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HomeMy WebLinkAbout2017-084 (providing for the competitive negotiated sale of $3,405,000 General Obligation Capital Outlay Bonds, Series 2017A) EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL CITY OF STILLWATER, MINNESOTA HELD: May 2, 2017 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Stillwater, Washington County, Minnesota, was duly held at the City Hall on May 2, 2017, at 7:00 P.M. for the purpose in part of authorizing the competitive negotiated sale of the $3,405,000 General Obligation Capital Outlay Bonds, Series 2017A. The following members were present: Councilmembers Menikheim, Junker, Weidner Polenha and Mayor Kozlowski and the following were absent: NONE Member Junker introduced the following resolution and moved its adoption: RESOLUTION NO.2017-084 RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $3,405,000 GENERAL OBLIGATION CAPITAL OUTLAY BONDS, SERIES 2017A A. WHEREAS, the City Council of the City of Stillwater, Minnesota(the "City"), has heretofore determined that it is necessary and expedient to issue $3,405,000 General Obligation Capital Outlay Bonds, Series 2017A (the "Bonds")to finance (i) the 2017 capital outlay needs of various City departments; (ii)renovation and remodeling of the police station; (iii) street improvement projects; and (iv)public works security improvements, pursuant to Minnesota Statutes, Chapter 475 and Sections 10.4, 10.5 and 10.6 of the City Charter, as more fully described in Exhibit B attached hereto; and B. WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota("Springsted"), as its independent financial advisor and is therefore authorized to sell these obligations by a competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota, as follows: 1. Authorization. The City Council hereby authorizes Springsted to solicit proposals for the competitive negotiated sale of the Bonds. 2. Meeting; Proposal Opening. This City Council shall meet at the time and place specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed proposals for, and awarding the sale of, the Bonds. The City Clerk or designee, shall open proposals at the time and place specified in such Terms of Proposal. * Preliminary;subject to change. - 1 - 3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby approved and made a part hereof 4. Official Statement. In connection with the sale, the City Clerk and other officers or employees of the City are hereby authorized to cooperate with Springsted and participate in the preparation of an official statement for the Bonds, and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by member Polehna and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski and the following voted against the same: None Whereupon the resolution was declared duly passed and adopted this 2nd day of May, 2017. 1-2:e`67 If?' Ted Kozlowski, Mayor ATTEST: A-44/. 0.Y• Diane F. Ward, City Clerk 2 8285291v1 STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF STILLWATER I, the undersigned, being the duly qualified and acting City Clerk of the City of Stillwater, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full,true and complete transcript of the minutes of a meeting of the City Council duly called and held on the date therein indicated, insofar as such minutes relate to the City's $3,405,000 General Obligation Capital Outlay Bonds, Series 2017A. WITNESS my hand on May 2, 2017. City Clerk 3 8285291 v EXHIBIT A THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $3,405,000* CITY OF STILLWATER,MINNESOTA GENERAL OBLIGATION CAPITAL OUTLAY BONDS, SERIES 2017A (BOOK ENTRY ONLY) Proposals for the above-referenced obligations (the "Bonds") will be received by the City of Stillwater, Minnesota(the "City") on Tuesday, June 6, 2017, (the "Sale Date")until 10:30 A.M., Central Time at the offices of Springsted Incorporated ("Springsted"), 380 Jackson Street, Suite 300, Saint Paul, Minnesota, 55101,after which time proposals will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Springsted will assume no liability for the inability of a bidder to reach Springsted prior to the time of sale specified above. 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. (a) Sealed Biddinji. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to Springsted. Signed proposals, without final price or coupons,may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and in the submitted proposal. coupons,ns bytelephone(651) 223 3000 or fax(651)223-3046 for inclusionp p p p OR (b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY®. For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible for making necessary arrangements to access PARITY®for purposes of submitting its electronic proposal in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City, its agents, nor PARITY® shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder,and neither the City, its agents, nor PARITY® shall be responsible for a bidder's failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services of PARITY®. The City is using the services of PARITY®solely as a communication mechanism to conduct the electronic bidding for the Bonds, and PARITY®is not an agent of the City. If any provisions of this Terms of Proposal conflict with information provided by PARITY®,this Terms of Proposal shall control. Further information about PARITY®, including any fee charged,may be obtained from: PARITY®, 1359 Broadway, 2nd Floor,New York,New York 10018 Customer Support: (212) 849-5000 * Preliminary;subject to change. - i - DETAILS OF THE BONDS The Bonds will be dated as of the date of delivery,and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2018. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts* follows: 2018 $390,000 2021 $325,000 2024 $340,000 2027 $145,000 2030 $85,000 2019 $310,000 2022 $330,000 2025 $350,000 2028 $ 80,000 2031 $85,000 2020 $320,000 2023 $335,000 2026 $140,000 2029 $ 80,000 2032 $90,000 * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds or the amount of any maturity in multiples of$5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per$1,000 of Bonds as that of the original proposal. Gross spread is the differential between the price paid to the City for the new issue and the prices at which the securities are initially offered to the investing public. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify "Years of Term Maturities" in the spaces provided on the proposal form. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"),New York, New York, which will act as securities depository for 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 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 purchaser, as a condition of delivery of the Bonds,will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable regulations of the Securities and Exchange Commission. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2025, and on any day thereafter, to redeem Bonds due on or after February 1, 2026. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption,the City will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All redemptions shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to finance (i) the 2017 capital outlay needs of various City departments; (ii) renovation and remodeling of the Police station; (iii) street improvement projects; and(iv)public works security improvements. -ii - BIDDING PARAMETERS Proposals shall be for not less than $3,370,950 plus accrued interest, if any, on the total principal amount of the Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals on the Sale Date 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.Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity must be 98.0%or greater. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. GOOD FAITH DEPOSIT To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to the City in the amount of$34,050 (the"Deposit")no later than 1:30 P.M., Central Time on the Sale Date. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier's check payable to the City; or (ii) a wire transfer. The lowest bidder shall be solely responsible for the timely delivery of its Deposit whether by check or wire transfer. Neither the City nor Springsted have any liability for delays in the receipt of the Deposit. If the Deposit is not received by the specified time,the City may, at its sole discretion, reject the proposal of the lowest bidder, direct the second lowest bidder to submit a Deposit,and thereafter award the sale to such bidder. Certified or Cashier's Check. A Deposit made by certified or cashier's check will be considered timely delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,380 Jackson Street, Suite 300, St. Paul,Minnesota 55101 by the time specified above. Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission of a federal wire reference number by the specified time. Wire transfer instructions will be available from Springsted following the receipt and tabulation of proposals. The successful bidder must send an e-mail including the following information: (i)the federal reference number and time released; (ii)the amount of the wire transfer; and(iii)the issue to which it applies. Once an award has been made, the Deposit received from the lowest bidder (the "Purchaser") will be retained by the City and no interest will accrue to the Purchaser. The amount of the Deposit will be deducted at settlement from the purchase price. In the event the Purchaser fails to comply with the accepted proposal, said amount will be retained by the City. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation of the interest rate of each proposal,in accordance with customary practice,will be controlling. 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 that the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder desires to purchase a policy,such indication,the maturities to be insured,and the name of the desired insurer must be set forth on the bidder's proposal. The City specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs associated with the issuance and administration of such policy and associated ratings and expenses (other than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Bonds. - iii - 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 will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. SETTLEMENT On or about June 29,2017,the Bonds will be delivered without cost to the Purchaser through DTC in New York, New York. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of Briggs and Morgan,Professional Association,of Minneapolis,Minnesota,and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has been made impossible by action of the City,or its agents,the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking (the "Undertaking") whereunder the City will covenant for the benefit of the owners of the Bonds to provide certain financial and other information about the City and notices of certain occurrences to information repositories as specified in and required by SEC Rule 15c2-12(b)(5). OFFICIAL STATEMENT The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Bonds,and said Preliminary Official Statement will serve as a near-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Preliminary Official Statement or for any additional information prior to sale,any prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul,Minnesota 55101,telephone(651)223-3000. A Final Official Statement(as that term is defined in Rule 15c2-12)will be prepared,specifying the maturity dates, principal amounts, and interest rates of the Bonds, together with any other information required by law. By awarding the Bonds to the Purchaser,the City agrees that,no more than seven business days after the date of such award, it shall provide without cost to the Purchaser up to 25 copies of the Final Official Statement. The City designates the Purchaser as its agent for purposes of distributing copies of the Final Official Statement to each syndicate member, if applicable. The Purchaser agrees that if its proposal is accepted by the City, (i)it shall accept designation and(ii)it shall enter into a contractual relationship with its syndicate members for purposes of assuring the receipt of the Final Official Statement by each such syndicate member. Dated May 2, 2017 BY ORDER OF THE CITY COUNCIL /s/Diane Ward City Clerk - iv - EXHIBIT B SCHEDULE OF 2017 BONDED CAPITAL OUTLAY DEPARTMENT PROJECT COSTS TOTAL PROJECT COSTS $ B-1 8285291v1