Res 2015- 86 Award Resolution 2015B
Resolution2015-86
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL
CITY OF MENDOTA HEIGHTS, MINNESOTA
HELD: November 3, 2015
Pursuant to due call, a regular meeting of the City Council of the City of Mendota
Heights, Dakota County, Minnesota, was duly held at the City Hall on November 3, 2015, at
8:00 P.M. for the purpose, in part, of awarding the sale of $1,475,000 General Obligation
Refunding Bonds, Series 2015B.
The following members were present: Sandra Krebsbach, Ultan Duggan, Liz Petschel, Michael
……………………………………… Povolny
and the following were absent: Stephen Norton
Member Petschel introduced the following resolution and moved its adoption:
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,475,000 GENERAL
OBLIGATION REFUNDING BONDS, SERIES 2015B AND PLEDGING FOR THE
SECURITY THEREOF LEVYING A TAX FOR THE PAYMENT THEREOF
A.WHEREAS, the City of Mendota Heights, Minnesota (the "City"), hereby
determines and declares that it is necessary and expedient to provide moneys for a current
refunding on February 1, 2016 (the "Call Date") of the City's outstanding $2,790,000 original
principal amount of General Obligation Bonds, Series 2007A, dated June 27, 2007 (the "Prior
Bonds"), which mature on and after February 1, 2017, in the principal amount of $1,515,000 (the
"Refunded Bonds"), at a price of par plus accrued interest, as provided in the Resolution of the
City Council, adopted on June 5, 2007 (the "Prior Resolution"); and
B.WHEREAS, the refunding of the Refunded Bonds on the Call Date is consistent
with covenants made with the holders thereof, and is necessary and desirable for the reduction of
debt service cost to the City; and
C.WHEREAS, the City Council hereby determines and declares that it is necessary
and expedient to issue $1,475,000 General Obligation Refunding Bonds, Series 2015B (the
"Bonds" or, individually a "Bond"), pursuant to Minnesota Statutes, Chapter 475, to provide
moneys for a current refunding of the Refunded Bonds; and
D.WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville,
Minnesota ("Ehlers"), as its independent financial advisor for the sale of the Bonds and was
therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota
Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been
solicited by Ehlers; and
E.WHEREAS, the proposals set forth on Exhibit A attached hereto were received
by the Clerk, or designee, at the offices of Ehlers at 10:00 A.M., this same day pursuant to the
Preliminary Official Statement; and
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F.WHEREAS, it is in the best interests of the City that the Bonds be issued in book-
entry form as hereinafter provided; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mendota
Heights, Minnesota, as follows:
1.Acceptance of Proposal. The proposal of FTN Financial Capital Markets,
Memphis, Tennessee (the "Purchaser"), to purchase the Bonds in accordance with the
Preliminary Official Statement, at the rates of interest hereinafter set forth, and to pay therefor
the sum of $1,542,119.21, plus interest accrued to settlement, is hereby found, determined and
declared to be the most favorable proposal received and is hereby accepted, and the Bonds are
hereby awarded to the Purchaser. The Finance Director is directed to retain the deposit of the
purchaser and to forthwith return to the unsuccessful bidder and any good faith checks or drafts.
2.Terms of Bonds.
(a)Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds
shall be dated November 24, 2015, as the date of original issue and shall be issued forthwith on
or after such date in fully registered form. The Bonds shall be numbered from R-1 upward in the
denomination of $5,000 each or in any integral multiple thereof of a single maturity (the
"Authorized Denominations"). The Bonds shall mature on February 1 in the years and amounts
as follows:
YearAmount
2017 $190,000
2018 205,000
2019 205,000
2020 210,000
2021 215,000
2022 220,000
2023 230,000
All dates are inclusive. As may be requested by the Purchaser, one or more term Bonds
may be issued having mandatory sinking fund redemption and final maturity amounts
conforming to the foregoing principal repayment schedule, and corresponding additions may be
made to the provisions of the applicable Bond(s).
(b)Book Entry Only System. The Depository Trust Company, a limited purpose
trust company organized under the laws of the State of New York or any of its successors or its
successors to its functions hereunder (the "Depository") will act as securities depository for the
Bonds, and to this end:
(i)The Bonds shall be initially issued and, so long as they remain in book entry form
only (the "Book Entry Only Period"), shall at all times be in the form of a separate
single fully registered Bond for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized
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Denominations for any Bond shall be deemed to be limited during the Book Entry
Only Period to the outstanding principal amount of that Bond.
(ii)Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar (as hereinafter defined) in the name of
CEDE & CO, as the nominee (it or any nominee of the existing or a successor
Depository, the "Nominee").
(iii)With respect to the Bonds neither the City nor the Bond Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial
institution for which the Depository holds Bonds as securities depository (the
"Participant") or the person for which a Participant holds an interest in the Bonds
shown on the books and records of the Participant (the "Beneficial Owner").
Without limiting the immediately preceding sentence, neither the City, nor the
Bond Registrar, shall have any such responsibility or obligation with respect to
(A) the accuracy of the records of the Depository, the Nominee or any Participant
with respect to any ownership interest in the Bonds, or (B) the delivery to any
Participant, any Owner or any other person, other than the Depository, of any
notice with respect to the Bonds, including any notice of redemption, or (C) the
payment to any Participant, any Beneficial Owner or any other person, other than
the Depository, of any amount with respect to the principal of or premium, if any,
or interest on the Bonds, or (D) the consent given or other action taken by the
Depository as the Registered Holder of any Bonds (the "Holder"). For purposes
of securing the vote or consent of any Holder under this Resolution, the City may,
however, rely upon an omnibus proxy under which the Depository assigns its
consenting or voting rights to certain Participants to whose accounts the Bonds
are credited on the record date identified in a listing attached to the omnibus
proxy.
(iv)The City and the Bond Registrar may treat as and deem the Depository to be the
absolute owner of the Bonds for the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds, for the purpose of
obtaining any consent or other action to be taken by Holders for the purpose of
registering transfers with respect to such Bonds, and for all purpose whatsoever.
The Bond Registrar, as paying agent hereunder, shall pay all principal of and
premium, if any, and interest on the Bonds only to the Holder or the Holders of
the Bonds as shown on the bond register, and all such payments shall be valid and
effective to fully satisfy and discharge the City's obligations with respect to the
principal of and premium, if any, and interest on the Bonds to the extent of the
sum or sums so paid.
(v)Upon delivery by the Depository to the Bond Registrar of written notice to the
effect that the Depository has determined to substitute a new Nominee in place of
the existing Nominee, and subject to the transfer provisions in paragraph 10,
references to the Nominee hereunder shall refer to such new Nominee.
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(vi)So long as any Bond is registered in the name of a Nominee, all payments with
respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the
Bond Registrar or City, as the case may be, to the Depository as provided in the
Letter of Representations to the Depository required by the Depository as a
condition to its acting as book-entry Depository for the Bonds (said Letter of
Representations, together with any replacement thereof or amendment or
substitute thereto, including any standard procedures or policies referenced
therein or applicable thereto respecting the procedures and other matters relating
to the Depository's role as book-entry Depository for the Bonds, collectively
hereinafter referred to as the "Letter of Representations").
(vii)All transfers of beneficial ownership interests in each Bond issued in book-entry
form shall be limited in principal amount to Authorized Denominations and shall
be effected by procedures by the Depository with the Participants for recording
and transferring the ownership of beneficial interests in such Bonds.
(viii)In connection with any notice or other communication to be provided to the
Holders pursuant to this Resolution by the City or Bond Registrar with respect to
any consent or other action to be taken by Holders, the Depository shall consider
the date of receipt of notice requesting such consent or other action as the record
date for such consent or other action; provided, that the City or the Bond Registrar
may establish a special record date for such consent or other action. The City or
the Bond Registrar shall, to the extent possible, give the Depository notice of such
special record date not less than fifteen calendar days in advance of such special
record date to the extent possible.
(ix)Any successor Bond Registrar in its written acceptance of its duties under this
Resolution and any paying agency/bond registrar agreement, shall agree to take
any actions necessary from time to time to comply with the requirements of the
Letter of Representations.
(x)In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in
paragraph 5, make a notation of the reduction in principal amount on the panel
provided on the Bond stating the amount so redeemed.
(c)Termination of Book-Entry Only System. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows:
(i)The Depository may determine to discontinue providing its services with respect
to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may
terminate the services of the Depository with respect to the Bond if it determines
that the Depository is no longer able to carry out its functions as securities
depository or the continuation of the system of book-entry transfers through the
Depository is not in the best interests of the City or the Beneficial Owners.
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(ii)Upon termination of the services of the Depository as provided in the preceding
paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the
City, is willing and able to assume such functions upon reasonable or customary
terms, or if the City determines that it is in the best interests of the City or the
Beneficial Owners of the Bond that the Beneficial Owners be able to obtain
certificates for the Bonds, the Bonds shall no longer be registered as being
registered in the bond register in the name of the Nominee, but may be registered
in whatever name or names the Holder of the Bonds shall designate at that time,
in accordance with paragraph 10. To the extent that the Beneficial Owners are
designated as the transferee by the Holders, in accordance with paragraph 10, the
Bonds will be delivered to the Beneficial Owners.
(iii)Nothing in this subparagraph (d) shall limit or restrict the provisions of paragraph
10.
(d)Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by reference and made a part of the resolution, and if and to the extent any
such provisions are inconsistent with the other provisions of this resolution, the provisions in the
Letter of Representations shall control.
3.Purpose; Refunding Findings. The Bonds shall provide funds for a current
refunding of the Refunded Bonds (the "Refunding"). It is hereby found, determined and declared
that the Refunding is pursuant to Minnesota Statutes, Section 475.67, and shall result in a
reduction of debt service cost to the City.
4.Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 2016,
calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows:
Maturity Year Interest Rate
2017 2.00%
2018 2.00
2019 2.00
2020 2.00
2021 2.00
2022 3.00
2023 3.00
5.No Optional Redemption. The Bonds shall not be subject to redemption and
prepayment prior to their stated maturity dates.
6.Bond Registrar. Bond Trust Services Corporation, in Roseville, Minnesota, is
appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
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pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12.
7.Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF MENDOTA HEIGHTS
R-_______ $_________
GENERAL OBLIGATION IMPROVEMENT REFUNDING BOND, SERIES 2015A
Interest Rate Maturity Date Date of Original Issue CUSIP
%February 1, November 24, 2015
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
The City of Mendota Heights, Dakota County, Minnesota (the "Issuer"), certifies that it is
indebted and for value received promises to pay to the registered owner specified above, or
registered assigns, in the manner hereinafter set forth, the principal amount specified above, on
the maturity date specified above, without option of prior redemption, and to pay interest thereon
semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"),
commencing August 1, 2016, at the rate per annum specified above (calculated on the basis of a
360-day year of twelve 30-day months) until the principal sum is paid or has been provided for.
This Bond will bear interest from the most recent Interest Payment Date to which interest has
been paid or, if no interest has been paid, from the date of original issue hereof. The principal of
and premium, if any, on this Bond are payable upon presentation and surrender hereof at the
Bond Trust Services Corporation, in Roseville, Minnesota (the "Bond Registrar"), acting as
paying agent, or any successor paying agent duly appointed by the Issuer (the "Bond Registrar"),
acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on
this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in
whose name this Bond is registered (the "Holder") on the registration books of the Issuer
maintained by the Bond Registrar and at the address appearing thereon at the close of business
on the fifteenth day of the calendar month next preceding such Interest Payment Date (the
"Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person
who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who
is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the
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Bond Registrar whenever money becomes available for payment of the defaulted interest.
Notice of the Special Record Date shall be given to Holders not less than ten days prior to the
Special Record Date. The principal of and premium, if any, and interest on this Bond are
payable in lawful money of the United States of America. So long as this Bond is registered in
the name of the Depository or its Nominee as provided in the Resolution hereinafter described,
and as those terms are defined therein, payment of principal of, premium, if any, and interest on
this Bond and notice with respect thereto shall be made as provided in the Letter of
Representations, as defined in the Resolution, and surrender of this Bond shall not be required
for payment of the redemption price upon a partial redemption of this Bond. Until termination of
the book-entry only system pursuant to the Resolution, Bonds may only be registered in the
name of the Depository or its Nominee.
No Optional Redemption. All Bonds of this issue (the "Bonds") shall not be subject to
redemption and prepayment prior to their stated maturity dates.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
amount of $2,045,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate and denomination, issued pursuant to and in full conformity with the Constitution
and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council of
the Issuer on November 3, 2015 (the "Resolution"), for the purpose of providing funds for a
current refunding of the Issuer's General Obligation Bonds, Series 2007A, dated June 27, 2007
which mature on and after February 1, 2017. This Bond is payable out of the General Obligation
Refunding Bonds, Series 2015B Fund of the Issuer. This Bond constitutes a general obligation
of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if
any, and interest when the same become due, the full faith and credit and taxing powers of the
Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered
form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully
registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to the limitations
provided in the Resolution. Reference is hereby made to the Resolution for a description of the
rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal
office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in person or the Holder's attorney duly
authorized in writing at the principal office of the Bond Registrar upon presentation and
surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond
Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and
deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
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Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof for the purpose of receiving payment as
herein provided (except as otherwise provided herein with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond
Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Qualified Tax-Exempt Obligations. The Bonds have been designated by the Issuer as
"qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law, and that this
Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof
and the date of its issuance and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
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IN WITNESS WHEREOF, the City of Mendota Heights, Dakota County, Minnesota, by
its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of
its Mayor and its Clerk, the corporate seal of the Issuer having been intentionally omitted as
permitted by law.
Date of Registration: Registrable by: BOND TRUST SERVICES
CORPORATION
Payable at: BOND TRUST SERVICES
CORPORATION
BOND REGISTRAR'S
CERTIFICATE OF CITY OF MENDOTA HEIGHTS,
AUTHENTICATION DAKOTA COUNTY, MINNESOTA
This Bond is one of the
Bonds described in the
Resolution mentioned /s/ Facsimile
within. Mayor
BOND TRUST SERVICES
CORPORATION
Roseville, Minnesota, /s/ Facsimile
Bond Registrar Clerk
By:
Authorized Signature
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ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though they were written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in common
UTMA - ___________ as custodian for ______________
(Cust) (Minor)
under the _____________________ Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used though not in the above list.
___________________________________________________________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
___________________________________________ the within Bond and does hereby
irrevocably constitute and appoint _________________________ attorney to transfer the Bond
on the books kept for the registration thereof, with full power of substitution in the premises.
Dated:_____________________ ___________________________
Notice: The assignor's signature to this assignment must correspond with
the name as it appears upon the face of the within Bond in every
particular, without alteration or any change whatever.
Signature Guaranteed:
___________________________
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address: ________________________________________
________________________________________
________________________________________
(Include information for all joint owners if the Bond is held by joint account.)
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8.Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the City by the signatures of its Mayor and Clerk and be sealed with the seal of the City;
provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate
seal has been omitted. In the event of disability or resignation or other absence of either officer,
the Bonds may be signed by the manual or facsimile signature of the officer who may act on
behalf of the absent or disabled officer. In case either officer whose signature or facsimile of
whose signature shall appear on the Bonds shall cease to be such officer before the delivery of
the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if the officer had remained in office until delivery.
9.Authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this resolution unless a Certificate of Authentication on
the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an
authorized representative of the Bond Registrar. Certificates of Authentication on different
Bonds need not be signed by the same person. The Bond Registrar shall authenticate the
signatures of officers of the City on each Bond by execution of the Certificate of Authentication
on the Bond and by inserting as the date of registration in the space provided the date on which
the Bond is authenticated, except that for purposes of delivering the original Bonds to the
Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue of
November 24, 2015. The Certificate of Authentication so executed on each Bond shall be
conclusive evidence that it has been authenticated and delivered under this resolution.
10.Registration; Transfer; Exchange. The City will cause to be kept at the principal
office of the Bond Registrar a bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds
and the registration of transfers of Bonds entitled to be registered or transferred as herein
provided.
Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the
City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee
or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a
like aggregate principal amount, having the same stated maturity and interest rate, as requested
by the transferor; provided, however, that no Bond may be registered in blank or in the name of
"bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever
any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the
Holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall
be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City.
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All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the City evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or
be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar,
duly executed by the Holder thereof or his, her or its attorney duly authorized in writing
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to
close its transfer books between record dates and payment dates. The Finance Director is hereby
authorized to negotiate and execute the terms of said agreement.
11.Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
12.Interest Payment; Record Date. Interest on any Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth day of the calendar
month next preceding such Interest Payment Date (the "Regular Record Date"). Any such
interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of
the Regular Record Date, and shall be payable to the person who is the Holder thereof at the
close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever
money becomes available for payment of the defaulted interest. Notice of the Special Record
Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the
Special Record Date.
13.Treatment of Registered Owner. The City and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not
such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by
notice to the contrary.
14.Delivery; Application of Proceeds. The Bonds when so prepared and executed
shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price,
and the Purchaser shall not be obliged to see to the proper application thereof.
15.Fund and Accounts. For the convenience and proper administration of the
moneys to be borrowed and repaid on the Bonds, and to make adequate and specific security to
the Purchaser and holders from time to time of the Bonds, there is hereby created a special fund
to be designated the "General Obligation Refunding Bonds, Series 2015B Fund" (the "Fund") to
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be administered and maintained by the Finance Director as a bookkeeping account separate and
apart from all other funds maintained in the official financial records of the City. The Fund shall
be maintained in the manner herein specified until all of the Bonds and the interest thereon shall
have been fully paid. There shall be maintained and created in the fund the "Payment Account"
and a "Debt Service Account".
(a)Payment Account. The proceeds of the Bonds, shall be deposited in the Payment
Account. On or prior to the Call Date, the Finance Director shall transfer $1,515,000 of Bond
Proceeds from the Payment Account to the paying agent for the Prior Bonds, which sum are
sufficient, together with other funds on deposit in the debt service funds for the Refunded Bonds,
to pay the principal and interest due on the Refunded Bonds on the Call Date, including the
principal of the Refunded bonds called for redemption on that date. Any monies remaining in
the Payment Account after payment of all costs of issuance and payment of the Refunded Bonds
shall be transferred to the Debt Service Account.
(b)Debt Service Account. To the Debt Service Account there is hereby pledged and
irrevocable appropriated and there shall be credited: (i) any balance remaining after the Call
Date, in the Prior Bonds Debt Service Account created by the Prior Resolution; (ii) all
investment earnings on funds in the Debt Service Account; (iii) any taxes herein or hereafter
levied for the payment of the Bonds; and (iv) any and all other moneys which are properly
available and are appropriated by the governing body of the City to the Debt Service Account.
The amount of any surplus remaining in the Debt Service Account when the Bonds and interest
thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61, Subdivision 4.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except (1) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bonds were issued and (2) in addition to the above in an
amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To
this effect, any proceeds of the Bonds and any sums from time to time held in the Debt Service
Account (or any other City account which will be used to pay principal or interest to become due
on the bonds payable therefrom) in excess of amounts which under then applicable federal
arbitrage regulations may be invested without regard to yield shall not be invested at a yield in
excess of the applicable yield restrictions imposed by the arbitrage regulations on such
investments after taking into account any applicable "temporary periods" or "minor portion"
made available under the federal arbitrage regulations. Money in the Fund shall not be invested
in obligations or deposits issued by, guaranteed by or insured by the United States or any agency
or instrumentality thereof if and to the extent that such investment would cause the Bonds to be
"federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of
1986, as amended (the "Code").
13
Res 2015- 86pg 13 of 23
7292815v1
16.Tax Levy; Coverage Test. To provide moneys for payment of the principal and
interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct
annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of
other general property taxes in the City for the years and in the amounts as follows:
Levy Years Collection Years Amount
2015-2021 2016-2022 See attached schedule
The tax levies are such that if collected in full they, will produce at least five percent in
excess of the amount needed to meet when due the principal and interest payments on the Bonds.
The tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid,
provided that the City reserves the right and power to reduce the levies in the manner and to the
extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3.
Upon payment of the Refunded Bonds, the taxes levied by the Prior Resolution in the
years 2016 to 2022 shall be canceled.
17.General Obligation Pledge. For the prompt and full payment of the principal and
interest on the Bonds, as the same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt
Service Account is ever insufficient to pay all principal and interest then due on the Bonds and
any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds
of the City which are available for such purpose, and such other funds may be reimbursed with
or without interest from the Debt Service Account when a sufficient balance is available therein.
18.Prior Bonds; Security and Prepayment. Until retirement of the Prior Bonds, all
provisions for the security thereof shall be observed by the City and all of its officers and agents.
The Refunded Bonds shall be redeemed and prepaid on the Call Date in accordance with the
terms and conditions set forth in the Notice of Call for Redemption attached hereto as Exhibit B,
which terms and conditions are hereby approved and incorporated herein by reference.
19.Supplemental Resolution. The Prior Resolution authorizing the issuance of the
Prior Bonds is hereby supplemented to the extent necessary to give effect to the provisions
hereof.
20.Certificate of Registration. The Clerk is hereby directed to file a certified copy of
this resolution with the County Auditor of Dakota County, Minnesota, together with such other
information as the County Auditor shall require, and to obtain the County Auditor's certificate
that the Bonds have been entered in the County Auditor's Bond Register and that the tax levy
required by law has been made.
21.Continuing Disclosure. The City is the sole obligated person with respect to the
Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"),
promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the
Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the
"Undertaking") hereinafter described to:
14
Res 2015- 86pg 14 of 23
7292815v1
TAXLEVYCALCULATION
IssueID#328203
CityofMendotaHeights,MN
DatedDate:11/24/2015
$1,475,000GeneralObligationRefundingBonds,Series2015CallDate:NonCallabl
Be
axaxon
TTBd
LevyCollectPayFundsAvailable
YearYearYearTotalP&I(1)P&I@105%NetLevy
ЋЉЊЎΉЋЉЊЏΉЋЉЊАЋЌЉͲЌЋА͵АБΛЊͲЎЉЌ͵ЋЊΜЋЍЉͲЋЏЎ͵БЉЋЍЉͲЋЏЎ͵БЉ
ЋЉЊЏΉЋЉЊАΉЋЉЊБЋЌЎͲЋЉЉ͵ЉЉЋЍЏͲВЏЉ͵ЉЉЋЍЏͲВЏЉ͵ЉЉ
ЋЉЊАΉЋЉЊБΉЋЉЊВЋЌЊͲЊЉЉ͵ЉЉЋЍЋͲЏЎЎ͵ЉЉЋЍЋͲЏЎЎ͵ЉЉ
ЋЉЊБΉЋЉЊВΉЋЉЋЉЋЌЋͲЉЉЉ͵ЉЉЋЍЌͲЏЉЉ͵ЉЉЋЍЌͲЏЉЉ͵ЉЉ
ЋЉЊВΉЋЉЋЉΉЋЉЋЊЋЌЋͲБЉЉ͵ЉЉЋЍЍͲЍЍЉ͵ЉЉЋЍЍͲЍЍЉ͵ЉЉ
ЋЉЋЉΉЋЉЋЊΉЋЉЋЋЋЌЌͲЎЉЉ͵ЉЉЋЍЎͲЊАЎ͵ЉЉЋЍЎͲЊАЎ͵ЉЉ
ЋЉЋЊΉЋЉЋЋΉЋЉЋЌЋЌЏͲВЉЉ͵ЉЉЋЍБͲАЍЎ͵ЉЉЋЍБͲАЍЎ͵ЉЉ
Totals1,631,827.78(1,503.21)1,711,840.801,711,840.80
ThefollowingfundsareavailabletopayaportionoftheinterestpaymentdueAugust1,2016
(1)
:
Contingency:
ЊͲЎЉЌ͵ЋЊ
Originaltaxleviesforcollectionyears2016through2022ontheSeries2007ABondswillbecancelled
Note:
.
Res 2015- 86pg 15 of 23
(a)Provide or cause to be provided to the Municipal Securities Rulemaking Board
(the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual
financial information and operating data in accordance with the Undertaking. The City reserves
the right to modify from time to time the terms of the Undertaking as provided therein.
(b)Provide or cause to be provided to the MSRB notice of the occurrence of certain
events with respect to the Bonds in not more than ten (10) business days after the occurrence of
the event, in accordance with the Undertaking.
(c)Provide or cause to be provided to the MSRB notice of a failure by the City to
provide the annual financial information with respect to the City described in the Undertaking, in
not more than ten (10) business days following such amendment.
(d)The City agrees that its covenants pursuant to the Rule set forth in this paragraph
and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the City's obligations under
the covenants.
The Mayor and Clerk of the City, or any other officer of the City authorized to act in their
place (the "Officers") are hereby authorized and directed to execute on behalf of the City the
Undertaking in substantially the form presented to the City Council subject to such modifications
thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii)
required by the Purchaser of the Bonds, and (iii) acceptable to the Officers.
22.Records and Certificates. The officers of the City are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are required to show the facts relating to the legality and marketability of the
Bonds as the same appear from the books and records under their custody and control or as
otherwise known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts recited therein.
23.Negative Covenant as to Use of Bond Proceeds and Project. The City hereby
covenants not to use the proceeds of the Bonds or to use the improvements refinanced by the
Prior Bonds (the "Project"), or to cause or permit them to be used, or to enter into any deferred
payment arrangements for the cost of the Project, in such a manner as to cause the Bonds to be
"private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
24.Tax-Exempt Status of the Bonds; Rebate. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(1) requirements relating to temporary periods for investments, (2) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment
earnings to the United States, if the Bonds (together with other obligations reasonably expected
to be issued and outstanding at one time in this calendar year) exceed the small issuer exception
15
Res 2015- 86pg 16 of 23
7292815v1
amount of $5,000,000. For purposes of qualifying for the exception to the federal arbitrage
rebate requirements for governmental units issuing $5,000,000 or less of bonds, the City hereby
finds, determines and declares that:
(a)the Bonds are issued by a governmental unit with general taxing powers;
(b)no Bond is a private activity bond;
(c)ninety-five percent or more of the net proceeds of the Bonds are to be used for
local governmental activities of the City (or of a governmental unit the jurisdiction of which is
entirely within the jurisdiction of the City);
(d)the aggregate face amount of all tax exempt bonds (other than private activity
bonds) issued by the City (and all subordinate entities thereof, and all entities treated as one
issuer with the City) during the calendar year in which the Bonds are issued and outstanding at
one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section
148(f)(4)(D) of the Code;
Furthermore:
(e)there shall not be taken into account for purposes of said $5,000,000 limit any
bond issued to refund (other than to advance refund) any bond to the extent the amount of the
refunding bond does not exceed the outstanding amount of the refunded bond;
(f)the aggregate face amount of the Bonds does not exceed $5,000,000;
(g)each of the Refunded Bonds was issued as part of an issue which was treated as
meeting the rebate requirements by reason of the exception for governmental units issuing
$5,000,000 or less of bonds;
(h)the average maturity of the Bonds does not exceed the remaining average maturity
of the Refunded Bonds; and
(i)no part of the Bonds has a maturity date which is later than the date which is
thirty years after the date the Refunded Bonds were issued.
25.Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds
as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the
City hereby makes the following factual statements and representations:
(a)the Bonds are issued after August 7, 1986;
(b)the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(c)the City hereby designates the Bonds as "qualified tax exempt obligations" for
purposes of Section 265(b)(3) of the Code;
16
Res 2015- 86pg 17 of 23
7292815v1
(d)the reasonably anticipated amount of tax exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will
be issued by the City (and all entities treated as one issuer with the City, and all subordinate
entities whose obligations are treated as issued by the City) during this calendar year 2015 will
not exceed $10,000,000;
(e)not more than $10,000,000 of obligations issued by the City during this calendar
year 2015 have been designated for purposes of Section 265(b)(3) of the Code; and
(f)the aggregate face amount of the Bonds does not exceed $10,000,000.
Furthermore:
(g)each of the Refunded Bonds was designated as a "qualified tax exempt
obligation" for purposes of Section 265(b)(3) of the Code;
(h)the average maturity of the Bonds does not exceed the remaining average maturity
of the Refunded Bonds;
(i)no part of the Bonds has a maturity date which is later than the date which is
thirty years after the date the Refunded Bonds were issued; and
(j)the Bonds are issued to refund, and not to "advance refund" the Prior Bonds
within the meaning of Section 149(d)(5) of the Code, and shall not be taken into account under
the $10,000,000 issuance limit to the extent the Bonds do not exceed the outstanding amount of
the Prior Bonds.
The City shall use its best efforts to comply with any federal procedural requirements which may
apply in order to effectuate the designation made by this paragraph.
26.Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond
should not be paid when due, it may nevertheless be discharged by depositing with the Bond
Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such
deposit. The City may also at any time discharge its obligations with respect to any Bonds,
subject to the provisions of law now or hereafter authorizing and regulating such action, by
depositing irrevocably in escrow, with a suitable banking institution qualified by law as an
escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67,
Subdivision 8, bearing interest payable at such times and at such rates and maturing on such
dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to
become due thereon to maturity or, if notice of redemption as herein required has been duly
provided for, to such earlier redemption date.
27.Official Statement. The Official Statement relating to the Bonds prepared and
distributed by Ehlers is hereby approved and the officers of the City are authorized in connection
17
Res 2015- 86pg 18 of 23
7292815v1
with the delivery of the Bonds to sign such certificates as may be necessary with respect to the
completeness and accuracy of the Official Statement.
28.Payment of Issuance Expenses. The City authorizes the Purchaser to forward the
amount of Bond proceeds allocable to the payment of issuance expenses to KleinBank, Chaska,
Minnesota, on the closing date for further distribution as directed by Ehlers.
29.Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
30.Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
G.The motion for the adoption of the foregoing resolution was duly seconded by
member Duggan and, after a full discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof: Krebsbach, Duggan, Petschel, Povolny
and the following voted against the same: None.
Whereupon the resolution was declared duly passed and adopted.
18
Res 2015- 86pg 19 of 23
7292815v1
Res 2015- 86pg 20 of 23
BID TABULATION
$1,560,000* General Obligation Refunding Bonds, Series 2015B
City of Mendota Heights, Minnesota
SALE:
November 3, 2015
AWARD:
FTN FINANCIAL CAPITAL MARKETS
Rating: BBI:
Standard & Poor's Credit Markets "AAA" 3.66%
NETTRUE
MATURITYREOFFERING
INTERESTINTEREST
NAME OF BIDDER (February 1) RATE YIELD PRICE COST
RATE
FTN FINANCIAL CAPITAL $1,630,112.92 $93,809.16 1.3659%
MARKETS
Memphis, Tennessee 2017 2.000% 0.550%
2018 2.000% 0.700%
2019 2.000% 0.950%
2020 2.000% 1.150%
2021 2.000% 1.250%
2022 3.000% 1.400%
2023 3.000% 1.500%
RAYMOND JAMES & $1,662,305.30 $96,904.70 1.3969%
ASSOCIATES, INC.
St. Petersburg, Florida 2017 3.000%
2018 3.000%
2019 3.000%
2020 3.000%
2021 3.000%
2022 3.000%
2023 3.000%
NORTHLAND SECURITIES, INC. $1,594,844.10 $97,962.57 1.4529%
Minneapolis, Minnesota 2017 2.000%
2018 2.000%
2019 2.000%
2020 2.000%
2021 2.000%
2022 2.000%
2023 2.000%
*
Subsequent to bid opening the issue size was decreased to $1,475,000.
Adjusted Price - $1,542,119.21 Adjusted Net Interest Cost - $89,708.57 Adjusted TIC - 1.3689%
Res 2015- 86pg 21 of 23
NETTRUE
MATURITYREOFFERINGINTERESTINTEREST
NAME OF BIDDER (February 1) RATE YIELD PRICE COST RATE
BAIRD $1,657,657.80 $101,552.20 1.4666%
Milwaukee, Wisconsin 2017 3.000%
2018 3.000%
2019 3.000%
2020 3.000%
2021 3.000%
2022 3.000%
2023 3.000%
PIPER JAFFRAY & CO. $1,669,721.95 $103,716.11 1.4889%
Minneapolis, Minnesota 2017 3.000%
2018 3.000%
2019 3.000%
2020 3.000%
2021 3.000%
2022 4.000%
2023 3.000%
STIFEL, NICOLAUS $1,653,168.00 $106,042.00 1.5343%
Birmingham, Alabama 2017 3.000%
2018 3.000%
2019 3.000%
2020 3.000%
2021 3.000%
2022 3.000%
2023 3.000%
Bid Tabulation November 3, 2015
City of Mendota Heights, Minnesota
$1,560,000* General Obligation Refunding Bonds, Series 2015B Page 2
Res 2015- 86pg 22 of 23
EXHIBIT B
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION BONDS, SERIES 2007A
CITY OF MENDOTA HEIGHTS, DAKOTA COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Mendota
Heights, Dakota County, Minnesota, there have been called for redemption and prepayment on
February 1, 2016
those outstanding bonds of the City designated as General Obligation Bonds, Series 2007A,
dated as of June 27, 2007, having stated maturity dates or subject to mandatory redemption in the
years 2017 through 2023, inclusive, and totaling $1,515,000 in principal amount.
YearCUSIP*
2018 586770 3E7
2020 586770 3G2
2023 586770 3K3
The bonds are being called at a price of par plus accrued interest to February 1, 2016, on which
date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment at the office of Bond Trust Services
Corporation, Attention: Paying Agent Services, 3060 Centre Pointe Drive, Roseville, Minnesota
55113.
Dated: November 3, 2015 BY ORDER OF THE CITY COUNCIL
_______________________________________
Its Clerk
*The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any
representation made as to their correctness indicated in the notice. They are included solely for
the convenience of the holders.
Res 2015- 86pg 23 of 23
7292815v1