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90-115 o � � �(� V� �..�_, Council File � — 5 Green Sheet � 4/ ,�'G RESOLUTION ,i-�, CITY NT PAUL, MINNESOTA ( l� ` �%. Presented By Referred To Committee: Date PROVIDING FOR THE PUBLIC SALE OF $5,545,000 WATER REVENUE BONDS, SERIES 1990C A. WHEREAS, the City of Saint Paul, Minnesota (the "City" ) , owns and operates a municipal water utility (the "Water Utility" ) which has since its acquisition in 1885 been under the jurisdiction of the Board of Water Commissioners (the "Board" ) ; and . B. WHEREAS, it is necessary and appropriate that the City of 5aint Paul, Minnesota (the "City" ) , issue its ' $5, 545, 000 Water Revenue Bonds, Series 1990C (the "Bonds" ) , for the purpose of improving the Water Utility by replacing conduits and mains and installing new mains, undertaking a l��ke aeration project, constructing improvements to its water treatment plant, and for the purpose of further funding the reserve which will secure the Bonds and bonds heretofore or hereafter issued on a parity therewith, and paying the costs of issuing the Bonds; and C . WHEREAS, the Board has recommended that the City issue the Bonds, in accordance with and pursuant to the provisions of Section 10 . 11 . 2 of the City Charter, and the City proposes to do so; and � D. WHEREAS, the City is required to make certain findings if the Bonds are to be issued on a parity with cert.ain ea.rlier .r_evenue bonds of the City; and � 0R1G��NAL � y° - "� E . WHEREAS, there are no bonds, certificates or other obligations payable out of the Net Revenues (as defined in resolutions authorizing the issuance of the bonds described below, the "Net Revenues " ) of the Water Utility constituting a lien or charge thereon which will be outstanding upon the issuance of the Bonds, except $5, 375, 000 Water Revenue Bonds, Series 1985A (the "1985 Bonds" ) , issued pursuant to a resolution adopted by the City Council on August 27 , 1985, of which $4 , 625, 000 remain outstanding and undischarged after Uecember 1, 1989, and $8, 000, 000 Water Revenue Bonds, Series 1988A (the "1988 Bonds" ) , issued pursuant to a resolution adopted by the City Council on December 3, 1987 , of which $7 , 325, 000 remain outstanding and undischarged after December 1, 1989 : NOW, THEREFORE, BE IT RESOLVED by the City Council of the Cit.y of Saint Paul, Minnesota, as follows: 1 . Findings : Amount and Purpose. It is hereby found, determined and declared that the City should issue the Bonds iii the amount and for the purposes stated above. 2 . Findings : Other Revenue Bonds . Neither the City nor the Board has any outstanding bonds, warrants, certificates, or other obligatioils or evidences of indebtedness, or money bor.rowed for or on account of the Water Utility or indebted- ness for which any of the Net Revenues of all or a part of the Water Utility have been pledged or which are a prior lien on sucll Revenues , except the 1985 Bonds and 1988 Bonds . 3 . Findings: Payments; Parity. All payments required to be made prior to the date hereof into the various funds and accounts of the "Water Utility Fund" established pursuant to the resolutions of this City Council which authorized the issuance of the 1985 Bonds and 1988 Bonds have been made. The annual Net Revenues for each of the two ( 2 ) completed fiscal years immediately preceding the issuance of the Bonds have l�een mor.e t.han one and one-half ( 1 . 5� times the maximum annual principal and interest coming due hereafter on all outstanding revenue obligations payable from and having a parity of lien upon the Net Revenues, including the obligations herein authorized and proposed to be issued, to wit: 0 R I G F�N�A�L �9G "''� Net Revenues 1988 $10,250,440 Net Revenues 1989 (Estimated) $ 6, 393, 385 Maximum Annual Principal and Interest on the 1985 Bonds $ 968,250 Maximum Principal and Interest on the 1988 Bonds $ 940, 625 Maximum Annual Principal and Interest on the Bonds (assuming a net ini:erest rate of 6 . 362 ) $ 1, 113, 576 Maximum Annual Principal and Interest on the 19$5 Bonds, 1988 Bonds, and Bonds (COMBINED) $ 2,484 ,440 One and One-half ( 1 .5) Times Total Maximum Annual Principal and Interest Requirements $ 3, 726,660 This City Council has been furnished with the Certificate of the General Manager of the Water Utility attesting to the foregoing facts . 4 . Finding of Sufficiency of Net Revenues . This City Council pursuant to advice from the Board hereby finds, determines and declares that the estimated revenues to be der_ived from the operation of the Water Utility during the term of the Bonds will be more than sufficient to provide Net Revenues adequate to pay principal and interest when due on the Bonds and on those other bonds which are now outstanding and to maintain the Reserves required therefor. 5 . Meeting. This City Council shall meet at the time and place specified in the Official Terms of Offering attached hereto for the purpose of considering bids for, and awarding th.e sale of, the Bonds . The acting Director, Department of Finance and Management Services, shall open sealed bids at the time and place specified in the Official Terms of Offering. 6 . Official Terms of Offering. Sealed bids for the Bonds shall be received in accordance with the Official Terms of Offering, a copy of which has been presented to the Council and is attached hereto as Exhibit A. A copy of the Official Terms of Offering is hereby directed to be placed on file in the office of the City Clerk. The terms and conditions of the 0 R��I �f���;� L �9a-��s Bonds and of the sale thereof substantially as set forth in the Official Terms of Offering are hereby approved and confirmed, and the Official Terms of Offering are hereby adopted in substantially such form. The Official Terms of Offering, or the Notice of Sale set forth as Exhibit B hereto, shall be published not less than ten ( 10) days in advance of the date of sale, as provided by law, in the St. Paul Legal Ledger (the official City newspaper) and in Northwestern Financial Review or Finance and Commerce, and may be • published, at the option of the acting Director, Department of Finance and Management Services, in such form or in a shortened form ( including a combined form including general obligation bonds ) , in one or more financial newspapers or journals published in New York or Chicago. 7 . Official 5tatement. The acting Director, Department of Finance and Management Services, and other officers or employees are hereby authorized to cooperate with Springsted Incorporated and Briggs and Morgan, Professional Association, to prepare an Official Statement of the City with respect to the Bonds . Yeas_ Navs Absent Requested by Department of: snron � swi z �— on � Finance Management Se vices acca ee �— et man � une �— z son �. BY' �— O Adopted by Council: Date �A N 2 3 1990 Form Approved b Cit Attorney Adoption Certified by Council Secretary By: � By' Approve y Mayor for Submission to .�AN 2 4 I99Ocounci� , Approved by Mayor: Date 0lO.?lf�/�C� , __, , � --- B L���,����� By: y: PU6I.ISHED ���i3 - � 1990 . .. �y�'����1 �� DEPARTMENTlOFFl(�JCOUNqL DATE INITIATED Finance and Management S rvices 1-11-90 GREEN SHEET N0. �NITIAUDATE CONTACT PERSON d PHONE �DEPAR7MENT DIRECTOR ❑¢ CITY COUNCIL Gary Norstrem/Shirley Da is 292-7038 N�M�� �pTy�nppH�r CITY CLERK MUST BE ON COUNqL A3ENDA BY(DA ROUTINQ �BUDOET DIRECTOR FIN.fl MaT.SERVICES DIR. Janua 23 1990 �MAVOR(OR IlS81STANT) TOTAL N OF SIGNATURE PAG 1 (CLIP ALL LOCATIONS FOR SIGNATUR� ACfION REOUE8TED: Provides for the sale of $5,545,000 Water Revenue Bonds, Series 1990C RECOMMENDATIONB:Apprare W a (F� COUNCIL COM REPORT OPTIONAI _PLANNINO COMMISSION L BERVICE COMMI3SION ��YST PHONE NO. _qB GOMMITTEE A Board of Water Co issioners �}n COMMENTB: A �� A FinancialSAdvisor OFFICE oF' _o�icr couar — DEPqRTME TNE DiRECTOR suPPORrs wt+ic.�couNa�oe�ecnve �"-ND M'ANAGE r OF FINqNCE INITIATIN(i PROBLEM,ISSUE,OPPORTU (Wfa,Whet,When,Where,Why): 1) Determine9amount of b nds to be sold. 2) Sets the date and tim of the sale and defines the "Official Terms of the Offering." 3) Provides authority fo the publication of the notice of sale. 4) Adopts the "Official erms of the Offerinq" of the issue. ADVANTAQEB IF APPROVED: Issuance of the bonds c ries out the Board of Water Commissioner's capital improvement proqram as described in the Board�s 1990 Bud t adopted by the City CounciL DISADVANTA(iE3 IF APPROVED: NONE - D18ADVANTA(�E8 IF NOT APPROVED: The failure of this res lution would require rescheduling of these issues at a later date, thereby imposinq a possibilitp of hiqher i terest rates and delays to City construction projects. �ounc�� ke�earcn Centel; JAN 12199Q TOTAL AMOUNT OF TRANSA : 5,545�000 CpgT/REVENUE BUDOETED(CIRq.E ON� YES NO �Np��gp�p� Water Ent rise Fund ACTMTY NUMBER FINANCIAL INFORMATION:(DCPWN) �. . . e � �k}'>.., , . . NOTE: COMPLETE DIRECTIONS ARE INCLUDED IN THE GREEN SHEET INSTRUCTIONAL MANUAL AVAILABLE IN THE PURCHASING OFFICE(PHONE NO.298-4225). ROUTING ORDER: "' ° Below are preferred routings for the five most frequent types of documents: CONTRACTS (assumea authorized COUNCIL RESOLUTJON (Amend..Bdgts./ budget exi ) Accept. Grants) 1. Outside Agency 1. Department Director 2. Inkiating Department 2. Budget Director � 3. City Attorney 3. City Attorney 4. Mayor 4. Mayor/Aasistant 5. Fnance&Mgrtit Svcs. Director 5. City Council 6. Finance Accounting 6. Chief AccountaM, Fln 8 Mgmt Svcs. ADMINISTRATIV6 ORDER (Budget COUNCIL RESOLUTION (all others) Revision) and ORDINANCE 1. Activity Manager 1. Initiating DepaRment Director 2.. DepaRment Accountant 2. City Attorney 3. . �epa�ment Dir�ctor' . 3. Mayor/Assistant 4. 6udget Directw 4. City Council 5.` _ Ciry Clerk 6. Chief Accountant, Fin&Mgmt Svcs. ADMINISTRATIVE ORDERS (all others) 1. Initiating DepaRment 2. City Attomey 3. MayoNAssistant 4. Ciry Clerk TOTAL NUMBER OF SIGNATURE PAGES Indicate the�of pages on which signatures are required and reli each of theae pages. ACTION REOUESTED Deacribe whet the project/request seeks to accomplish in either chronologi- cal order or order of importance,whichever is most appropMate for the issue. Do not w�ite complete sentences. Begin each item in your list with a verb. RECOMMENDATIONS Complete if the issue in question has been presented before any body, public or privete. SUPPORTS WHICH COUNCIL OBJECTIVE? Indicate which Council objective(s)your projecUrequest supports by listing the key word(s)(HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT, BUDGET, SEWER SEPARATION).(SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.) COUNCIL COMMITTEEIRESEARCH REPORT-OPTIONAL AS REGIUESTED BY OOUNCIL INITIATIN(3 PROBLEM, ISSUE,OPPORTUNITY Explain the sftuation or conditions that created a need for your project or request. ADVANTAGES IF APPROVED Indicate whether this is simply an annual budget prxedure required by law/ charter or whether there are spedflc wa e in which the Ciry of Saint Paul and its cRizens will benefit from this pro�ecUactfon. DISADVANTAGES IF APPROVED What negative effects or major changes to existing or past procesaes might this project/request produce if it is passed(e.g.,traffic delays, noise, tax increases or aseeesments)?To Whom?When? For how long? DISADVANTAGES IF NOT APPROVED What will be the negative consequences if the promised action is not approved?Inabiliry to deliver service?Continued high traffic, noiae, accident rateT Loss of revenue? FINANCIAL IMPACT ARhough you must tailor the information you provide here to the issue you are addressing, in general you must answer two questions: How much is it going to cost?Who is going to pey? ✓ . , . EXHIBIT A . l��a ���' OFFICIAL TERMS OF OFFERING 55,345,000 CITY OF SAINT PAUL, MINNESOTA WATER REVENUE BONDS, SERIES 1990C (BOOK ENTRY ONLI� Sealed bids for the Bonds will be received by Edward J. Warn, Acting Director, Oepartment of Finance and Management Services, on Monday, March 12, 1990, untii 11:00 A.M., Central Time, at the otfices of SPRINGSTED Incorpo�ated, 85 East Seventh Place, Suite 1fm, Saint Paul, Minnesota 551 01-21 34 afte� which time they will be opened and tabulated. Consideration for award of the Bonds will be at 11:00 A.M., Central Time, on Tuesday, March 13, 1990, by the City Council. DETAILS OF THE BONDS The Bonds will be dated April 1, 1990, as the date of original issue, and wil! bear interest payable on June 1 and December 1 of each year, commencing Decembe� t, 1990. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The Bonds will mature December 1, in the years and amounts as follows: 1990 $315,000 1994 $325,000 1997 $ 925,000 1991 $325,000 1995 $325,000 1998 $ 975,000 1992 $325,000 1996 $675,000 1999 $1,030.000 1993 $325,000 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bond Certificates made to the public. The Bonds will be issued in fully registe�ec!form and one Bond Certificate, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Kray & Co. as nominee of Midwest Securities Trust Company ("MSTC"), Chicago, Illinois, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the p�incipal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of MSTC and its participants. Principal and interest are payable by the City to MSTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of MSTC will be the responsibility of MSTC; transfer of principat and interest payments to beneficial owne�s by participants will be the responsibility of such participants and other nominees of beneficial owners. The successful bidder, as a condition of delivery of the Bonds, will be required to deposit the Bond Certificates with MSTC. OPTIONAL REDEMPTION The City may elect on December 1, 1996, and on any day thereafter, to prepay Bonds due on o� after December 1, 1997. Redemption may be in whole or in part and if in part, in inverse order of matu�ity. If less than all Bonds of a maturity are caQed for redemption, the City will notiiy MSTC of the particular amount of such maturity to be prepaid. MSTC will determine by lot the amount of each participanYs interest in such matu�ity to be redeemed and each -i - . ��yG-i/.5 participant wiil then select by lot the beneficial owne�ship irrterests in such maturity to be redeemed. All prepayments shall be at a p�ice of par and ac,crued interest SECURITY AND PURPOSE The 8onds wiU be special obligations of the City payabie solely from net revenues of the Water Utility ot the CKy and shall not constitute a debt for which the taith and credit or taxing powers of the issuer will be pledged. The proceeds will be used to finance various improvements to the Water Utility. TYPE OF BID Btds shall be for not less than $5,461,825 and accrued interest on the total principal amount of the Bonds, 2�nd shall be accompanied by a certified or cashier's check in the amount of $55,450, payable to the order of the City. No bid wiii be considered for which said check has not been received. The City will deposit the c�eck of the purchaser, the amount of which will be deducted at setttement and no interest wiQ accrue to the purchaser. In the event the pu�chaser fails to comply with the accepted bid, said amount will be �etained by the City. No bid can be withdrawn after the time set for receiving bids unless the meeting of the City scheduled for award of the bids is adjourned, recessed, or continued to another date without awa�d of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 196. Aates must be in ascending order. Bonds of the same maturity shall bear a single rate ' from the date of the Bonds to the date of maturity. No conditional bid will be accepted. AWARD The Bonds will be awarded to the bidder ottering the lowest dollar interest cost to be dete�mined by the deduction of the p�emium, if any, from, o� the addition of any amount less than par, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbe�s such numbers will be printed on the Bonds, but n�ither 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 The Bonds will be delivered without cost to the purohase� within 40 days following the date of their award. 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-Ifigation certiflcate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agerrts, the purchaser shall be liable to the City for any loss suffered by the City by reasons of the purchasar's non-compliance with said terms for payment. ii- . . . �qo�/,�' OFFICIAL STATEMENT The City has authorized the prepara�on of an Offlaal Statement containing pertinent information rela�ve to the Bonds, and said Otfiaal Statemerrt wiil serve as a nearly-final Officiai Statement as required by Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Ofiicial Statemerit and the O�iciai Bid Form or for any additional information prior to sale, any prospective purchaser is refeRed to the Fnanciai Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 551 01-21 34, telephone (612) 223-3000. The Official Statement,when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and inte�est rates of the Bonds, together with any other information required by law, shall constitute a "Fnal Offiaal Statement" of the City with respect to the Bonds, as that te�m is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting an Offiaal Bid Form 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 undervvriter of the syndicate to which the Bonds are awarded 225 copies of the Official Statement and the addendum or addenda described above. The City shall designate the senior managing underwriter of the syndicate to which the Bonds are awarded as it$ agent for purposes of distributing copies of the Final Officiai Statement to each Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds agrees thereby that 'rf its bid is accepted by the City (i) it shall accept such designation and (ii) it shall ente� into a contractual relationship with atl Participating Underwriters of the Bonds for pu�poses of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated February 6, 1990 BY ORDER OF THE CITY COUNCIL /s/ Edward J. Warn Acting Director, Department of Finance and Management Services iii . . . �- �� -,% J 504S EXHIBIT B NOTICE OF SALE $5, 545, 000 CITY OF SAINT PAUL RAMSEY COUNTY MINNESOTA WATER REVENUE BONDS, SERIES 1990C (Global Book Entry System) These bonds will be offered Monday, March 12, 1990 . Sealed bids will be opened at 11 :00 o ' clock A.M. , Central Time, at the office of Springsted Incorporated, Financial Advisor to the City, by the City' s acting Director of Finance and Management Services . Consideration of the bids and award of the sale of the bonds by the City Council will be at 11 :00 o 'clock A.M. , Central Time, on Tuesday, March 13, 1990 . The bonds will be dated April 1, 1990, as the date of original issue. Interest will be payable on December 1, 1990, and semiannually thereafter. The bonds will be special obligations of the Issuer payable solely from net revenues of the City' s Water Utility and a reserve, on a parity of lien with other bonds . The bonds will be issued in global book entry form only. The bonds will mature on December 1 in the years ai�d amounts as follows : 1990 $315, 000 1995 $ 325,000 1991 325,000 1996 675, 000 1992 325,000 1997 925,000 1993 325,000 1998 975,000 1994 325 ,000 1999 1,030,000 The City may elect on December 1, 1996 , and on any day thereafter to prepay bonds due on or after December 1, 1997 , at a price of par plus accrued interest. Sealed bids for not less than $5, 461, 825 and accrued interest on the principal sum of $5, 545, 000 will be accepted. An acceptable approving legal opinion will be furnished by Briggs and Morgan, Professional Association, of St . Paul and Minneapolis, Minnesota. The proceeds of the bonds will be used to finance the construction of various improvements to the City' s Water Utility. Bidders should be aware that the Official Terms of Offering to be published in the Official Statement for the bonds may contain . . _ (��� ii.� additional bidding terms and information relative to the bonds . In the event of a variance between statements in this Notice of Sale and said Official Terms of Offering, the provisions of the latter shall be those to be complied with. Dated: February 6 , 1990 BY ORDER OF THE CITY COUNCIL /s/ Edward J. Warn Acting Director, Department of Finance and Management Services Additional information may be obtained from: SPRINGSTED INCORPORATED 85 East Seventh Place Suite 100 Saint Paul, Minnesota 55101-2143 Telephone No. : ( 612 ) 223-3000 ��� '` � . : g°'� � 504S , STATE OF MINNESOTA ) COUNTY OF RAMSEY ) ss . CERTIFICATE CITY OF SAINT PAUL ) I , the undersigned, being the duly qualified and act.ing General Manager of the Water Utility of the City of Saint Paul, Minnesota, in accordance with the provisions of paragraphs 17 and 19, respectively, of those certain resolutions which provided for the issuance and sale of $5, 375, 000 Water Revenue Bonds, Series 1985A, adopted on August 27 , 1985, and of $8,000,000 Water Revenue Bonds, Series 1988A, adopted on December 3, 1987 , each by the City Council of the City of Saint Paul, Minnesota, do hereby certify as follows : 1 . All payments required to be made prior to the date hereof into the various funds and accounts of the "Water Utility Fund" established pursuant to said resolutions of the City Council have been made. 2 . The annual net revenues of the Water Utility of the City of Saint Paul , Minnesota, for each of the two (2) completed fiscal years immediately preceding the proposed issuance of the City' s $5,545,000 Water Revenue Bonds, Series 1990C, tiave been at least one and one-half ( 1 . 5) times the maximum annual principal and interest coming due after December 1, 1989, on all outstanding revenue obligations payable from and having a parity of lien upon the Net Revenues of the Water Utility Fund (as such terms are defined in said resolutions of the City Council) , including the obligations proposed to be issued, to wit: Net Revenues 1988 $10,250,440 Net Revenues 1989 $ 6,393, 385 Maximum Annual Principal and Interest on $5, 375, 000 Water Revenue Bonds, Series 1985A $ 968,250 Maximum Annual Principal and Interest on $8,000, 000 Water Revenue eonds, Series 1988A $ 940,625 -1- t � . . �y6 ,�.�- , � . _ ,.. - Maximum Annual Principal and Interest on $5,545,000 Water Revenue Bonds, Series 1990C (assuming a net interest rate of 6 . 362�) $ 1, 113,576 Maximum Annual Principal �and Interest on all such Bonds (COMBINED) $ 2,484,440 One and One-half ( 1 .5) Times Total Maximum Annual Principal and InL-erest Requirements $ 3,726,660 WITNESS my hand this ��p�day of January, 1990. /, ,�`l General Mana / CERTIFICATE OF THE GENERAL MANAGER OF THE WATER UTILITY OF THE CITY OF SAINT PAUL relating to $5,545,000 Water Revenue Bonds, Series 1990C, of the City of Saint Paul, Minnesota.