximately $445,000 General Obligatio�l Equipine��t Cei-tificates of
Indebtedness, Series 2012A pui°suai�t to tlle Act to provide financi��g for the Equipment.
2. In order to provide financi��g for the Equipment, the City will therefore issue and sell
Certificates in the amount of $438,325. To pr-ovide in part the additional il�terest required to market tl�e
Certificates at this time, additional Cei-tificates will be issued in the amo�ult of $6,675. The amounts cited
above are subject to adjustment iil accordance with the Notice of Sale. The Certifieates will be issued,
sold and defivered in accordance with the terms of the fol]owing Notice of Sale:
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410446v1 MNf CRI00-14 2
NOTICE OF SAL�
$445,000�
GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2012A
CITY OF CORCORAN, MINNESOTA
(Bool;-Entry Only)
NOTICE IS HEREBY GIVEN that these Certificates will be offered for sale according to the followi�Ig
tenns:
TTME ANll 1'LACE:
Proposals will be opened by tlle City's Administrator, or designee, on T1lursday, October 25, 2012, at
10:30 A.M., CT, at the offices of Northland Sec�ii•ities, Inc., 45 South 7t11 Street, Sl�ite 2000, Mii�neapolis,
Minnesota 55402. Coilsideratioi� of tlle Proposals for award of the sale will be by the City Council at its
meeting at the City Offices beginning Thursday, October 25, 2012 at 7:00 P.M., CT.
SUI3MISSION OF PI20POSALS
Proposals may be:
a) submitted to the office of No�-thland Secui-ities, Ii�c.,
b) faxed to Northlai�d Securities, Ine. at 612-851-59 ] 8,
c) for proposals submitted prior to the sale, the final price and coupon rates may be submitted to
Northland Secw-ities, Inc. by telephone at 612-851-5900 or 612-851-4920, or
d) submitted elect�°onically.
Notice is hereby given that eleetronic proposals will be received via PARITY�M, or its successor, in the
mani�er described below, until 10:30 A.M., CT, on Thursday, October 25, 2012. Proposals may be
submitted electronically via PARITY��' oi° its successot-, pursuant to this Notice until 10:30 A.M., CT, but
no Proposa] will be received after the time for receiving Proposals specified above. To the extent any
instructions or direetions set forth in PARITYT��, or its successor, conflict with this Notice, the tei°ms of
this Notice shall control. Foi• further i»formation about PARITY�M, or its successor, potential bidders may
co��tact Northla��d Sec�u-ities, Inc. oi- i-Deal" at 1359 Broadway, 2°d floor, New Yoi-k, NY IOOlB,
telepllone 212-849-5021.
Neither the City nor Northland Secur-ities, I��c. assui��es any li�bility if there is a malfu��ction of PARITY��'
oi° its successor. All bidders are advised that each Proposal shall be deemed to coi�stitute a contract between
the bidder and the City to purchase the Certificates regardless of the manner in which the Proposal is
submitted.
* The City reserves the right to inerease or decrease the principal amount of the Ccrtif icates. Any such inerease or decrease ��-ill
be made in multiples of $�,000 and may be made in any maturity. If any maturity is ad,justed, the purchase price will also be
acljusted to maintain the same gross spread.
410446v1 MNI CR100-14
BOOK-ENT'RY SYSTEM
The Certificates will be issued by means of a book-entry system with no physical distribution of bond
certificates made to tl�e public. The Certificates will be issued in f�illy registered form and one bond
certificate, repi-ese»ting the aggregate principal amoul�t of the Certificates maturing in each year, will be
1-egistered in the name of Cede & Co. as noi��i�lee of Depositoiy Trust Company ("DTC"), New York, New
York, which will act as securities depository of the Cei�tificates.
I��dividual p�il°chases of the Certificates may be inade in the principal amotult of $S,OOQ oi° any multiple
thereof of a single maturity through book ei�tries made on the books and records of DTC and its
participanis. Pri��cipal and interest are payable by the Ciry through Northlai�d Ti-ust Services, Inc.
Minneapolis, Minilesota (the "Paying Agent/Registrai"), to DTC, or its nominee as registered ow��er of
the Certificates. Tra»sfei- of principal and interest payme��ts to participants of DTC will be the
responsibility of DTC; transfer of p�°incipal and ii�terest payments to beneficial owi�ers by participai�ts will
be the respoilsibility of such participants and other i�oi��inees of beneficial owners. The successful bidder,
as a conditio❑ of delivery of the Certificates, will be required to deposit the bond certificates with DTC.
The City will pay reasoilable and customary cllarges for the services of the Payii�g Agent/Registra�°.
November 1, 2012
DATE OF ORIGINAL ISSUE OF CERTIFICATES
AUTI-IORITY/PUI21'OS�/SECURI'TY
The Certificates are bei�lg issued pursuant to Mini�esota Statutes, Chapters 475 and 412.301. Proceeds
will be used to (i) finance the acquisition of capital equipinent (ii) and pay the costs associated with the
issuance of the Cei-tificates. The Certificates are valid and binding general obligations of the City and al-e
payable solely from ad vaforem 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.
INTEI2�ST PAYMEN'TS
Interest is due semiani�ually on each Novembei- 1 and May l, commeilcii�g November 1, 201�, to registered
owners of the Certificates appearing of record in ihe Bond Register as of the close of business on the
Eifteenth day (whether or not a business day) of the calenclar month preceding such interest payment date.
MATUI2ITIES
Prii�cipal is due a»nually on Novei��be�- l, inclusive, ii1 each of the years and amounts as follows:
Year
2013
2014
2015
2016
2017
Amount
$40,000
40,000
45,000
45,000
45,000
Year
2018
2019
2020
2021
20?2
f�I1l0Ullt
$45,000
45,000
45,000
45,000
50,000
Proposals for the Certificates may contain a maturity sched��le providin� for any combination of serial
Certificates and term Certificates, subject to mandatoiy redemption, so long as the amount of principal
410446v1 MNI CR100-14 4
mat��ring or subject to mai�datoiy redemption ii� each year confora»s to the maturity sched�ile set fort11
above.
INTEREST RATES
All rates must be in ii�tegral multiples of 1/20th or l/8th of 1%. Rates ma�st be in level or asce�ding order.
All Cei-tificates of the same maturity must bear a single uniform rate from date of issue to nlaturity.
ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER PROPOSALS
The City resei-ves the right to increase o�- decrease the principal amount of the Certificates. Any such
increase or deci°ease will be made in multiples of $5,000 and may be made i�1 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 pi-omptly aft�ei° the sale ai�d prior to the award of Proposals by the City and
shall be at the sole disci•etion of tlle City, The successful bidder may not withdraw or modify its Proposal
once submitted to the City foi- any reason, including post-sale adjustine�lt. Ai�y adjustment shall be
coi�clusive and sllall be binding upoi� the successful bidde�-.
OI'TIONAL REDEMPTTON
Certificates mat�u-ing on November l, 2Q18 th�-ough 2022 are subject to redemption and prepayment at the
option of the City on November l, 2017 and any date thereafter, at a price of par plus acerued interest.
Redemption may be in whole or in part of the Certificates subject to prepayment. If redemption is in part,
the mat��rities a��d pr-iilcipal amounts witl�in each maturity to be redeemed shall be determiiled by the City
and if only part of the Certificates having a comillon mat�u•ity date �i°e called foi° prepayment, the specific
Certificates to be pi-epaid sllall be chosen by lot by the E3ond Regist�-ar.
CUSIP NUMBE�2S
If the Ce��ificates qualify for assignmeilt of CUSIP numbers such numbers will be printed on the
Certificates, but neither the failure to print s�ich numbers on any Certificate nor any error with respect
thereto shall eonstitute cause for a failure or 1-efusal by the successful biddei° thereof to accept delivery of
and pay for the Certificates i» accoi°danee with terms of the purchase contract. Tl�e CUSIP Serviee Burea�i
charge for the assignment of CUSIP identification numbers shall be paid by the successful bidder.
DELIVrRY
Delivery of the Ceiiificates will be within fort�y days after award, subject to an appi-oving legal opinion by
Keni�edy and Graven, Chartered, Bond Counsel. The legal opinion will be paid by the City ai�d delive�y
will be anywher-e i» the continental Ui�ited States �-vithout cost to the successful bidde�° at DTC.
'I'YPE OF PROI'OSAL
Proposals of not less than $438,325 (98.50%) ancl acci-ued intei-est on the principal sum of $445,000 must
be filed with the ui�dersigned pi-ior to tl�e ti���e of sale. Proposals must be u»conditional except as to
legality. Proposals fo�- the Cei-tificates should be delivered to Northland Secui-ities, Inc. and addressed to:
Daniel Donal�ue, City Administrator
Corcoran City Hall
8200 Co�mty Road 1 16.
Coi•corai�, Minnesota 55340
410446v1 MNI CRI00-14
A good faith deposit (the "Deposit") in the amount of $8,900 in the form of a federal wire trailsfer
(payable to the orde�° of the City) is only required from the apparent winnina bidder, and must be received
within iwo hours after the tiine stated for the receipt of Pl�oposals. The appai-ent winni��g bidder will
receive i�otification of the wire i»structions fi-om the Financial Advisor promptly after the sale. If the
Deposit is not �°eceived fi-om tl�e apparent winning bidder in the time allotted, the City may choose to
reject their Proposal and then proceed to offer the Certificates to the next Jowest bidder based o�� the terms
of theie original proposal, so long as said bidder wires funds fo�° the Deposit amount within two houl-s of
said offer.
The City will retain the Deposit of the successful bidder, the amoui�t of which will be deducted at settlement
and no interest will acerue to the successful biddei-. In the evei�t the successful bidder fails to co���ply with
the accepted Proposal, said amount will be retained by the City. No Proposal can be withdi-awn after the
tin�e set for receiving Proposals unless the meeting of tlle City scheduled for awai°d of the Cei-tificates is
adjourned, recessed, or coi�tinued to another date without award of the Certificates having been made.
AWAI2D
The Cei-tificates will be awarded on the basis of the lowest interest i-ate to be detei-mii�ed on a true interest
cost (TIC) basis. The City's eomputatio�l of tlle interest rate of each Proposal, in accordanee with eustomary
practice, will be controllii�g. In the event of a tie, the sale of the Certificates will be awarded by lot. The City
will reserve the right to: (i) waive non-substantive informalities of any Proposal or of mattecs relati��g to the
i°eceipt of Proposals and award of the Certifcates, (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 rROM SUCCESSrUL BIDDER
The successful biddei° will be required to pi-ovide, in a timely manner, certain information relating to tlle
initial offerii�g price of the CertiCcates necessary to comp��te the yield on the Certificates pursuant to the
provisions of tl�e Internal Reven�ie Code of 1986, as amended.
OFFICIAL STATEMENT
By awarding fhe Certificates to any underw�°iter or uncler�vritin� syildicate subn�itting a Proposal tllerefor,
the City agrees that, no more than seven business days aftei- the date of such award, it shall provide to the
senior managing underwriter of the syndicate to which the Certificates are awarded, the Final Official
Statement in an electronic fo�-mat as prescribed by the Municipal Securities Rulemaking Board (MSRB).
LIMITED CONTINUING DISCLOSURE CERTIFICATE
The City will covenant in the resolution awarding the sale of the Certificates and ii1 a Continuing Disclosure
Certificate to pcovide, or cause to be provided, annual financial informatioi�, includii�g audited fnancial
statements of the City, and notices of certaiil material events, as required by SEC Rule I Sc2-12.
BANK QUALIFICA"TION
The City will designate the Certificates as qualified tax-exempt obligations for ptu-poses of Section
265(b)(3) of the Internal Revenue Code of 1986, as amended.
410446v1 MNI CRI00-14
CERTIFICATE INSURANCE AT UNDERWRITER'S OPTTON
If the Certificates 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
sucll commitinent shall be at the sole option and expe��se of tl�e successfLll bidder of the Certi�cates. A��y
increase in the costs of issuance of the Cei�tificates resulting from such purchase of insurance shall be paid
by tl�e successful biddei-, except that, if the City llas requested ancl i-eceived a rating on the Certi�cates
from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the
responsibility of the successful bidder. Failui-e of the m�micipal Certifieate insui•er to issue the policy after
the Certificates have been awarded to the successful bidder shall not constitute cause for failure or refusal
by the successful bidder to accept delive�y on the Certi�cates.
The City reserves the 1-ight to reject any and all Proposals, to waive infori��alities and to adjow•n the sale.
Dated: Septenlber 13, 2012 BY ORDER OF THF, CORCO AN CITY OUNCIL
Kenneth ' ienthner, Mayo
�
/s/ ona�ue �
Ci y Ad�niilistrator
Additional information may be obtained from:
Northland Securities, Inc.
45 South 7`�' Sti-eet, Suite 2000
Minneapolis, Minnesota 55402
Telephone No.: 612-851-5900
410446v1 MNI CRI00-14 .�
3. Nor-thland Sec��rities, Inc. is authorized and directed to negotiate the Certificates in
accordance with the foregoing Notice of Sale. The City Cow�cil will meet at 7:00 P.M. on Thur�sday,
October 25, 2012, to co��sider proposals on the Certificates and tal<e ai�y other appropriate action with
respect to the Certificates.
4. The law firm of Kennedy & Graven, Chartered, as bond counse] foi- the City, is
a�ithorized to act as bond counsel and to assist in the preparaiio» and review of necessary documents,
certificates and instr�iments i-elating to the Certifcates. The officers, employees and agents of the City ai•e
Ilereby a�ithorized to assist I<ennedy & Grave��, Chartered in the pi•eparation of such documents,
certificates, and instrumeilts.
5. In the resol�ition awarding the sale of the Certificates tl�e City Council wi11 set forth the
covenants and undertal:ings requir-ed by the Act.
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410446v1 MNI CRI00-14 g
The motion for the adoption of the foeegoing resolution was d�ily seconded by Councilmember
Milb�°andt, and ��po�� vote being taken thereon the following mei��bers voted in favor of the ��ZOtion:
Guenthner, Asleson, Cossette, Gmach, Milbi•andt.
and the following voted against: None
whereupon the reso]utio❑ was declared duly passed and adopted.
410446v1 MNI CRI00-14 �
STATE OF MINNESOTA )
)
COUNTY OF HENNEPIN )
)
CITY OF CORCORAN )
I, the ui�dersigned, bei��g the duly qualified and acting City Clerk of the City of Corcoran,
Minnesota, heceby certify that I have carefully compared the attached and foregoing extract of minutes of
a regular meeting of the City Council of tl�e City held on Thursday, September 13, 20] 2, with the oi-iginal
minutes on file in my of�ce and the exh-act is a full, true and correct copy of the minutes, insofal° as they
relate to tl�e issuance and sale of approximately $445,000 Genel-al Obligation Equipment Certificates of
Indebtedness, Series 2012A of the City.
WITNESS My hand as City Clerl:-Treasurer and the co�-�orate sea] of the City this 19th day of
September, 2012.
(SEAL)
410446v1 MNI CR(00-14
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� Cle�-1:
City of Corcoran, Minnesota
EXHIBIT A
Equipment to be Financed
3 squads
Support & protection equip�nent
2 mobile radios
Tai�dem du��p trucl<
Tracl< sl<id loader
Mini Excavator
Road shouldel-ing machine
Mower
Co�u�cil chambei-s in7provements
Council chambers fucnittu�e
410446v1 MNf CRI00-14