City Council Resolution 2013-86CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2013-086
PROVIDING FOR THE ISSUANCE AND SALE OF APPROXIMATELY $3,000,000
GENERAL OBLIGATION WASTEWATER TREATMENT
BONDS, SERIES 2013B
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 14, 2013, commencing at 7:00 P.M.
The following members of the Council were present: Clint Herbst, Lloyd Hilgart, Tom
Perrault, Glen Posusta, Brian Stumpf,
and the following were absent: None.
The following resolution was presented by Councilmember Stumpf who
moved its adoption:
RESOLUTION NO. 2013 -086
PROVIDING FOR THE ISSUANCE AND SALE OF
APPROXIMATELY $3,000,000 GENERAL OBLIGATION WASTEWATER TREATMENT
BONDS, SERIES 2013B
BE IT RESOLVED By the City Council of the City of Monticello, Wright County,
Minnesota (the "City ") as follows:
1. Background. It is hereby determined that:
(a) the City engineer has recommended the construction of various
improvements to the City's wastewater treatment facility (the "Project ");
(b) the City is authorized by Minnesota Statutes, Chapters 115, 444 and 475
(the "Act ") to issue and sell its general obligation bonds to finance improvements to the
City's wastewater treatment facility.
(c) it is necessary and expedient to the sound financial management of the
affairs of the City to issue approximately $3,000,000 General Obligation Wastewater
Treatment Bonds, Series 2013B (the "Bonds ") pursuant to the Act to provide financing
for the Project.
2. Sale Authorized. In order to provide financing for the Project, the City will
therefore issue and sell the Bonds in the approximate amount of $3,000,000. The Bonds will be
issued, sold and delivered in accordance with the terms of the following Notice of Sale:
(The remainder of this page is intentionally left blank.)
432829v I MM MN 190 -143 2
NOTICE OF SALE
$3,000,000*
GENERAL OBLIGATION WASTEWATER TREATMENT BONDS, SERIES 2013B
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 Tuesday, November 12,
2013, 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 Tuesday, November 12, 2013,
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 Tuesday, November 12, 2013.
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.
*
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.
432829v1 MNI MN190 -143 3
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 & 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 1, 2013
DATE OF ORIGINAL ISSUE OF BONDS
AUTHORITY/PURPOSE /SECURITY
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 115.46, 444 and 475, as
amended. Proceeds will be used to finance improvements to the City's wastewater treatment
facility and to pay the costs of issuing the Bonds. The Bonds are payable from net revenues of
the City's sewer utility system. 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. In addition, the City has covenanted and
obligated itself to be bound by the provisions of Minnesota Statutes, Section 446A.086 (the
"Credit Enhancement Act "), which provides for payment by the State of Minnesota, in the event
of a potential default of certain city and county debt obligations, of principal and interest on the
Bonds when due.
INTEREST PAYMENTS
Interest is due semiannually on each June 1 and December 1, commencing December 1, 2014, to
registered owners of the Bonds appearing 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.
432829v 1 MINI MN 190 -143 4
MATURITIES
Principal is due annually on December l., inclusive, in each of the years and amounts as follows:
Year
Amount
Year
Amount
Year
Amount
2014
$180,000
2019
$18500
2024
$210,000
2015
180,000
2020
19000
2025
21500
2016
18000
2021
195,000
2026
225,000
2017
180,000
2022
20000
2027
23000
2018
185,000
2023
20500
2028
240,000
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 1%. Rates must be in 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 1, 2022 through 2028 are subject to redemption and prepayment at
the option of the City on December 1, 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.
432829v1 MINI MN190 -143 5
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.
TYPE OF PROPOSAL
Proposals of not less than $2,962,500 (98.75 %) and accrued interest on the principal sum of
$3,000,000 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, 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 $60,000 in the form of a federal wire
transfer (payable to the order of the City) is only required from 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 Financial
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.
432829v I MNI MN 190 -143 6
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).
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.
BANK 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
432829v 1 MNI MN 190 -143 7
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 14, 2013 BY ORDER OF THE MONTICELLO
CITY COUNCIL
/s/ Wayne Oberg
Finance Director
Additional information may be obtained from:
Northland Securities, Inc.
45 South 7th Street, Suite 2000
Minneapolis, Minnesota 55402
Telephone No.: 612 - 851 -5900
432829v1 MNI MN190 -143 8
3. Authority of Financial Advisor. Northland Securities, Inc. is authorized and
directed to negotiate the Bonds in accordance with the foregoing Notice of Sale. The City
Council will meet at 7:00 P.M. on Tuesday, November 12, 2013, to consider proposals on the
Bonds and take any other appropriate action with respect to the Bonds.
4. Authority of Bond Counsel. 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.
5. Covenants. In the resolution awarding the sale of the bonds the City Council will
set forth the covenants and undertakings required by the Act.
6. Official Statement. In connection with the sale of the Bonds, the officers or
employees of the City are authorized and directed to cooperate with Northland Securities, Inc.
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.
7. State Credit Enhancement. In the resolution awarding the sale of the Bonds the
City will covenant and obligate itself to be bound by the provisions of Minnesota Statutes,
Section 446A.086, which provides for a guarantee by the 'State of Minnesota, acting through the
Minnesota Public Facilities Authority (the "Authority ") of any deficiency of debt service
payments on the Bonds. The City Council authorizes and directs the Mayor and the City
Administrator to execute a Credit Enhancement Program Agreement with the Authority, in
substantially the form on file with the City, which provides for the terms of the guarantee and
City repayment of any deficiencies on the Bonds paid for by the State of Minnesota, acting
through the Authority. The City Council additionally authorizes payment of the $500 application
fee to the Authority.
(The remainder of this page is intentionally left blank.)
432829v 1 MNI MN 190 -143 9
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Hilgart , and upon vote being taken thereon the following members
voted in favor of the motion: Herbst, Hilgart, Perrault, Posusta, Stumpf,
and the following voted against: None.
whereupon the resolution was declared duly passed and adopted by the Monticello City Council
at their regular meeting on October 14, 2013.
CITY OF MONTICELLO
a /- /?Z . Zoz-
Clint Herbst, Mayor
432829v l MNI MN 190 -143 10
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 Tuesday, October
14, 2013, 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 $3,000,000
General Obligation Wastewater Treatment Bonds, Series 2013B of the City.
WITNESS My hand as City Administrator and the corporate seal of the City this jy!�
day of October, 2013.
City AAWnistrator
City of Monticello, Minnesota
(SEAL)
432829v 1 MNI MN 190 -143