HomeMy WebLinkAbout20091019 - VIII-C-1
MEMO
TO: Honorable Mayor and City Council Members
FROM: Charlene A. Stark, Finance Director
RE: Resolutions and Recommendations for three bond issues:
2009 G.O. Improvement Bonds, Series A
2009 G.O. Equipment Certificates Series 2009 B
2009 G.O. Improvement Refunding Bonds, Series 2009 C
DATE: October 14, 2009
Attached for Council approval are the Recommendations providing for the sale of these
bonds, as prepared by the City’s financial advisors, Paul Steinman of Springsted Inc.
and Resolutions for the set sale date by the City’s bond council, Mary Dryseth of Briggs
and Morgan.
The first bond issue will finance the 2009 road construction projects currently being
completed. The second bond issue will finance the equipment that was authorized in the
2009 budget. The third issue will be refunding two issues that are currently on the City’s
books at a higher interest rate. Under the current economic environment these two
issues after evaluating the savings will allow the city to potentially save a net present
value of $155,321.
I have included the debt management ratios that were adopted by city council and have
included how these three debt issues will affect the city’s debt ratios.
If you should have any questions, please feel free to contact me.
Recommended Council Action
Approve the attached three Resolutions for authorizing and providing for the sale of
$1,785,000 GO Improvement Bonds, Series 2009A, $395,000 Certificate of Equipment
Bonds 2009B and $3,745,000 G.O. Improvement Refunding Bonds 2009C. Set the sale
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date of the bonds to be November 16.
Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul, MN 55101-2887
October 13, 2009
Tel: 651-223-3000
Fax: 651-223-3002
www.springsted.com
Ms. Charlene Stark
Finance Director
City of Hastings
101 Fourth Street East
Hastings, MN 55033-7082
Re: Recommendations for the Issuance of:
$1,785,000 General Obligation Improvement Bonds, Series 2009A
$395,000 General Obligation Equipment Certificates of Indebtedness, Series 2009B
$3,745,000 General Obligation Improvement Refunding Bonds, Series 2009C
Dear Ms. Stark:
We have enclosed an electronic copy of our recommendations for the above-captioned issues for distribution to
Council members and City staff prior to your meeting on Monday, October 19, 2009.
We will be forwarding, under separate cover, contract amendments for services relating to arbitrage compliance and
continuing disclosure to include these issues. Please sign and return the enclosed forms so that Springsted will
be authorized to complete calculations and reporting as may be required related to these issues.
If you should have any questions pertaining to the enclosed documents, or if you require additional copies, please do
not hesitate to contact us.
Sincerely,
êÉÜÚÄ êØØÑÜÏÙ
Stacy Seeland
Project Manager
akb
Enclosures
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Honorable Paul Hicks, Mayor
Members, City Council
Mr. David Osberg, City Administrator
Ms. Charlene Stark, Finance Director
City of Hastings
101 Fourth Street East
Hastings, MN 55033-7082
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Re: Recommendations for the Issuance of:
$1,785,000* General Obligation Improvement Bonds, Series 2009A (the “Improvement Bonds”)
$395,000* General Obligation Equipment Certificates of Indebtedness, Series 2009B (the “Certificates”)
$3,745,000* General Obligation Improvement Refunding Bonds, Series 2009C (the “Refunding Bonds”)
(Collectively referred to as the “Issues” or the “Obligations”)
We respectfully request your consideration of our recommendations for the above-named Issues.
We recommend the following for the Obligations:
1.To establish the date and time of receiving bids and
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establish the terms and conditions of the offerings.
2.Monday, November 16, 2009 at 11:00 A.M. with
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consideration for award by the City Council at
7:00 P.M. that same evening.
3.The Obligations will be sold using a competitive
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bidding process. In the interest of obtaining as many
bids as possible, we have included a provision in the
attached Terms of Proposals for underwriters to
submit their bid electronically through the electronic
bidding platform of PARITY. In addition, physical bids
®
(by phone or fax) will be accepted at the offices of
Springsted.
In the recent past, we have permitted three means of
providing the good faith deposits; either by
certified/cashier’s check, a financial surety bond, or a
wire deposit received by Springsted Incorporated on
behalf of the City. We suggest the City continue to
provide for these three options. Although the provider
of financial surety bonds for good faith deposits has
reentered the marketplace, a limited number of bidders
are using this option and the City is best served by
providing additional options for good faith deposits to
be made.
4.The Obligations are being issued pursuant to
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Minnesota Statutes, Chapter 475.
In addition, the Improvement Bonds and the Refunding
Bonds are being issued pursuant to Minnesota
ìÊ×ÐÓÏÓÎÛÊà ÉÇÚÒ×ÙÈ ÈÍ ÙÔÛÎÕ×
City of Hastings, Minnesota
October 13, 2009
Statutes, Chapter 429 and the Certificates are being
issued pursuant to Minnesota Statutes,
Section 412.301.
5.The Improvement Bonds - $1,785,000*
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The Certificates - $395,000*
The Refunding Bonds - $3,745,000*
*Included in the Terms of Proposals for the Obligations
is a provision that permits the City to increase or
reduce the principal amount of the Obligations in any
of the maturities. This allows for any necessary
adjustments required based on final interest rates,
capitalized interest requirements, and issuance costs.
6.The Improvement Bonds will mature annually
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February 1, 2012 through 2021. Interest will be
payable semi-annually each February 1 and August 1,
commencing August 1, 2010.
The Certificates will mature annually February 1, 2011
through 2015. Interest will be payable semi-annually
each February 1 and August 1, commencing
August 1, 2010.
The Refunding Bonds will mature annually
February 1, 2011 through 2015. Interest will be
payable semi-annually each February 1 and August 1,
commencing August 1, 2010.
7.
é×ÙÇÊÓÈà éÍÇÊÙ×É ÍÖ ìÛÃÏ×ÎÈ ÛÎØ ìÛÃÏ×ÎÈ ùÃÙÐ×É
The Obligations will be general obligations of the City,
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secured by its full faith and credit and taxing power.
Sources of payment and payment cycle details can be
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found in the Discussion section.
8.The City may elect on February 1, 2019, and on any
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date thereafter, to prepay the Improvement Bonds due
on or after February 1, 2020, at a price of par plus
accrued interest.
Page 2
City of Hastings, Minnesota
October 13, 2009
Due to their short duration, and to ensure the best
pricing possible, the Certificates and Refunding Bonds
will not be subject to prepayment prior to their stated
maturity dates.
9.Applications will be made to either Moody’s Investors
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Service or Standard & Poor’s Rating Services for ratings
on the Obligations. The City will make a decision on the
rating agency at their set sale meeting on October 19,
2009. The City’s general obligation debt is currently
rated “A1” by Moody’s.
10.We have included a provision for the Obligations that
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permits the underwriters to combine multiple maturity
years into a term bond, subject to mandatory
redemption on the same maturity schedule provided in
the Terms of Proposals. The advantage to the
underwriter is that it provides large blocks of bonds,
which are more attractive to bond funds, and certain
pension funds, which deal only with large blocks of
bonds. This in turn is a benefit to the City since selling
larger blocks of bonds reduces the risk to the
underwriter, allowing them to lower their costs and the
interest coupons. Since the Obligations are being
offered on a competitive bid basis and awarded on the
lowest true interest cost, the City will award the
Obligations to the best bid regardless of whether term
bonds are chosen or not.
11.
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÷Ä×ÏÌÈ íÚÐÓÕÛÈÓÍÎÉ
Under Federal Tax Law, financial institutions cannot
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deduct from income for federal income tax purposes,
expense that is allocable to carrying and acquiring tax-
exempt bonds. There is an exemption to this for “bank
qualified” bonds, which can be so designated if the
issuer does not issue more than $30 million of tax
exempt bonds in a calendar year. Issues that are bank
qualified generally receive slightly lower interest rates
than issues that are not bank qualified. Since the City
does not expect to issue more than $30 million of tax-
exempt obligations in 2009, the Issues are designated
as bank qualified.
Page 3
City of Hastings, Minnesota
October 13, 2009
The American Recovery and Reinvestment Tax Act of
2009 increased the previous bank qualification limit of
$10 million to $30 million for tax-exempt obligations
issued in 2009 and 2010.
All tax-exempt issues are subject to the federal arbitrage
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and rebate requirements, which require all excess
earnings created by the financing to be rebated to the
U.S. Treasury. The requirements generally cover two
categories: bond proceeds and debt service funds.
There are exemptions from rebate that may apply in
both of these categories.
The proceeds of the Improvement Bonds are being used
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to finance primarily capital improvement projects, which
could qualify for the six-month, eighteen-month or two-
year spending exception to rebate. The proceeds of the
Certificates are being used to finance primarily capital
equipment expenditures, which could qualify for the six-
month or eighteen-month spending exception to rebate.
Both the eighteen-month and two-year exception require
a certain percentage of the Improvement Bond and
Certificate proceeds be spent within six-month intervals.
If the City meets one of the spending exemptions the
project funds will be exempt from rebate.
It is our understanding that the City expects to meet the
24-month spending exemption for the Improvement
Bonds and the 18-month spending exemption for the
Certificates, in which case rebate of construction fund
interest earnings will not be required.
In regards to the Refunding Bonds, since it is a current
refunding transaction the proceeds will qualify for the 6-
month expenditure exception.
The spending exemptions ultimately rely on actual
expenditures; therefore, if proceeds are spent slower
than anticipated, the City may not be eligible for the
construction fund rebate exemption.
Page 4
City of Hastings, Minnesota
October 13, 2009
The City must maintain bona fide debt service funds for
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the Obligations or be subject to yield restriction. Yield
restriction requires restricting the investment return in
the debt service funds to the yields on the Obligations.
A bona fide debt service fund is a fund for which there is
an equal matching of revenue to debt service expense,
with the fund spent down each year to a carry over
permitted equal to the greater of the investment
earnings in the fund during the prior year or 1/12 the
debt service of the prior year.
With issues using special assessments as a source of
repayment, such as the Improvement Bonds and
Refunding Bonds, additional diligence should be
exercised in monitoring the debt service fund due to the
potential accumulation of assessment prepayments,
which could cause the fund to become non-bona fide.
Additionally, all original proceeds of the Obligations and
interest earnings on those proceeds must be expended
within three years, or the remaining proceeds will be
subject to yield restriction.
The City should monitor both the project funds and the
debt service funds to make sure yield restriction
provisions of the federal arbitrage rules are met.
Springsted currently provides arbitrage compliance
services for the City under a separate contract. An
amendment to that contract adding these Issues has
been provided to City staff.
The average life of the Obligations cannot exceed 120%
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of the economic life of the projects to be financed. The
economic life of the projects to be financed with the
Improvement Bonds is at least 20 years. The average
life of the Improvement Bonds is 6.800 years. The
economic life of the equipment being financed is at least
5 years. The average life of the Certificates is
3.230 years. The average life of the Refunding Bonds is
less than the remaining average life of the issues being
refunded.
Therefore, the Obligations are within the economic life
requirements.
Page 5
City of Hastings, Minnesota
October 13, 2009
Federal reimbursement regulations require the City to
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make a declaration, within 60 days of the actual
payment, of its intent to reimburse itself from expenses
paid prior to the receipt of issue proceeds. It is our
understanding the City has taken whatever actions are
necessary to comply with the federal reimbursement
regulations in regards to the Improvement Bonds and
the Certificates.
12.The Obligations are subject to continuing disclosure
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requirements set forth by the Securities and Exchange
Commission (“SEC”). The SEC rules require the City to
undertake an annual update of its Official Statement
information and report any material events to the
national repositories. The purchaser therefore requires
the City to commit to providing such information under a
continuing disclosure agreement or “undertaking”. If the
City does not enter into such an agreement prior to the
offering of the debt, underwriters will not offer a bid to
purchase the Obligations.
Springsted currently provides continuing disclosure
services to the City under a separate contract. An
amendment to that contract adding these Issues has
been provided to City staff.
13.The Improvement Bonds
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Sources and Uses Schedule
Assessment Income Schedule
Debt Service Schedule
The Certificates
Sources and Uses Schedule
Debt Service Schedule
The Refunding Bonds
Refunding Schedules
Terms of Proposals
Page 6
City of Hastings, Minnesota
October 13, 2009
øóéùçééóíî
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The proceeds of the Improvement Bonds, along with cash contributions of $1,580,521.64 from various other sources,
will be used to finance the Industrial Park Area project, the 3 Rivers Diverson project and the Fire Station Driveway
project. The cash contributions include a $1,100,000 MNDot Municipal State Aid grant and a $125,000 Vermillion
Watershed grant. As these monies are from sources outside of the City, they can be used to bring down the costs of
the project in order to comply with Minnesota Statues, Chapter 429, which states that at least 20% of the projects
being financed under the statute are paid from assessments. Sources and uses of funds, including the costs of
issuance, capitalized interest and underwriter’s discount, are shown on page 10.
The Improvement Bonds are general obligations of the City, secured by its full faith and credit and taxing power.
Annual principal and interest payments on the Improvement Bonds will be made from a combination of ad valorem
property taxes and special assessments filed against benefited properties. Assessments will be filed on or about
November 1, 2010 for collection beginning in 2011. The principal amount of the assessments is approximately
$425,609. Assessments have been structured with equal payments of principal over a term of 10 years. The interest
charged on the unpaid balance of the assessments will be a rate of 1.5% over the true interest cost of the
Improvement Bonds. For structuring purposes, we have assumed a rate of 4.80%. At the time of sale, the projected
principal amount of the assessments may change based on the final amount of capitalized interest. The total
projected assessment income is shown on page 11.
The City will be required to levy taxes to pay a portion of the debt service on the Improvement Bonds. The City will
make its first levy in 2010 for collection in 2011. Since neither assessments nor taxes will be available until August 1,
2011 to pay debt service on the Improvement Bonds, capitalized interest has been included in the par amount of the
Improvement Bonds in an amount sufficient to pay the August 1, 2010 and February 1, 2011 interest payments.
Thereafter, each year’s collection of taxes and assessments will be used to pay the August 1 interest payment due in
the collection year and the February 1 principal and interest payment due in the following year. The estimated annual
levy is projected to be $167,240.
Per discussion with City staff, the Improvement Bonds have been structured around the projected assessment
income over a term of 10 years providing for substantially level annual levy requirements over the life of the
Improvement Bonds. The projected debt service schedule for the Improvement Bonds is shown on page 12 and
includes the following information:
Columns 1 through 4 show the annual principal payments, estimated interest rates and projected total
principal and interest payments, given the current market environment.
Column 5 shows the projected amount of capitalized interest included in the par amount of the Improvement
Bonds to pay the August 1, 2010 and February 1, 2011 interest payments.
Column 6 shows the new net debt service.
Column 7 shows the 105% overlevy which is required by State statute and serves as a protection to
bondholders and the City in the event of delinquencies in the collection of assessments and/or taxes.
Page 7
City of Hastings, Minnesota
October 13, 2009
Column 8 shows the projected assessment income developed on page 11.
Column 9 shows the difference between columns 7 and 8, and represents the annual levy requirement for
the Improvement Bonds.
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Proceeds of the Certificates will be used to finance the acquisition of four different units of equipment (i) police squad
cars; (iii) a dump truck; (iv) a pickup truck; and (v) a flusher truck. Bond Counsel has reviewed the items to be
purchased and found them to be in compliance with regulations. Sources and uses of funds, including the costs of
issuance and underwriter’s discount, are shown on page 13.
Minnesota Statutes, Section 412.301, specifies that the City may issue certificates of indebtedness without being
subject to a petition requirement calling for a referendum if the total amount of the issue does not exceed ¼ of 1% of
the taxable market value of the City. Based on the City’s 2008/2009 taxable market value of $1,846,182,400 this
represents a maximum issue size of $4,615,456. This issuance of $395,000 is within that limitation and is not subject
to taxpayer petition for a referendum.
The Certificates are general obligations of the City and will be repaid with general ad valorem tax levies. The City will
make its first levy for the Certificates in 2009 for collection in 2010. Each year’s first-half collection of taxes will be
used to pay the interest payment due August 1 in the year of collection. Second-half collections plus surplus first half
collections will be used to pay the February 1 principal and interest payment due in the following year.
Per discussion with City staff, the Certificates have been structured to provide a level annual levy requirement over a
term of 5 years. The projected debt service schedule for the Certificates is shown on page 14.
ê×ÖÇÎØÓÎÕ úÍÎØÉ
Proceeds of the Refunding Bonds will be used to refund (i) the February 1, 2011 through February 1, 2013 maturities
of the City’s General Obligation Improvement Bonds, Series 2002C, dated December 1, 2002 (the “Series 2002C
Bonds”) and currently outstanding in the aggregate principal amount of $1,885,000; and (ii) the February 1, 2011
through February 1, 2015 maturities of the City’s General Obligation Improvement Bonds, Series 2003A, dated
December 1, 2003 (the “Series 2003A Bonds”) and currently outstanding in the aggregate principal amount of
$3,260,000 (collectively referred to as the “Refunded Bonds”). The issuance of the Refunding Bonds is being
conducted as a “current” refunding, in which the proceeds of the Refunding Bonds are used within ninety days of
bond settlement to redeem the outstanding principal of the Refunded Bonds. The refunding transaction is being
undertaken to achieve interest cost savings.
The Refunded Bonds were originally issued to finance various improvement projects within the City.
On February 1, 2010, the call date, the City will use (i) previously collected tax levies and assessments to pay the
originally scheduled February 1, 2010 principal and interest payments on the Series 2002C Bonds and Series 2003A
Bonds in the amounts of $499,297.50 and $603,266.25, respectively, (ii) City funds in the amount of $445,000 and (iii)
the proceeds of the Refunding Bonds to redeem the remaining $1,420,000 outstanding principal on the Series 2002C
Page 8
City of Hastings, Minnesota
October 13, 2009
Bonds and $2,715,000 outstanding principal on the Series 2003A Bonds.Beginning with the August 1, 2010 interest
payment, the City will begin to make debt service payments on the Refunding Bonds, realizing the interest cost
savings.
èÔ× ùÓÈà ÅÓÐÐ Î××Ø ÈÍ ÓÎÆ×ÉÈ ÈÔ× ÌÊÍÙ××ØÉ ÍÖ ÈÔ× ê×ÖÇÎØÓÎÕ úÍÎØÉÖÍÊ ÈÔ× Ì×ÊÓÍØ Ú×ÈÅ××Î ÈÔ× ÙÐÍÉÓÎÕ
ØÛÈ× ÛÎØ ÈÔ× ö×ÚÊÇÛÊÃ
ÙÛÐÐ ØÛÈ× ÓÎ ÍÊØ×Ê ÈÍ ÛÙÔÓ×Æ× ÈÔ× ÉÛÆÓÎÕÉ Ð×Æ×Ð ×ÉÈÓÏÛÈ×Ø ÖÍÊ ÈÔÓÉ ÈÊÛÎÉÛÙÈÓÍÎ
Based on current interest rate estimates, the refunding is projected to result in the City realizing an average cash flow
savings of approximately (i) $37,143 per year for the Series 2002C Bonds; and (ii) $102,603 per year for the Series
2003A Bonds. This results in future value savings of approximately $180,535, with a net present value benefit to the
City of approximately $155,321. These estimates are net of all costs associated with the refunding.
We have attached a set of schedules that summarize the refunding statistics and the projected savings resulting from
the sale of the Refunding Bonds. These schedules include the following information:
Preliminary Feasibility Summary: shows the detailed sources and uses of funds for the Refunding Bonds and
statistical information relating to the refunding transaction – page 15.
Debt Service to Call and to Maturity: shows the Refunded Bonds’ remaining debt service to the call date and
to maturity – pages 16 - 17.
Debt Service Schedule: shows the new projected debt service on the Refunding Bonds, based on current
estimated interest rates, the remaining assessment income and the levy requirements on the Refunding
Bonds – page 18.
Debt Service Comparison: shows the debt service comparison and the projected annual cash flow savings of
the Refunding Bonds to the Refunded Bonds – page 19.
The Refunding Bonds will be paid from ad valorem tax levies and special assessments filed against benefited
properties. The City will make their first levy for the Refunding Bonds in 2009 for collection in 2010. Assessments
and taxes collected pursuant to the levy currently in place for the Refunded Bonds will be sufficient to pay the
February 1, 2010 principal and interest payments on the Refunded Bonds. Thereafter, beginning with the
August 1, 2010 interest payment, each year’s collection of taxes and assessments will be used to make the August 1
interest payment due in the collection year and the February 1 principal and interest payment due in the following
year.
The success of any refunding transaction is in a large part dependent upon market conditions at the time the
Refunding Bonds are sold. Springsted will continue to monitor the market prior to the sale date and will keep you
apprised of any change in conditions that might affect the success of this refunding.
Springsted is pleased to be of service again to the City of Hastings.
Respectfully submitted,
SPRINGSTED Incorporated
SAS
akb
Provided to Staff: Continuing Disclosure and Arbitrage Compliance Amendments
Page 9
$1,785,000
City of Hastings, Minnesota
General Obligation Improvement Bonds, Series 2009A
Sources & Uses
Dated 12/01/2009 | Delivered 12/01/2009
Sources Of Funds
Par Amount of Bonds......................................................................................................................................................$1,785,000.00
MnDOT Municipal State Aid............................................................................................................................................1,100,000.00
Vermillion Watershed Grant............................................................................................................................................125,000.00
Parks Trail ERF..............................................................................................................................................................190,000.00
.
Water Fund.....................................................................................................................................................................115,192.89
Sewer Fund....................................................................................................................................................................25,328.75
.
Hastings ERDA...............................................................................................................................................................25,000.00
Total Sources................................................................................................................................................................$3,365,521.64
ses uns
UOfFd
2009-1 Industrial Park Area............................................................................................................................................3,184,909.45
.
2009-2 3 Rivers Division.................................................................................................................................................74,166.53
2009-6 Fire Station Drwy................................................................................................................................................6,780.00
.
Deposit to Capitalized Interest (CIF) Fund......................................................................................................................59,199.58
Costs of Issuance...........................................................................................................................................................23,350.00
Total Underwriter's Discount (0.800%)...........................................................................................................................14,280.00
Rounding Amount...........................................................................................................................................................2,836.08
Total Uses.....................................................................................................................................................................$3,365,521.64
.
Page 10
$425,609
City of Hastings, Minnesota
General Obligation Improvement Bonds, Series 2009A
2009-1 Industrial Park Area
ASSESSMENT INCOME
DatePrincipalCouponInterestTotal P+I
12/31/2010----
12/31/201142,560.854.800%23,834.0866,394.93
12/31/201242,560.854.800%18,386.2860,947.13
12/31/201342,560.854.800%16,343.3658,904.21
12/31/201442,560.854.800%14,300.4456,861.29
12/31/201542,560.854.800%12,257.5254,818.37
12/31/201642,560.854.800%10,214.6052,775.45
12/31/201742,560.854.800%8,171.6850,732.53
12/31/201842,560.854.800%6,128.7648,689.61
12/31/201942,560.854.800%4,085.8446,646.69
12/31/202042,560.854.800%2,042.9244,603.77
Total$425,608.50-$115,765.48$541,373.98
SIGNIFICANTDATES
Filing Date...........................................................................................................................................................................11/01/2010
First Payment Date.............................................................................................................................................................12/31/2011
Page 11
$1,785,000
City of Hastings, Minnesota
General Obligation Improvement Bonds, Series 2009A
NET DEBT SERVICE SCHEDULE
(1)(2)(3)(4)(5)(6)(7)(8)(9)
DatePrincipalCouponInterestTotal P+ICIFNet New D/S105% of TotalAssessmentLevy Required
02/01/2010---------
02/01/2011--59,199.5859,199.58(59,199.58)----
02/01/2012170,000.001.550%50,742.50220,742.50-220,742.50231,779.6366,394.93165,384.70
02/01/2013170,000.001.850%48,107.50218,107.50-218,107.50229,012.8860,947.13168,065.75
02/01/2014170,000.002.250%44,962.50214,962.50-214,962.50225,710.6358,904.21166,806.42
02/01/2015170,000.002.500%41,137.50211,137.50-211,137.50221,694.3856,861.29164,833.09
02/01/2016175,000.002.750%36,887.50211,887.50-211,887.50222,481.8854,818.37167,663.51
02/01/2017180,000.003.000%32,075.00212,075.00-212,075.00222,678.7552,775.45169,903.30
02/01/2018180,000.003.250%26,675.00206,675.00-206,675.00217,008.7550,732.53166,276.22
02/01/2019185,000.003.450%20,825.00205,825.00-205,825.00216,116.2548,689.61167,426.64
02/01/2020190,000.003.650%14,442.50204,442.50-204,442.50214,664.6346,646.69168,017.94
02/01/2021195,000.003.850%7,507.50202,507.50-202,507.50212,632.8844,603.77168,029.11
Total$1,785,000.00-$382,562.08$2,167,562.08(59,199.58)$2,108,362.50$2,213,780.63$541,373.98$1,672,406.65
Dated..................................................................................................................................................................................................
12/01/2009
Delivery Date..........................................................................................................................................................................................
12/01/2009
First Coupon Date......................................................................................................................................................................................
8/01/2010
etatstcs
YildSii
Bond Year Dollars......................................................................................................................................................................................
$12,137.50
Average Life...........................................................................................................................................................................................
6.800 Years
Average Coupon.........................................................................................................................................................................................
3.1519018%
Net Interest Cost (NIC)................................................................................................................................................................................
3.2695537%
True Interest Cost (TIC)...............................................................................................................................................................................
3.2604377%
Bond Yield for Arbitrage Purposes......................................................................................................................................................................
3.1269531%
All Inclusive Cost (AIC)...............................................................................................................................................................................
3.4818004%
orm
IRSF8038
Net Interest Cost......................................................................................................................................................................................
3.1519018%
Weighted Average Maturity..............................................................................................................................................................................
6.800 Years
Page 12
$395,000
City of Hastings, Minnesota
General Obligation Equipment Certificates of Indebtedness, Series 2009B
Sources & Uses
Dated 12/01/2009 | Delivered 12/01/2009
Sources Of Funds
Par Amount of Bonds.........................................................................................................................................................$395,000.00
Total Sources...................................................................................................................................................................$395,000.00
.
ses uns
UOfFd
Deposit to Project Construction Fund.................................................................................................................................373,500.00
Costs of Issuance...............................................................................................................................................................14,100.00
6,517.50
Total Underwriter's Discount (1.650%)..............................................................................................................................
.
Rounding Amount..............................................................................................................................................................882.50
.
Total Uses.........................................................................................................................................................................$395,000.00
Page 13
$395,000
City of Hastings, Minnesota
General Obligation Equipment Certificates of Indebtedness, Series 2009B
DEBT SERVICE SCHEDULE
DatePrincipalCouponInterestTotal P+I105% Levy
02/01/2010-----
02/01/201175,000.001.550%10,135.4285,135.4289,392.19
02/01/201275,000.001.850%7,525.0082,525.0086,651.25
02/01/201380,000.002.250%6,137.5086,137.5090,444.38
02/01/201480,000.002.500%4,337.5084,337.5088,554.38
02/01/201585,000.002.750%2,337.5087,337.5091,704.38
Total$395,000.00-$30,472.92$425,472.92$446,746.57
SIGNIFICANTDATES
Dated.................................................................................................................................................................................12/01/2009
Delivery Date.....................................................................................................................................................................12/01/2009
.
First Coupon Date..............................................................................................................................................................8/01/2010
etatstcs
YildSii
Bond Year Dollars..............................................................................................................................................................$1,275.83
Average Life.......................................................................................................................................................................3.230
Years
Average Coupon................................................................................................................................................................2.3884718%
Net Interest Cost (NIC).......................................................................................................................................................2.8993144%
True Interest Cost (TIC).....................................................................................................................................................2.9244481%
Bond Yield for Arbitrage Purposes.....................................................................................................................................2.3821211%
All Inclusive Cost (AIC)......................................................................................................................................................4.1417120%
.
orm
IRSF8038
Net Interest Cost................................................................................................................................................................2.3884718%
Weighted Average Maturity................................................................................................................................................3.230 Years
nterest rates are estmates. angesn rates ma
IiChiy
cause sgncan aeraons os sceue.
iifitlttitthihdl
e actua unerwrtersscount may aso vary.
Thldi'dibidl
Page 14
$3,745,000
City of Hastings, Minnesota
General Obligation Improvement Refunding Bonds, Series 2009C
Current Refunding of Series 2002C, 2003A
Preliminary Feasibility Summary
Dated 12/01/2009 | Delivered 12/01/2009
Series 2009 Series 2009 Issue
Ref 2002CRef 2003ASummary
Sources Of Funds
Par Amount of Bonds........................................................................$1,375,000.00$2,370,000.00$3,745,000.00
.
City Funds.........................................................................................70,000.00375,000.00445,000.00
.
Total Sources...................................................................................$1,445,000.00$2,745,000.00$4,190,000.00
Uses Of Funds
Deposit to Current Refunding Fund....................................................1,420,000.002,715,000.004,135,000.00
Costs of Issuance..............................................................................12,483.3121,516.6934,000.00
Total Underwriter's Discount (0.550%)..............................................7,562.5013,035.0020,597.50
Rounding Amount..............................................................................4,954.19(4,551.69)402.50
Total Uses........................................................................................$1,445,000.00$2,745,000.00$4,190,000.00
.
Flow of Funds Detail
State and Local Government Series (SLGS) rates for........................
Date of OMP Candidates...................................................................
Primary Purpose Fund Solution Method............................................Gross FundedGross FundedGross Funded
.
Total Cost of Investments..................................................................$1,420,000.00$2,715,000.00$4,135,000.00
Interest Earnings @ 0.100%..............................................................236.63452.42689.05
Total Draws.......................................................................................$1,420,000.00$2,715,000.00$4,135,000.00
.
PV Analysis Summary (Net to Net)
Net PV Cashflow Savings @ 1.642%(Bond Yield)............................108,461.05491,457.67599,918.72
Transfers from Prior Issue Debt Service Fund...................................(70,000.00)(375,000.00)(445,000.00)
Contingency or Rounding Amount.....................................................4,954.19(4,551.69)402.50
.
Net Present Value Benefit.................................................................$43,415.24$111,905.98$155,321.22
.
Net PV Benefit / $4,135,000 Refunded Principal...............................3.057%4.122%3.756%
Net PV Benefit / $3,745,000 Refunding Principal..............................3.157%4.722%4.147%
Bond Statistics
Average Life......................................................................................2.178 Years3.200 Years2.825 Years
.
Average Coupon................................................................................1.3361674%1.7699681%1.6471917%
Net Interest Cost (NIC)......................................................................1.5887419%1.9418204%1.8418904%
.
Bond Yield for Arbitrage Purposes.....................................................1.6424744%1.6424744%1.6424744%
True Interest Cost (TIC).....................................................................1.5928246%1.9438258%1.8437256%
All Inclusive Cost (AIC)......................................................................2.0235111%2.2417042%2.1793846%
Page 15
$4,635,000
City of Hastings, Minnesota
General Obligation Improvement Bonds, Series 2002C
Debt Service To Call And To Maturity
DateRefunded D/S To CallPrincipalCouponInterestRefunded D/S
Bonds
12/01/2009------
02/01/20101,420,000.001,420,000.00-3.500%--
08/01/2010----26,160.0026,160.00
02/01/2011--470,000.003.550%26,160.00496,160.00
08/01/2011----17,817.5017,817.50
02/01/2012--470,000.003.650%17,817.50487,817.50
08/01/2012----9,240.009,240.00
02/01/2013--480,000.003.850%9,240.00489,240.00
Total$1,420,000.00$1,420,000.00$1,420,000.00-$106,435.00$1,526,435.00
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation..........................................................................................................12/01/2009
Average Life.....................................................................................................................................................................2.174
Years
3.4482181%
Average Coupon..............................................................................................................................................................
.
Weighted Average Maturity (Par Basis)............................................................................................................................2.174 Years
Refunding Bond Information
Refunding Dated Date......................................................................................................................................................12/01/2009
Refunding Delivery Date...................................................................................................................................................12/01/2009
Page 16
$5,520,000
City of Hastings, Minnesota
General Obligation Improvement Bonds, Series 2003A
Debt Service To Call And To Maturity
DateRefunded D/S To CallPrincipalCouponInterestRefunded D/S
Bonds
12/01/2009------
02/01/20102,715,000.002,715,000.00-3.250%--
08/01/2010----49,410.0049,410.00
02/01/2011--545,000.003.400%49,410.00594,410.00
08/01/2011----40,145.0040,145.00
02/01/2012--545,000.003.550%40,145.00585,145.00
08/01/2012----30,471.2530,471.25
02/01/2013--540,000.003.650%30,471.25570,471.25
08/01/2013----20,616.2520,616.25
02/01/2014--540,000.003.750%20,616.25560,616.25
08/01/2014----10,491.2510,491.25
02/01/2015--545,000.003.850%10,491.25555,491.25
Total$2,715,000.00$2,715,000.00$2,715,000.00-$302,267.50$3,017,267.50
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation..........................................................................................................12/01/2009
Average Life.....................................................................................................................................................................3.165
Years
Average Coupon..............................................................................................................................................................3.5178062%
.
Weighted Average Maturity (Par Basis)............................................................................................................................3.165 Years
Refunding Bond Information
Refunding Dated Date......................................................................................................................................................12/01/2009
Refunding Delivery Date...................................................................................................................................................12/01/2009
Page 17
Page 18
$3,745,000
City of Hastings, Minnesota
General Obligation Improvement Refunding Bonds, Series 2009C
Current Refunding of Series 2002C, 2003A
Debt Service Comparison
DateTotal P+IEscrowExisting D/SNet New D/SOld Net D/SSavings
02/01/2010-(689.05)1,102,563.751,101,874.701,102,563.75689.05
02/01/2011968,274.16--968,274.161,166,140.00197,865.84
02/01/2012976,090.00--976,090.001,130,925.00154,835.00
02/01/2013974,465.00--974,465.001,099,422.50124,957.50
02/01/2014499,895.00--499,895.00581,232.5081,337.50
02/01/2015500,535.00--500,535.00565,982.5065,447.50
Total$3,919,259.16(689.05)$1,102,563.75$5,021,133.86$5,646,266.25$625,132.39
PV Analysis Summary (Net to Net)
Net FV Cashflow Savings...........................................................................................................................................625,132.39
Gross PV Debt Service Savings.................................................................................................................................599,231.54
.
PV of Escrow Earnings…………………………………………………………………………………………………….687.17
Net PV Cashflow Savings @ 1.642%(Bond Yield).....................................................................................................599,918.72
Transfers from Prior Issue Debt Service Fund............................................................................................................(445,000.00)
Contingency or Rounding Amount..............................................................................................................................402.50
.
Net Future Value Benefit............................................................................................................................................$180,534.89
.
Net Present Value Benefit..........................................................................................................................................$155,321.22
.
Net PV Benefit / $394,997.79 PV Refunded Interest...................................................................................................39.322%
3.575%
Net PV Benefit / $4,344,231.54 PV Refunded Debt Service.......................................................................................
.
Net PV Benefit / $4,135,000 Refunded Principal........................................................................................................3.756%
Net PV Benefit / $3,745,000 Refunding Principal.......................................................................................................4.147%
Refunding Bond Information
Refunding Dated Date................................................................................................................................................12/01/2009
.
Refunding Delivery Date.............................................................................................................................................12/01/2009
Page 19
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,785,000*
CITY OF HASTINGS, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2009A
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit (“Deposit”) will be received on Monday,
November 16, 2009, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened
and tabulated. Consideration for award of the Bonds will be by the City Council at7:00P.M.,
Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the 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 Bidding. 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 coupons, by telephone (651) 223-3000 or fax
(651) 223-3046 for inclusion in the submitted Proposal.
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 Bids submitted to PARITY.Each bidder shall
®
be solely responsible for making necessary arrangements to access PARITY for purposes of
submitting its electronic Bid 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:
®nd
PARITY, 1359 Broadway, 2 Floor, New York, New York 10018
Customer Support: (212) 849-5000
*
Preliminary; subject to change.
Page 20
DETAILS OF THE BONDS
The Bonds will be dated December 1, 2009, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2010. 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* as follows:
2012$170,0002015$170,0002018$180,0002020$190,000
2013$170,0002016$175,0002019$185,0002021$195,000
2014$170,0002017$180,000
*
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 maturity amounts offered for sale. Any such increase or
reduction will be made in multiples of $5,000 in any of the maturities. In the event the principal
amount of the Bonds is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
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 and must 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 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 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 SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2019, and on any day thereafter, to prepay Bonds due on or
after February 1, 2020. 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
prepaid. 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 prepayments shall be at a price of par plus accrued interest.
Page 21
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. In addition, the City will pledge special
assessments against benefited properties. The proceeds will be used to finance various
improvement projects throughout the City.
BIDDING PARAMETERS
Proposals shall be for not less than $1,770,720 and accrued interest on the total principal
amount of the Bonds.
No proposal can be withdrawn or amended 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. Rates shall be in integral multiples
of 5/100 or 1/8 of 1%. Rates are not required to be in level or ascending order; however, the
rate for any maturity cannot be more than 1% lower than the highest rate of any of the
preceding maturities. 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
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the
amount of $17,850, in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated
have any liability for delays in the transmission of the Deposit.
certified or cashier’s check
Any Deposit made by should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
wire transfer
Any Deposit sent via should be sent to Springsted Incorporated as the City’s
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635-5007954
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond_services@springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
and (iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Bonds.
Financial Surety Bond
If a is used, it must be from an insurance company licensed to issue
such a bond in the State of Minnesota and pre-approved by the City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the proposals. The Financial
Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial
Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then
that underwriter is required to submit its Deposit to the City in the form of a certified or cashier’s
Page 22
check or wire transfer as instructed by Springsted Incorporated not later than 3:30P.M., Central
Time on the next business day following the award. If such Deposit is not received by that time,
the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. 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. 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
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, 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 purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
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
Within 40 days following the date of their award, 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
Saint Paul and 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.
Page 23
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 an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement
within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of
the Official Statement or for any additional information prior to sale, any prospective purchaser
is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a “Final Official Statement” of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. 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 without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 70 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated October 19, 2009 BY ORDER OF THE CITY COUNCIL
/s/ Melanie Mesko Lee
City Clerk
Page 24
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
*
$395,000
CITY OF HASTINGS, MINNESOTA
GENERAL OBLIGATION EQUIPMENT CERTIFICATES
OF INDEBTEDNESS, SERIES 2009B
(BOOK ENTRY ONLY)
Proposals for the Certificates and the Good Faith Deposit (“Deposit”) will be received on
Monday, November 16, 2009, until 11:00 A.M., Central Time, at the offices of Springsted
Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals
will be opened and tabulated. Consideration for award of the Certificates will be by the City
Council at7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the 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 Certificates regardless of
the manner in which the Proposal is submitted.
Proposals may be submitted in a sealed envelope or by fax
(a)Sealed Bidding.
(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 coupons, by telephone (651) 223-3000 or fax
(651) 223-3046 for inclusion in the submitted Proposal.
OR
Notice is hereby given that electronic proposals will be received via
(b)Electronic Bidding.
®®
. For purposes of the electronic bidding process, the time as maintained by PARITY
PARITY
®
.Each bidder shall
shall constitute the official time with respect to all Bids submitted to PARITY
®
for purposes of
be solely responsible for making necessary arrangements to access PARITY
submitting its electronic Bid in a timely manner and in compliance with the requirements of the
®
shall have any duty or obligation to
Terms of Proposal. Neither the City, its agents nor PARITY
undertake registration to bid for any prospective bidder or to provide or ensure electronic access
®
shall be
to any qualified prospective bidder, and neither the City, its agents nor PARITY
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
®®
. The City is using the services of PARITY solely as a communication mechanism to
PARITY
®
is not an agent of the City.
conduct the electronic bidding for the Certificates, and PARITY
®
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:
®nd
, 1359 Broadway, 2 Floor, New York, New York 10018
PARITY
Customer Support: (212) 849-5000
*
Preliminary; subject to change.
Page 25
DETAILS OF THE CERTIFICATES
The Certificates will be dated December 1, 2009, as the date of original issue, and will bear
interest payable on February 1 and August 1 of each year, commencing August 1, 2010.
Interest will be computed on the basis of a 360-day year of twelve 30-day months.
The Certificates will mature February 1 in the years and amounts* as follows:
2011$75,0002013$80,0002015$85,000
2012$75,0002014$80,000
*
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Certificates or the maturity amounts offered for sale. Any such increase or
reduction will be made in multiples of $5,000 in any of the maturities. In the event the principal
amount of the Certificates is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Certificates is increased or reduced.
Proposals for the Certificates 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 and must 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 Certificates will be issued by means of a book entry system with no physical distribution of
Certificates made to the public. The Certificates will be issued in fully registered form and one
Certificate, representing the aggregate principal amount of the Certificates 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 of the
Certificates. Individual purchases of the Certificates 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 Certificates. 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 Certificates, will be required to deposit the Certificates with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Certificates will not be subject to payment in advance of their respective stated maturity
dates.
SECURITY AND PURPOSE
The Certificates 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 the acquisition of equipment for City purposes.
Page 26
BIDDING PARAMETERS
Proposals shall be for not less than $388,483 and accrued interest on the total principal amount
of the Certificates.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Certificates is adjourned, recessed, or continued
to another date without award of the Certificates having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1%. Rates are not required to be in level or ascending order;
however, the rate for any maturity cannot be more than 1% lower than the highest rate of any of
the preceding maturities. Certificates of the same maturity shall bear a single rate from the date
of the Certificates to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the
amount of $3,950, in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Certificate and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Certificate. Neither the City nor Springsted
Incorporated have any liability for delays in the transmission of the Deposit.
certified or cashier’s check
Any Deposit made by should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
wire transfer
Any Deposit sent via should be sent to Springsted Incorporated as the City’s
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635-5007954
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond_services@springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
and (iv) the return wire instructions if such bidder is not awarded the Certificates.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Certificates. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Certificates.
Financial Surety Certificate
If a is used, it must be from an insurance company licensed to
issue such a bond in the State of Minnesota and pre-approved by the City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the proposals. The Financial
Surety Certificate must identify each underwriter whose Deposit is guaranteed by such Financial
Surety Certificate. If the Certificates are awarded to an underwriter using a Financial Surety
Certificate, then that underwriter is required to submit its Deposit to the City in the form of a
certified or cashier’s check or wire transfer as instructed by Springsted Incorporated not later
than 3:30P.M., Central Time on the next business day following the award. If such Deposit is
not received by that time, the Financial Surety Certificate may be drawn by the City to satisfy the
Deposit requirement.
Page 27
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
AWARD
The Certificates 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.
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 Certificates, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City determines to have failed to comply with
the terms herein.
CUSIP NUMBERS
If the Certificates qualify for assignment of CUSIP numbers such numbers will be printed on the
Certificates, but neither the failure to print such numbers on any Certificate nor any error with
respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of
the Certificates. The CUSIP Service Bureau charge for the assignment of CUSIP identification
numbers shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Certificates 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
Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificate. On the date of settlement, payment for the Certificates 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
Certificates 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 Certificates, 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 Certificates 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 an Official Statement containing pertinent information
relative to the Certificates, and said Official Statement will serve as a nearly final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
Page 28
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Certificates, together with any other
information required by law, shall constitute a “Final Official Statement” of the City with respect
to the Certificates, as that term is defined in Rule 15c2-12. By awarding the Certificates 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 without cost to the
senior managing underwriter of the syndicate to which the Certificates are awarded 15 copies of
the Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Certificates are awarded as its agent
for purposes of distributing copies of the Final Official Statement to each Participating
Underwriter. Any underwriter delivering a proposal with respect to the Certificates agrees
thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it
shall enter into a contractual relationship with all Participating Underwriters of the Certificates for
purposes of assuring the receipt by each such Participating Underwriter of the Final Official
Statement.
Dated October 19, 2009 BY ORDER OF THE CITY COUNCIL
/s/ Melanie Mesko Lee
City Clerk
Page 29
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
*
$3,745,000
CITY OF HASTINGS, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2009C
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit (“Deposit”) will be received on Monday,
November 16, 2009, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened
and tabulated. Consideration for award of the Bonds will be by the City Council at7:00P.M.,
Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the 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 Bidding. 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 coupons, by telephone (651) 223-3000 or fax
(651) 223-3046 for inclusion in the submitted Proposal.
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 Bids submitted to PARITY.Each bidder shall
®
be solely responsible for making necessary arrangements to access PARITY for purposes of
submitting its electronic Bid 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:
®nd
PARITY, 1359 Broadway, 2 Floor, New York, New York 10018
Customer Support: (212) 849-5000
*
Preliminary; subject to change.
Page 30
DETAILS OF THE BONDS
The Bonds will be dated December 1, 2009, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2010. 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* as follows:
2011$905,0002013$940,0002015$490,000
2012$930,0002014$480,000
*
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 maturity amounts offered for sale. Any such increase or
reduction will be made in multiples of $5,000 in any of the maturities. In the event the principal
amount of the Bonds is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
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 and must 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 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 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 SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
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. In addition, the City will pledge special
assessments against benefited properties. The proceeds will be used to refund the February 1,
2011 through February 1, 2013 maturities of the City’s General Obligation Improvement Bonds,
Series 2002C, dated December 1, 2002 and the February 1, 2011 through February 1, 2015
maturities of the City’s General Obligation Improvement Bonds, Series 2003A, dated September
1, 2003.
Page 31
BIDDING PARAMETERS
Proposals shall be for not less than $3,724,402 and accrued interest on the total principal
amount of the Bonds.
No proposal can be withdrawn or amended 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. Rates shall be in integral multiples
of 5/100 or 1/8 of 1%. Rates are not required to be in level or ascending order; however, the
rate for any maturity cannot be more than 1% lower than the highest rate of any of the
preceding maturities. 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
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the
amount of $37,450, in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated
have any liability for delays in the transmission of the Deposit.
certified or cashier’s check
Any Deposit made by should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
wire transfer
Any Deposit sent via should be sent to Springsted Incorporated as the City’s
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635-5007954
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond_services@springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
and (iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Bonds.
Financial Surety Bond
If a is used, it must be from an insurance company licensed to issue
such a bond in the State of Minnesota and pre-approved by the City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the proposals. The Financial
Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial
Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then
that underwriter is required to submit its Deposit to the City in the form of a certified or cashier’s
check or wire transfer as instructed by Springsted Incorporated not later than 3:30P.M., Central
Time on the next business day following the award. If such Deposit is not received by that time,
the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
Page 32
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.
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
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, 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 purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
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
Within 40 days following the date of their award, 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
Saint Paul and 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).
Page 33
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement
within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of
the Official Statement or for any additional information prior to sale, any prospective purchaser
is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a “Final Official Statement” of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. 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 without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 150 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated October 19, 2009 BY ORDER OF THE CITY COUNCIL
/s/ Melanie Mesko Lee
City Clerk
Page 34
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF HASTINGS, MINNESOTA
HELD: October 19, 2009
Pursuant to due call and notice thereof, a regular meeting of the City Council of
the City of Hastings, Dakota and Washington Counties, Minnesota, was duly held at the City
th
Hall in said City on the 19 day of October, 2009 at 7:00 o'clock P.M. for the purpose in part of
authorizing the competitive negotiated sale of the $1,785,000 General Obligation Improvement
Bonds, Series 2009A of said City.
The following members were present:
and the following were absent:
Member ________________ introduced the following resolution and moved its
adoption:
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $1,785,000
GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 2009A
A.WHEREAS, the City Council of the City of Hastings, Minnesota, has
heretofore determined that it is necessary and expedient to issue its $1,785,000 General
Obligation Improvement Bonds, Series 2009A (the "Bonds") to finance various improvement
projects in the City; and
B.WHEREAS, the City has retained Springsted Incorporated, in Saint Paul,
Minnesota ("Springsted"), as its independent financial advisor in connection with the issuance of
the Bonds 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
Hastings, Minnesota, as follows:
1.Authorization; Findings. The City Council hereby authorizes Springsted to solicit
bids for the competitive negotiated sale of the Bonds.
2.Meeting; Bid 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 bids for, and awarding the sale of, the Bonds. The Administrator, or his designee, shall
open bids at the time and place specified in such Terms of Proposal.
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.
2334977v1
4.Official Statement. In connection with said competitive negotiated sale, the
Administrator 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 _______________ and, after full discussion thereof and upon a vote being taken
thereon, the following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
2334977v1
2
Council member _____________________ moved a second, and upon being put to a vote it was
unanimously adopted by all Council members present.
Adopted by the Hastings City Council on this _ day of _______, 2009, by the
following vote:
Ayes
Nays:
Absent:
CITY OF HASTINGS
Paul J. Hicks, Mayor
ATTEST:
Melanie Mesko Lee, City Clerk
I hereby certify that the above is a true and correct copy presented to and adopted by the
City of Hastings, County of Dakota, Minnesota, on the _____ day of ______, 2009, as disclosed
by the records of the City of Hastings on file and of record in the office.
Melanie Mesko Lee,
City Clerk/Assistant City Administrator
STATE OF MINNESOTA
COUNTIES OF DAKOTA AND WASHINGTON
CITY OF HASTINGS
I, the undersigned, being the duly qualified and acting Clerk of the City of
Hastings, 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 of said City, duly called
and held on the date therein indicated, insofar as such minutes relate to providing for the sale of
the City's $1,785,000 General Obligation Improvement Bonds, Series 2009A.
WITNESS my hand this _____ day of ________________, 2009.
__________________________________
Clerk
2334977v1
3
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
$1,785,000*
CITY OF HASTINGS, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2009A
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit (“Deposit”) will be received on Monday,
November 16, 2009, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, 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 the 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.
Sealed Bidding
(a) . 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 coupons, by telephone (651) 223 3000 or fax (651) 223 3046 for inclusion in
the submitted Proposal.
OR
Electronic Bidding
(b) . 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 Bids submitted to PARITY®.
Each bidder shall be solely responsible for making necessary arrangements to access PARITY®
for purposes of submitting its electronic Bid 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.
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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
DETAILS OF THE BONDS
The Bonds will be dated December 1, 2009, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2010. 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* as follows:
2012 $170,000 2015 $170,000 2018 $180,000 2020 $190,000
2013 $170,000 2016 $175,000 2019 $185,000 2021 $195,000
2014 $170,000 2017 $180,000
* 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 maturity amounts offered for sale. Any
such increase or reduction will be made in multiples of $5,000 in any of the maturities. In
the event the principal amount of the Bonds is increased or reduced, any premium offered
or any discount taken by the successful bidder will be increased or reduced by a
percentage equal to the percentage by which the principal amount of the Bonds is
increased or reduced.
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 and must 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 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 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.
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REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2019, and on any day thereafter, to prepay Bonds due on or
after February 1, 2020. 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
prepaid. 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 prepayments 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. In addition, the City will pledge
special assessments against benefited properties. The proceeds will be used to finance various
improvement projects throughout the City.
BIDDING PARAMETERS
Proposals shall be for not less than $1,770,720 and accrued interest on the total principal amount
of the Bonds.
No proposal can be withdrawn or amended 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. Rates shall be in integral multiples
of 5/100 or 1/8 of 1%. Rates are not required to be in level or ascending order; however, the rate
for any maturity cannot be more than 1% lower than the highest rate of any of the preceding
maturities. 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
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the amount
of $17,850, in the form of a certified or cashier's check, a wire transfer, or Financial Surety Bond
and delivered to Springsted Incorporated prior to the time proposals will be opened. Each bidder
shall be solely responsible for the timely delivery of their Deposit whether by check, wire
transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated have any
liability for delays in the transmission of the Deposit.
certified or cashier’s check
Any Deposit made by should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101.
wire transfer
Any Deposit sent via should be sent to Springsted Incorporated as the City’s agent
according to the following instructions:
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Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635-5007954
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond_services@springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies, and
(iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the
City following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Bonds.
Financial Surety Bond
If a is used, it must be from an insurance company licensed to issue such
a bond in the State of Minnesota and pre-approved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that underwriter is
required to submit its Deposit to the City in the form of a certified or cashier’s check or wire
transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time on the
next business day following the award. If such Deposit is not received by that time, the
Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. 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. 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
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of the
Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance
shall be paid by the purchaser, 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 purchaser.
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Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
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
Within 40 days following the date of their award, 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
Saint Paul and 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 an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement
within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of
the Official Statement or for any additional information prior to sale, any prospective purchaser
is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a “Final Official Statement” of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. 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 without cost to the senior
managing underwriter of the syndicate to which the Bonds are awarded 70 copies of the Official
Statement and the addendum or addenda described above. The City designates the senior
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managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes
of distributing copies of the Final Official Statement to each Participating Underwriter. Any
underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is
accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual
relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt
by each such Participating Underwriter of the Final Official Statement.
Dated October 19, 2009 BY ORDER OF THE CITY COUNCIL
/s/ Melanie Mesko Lee
City Clerk
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EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
HASTINGS, MINNESOTA
HELD: October 19, 2009
Pursuant to due call and notice thereof, a regular meeting of the City Council of
the City of Hastings, Dakota and Washington Counties, Minnesota, was duly held at the City
Hall, in said City on the 19th day of October, 2009, at 7:00 o'clock P.M. for the purpose in part
of authorizing the competitive negotiated sale of $395,000 General Obligation Equipment
Certificates of Indebtedness, Series 2009B of said City.
The following members were present:
and the following were absent:
Member ________________ introduced the following resolution and moved its
adoption:
RESOLUTION PROVIDING FOR THE
COMPETITIVE NEGOTIATED SALE OF $395,000 GENERAL
OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2009B
A. WHEREAS, the City Council of the City of Hastings, Minnesota, has
heretofore determined that it is necessary and expedient to issue its $395,000 General Obligation
Equipment Certificates of Indebtedness, Series 2009B (the "Certificates") to finance the
acquisition of equipment for City purposes; and
B. WHEREAS, the City has retained Springsted Incorporated, in Saint Paul,
Minnesota ("Springsted"), as its independent financial advisor in connection with the issuance of
the Certificates 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
Hastings, Minnesota, as follows:
1. Authorization; Findings. The City Council hereby authorizes Springsted to solicit
bids for the competitive negotiated sale of the Certificates.
2. Meeting; Bid 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 bids
for, and awarding the sale of, the Certificates. The Administrator or his designee, shall open bids
at the time and place specified in such Terms of Proposal.
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3. Terms of Proposal. The terms and conditions of the Certificates 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 said competitive negotiated sale, the
Administrator, Finance Director 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 Certificates, 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 __________________ and, after a full discussion thereof and upon a vote being taken
thereon, the following voted in favor thereof:
and the following against the same:
Whereupon said resolution was declared duly passed and adopted.
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Council member _____________________ moved a second, and upon being put to a vote it was
unanimously adopted by all Council members present.
Adopted by the Hastings City Council on this _ day of _______, 2009, by the
following vote:
Ayes
Nays:
Absent:
CITY OF HASTINGS
Paul J. Hicks, Mayor
ATTEST:
Melanie Mesko Lee, City Clerk
I hereby certify that the above is a true and correct copy presented to and adopted by the
City of Hastings, County of Dakota, Minnesota, on the _____ day of ______, 2009, as disclosed
by the records of the City of Hastings on file and of record in the office.
Melanie Mesko Lee,
City Clerk
STATE OF MINNESOTA
COUNTIES OF DAKOTA AND WASHINGTON
CITY OF HASTINGS
I, the undersigned, being the duly qualified and acting Clerk of the City of Hastings,
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 of said City, duly called and
held on the date therein indicated, insofar as such minutes relate to the sale of the City's
$395,000 General Obligation Equipment Certificates of Indebtedness, Series 2009B.
WITNESS my hand this _____ day of ________________, 2009.
_______________________________________
Clerk
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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
$395,000*
CITY OF HASTINGS, MINNESOTA
GENERAL OBLIGATION EQUIPMENT CERTIFICATES
OF INDEBTEDNESS, SERIES 2009B
(BOOK ENTRY ONLY)
Proposals for the Certificates and the Good Faith Deposit (“Deposit”) will be received on
Monday, November 16, 2009, until 11:00 A.M., Central Time, at the offices of Springsted
Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals
will be opened and tabulated. Consideration for award of the Certificates 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 the 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 Certificates regardless of
the manner in which the Proposal is submitted.
Sealed Bidding
(a) . 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 coupons, by telephone (651) 223 3000 or fax (651) 223 3046 for inclusion in
the submitted Proposal.
OR
Electronic Bidding
(b) . 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 Bids submitted to PARITY®.
Each bidder shall be solely responsible for making necessary arrangements to access PARITY®
for purposes of submitting its electronic Bid 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
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communication mechanism to conduct the electronic bidding for the Certificates, 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
DETAILS OF THE CERTIFICATES
The Certificates will be dated December 1, 2009, as the date of original issue, and will bear
interest payable on February 1 and August 1 of each year, commencing August 1, 2010. Interest
will be computed on the basis of a 360-day year of twelve 30-day months.
The Certificates will mature February 1 in the years and amounts* as follows:
2011 $75,000 2013 $80,000 2015 $85,000
2012 $75,000 2014 $80,000
* The City reserves the right, after proposals are opened and prior to award, to increase or
reduce the principal amount of the Certificates or the maturity amounts offered for sale.
Any such increase or reduction will be made in multiples of $5,000 in any of the
maturities. In the event the principal amount of the Certificates is increased or reduced,
any premium offered or any discount taken by the successful bidder will be increased or
reduced by a percentage equal to the percentage by which the principal amount of the
Certificates is increased or reduced.
Proposals for the Certificates 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 and must 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 Certificates will be issued by means of a book entry system with no physical distribution of
Certificates made to the public. The Certificates will be issued in fully registered form and one
Certificate, representing the aggregate principal amount of the Certificates 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 of the Certificates.
Individual purchases of the Certificates 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 Certificates. 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
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nominees of beneficial owners. The purchaser, as a condition of delivery of the Certificates, will
be required to deposit the Certificates with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Certificates will not be subject to payment in advance of their respective stated maturity
dates.
SECURITY AND PURPOSE
The Certificates 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 the acquisition of equipment for City purposes.
BIDDING PARAMETERS
Proposals shall be for not less than $388,483 and accrued interest on the total principal amount
of the Certificates.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Certificates is adjourned, recessed, or continued
to another date without award of the Certificates having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1%. Rates are not required to be in level or ascending order;
however, the rate for any maturity cannot be more than 1% lower than the highest rate of any of
the preceding maturities. Certificates of the same maturity shall bear a single rate from the date
of the Certificates to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the amount
of $3,950, in the form of a certified or cashier's check, a wire transfer, or Financial Surety
Certificate and delivered to Springsted Incorporated prior to the time proposals will be opened.
Each bidder shall be solely responsible for the timely delivery of their Deposit whether by check,
wire transfer or Financial Surety Certificate. Neither the City nor Springsted Incorporated have
any liability for delays in the transmission of the Deposit.
certified or cashier’s check
Any Deposit made by should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101.
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wire transfer
Any Deposit sent via should be sent to Springsted Incorporated as the City’s agent
according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635-5007954
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond_services@springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies, and
(iv) the return wire instructions if such bidder is not awarded the Certificates.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the
City following the award of the Certificates. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Certificates.
Financial Surety Certificate
If a is used, it must be from an insurance company licensed to
issue such a bond in the State of Minnesota and pre-approved by the City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety
Certificate must identify each underwriter whose Deposit is guaranteed by such Financial Surety
Certificate. If the Certificates are awarded to an underwriter using a Financial Surety Certificate,
then that underwriter is required to submit its Deposit to the City in the form of a certified or
cashier’s check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M.,
Central Time on the next business day following the award. If such Deposit is not received by
that time, the Financial Surety Certificate may be drawn by the City to satisfy the Deposit
requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
AWARD
The Certificates 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.
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 Certificates, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City determines to have failed to comply with
the terms herein.
CUSIP NUMBERS
If the Certificates qualify for assignment of CUSIP numbers such numbers will be printed on the
Certificates, but neither the failure to print such numbers on any Certificate nor any error with
respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of
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the Certificates. The CUSIP Service Bureau charge for the assignment of CUSIP identification
numbers shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Certificates 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
Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificate. On the date of settlement, payment for the Certificates 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
Certificates 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 Certificates, 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 Certificates 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 an Official Statement containing pertinent information
relative to the Certificates, and said Official Statement will serve as a nearly final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For
copies of the Official Statement or for any additional information prior to sale, any prospective
purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson
Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Certificates, together with any other
information required by law, shall constitute a “Final Official Statement” of the City with respect
to the Certificates, as that term is defined in Rule 15c2-12. By awarding the Certificates 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 without cost to the
senior managing underwriter of the syndicate to which the Certificates are awarded 15 copies of
the Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Certificates are awarded as its agent
for purposes of distributing copies of the Final Official Statement to each Participating
Underwriter. Any underwriter delivering a proposal with respect to the Certificates agrees
thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it
shall enter into a contractual relationship with all Participating Underwriters of the Certificates
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for purposes of assuring the receipt by each such Participating Underwriter of the Final Official
Statement.
Dated October 19, 2009 BY ORDER OF THE CITY COUNCIL
/s/ Melanie Mesko Lee
City Clerk
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EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF HASTINGS, MINNESOTA
HELD: October 19, 2009
Pursuant to due call and notice thereof, a regular meeting of the City Council of
the City of Hastings, Dakota and Washington Counties, Minnesota, was duly held at the City
th
Hall in said City on the 19 day of October, 2009 at 7:00 o'clock P.M. for the purpose in part of
authorizing the competitive negotiated sale of the $3,745,000 General Obligation Improvement
Refunding Bonds, Series 2009C of said City.
The following members were present:
and the following were absent:
Member ________________ introduced the following resolution and moved its
adoption:
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $3,745,000
GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS,
SERIES 2009C
A. WHEREAS, the City Council of the City of Hastings, Minnesota, has
heretofore determined that it is necessary and expedient to issue its $3,745,000 General
Obligation Improvement Refunding Bonds, Series 2009C (the "Bonds") to refund the February
1, 2011 through February 1, 2013 maturities of the City's General Obligation Improvement
Bonds, Series 2002C, dated December 1, 2002 and the February 1, 2011 through February 1,
2015 maturities of the City's General Obligation Improvement Bonds, Series 2003A, dated
September 1, 2003; 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
Hastings, Minnesota, as follows:
1.Authorization; Findings. The City Council hereby authorizes Springsted to solicit
bids for the competitive negotiated sale of the Bonds.
2.Meeting; Bid 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 bids for, and awarding the sale of, the Bonds. The Administrator, or his designee, shall
open bids at the time and place specified in such Terms of Proposal.
2414099v1
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 said competitive negotiated sale, the
Administrator 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 _______________ and, after full discussion thereof and upon a vote being taken
thereon, the following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
2414099v1
2
Council member _____________________ moved a second, and upon being put to a vote it was
unanimously adopted by all Council members present.
Adopted by the Hastings City Council on this _ day of _______, 2009, by the
following vote:
Ayes
Nays:
Absent:
CITY OF HASTINGS
Paul J. Hicks, Mayor
ATTEST:
Melanie Mesko Lee, City Clerk
I hereby certify that the above is a true and correct copy presented to and adopted by the
City of Hastings, County of Dakota, Minnesota, on the _____ day of ______, 2009, as disclosed
by the records of the City of Hastings on file and of record in the office.
Melanie Mesko Lee,
City Clerk
STATE OF MINNESOTA
COUNTIES OF DAKOTA AND WASHINGTON
CITY OF HASTINGS
I, the undersigned, being the duly qualified and acting Clerk of the City of
Hastings, 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 of said City, duly called
and held on the date therein indicated, insofar as such minutes relate to the City's $3,745,000
General Obligation Improvement Refunding Bonds, Series 2009C.
WITNESS my hand this _____ day of ________________, 2009.
__________________________________
Clerk
2414099v1
3
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
?
$3,745,000
CITY OF HASTINGS, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2009C
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit ("Deposit") will be received on Monday,
November 16, 2009, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, 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 the 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.
Sealed Bidding
(a) . 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 coupons, by telephone (651) 223 3000 or fax (651) 223 3046 for inclusion in
the submitted Proposal.
OR
Electronic Bidding
(b) . 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 Bids submitted to PARITY®.
Each bidder shall be solely responsible for making necessary arrangements to access PARITY®
for purposes of submitting its electronic Bid 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
?
Preliminary; subject to change.
2414099v1
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
DETAILS OF THE BONDS
The Bonds will be dated December 1, 2009, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2010. 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* as follows:
2011 $905,000 2013 $940,000 2015 $490,000
2012 $930,000 2014 $480,000
*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 maturity amounts offered for sale. Any such increase or
reduction will be made in multiples of $5,000 in any of the maturities. In the event the principal
amount of the Bonds is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which
the principal amount of the Bonds is increased or reduced.
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 and must 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 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 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
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2414099v1
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 SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
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. In addition, the City will pledge
special assessments against benefited properties. The proceeds will be used to refund the
February 1, 2011 through February 1, 2013 maturities of the City’s General Obligation
Improvement Bonds, Series 2002C, dated December 1, 2002 and the February 1, 2011 through
February 1, 2015 maturities of the City’s General Obligation Improvement Bonds, Series 2003A,
dated September 1, 2003.
BIDDING PARAMETERS
Proposals shall be for not less than $3,724,402 and accrued interest on the total principal amount
of the Bonds.
No proposal can be withdrawn or amended 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. Rates shall be in integral multiples
of 5/100 or 1/8 of 1%. Rates are not required to be in level or ascending order; however, the rate
for any maturity cannot be more than 1% lower than the highest rate of any of the preceding
maturities. 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
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the amount
of $37,450, in the form of a certified or cashier's check, a wire transfer, or Financial Surety Bond
and delivered to Springsted Incorporated prior to the time proposals will be opened. Each bidder
shall be solely responsible for the timely delivery of their Deposit whether by check, wire
transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated have any
liability for delays in the transmission of the Deposit.
Any Deposit made by certified or cashier’s check should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101.
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2414099v1
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City’s agent
according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635-5007954
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond_services@springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies, and
(iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the
City following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Bonds.
If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such
a bond in the State of Minnesota and pre-approved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that underwriter is
required to submit its Deposit to the City in the form of a certified or cashier’s check or wire
transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time on the
next business day following the award. If such Deposit is not received by that time, the
Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. 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. 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
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of the
Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance
A-4
2414099v1
shall be paid by the purchaser, 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 purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
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
Within 40 days following the date of their award, 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
Saint Paul and 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 an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement
within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of
the Official Statement or for any additional information prior to sale, any prospective purchaser
is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
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2414099v1
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. 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 without cost to the senior
managing underwriter of the syndicate to which the Bonds are awarded 150 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated October 19, 2009 BY ORDER OF THE CITY COUNCIL
/s/ Melanie Mesko Lee City Clerk
A-6
2414099v1
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