87-1607 ,�NHITE - CITV CLERK
PINK ' - FINANCE G I TY OF SA I NT PA U L Council
CANARV - DEPARTMENT /` 'N/
`BLUE -MAVOR . FIIe NO. � `�4��
�
Council I�es lution ..
Presented By � �
Referred To Committee: Date
Out of Committee By Date
PROVIDING FOR THE PUBLIC SALE OF
$8, 000, 000 WATER REVENUE BONDS, SERIES 1988A
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 Saint Paul, Minnesota (the "City" ) , issue its $8, 000, 000
[aater Revenue Bonds, Series 198�A (the "Bonds" ) , for the purpose
of improving the Water Utility by installing a water main, expanding
the Highland Booster Area, and continuing the remote meter program,
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. [�HEREAS, 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 c�ertain
earlier revenue bonds of the City; and
1
COUNCILMEN Requested by Department of:
Yeas Nays
[n Favor y
' �
Against BY -/_ f! �)� ,.1 \_',�
� �
Form� roved City Attorne
Adopted by Council: Date �
Certified Passed by Council Seccetary BY
By
A►pproved by �Wavor: Date Appcov ayor for Submis n to o,pncil
By
, . . � ��i�o�
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 $2, 950,000 Water Revenue Bonds
of 1978, Series 1 (the "1978 Bonds" ) , issued pursuant to a
resolution adopted by the City Council on May 11 , 1978 , of
which $425, 000 will remain outstanding and undischarged after
December 1, 1987, and $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
$5, 275,000 will remain outstanding and undischarged after
December l, 1987:
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City 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
in 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 obligations or evidences of indebtedness, or money
borrowed for or on account of the Water Utility or
indebtedness 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 such Revenues, except the 1978 Bonds and 1985
Bonds.
3. Findings: Payments; Parity. All payments required to
be made prior to the date hereo.f 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 1978 Bonds and 1985 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 been more than 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:
2
_ ' . . . ��"l- i�a 7
Net Revenues 1985 $ 5, 582, 850
Net Revenues 1986 $ 7,004 , 250
Maximum Annual Principal and
Interest on the 1978 Bonds $ 447, 100
Maximum Annual Principal and
Interest on the 1985 Bonds $ 968 , 250
Maximum Annual Principal and
Interest on the Bonds (assuming a
net interest rate of 8. 480) S 957, 388
Maximum Annual Principal and
Interest on the 1978 Bonds,
1985 Bonds and Bonds (TOTAL) $ 1,911,888
One and One-half ( 1. 5) Times Total
Maximum Annual Principal and
Interest Requirements $ 2, 867, 832
This City Council has been furnished with the Certificate
of the General Manager of the Board 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
derived 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
the sale of, the Bonds. The 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
Bonds and of the sale thereof substantially as set forth in
3
WHITE - CITY CLERK
PINK - _ F�NAN�-E � GITY OF SAINT PALTL Council
CAN'ARV - DEPARTMENT � Flle NO. �� ` �O�
��bLUE - MAVOR
�
Council Resolution
Presented By
Referred To Committee: Date_
Out of.Committee By Date
the Official Terms of Offering are hereby approved and confirmed,
and the Official Terms of Offering are hereby adopted in substan-
tially 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 Commercial West or Finance and Commerce, and may be
published, at the option of the Director, Department of Finance
and Management Services, in a financial newspaper or journal
published in New York or Chicago.
7. Official Statement. The Director, Department of Finance
and r4anagement �ervices, and other officers or employees are
hereby authorized to cooperate with Springsted Incorporated
and Briggs and 1�7organ, Professional Association, to prepare
an Official Statement of the City with respect to the Bonds.
4
COUNCILMEN Requested by Department of:
Yeas �!'�P Nays �
Nicosia Financ -and Ma.nagem nt Servi es
Rettman [n Favor �� �
t '
Scheibel (g B (_�;;(v_i� �-�
�n Against
Weida �
Wilson
Adopted by Council: Date N�V � � �987 <Form A ov y City ttorney
Certified Yas e b C uncil Secr BY �
gy,
Approv by Mavor: Date ���Y i L �� Approve y Mayor for Submiss' to oun�l
B
:-,,. r 4 19�
pU�l� ��� , ,�
Finanee &�Man$gement Services pEppRTMENT �'%�"� �-�(p47 �1To 06543
Gary Norstrem/Shirley Davis CONTACT ` 'iF
292-7038 PHONE
October 26, 1987 '- DATE ��i� Q Q,, �
ASSIGN Nt�:ER .FOR ROU[ING QRDER (C1iQ All Locations for Si9nature) :
�
Departiaent Directar 3 Director of Management/Ntayor
� City Clerk
Budget Darector , � Betty Reitter
� City C er
�IHAT WILL BE ACNIEY�D 8Y TAKING ACTION ON THE ATTACHfiD MATERIALS? (Purpose/
1, Determines the amount of bonds to be sold. Rationale) :
2. Sets the date and time of the sale and defines the "Official Terms of the Oftering".
3. Provides authority for the publication of the notice of the sale.
4. Adopts the "Official Terms of the Offering" of the issue.
�Q~�' � \�� Q�f�
L° `�`y Jli
�`�z �
�OST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPaTED::
$8,000,000 Water Revenue Bonds Seriea 1988A
Install 3,000 feet of �+2 inch main on low service easement
South from Larpenteur Avenue . ' $ 725,000
Remote Meter Program 5,000,000
Expansion of Highland Booster Area 1,900,Q00 . `
�INANCING SOURCE AND BUDGET ACTIVITY Nt�IBER CHARGED OR CREDITED: '
ture not re-
Total Amount of "Transaction; $8,000,00o quired if under
. ' $10,000)
Fundir��g Sourc.e: Water Operating Revenue
Activity Number: 850 - 28000 .
ATTACHMENTS (List and Number All Attactunents) : �
Council Besolution $8,OOOy000 Water Revenue Bonds, Series 1988A.
THIS RESOLUTION IS-FOR FULL COUNCIL HEARING ON NOVEMEBER 10, 1987.
� i
DEPARTMENT REVIEW . CITY ATTORNEY REVIEW
,Yes No Council Resolution Required? ; ' Resolutton .Required? Yes No
'Yes No Insurance Required? Insurance Suffici�ent? Yes No
Yes No Insurance Attached:
(SEE •REyERSE SIDE FOR INSTRUCTIONS) . � �
�evised 12/84 � �
' , EXHIBIT A "' � (�07
OFFICIAL TERMS OF OFFERING
$$����
CITY OF SAINT PAUL, MINNESOTA
WATER REVENUE BONDS, SERIES 1988A
(Global Book Entry System)
TFE SAL.E
Sealed bids for the Bonds will be opened by Eugene A. Schiller, Director of Finance and Management
Services on Tuesday, December 15, 1987, at 2:00 P.M., Central Time, at the offices of SPRINGSTED
Incorporated, Financial Advisor to the City, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota
SSI01-2143 (6t2) 223-3000. Consideration for award of the Bonds will be by the City Council at
10:00 A.M., Central Time, on Wednesday, December 16, 1987.
T!-E BONDS
Details of the Bonds. The Bonds will be issued using a Global Book Entry System. One Global
Certificate representing the aggregate principal amount of the Bonds maturing in each year (the
"Global Certificates") will be issued and fully registered as to principal and interest in the name of
Kray & Co. as nominee of the Midwest Securities Trust Company (the "Depository"), a Securities and
Exchange Commission (the 'SEC") registered depository, an Illinois trust company, a member of the
Federal Reserve System and a "clearing corporation" within the meaning of the Illinois Uniform
Commercial Code.
The Bonds will be dated January I, 1988 and will bear interest payable on June and December I of
each year, commencing June I, 1988. The Bonds will mature December I in the amounts and years as
fol lows:
$350,000 1988 $400,000 1992 $525,000 1996 $725,000 2000
$325,000 1989 $425,000 1993 $575,000 1997 $800,000 2001
$350,000 1990 $475,000 1994 $625,000 1998 $875,000 2002
$375,000 1991 $500,000 1995 $675,000 1999
Optional Redemption. The City may elect on December I, 1996, and on any interest payment date
thereafter to prepay Bonds due on or after December I, (997. Redemption may be in whole or in part
of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which
have the latest maturity date will be prepaid first. If a maturity is prepaid only in part, prepayments
will be in increments of $5,000 of principal. All such prepayments shall be at a price of par plus
accrued interest.
Security and Purpose. The Bonds will be special obligations of the City payable solely from net
revenues of the Water Utility of the City and shall not constitute a debt for which the faith and
credit or taxing powers of the City will be pledged. The proceeds will be used to finance various
improvements to the Water Utility.
GLOBAL BOOK ENTRY SYSTEM
Ownership of the Bonds. Purchases of Bonds by investors may be made through banks, brokers or
dealers who are, or act through, participants (the "Participants") of the Depository, other SEC
registered depositories and clearing corporations, who collectively comprise the National Clearance
and Settlement System (the "National System").
. ' � ������07
The ownership of the Bonds will be shown on, and transfer of ownership will be effected through,
records maintained by the Depository. The responsibility for maintaining, reviewing and supervising
such records rests collectively with the specific Participants and the relevant units of the National
System through whom the investors purchase or maintain the custody of the Bonds.
Individual purchases of the Bonds may be in the amount of $5,000 or any multiple thereof of a single
maturity, through book entries made on the books and records of the National System.
Payments to Bondowners. Payment of principal of and interest on the Bonds will be made by the City
to the Depository through its nominee Kray & Co., the registered owner of the Global Certificates.
The Depository will credit payments on the Bonds to the Participants, as listed on the records of the
Depository on the fifteenth calendar day preceding each interest payment date. Transfer of such
payments to the Participants is the responsibility of the Depository. Transfer of such payments by
the Participants is the responsibility of the Participants. Bondowners will receive interest and
principal payments through their bank, broker or dealer nominees. The bank, broker or dealer
nominees, if not Participants, will receive payments from Participants or others who received
payments directly or indirectly from Participants.
Global Certificates. As part of the Global Book Entry System, the Bonds are authorized only in the
denomination of the entire outstanding principal amount of a given maturity and are not
exchangeable for bonds of smaller denominations, unless replacement bonds are authorized. The City
(or any successor registrar) will register on the registration books maintained for the Global
Certificates any transfer requested by the registered owner. Initially, the owner registered on the
City's registration books will be Kray & Co. Despite the larger authorized denomination of the City's
Global Certificates, the Depository will recognize and enter on its books in the National System
interests in $5,000 denominations in each Global Certificate.
TERMS OF SALE
Minimum Bid and Good Faith Deposit. A sealed bid for not less than $7,848,000 and accrued interest
on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for
the opening of bids. Also prior to the time set for bid opening, a certif ied or cashier's check in the
amount of $80,000, payable to the order of the City, shall have been filed with the undersigned or
SPRINGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said
check has not been filed. The check of the Purchaser will be retained by the City as liquidated
damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the
check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be
withdrawn after the time set for opening bids, unless the meeting of the City scheduled for
consideration of the bids is adjourned, recessed, or continued to another date without award of the
Bonds having been made.
Type of Bid. No rate for any maturity shall be lower than any prior rate. Bonds of the same maturity
shall bear a single rate from the date of the Bonds to the date of maturity.
. •` � ��'�r/l�a�
. .
AWARD
The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by
the deduction of the premium, if any, from, or 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
computatio� of the total net dollar interest cost of each bid, in accordance with customary practice,
will be controlling. Award will be made prior to any adjustments to the total principal amount as
permitted under the section entitled "Details of the Bonds."
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 F3onds qualify for assignment of CUSIP numbers such numbers will be on the Global
Certificates. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the Purchaser.
SETTLEMENT AND �ELNERY
Delivery, Payment and Ownership of the Bonds. Within 40 days following the date of award of the
Bonds, the Global Certificates will be delivered without cost to the Purchaser at a place mutually
satisfactory to the City and the Purchaser. 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 I :00 P.M., Central Time of the day of settlement. Except as compliance
with the terms of payment for the Bonds shall have 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. The successful bidder, as a condition of
delivery of the Bonds, shall be required to deposit the Global Certificates with the Depository.
Legal Opinion md Trmscript. Delivery of the Bonds 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, which opinion will be attached to the Global Certificates, and of customary closing
papers, including a no-litigation certificate.
OFFICIAL STATEMENT
Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor
prior to the bid opening. The Purchaser will be provided with 75 copies of the Official Statement.
Dated November 10, 1987 BY ORDER OF THE CITY COUNCIL
/s/ Eugene A. Schiller, Director
Department of Finance and Management Services
.
� ° �� � ���1-/���7
EXHIBIT B
NOTICE OF SALE
$8 , 000 , 000
CITY OF SAINT PAUL
RAMSEY COUNTY
MINNESOTA
WATER REVENUE BONDS, SERIES 1988A
(Global Book Entry System)
These bonds will be offered Tuesday, December 15, 1987.
Sealed bids will be opened at 2: 00 o' clock P.M. , Central Time,
at the office of Springsted Incorporated, Financial Advisor to
the City, by the City' s 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 10: 00 o' clock A.M. ,
Central Time, on Wednesday, December 16, 1987. The bonds will
be dated January 1, 1988 , as the date of original issue.
Interest will be payable on June 1, 1988 , and semiannuall�
thereafter . The bonds will be 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 and amounts as follows:
1988 $350, 000 1996 $525 , 000
1989 325 , 000 1997 575 , 000
1990 350, 000 1998 625,000
1991 375,000 1999 675, 000
1992 400, 000 2000 725, 000
1993 425, 000 2001 800, 000
1994 475, 000 2002 875, 000
1995 500, 000
The City may elect on December 1, 1996, and on any
interest payment date 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 $7, 848, 000 and
accrued interest on the principal sum of $8 ,000 , 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
, . . , � �_�//��7
aware that the Official Terms of Offering to be piablished in
the Official Statement for the bonds may contain 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: November 10, 1987 BY ORDER OF THE CITY COUNCIL
/s/ Eugene A. Schiller
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
,•
�l/1�47
�
526Y
STATE OF MINNESOTA )
COUNTY OF RAMSEY ) ss. CERTIFICATE
CITY OF SAINT PAUL )
I , the undersigned, being the duly qualified and
acting General Manager of the Board of Water Commissioners of
the City of Saint Paul , Minnesota , in accordance with the
provisions of paragraphs 10 and 17, respectively, of those
certain resolutions which provided for the issuance and sale
of $2,950, 000 Water Revenue Bonds of 1978, Series l, adopted
on May 11, 1978, and of $5 , 375 , 040 Water Revenue Bonds, Series
1985A, adopted on August 27, 1985, 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 $8 , 000 , 000 Water Revenue Bonds, Series
1988A, have been at least one and one-half ( 1. 5) times the
maximum annual principal and interest coming due after
December 1, 1987, 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 1985 $5,582, 850
Net Revenues 1986 $7,004 , 250
Maximum Annual Principal and
Interest on $2, 950 ,000 Water
Revenue Bonds of 1978, Series 1 $ 447, 100
Maximum Annual Principal and
Interest on $5, 375, 000 Water
Revenue Bonds, Series 1985A $ 968 , 250
� . ��_��/lva�
Maximum Annual Principal and
Interest on $8 ,000, 000 Water
Revenue Bonds, Series 1988A
(assuming a net interest
rate of 8.480) $ 957, 388
Maximum Annual Principal and
Interest on all such Bonds (TOTAL) $1, 911,888
One and One-half (1. 5) Times
Total Maximum Annual Principal
and Interest Requirements $2, 867, 832
WITNESS my hand this 2�th day of October ,
1987 .
Genera]: Man er
CERTIFICATE OF THE GENERAL MANAGER OF THE BOARD OF WATER
COMMTSSIONERS OF Z`HE CTTY OF SAINT PAUL relating to $8,000,000
Water Revenue Bonds, Series 1988A, of the City of Saint Paul,
Minnesota.
_______----_�------------------- AGENDA I1EMS -_--_--------------------------- I��,-I�0 7
---- ------- -------- --------------------------------
ID#: [398 � DATE REC: [10/27/87] AGENDA DATE: [OU/00/007 iTEM #� f 7
SUBJECT: [SALE OF WATER REVENUE BONDS, SERIES 1988A ]
, .<,;
STAFF ASSIGNED: [ p�G}- !o-7��•-�7 J SIG:[ ., ' ] OUT-[ ] TO CLERK [00/00/00] ;
ORIGINATOR:[FINANCE ] CONTACT:[SHIRLEY DAVIS 292-7038 ] ''
ACTION:[ ]
C 7
C.F.# [ ] ORD.# [ ] FILE COMPLETE="X" [ ]
� � � � � � e � � � � �
FILE INFO: [RESOLUTION <4PGS)/OFFICIAL TERMS OF OFFERING ]
[ ]
[ 7
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