City Council Resolution 2014-103CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO® 2014 -103
PROVIDING FOR THE ISSUANCE AND SALE OF APPROXIMATELY
$6,510,000 GENERAL OBLIGATION BONDS, SERIES 2014A
BE IT RESOLVED By the City Council of the City of Monticello, Wright County, Minnesota
(the "City ") as follows:
1. It is hereby determined that:
a) the City is authorized by Minnesota Statutes, Section 412.301 (the "Equipment
Act ") to issue its general obligation certificates of indebtedness (the "Certificates ") on such terms
and in such manner as the City determines to finance the purchase of items of capital equipment,
subject to certain limitations contained in the Act;
(b) the City will purchase and acquire various items of capital equipment (the
"Equipment ") pursuant to the Equipment Act;
(c) as required by the Equipment Act,
(i) the expected useful life of the Equipment is or will be at least as long as
the term of financing the Equipment; and
(ii) the principal amount of the portion of the Bonds (as defined below) used
to finance the Equipment to be issued in the year 2014 will not exceed 0.25 percent
of the market value of taxable property in the City for the year 2014;
(d) the City is further authorized by the provisions of Minnesota Statutes, Chapter 475
(the "Municipal Finance Act ") to issue and sell its general obligation bonds to fund the judgment
entered against the City (the "Judgment ") in connection with the settlement of certain litigation
concerning the City's Telecommunications Revenue Bonds (Fibernet Monticello Project), Series
2008 (the "Series 2008 Bonds ");
(e) it is necessary and desirable that the City issue approximately $6,510,000 General
Obligation Bonds, Series 2014A (the "Bonds ") to fund the Judgment and to finance the Equipment;
2. To provide monies to finance the Equipment and to fund the Judgment, the City will
therefore issue and sell Bonds in the amount of $6,444,900. In order to provide in part the
additional interest required to market the Bonds at this time, additional Bonds will be issued in the
amount of $65,100. The excess of the purchase price of the Bonds over the sum of $6,444,900 will
be credited to the debt service fund for the Bonds for the purpose of paying interest first coming
due on such additional Bonds, unless otherwise provided in the resolution awarding sale of the
Bonds. The amounts cited above are subject to adjustment in accordance with the Terms of
Proposal. The Bonds will be issued, sold and delivered in accordance with the terms and conditions
of the following Terms of Proposal (Notice of Sale).
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NOTICE OF SALE
$6,510,000
GENERAL OBLIGATION BONDS, SERIES 2014A
CITY OF MONTICELLO, 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 Finance Director, or designee, on Monday, November 10, 2014, 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 beginning Monday, November 10, 2014, 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 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 10:30 A.M., CT, on November 10, 2014. Proposals may be submitted
electronically via PARITYTM 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 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 -Deal® at 1359 Broadway, 2nd 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.
BOOK -ENTRY SYSTEM
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
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.
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& Co. as nominee of Depository Trust Company ( "DTC "), 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 U.S. Bank National Association, St. Paul, 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.
December 15, 2014
DATE OF ORIGINAL ISSUE OF BONDS
AUTHORITY/PURPOSE /SECURITY
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 412.301, as amended.
Proceeds will be used to: (i) fund the judgment entered against the City in connection with the settlement
of certain litigation concerning the City's Telecommunications Revenue Bonds (Fibernet Monticello
Project), Series 2008; (ii) purchase capital equipment for use by the City and; (iii) to pay the costs of issuing
the Bonds. The Bonds are valid and binding general obligations of the City and are payable solely from
unlimited ad valorem property taxes levied against all taxable property in the City and without limitation
of amount. 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 to pay all principal and interest payments on this issue.
INTEREST PAYMENTS
Interest is due semiannually on each June 15 and December 15, commencing December 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.
MATURITIES
Principal is due annually on December 15, inclusive, in each of the years and amounts as follows:
Year
Amount
Year
Amount
Year
Amount
2016
$405,000
2021
$430,000
2026
$425,000
2017
405,000
2022
44000
2027
440,000
2018
410,000
2023
450,000
2028
450,000
2019
415,000
2024
460,000
2029
465,000
2020
4209000
2025
410,000
2030
485,000
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.
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INTEREST RATES
All rates must be in integral multiples of 1 /20th or 1 /8th of 1 %. bates must be an level or ascending order.
All Bonds of the same maturity must bear a single uniform 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 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.
OPTIONAL REDEMPTION
Bonds maturing on December 15, 2022 through 2030 are subject to redemption and prepayment at the
option of the City on December 15, 2021 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.
EXTRAORDINARY OPTIONAL REDEMPTION
The Bonds are also subject to extraordinary optional redemption, in whole or in part, at a redemption price
equal to par plus accrued interest, in the event the City sells or leases its Fiber Optic System to a private
entity, causing the Bonds to become taxable for federal and state income tax purposes. Upon determination
of taxability, notice will be given to bondholders not less than thirty (30) days prior to the redemption date.
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
Delivery of the Bonds will be within forty days after award, subject to an approving legal opinion by
Kennedy &. Graven, Chartered, 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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TYPE OF PROPOSAL
Proposals of not less than $6,444,900 (99.00 %) and accrued interest on the principal sum of $6,510,000
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:
Wayne Oberg, Finance Director
Monticello City Hall
505 Walnut Street
Monticello, Minnesota 55362
A good faith deposit (the "Deposit ") in the amount of $130,200 in the form of a federal wire transfer
(payable to the order of the City) is only required from the apparent winning bidder, idder, 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 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.
AWARD
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.
INFORMATION FROM SUCCESSFUL BIDDER
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.
OFFICIAL STATEMENT
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).
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FULL CONTINUING DISCLOSURE CERTIFICATE
The City 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
statements of the City, and notices of certain material events, as required by SEC Rule 15c2 -12.
BAND QUALIFICATION
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.
BOND INSURANCE AT UNDERWRITER'S OPTION
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: October 13, 2014 BY ORDER OF TBE MONTICELLO CITY COUNCIL
/s/ Wayne Ober_
Finance Director
Additional information may be obtained from:
Northland Securities, Inc.
45 South 71 Street, Suite 2000
Minneapolis, Minnesota 55402
Telephone No.: 612- 851 -5900
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3. Northland Services, Inc. is authorized and directed to negotiate the Bonds in accordance
with the foregoing Terms of Proposal. The City Council will meet at 7:00 P.M. on Monday,
November 10, 2014, to consider proposals on the Bonds and take any other appropriate action with
respect to the Bonds.
4. The law firm of Kennedy & Graven, Chartered, as bond counsel for the City, is authorized
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 documents,
certificates, and instruments.
ADOPTED BY the City Council of Monticello this 13th day of October, 2014.
CITY OF MONTICELLO
Clint erbst, Mayor
ATTEST:
Jeffr9vlll, City Administrator
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Extract of Minutes of Meeting
of the City Council of the
City of Monticello, Wright County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council of the City of
Monticello, Wright County, Minnesota, was held at the City Hall in the City on Monday, October
13, 2014, commencing at 7:00 P.M.
The following members of the Council were present: Mayor Clint Herbst and
Councilmembers Lloyd Hilgart, Tom Perrault, Glen Posusta, and Brian Stumpf,
and the following were absent: None
The motion for the adoption of the foregoing resolution was made by Councilmember Hilgart and duly
seconded by Councilmember Perrault, and upon vote being taken thereon the following members voted in
favor of the motion: Herbst, Hilgart, Perrault, Posusta, and Stumpf,
and the following voted against: None
whereupon the resolution was declared duly passed and adopted.
J
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STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF MONTICELLO
I, the undersigned, being the duly qualified and acting City Administrator of the City of Monticello,
Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of
a regular meeting of the City Council of the City held on Monday, October 13, 2014, with the original
minutes on file in my 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 $6,510,000 General Obligation Bonds, Series 2014A of the
City.
WITNESS my hand as City Administrator and the corporate seal of the City this 13th day of
October, 2014.
Qot� (!9/zct-�
City d trator
City of Monticello, Minnesota
(CITY SEAL)
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