96-1563 Council File# �`o��j�o�
Green Sheet# 3Z-y�-Z
RESOLUTION �
NT PAUL, MINNESOTA
Presented By
r,..-�`
Referred To Committee: Date
1 ACCEPTING THE OFFER OF
2 THE MINNESOTA PUBLIC FACILITIES AUTHORITY TO PURCHASE
3 A $1, 500, 000 GENER.AL OBLIGATION SEWER
4 REVENUE NOTE OF 1996,
5 PROVIDING FOR ITS ISSUANCE, AND AUTHORIZING
6 EXECUTION OF A PROJECT LOAN AGREEMENT
7
8
9 A. WHEREAS, the City Council of the City of Saint Paul,
10 Minnesota (the "City" ) , has heretofore applied for a loan from
il the Minnesota Public Facilities Authority (the "PFA") to provide
12 financing pursuant to its charter and Minnesota Statutes, Chapter
13 475 and Sections 116 .19 and 115 .46, for the construction of
14 improvements to the City' s wastewater treatment facilities,
15 including upgrading and expanding the wastewater system (the
16 "Project") ; and
17
18 B. WHEREAS, the PFA is authorized pursuant to Minnesota
19 Statutes, Chapter 446A, as amended, to issue its bonds (the "PFA
20 Bonds" ) and to use the proceeds thereof, together with certain
21 other funds, to provide loans to municipalities to fund eligible
22 costs of construction of publicly owned wastewater treatment
23 facilities in accordance with Title VI of the federal Clean Water
24 Act; and
25
26 C. WHEREAS, the City has applied for a loan from the PFA
27 pursuant to such program, and the PFA has committed to make a
28 loan to the City in the principal amount of $1, 500, 000, to be
29 disbursed and repaid in accordance with the terms of a Project
30 Loan Agreement and General Obligation Revenue Bond Purchase
31 Agreement (the "Project Loan Agreement") executed by the PFA and
32 City, a copy of which is before this meeting and on file with the
33 Clerk; and the Project Loan Agreement, as executed, is
34 incorporated by reference; and
35
36 D. WHEREAS, the $1, 500, 000 General Obligation Sewer Revenue
37 Note of 1996 (the "Note") of the City is not tax-exempt, but the
38 City will need to assure the tax-exemption of the PFA Bonds; and
39
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1 E. WHEREAS, in accordance with Minnesota Statutes, Section
2 475 . 60, Subdivision 2 (4) , the City is authorized to issue
3 obligations to a board, department or agency of the State of
4 Minnesota by negotiation and without advertisement for bids and
5 the PFA is, and has represented that it is, a board, department
6 or agency of the State of Minnesota; and
7
8 F. WHEREAS, gross revenues (the "Revenues" as defined in
9 the City' s Resolution No. 88-835, adopted May 24, 1988, being
10 referred to herein as the "General Resolution") of the City' s
il storm and sanitary sewer systems, including all piping, pumps,
12 valves, maintenance equipment and buildings, improvements and
13 real and personal property used in connection therewith, and all
14 funds, accounts, contract rights, permits, authorization,
15 approach and intangibles related thereto (the "Sewer System��) ,
16 have been pledged to the payment of the City� s Sewer Revenue
17 Bonds, Series 1988A, and Sewer Revenue Refunding Bonds, Series
18 1993 (the "Bonds") , and under the General Resolution the pledge
19 of Revenues to the payment of the Note is required to be junior
20 and subordinated to the pledge to the Bonds; and
21
22 G. WHEREAS, the City has heretofore issued to the PFA its
23 General Obligation Sewer Revenue Note of 1993 (the "1993 Note" ) ,
24 General Obligation Sewer Revenue Note of 1994 (the "1994 Note")
25 and General Obligation Sewer Revenue Note of 1995 (the "1995
26 Note") , and under the resolutions authorizing the issuance of the
27 1993 Note, 1994 Note and 1995 Note the pledge of Revenues to the
28 payment of the Note may be on a parity of lien with the pledge to
29 the 1993 Note, 1994 Note and 1995 Note; and
30
31 H. WHEREAS, a contract or contracts for the Project have
32 been made by the City with the approval of the PFA and all other
33 state and federal agencies of which approval is required:
34
35 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
36 Saint Paul, Ramsey County, Minnesota, as follows :
37
38 1 . Acceptance of Offer; Payment. The offer of the PFA
39 to purchase a $1, 500, 000 General Obligation Sewer Revenue Note of
40 1996 of the City (the "Note") , at the rates of interest herein-
41 after set forth, and to pay therefor the sum of $1, 500, 000 as
42 provided below, is hereby accepted, and the sale of the Note is
43 hereby awarded to the PFA. Payment for the Note shall be
44 disbursed in installments as eligible costs of the Project are
45 reimbursed or paid, all as provided in the Project Loan
46 Agreement .
47
48 2 . Ti�le: Date: Denomination: Interest Rates;
49 Maturities . The Note shall be a fully registered negotiable
50 obligation, shall be titled the "General Obligation Sewer Revenue
51 Note of 1996" , shall be dated as of the date of delivery and
52 shall be issued forthwith. The Note shall be in the principal
53 amount of $1, 500, 000, or so much thereof as shall be disbursed
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1 pursuant to the Project Loan Agreement, shall bear no interest
2 until February 20, 1998, and from and after February 20, 1998,
3 shall bear interest on so much of the principal amount of the
4 Note as (i) may be disbursed from time to time as provided in the
5 Project Loan Agreement and (ii) remains unpaid, from February 20,
6 1998, for disbursements made on or prior to that date or from the
7 date of each later disbursement until the principal amount of the
8 Note has been paid or has been provided for, at the rate of three
9 and eighty-two hundredths percent (3 .82�) per annum (calculated
10 on the basis of a 360-day year of twelve 30-day months) , payable
11 semiannually on each February 20 and August 20, commencing
12 August 20, 1998, and shall mature on the dates and in the
13 installments as follows :
14
15 Date Amount Date Amount
16
17 August 20, 1998 $25, 321. 83 August 20, 2008 $36, 968 .44
18 February 20, 1999 25, 805 .48 February 20, 2009 37, 674 .54
19 August 20, 1999 26, 298 .36 August 20, 2009 38, 394 .12
20 February 20, 2000 26, 800 . 66 February 20, 2010 39, 127 .45
21 August 20, 2000 27, 312 .55 August 20, 2010 39, 874 . 78
22 February 20, 2001 27, 834 .22 February 20, 2011 40, 636 .39
23 August 20, 2001 28, 365 . 86 August 20, 2011 41, 412 .55
24 February 20, 2002 28, 907 .64 February 20, 2012 42, 203 .53
25 August 20, 2002 29, 459 . 78 August 20, 2012 43, 009 .61
26 February 20, 2003 30, 022 .46 February 20, 2013 43, 831 .10
27 August 20, 2003 30, 595 . 89 August 20, 2013 44, 668 .27
28 February 20, 2004 31, 180 .27 February 20, 2014 45, 521.43
29 August 20, 2004 31, 775 . 82 August 20, 2014 46, 390 . 89
30 February 20, 2005 32, 382 .73 February 20, 2015 47, 276 . 96
31 August 20, 2005 33, 001.24 August 20, 2015 48, 179 .95
32 February 20, 2006 33, 631.57 February 20, 2016 49, 100 .19
33 August 20, 2006 34, 273 . 93 August 20, 2016 50, 038 .00
34 February 20, 2007 34, 928 .56 February 20, 2017 50, 993 . 73 '
35 August 20, 2007 35, 595 .70 August 20, 2017 51, 967 . 71
36 February 20, 2008 36, 275 .58 February 20, 2018 52, 960 .23
37
38 In the absence of a prepayment or reamortization, if
39 the full principal amount of the Note is disbursed before
40 February 20, 1998, payments based on the above schedule will be
41 $53, 971 . 83 each six (6) months, except for a final payment of
42 $53, 971 .77, all as set forth on Exhibit A to the Project Loan
43 Agreement .
44
45 Interest shall accrue only on the aggregate amount of
46 the Note which has been disbursed and is unpaid under the Project
47 Loan Agreement . The principal installments shall be paid in the
48 amounts scheduled above even if at the time of payment the full
49 principal amount of the Note has not been disbursed; provided
50 that if the full principal amount of the Note is never disbursed,
51 the amount of the principal not disbursed shall be applied to
52 reduce each unpaid principal installment in the proportion that
53 such installment bears to the total of all unpaid principal
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1 installments (i .e. , the remaining principal payment schedule
2 shall be reamortized to provide similarly level semiannual
3 installments of total debt service payments) . Principal,
4 interest and any premium due under the Note will be paid on each
5 payment date by wire payment, or by check or draft mailed the
6 last business day prior to the payment date to the person in
7 whose name the Note is registered, in any coin or currency of the
8 United States which at the time of payment is legal tender for
9 public and private debts .
10
11 Interest on the Note includes amounts treated by the
12 PFA as service fees .
13
14 3 . Purpose: Cost . The proceeds of the Note shall
15 provide funds to finance construction of the Project. The Note
16 is issued to aid in financing a sewage disposal system or part
17 thereof pursuant to Minnesota Statutes, Section 115 .46 . The
18 total cost of the construction of the Project, including legal
19 and other professional charges, publication and printing costs,
20 interest accruing on money borrowed for the Project before the
21 collection of Revenues pledged and appropriated therefor, and all
22 other costs necessarily incurred and to be incurred from the
23 inception to the completion of the Project, is estimated to be at
24 least equal to the amount of the Note. The City covenants that
25 it shall do all things and perform all acts required of it to
26 assure that work on the Project proceeds with due diligence to
27 completion and that any and all permits and studies required
28 under law for the Project are obtained.
29
30 4 . Redemption. The Note shall be subject to
31 redemption and prepayment in whole or in part at the option of
32 the City or mandatorily as provided in the Project Loan
33 Agreement. If redemption is in part, installments of principal
34 payable last under the Note shall be prepaid first, unless (1)
35 the prepayment is made with receipts of a grant under the state
36 independent grants program, in which case the installments of
37 principal shall be proportionately prepaid, or (2) the City and
38 the holder of the Note agree to a different result .
39
40 5 . Registration of Note. At the time of issuance and
41 delivery of the Note, the Treasurer of the City shall register
42 the Note in the name of the payee in a note register which she
43 and her successors in office shall maintain for the pu�pose of
44 registering the ownership of the Note. The Note shall be
45 prepared for execution with an appropriate text and spaces for
46 notation of registration. The force and effect of such regis-
47 tration shall be as stated in the form of Note hereinafter set
48 forth. Payment of principal installments and interest, whether
49 upon redemption or otherwise, made with respect to the Note, may
50 be made to the registered holder thereof or to his, her or its
51 legal representative, without presentation or surrender of the
52 Note.
53
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a�����
1 UNITED STATES OF AMERICA
2 STATE OF MINNESOTA
3 R.AMSEY COUNTY
4 CITY OF SAINT PAUL
5
6
7 $1, 500, 000 GENER.AL OBLIGATION
8 SEWER REVENUE NOTE OF 1996
9
10 KNOW ALL PERSONS BY THESE PRESENTS that the City of
il Saint Paul, Ramsey County, Minnesota (the "City") , certifies that
12 it is indebted and for value received promises to pay to the
13 Minnesota Public Facilities Authority or the registered assign,
14 the principal sum of ONE MILLION FIVE HUNDRED THOUSAND DOLLARS,
15 or so much thereof as may have been disbursed, on the dates and
16 in the installments as follows :
17
18 Date Amount Da e Amount
19
20 August 20, 1998 $25, 321 .83 August 20, 2008 $36, 968 .44
21 February 20, 1999 25, 805 .48 February 20, 2009 37, 674 .54
22 August 20, 1999 26, 298 .36 August 20, 2009 38, 394 . 12
23 February 20, 2000 26, 800 . 66 February 20, 2010 39, 127 .45
24 August 20, 2000 27, 312 .55 August 20, 2010 39, 874 .78
25 February 20, 2001 27, 834 .22 February 20, 2011 40, 636 .39
26 August 20, 2001 28, 365 . 86 August 20, 2011 41, 412 .55
27 February 20, 2002 28, 907 . 64 February 20, 2012 42, 203 .53
28 August 20, 2002 29, 459 . 78 August 20, 2012 43, 009 . 61
29 February 20, 2003 30, 022 .46 February 20, 2013 43, 831 . 10
30 August 20, 2003 30, 595 . 89 August 20, 2013 44, 668 .27
31 February 20, 2004 31, 180 .27 February 20, 2014 45, 521 .43
32 August 20, 2004 31, 775 . 82 August 20, 2014 46, 390 .89
33 February 20, 2005 32, 382 . 73 February 20, 2015 47, 276 .96
34 August 20, 2005 33, 001 .24 August 20, 2015 48, 179 .95
35 February 20, 2006 33, 631 .57 February 20, 2016 49, 100 . 19
36 August 20, 2006 34, 273 . 93 August 20, 2016 50, 038 . 00
37 February 20, 2007 34, 928 .56 February 20, 2017 50, 993 .73
38 August 20, 2007 35, 595 . 70 August 20, 2017 51, 967 .71
39 February 20, 2008 36, 275 .58 February 20, 2018 52, 960 .23
40
41 and to pay interest on so much of the principal amount of the
42 debt as (i) may be disbursed from time to time as provided in the
43 Project Loan Agreement (as defined below) and (ii) remains
44 unpaid, from February 20, 1998, for disbursements made on or
45 prior to that date or from the date of each later disbursement
46 until the principal amount hereof is paid or has been provided
47 for, at the rate of zero percent (0 .0�) per annum from the date
48 hereof until February 20, 1998, and from and after February 20,
49 1998, at the rate of three and eighty-two hundredths percent
50 (3 . 82g) per annum (calculated on the basis of a 360-day year of
51 twelve 30-day months) , payable semiannually on each February 20
52 and August 20, commencing August 20, 1998 .
53
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1 Principal and Interest Payments . Interest shall accrue
2 only on the aggregate amount of this Note which has been
3 disbursed under the Project Loan Agreement and General Obligation
4 Revenue Bond Purchase Agreement dated as of November �, 1996, by
5 and between the City and the Minnesota Public Facilities
6 Authority (the "Project Loan Agreement") . The principal
7 installments shall be paid in the amounts scheduled above even if
8 at the time of payment the full principal amount of the Note has
9 not been disbursed; provided that if the full principal amount of
10 this Note is never disbursed, the amount of the principal not
11 disbursed shall be applied to reduce each unpaid principal
12 installment in the proportion that such installment bears to the
13 total of all unpaid principal installments (i.e. , the remaining
14 principal payment schedule shall be reamortized to provide
15 similarly level semiannual installments of total debt service
16 payments) . Interest on this Note includes amounts treated by the
17 Minnesota Public Facilities Authority as service fees .
18 Principal, interest and any premium due under this Note will be
19 paid on each payment date by wire payment, or by check or draft
20 mailed the last business day prior to the payment date to the
21 person in whose name this Note is registered, in any coin or
22 currency of the United States of America which at the time of
23 payment is legal tender for public and private debts .
24
25 Redemption. This Note is subject to redemption and
26 prepayment in whole or in part at the option of the City or
27 mandatorily as provided in the Project Loan Agreement . If
28 redemption is in part, installments of principal payable last
29 under this Note shall be prepaid first, unless (1) the prepayment
30 is made with receipts of a grant under the state independent
31 grants program, in which case the installments of principal shall
32 be proportionately prepaid, or (2) the City and the holder of
33 this Note agree to a different result .
34
35 Purpose: General Obligation. This Note has been issued
36 pursuant to and in full conformity with the Constitution and laws
37 of the State of Minnesota for the purpose of providing money to
38 finance the construction of improvements to the City' s wastewater
39 treatment facilities in the City, including upgrading and
40 expanding the wastewater system, and is payable out of the PFA
41 Debt Service Account of the Sewer Service Enterprise Fund of the
42 City, to which account have been pledged gross revenues of the
43 City' s sewer system. This Note has been issued to aid in
44 financing a sewage disposal system or part thereof pursuant to
45 Minnesota Statutes, Section 115 .46 . This Note constitutes a
46 general obligation of the City, and to provide moneys for the
47 prompt and full payment of said principal installments and
48 interest when the same become due, the full faith, credit and
49 taxing powers of the City have been and are hereby irrevocably
50 pledged.
51
52 � Registration; Transfer. This Note shall be registered
53 in the name of the payee on the books of the City by presenting
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1 this Note for registration to the City' s Treasurer, who will
2 endorse his or her name and note the date of registration
3 opposite the name of the payee in the certificate of registration
4 on the reverse side hereof . Thereafter this Note may be
5 transferred to a bona fide purchaser only by delivery with an
6 assignment duly executed by the registered owner or his, her or
7 its legal representative, and the City may treat the registered
8 owner as the person exclusively entitled to exercise all the
9 rights and powers of an owner until this Note is presented with
10 such assignment for registration of transfer, accompanied by
11 assurance of the nature provided by law that the assignment is
12 genuine and effective, and until such transfer is registered on
13 said books and noted hereon by the City' s Treasurer.
14
15 Fees Upon Transfer or Loss . The Treasurer may require
16 payment of a sum sufficient to cover any tax or other
17 governmental charge payable in connection with the transfer of
18 this Note and any legal or unusual costs regarding transfers and
19 lost notes .
20
21 Project Loan Agreement. The terms and conditions of
22 the Project Loan Agreement are incorporated herein by reference
23 and made a part hereof . The Project Loan Agreement may be
24 attached to this Note, and shall be attached to this Note if the
25 holder of this Note is any person other than the Minnesota Public
26 Facilities Authority.
27
28 Taxable Obligation. The City intends that none of the
29 interest on this Note will be excluded from gross income for
30 United States income tax purposes or from both gross income and
31 taxable net income for State of Minnesota income tax purposes .
32
33 IT IS HEREBY CERTIFIED AND RECITED that all acts,
34 conditions and things required by the Constitution and laws of
35 the State of Minnesota and the charter of the City to be done, to
36 happen and to be performed, precedent to and in the issuance of
37 this Note, have been done, have happened and have been performed,
38 in regular and due form, time and manner as required by law; that
39 the City has covenanted and agreed with the holder of this Note
40 that it will impose and collect charges for the service, use and
41 availability of and connection to its municipal sewer system at
42 the times and in amounts necessary to produce gross revenues
43 adequate to pay all principal and interest when due on this Note;
44 that the City will levy a direct, annual, irrepealable ad valorem
45 tax upon all of the taxable property in the City, without
46 limitation as to rate or amount, for the years and in amounts
47 sufficient to pay the installments of principal and interest on
48 this Note as they respectively become due, if the gross revenues
49 from said municipal sewer system and any other revenues
50 irrevocably appropriated to said PFA Debt Service Account are
51 insufficient therefor; and that this Note, together with all
52 other debts of the City outstanding on the date hereof, being the
53 date of its actual issuance and delivery, does not exceed any
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1 constitutional or statutory or charter limitation of
2 indebtedness .
3
4 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey
5 County, Minnesota, by its City Council has caused this Note to be
6 executed on its behalf by the signature of its Mayor, attested by
7 the signature of its Clerk, and countersigned by the signature of
8 its Director, Department of Finance and Management Services, and
9 the corporate seal of the City to be affixed hereto, all as of
10 , 1996 .
il
12 CITY OF SAINT PAUL, RAMSEY COUNTY,
13 MINNESOTA
14
15
16 X X X
17 Mayor
18
19 Attest :
20
21 X X X
22 Clerk
23
24 Countersigned:
25
26 X X X
27 Director, Department of
28 Finance and Management Services
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32 (SEAL)
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51 General Obligation Sewer Revenue Note of 1996 .
52
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1 CERTIFICATE OF REGISTRATION
2
3
4 The transfer of ownership of the principal amount of
5 the attached Note may be made only by the registered owner or
6 his, her or its legal representative last noted below.
7
8 DATE OF SIGNATURE OF
9 REGISTRATION REGISTERED OWNER CITY TREASURER
10
11 Minnesota Public
12 Facilities Authority
13 Saint Paul, Minnesota
14 Federal Employer ldenti-
15 . 1996 fication No. 41-6007162 X X X
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1 7 . Execution. The Note shall be executed on behalf of
2 the City by the signatures of its Mayor, Clerk, and Director,
3 Department of Finarice and Management Services, each with the
4 effect noted on the fonn of the Note, and be sealed with the seal
5 of the City. In the event of disability or resignation or other
6 absence of any such officer, the Note may be signed by the manual
7 signature of that officer who may act on behalf of such absent or
8 disabled officer. In case any such officer whose signature shall
9 appear on the Note shall cease to be such officer before the
10 delivery of the Note, such signature shall nevertheless be valid
li and sufficient for all purposes, the same as if he or she had
12 remained in office until delivery.
13
14 8 . Delivery�; Application of Proceeds. The Note when
15 so prepared and executed shall be delivered by the Director,
16 Department of Finance and Management Services, to the purchaser
17 thereof prior to disbursements pursuant to the Project Loan
18 Agreement, and the purchaser shall not be obliged to see to the
19 proper application thereof.
20
21 9 . Fund and Accounts . There has heretofore been
22 created (as provided in the General Resolution) a separate fund
23 of the City designated the "Sewer Service Enterprise Fund" (the
24 "Fund" ) . The Fund shall be maintained in the manner specified in
25 the General Resolution and herein until the Bonds, and interest
26 thereon, have been fully paid, and as specified herein until the
27 Note and interest thereon have been fully paid. There shall be
28 maintained in the Fund, in addition to the Construction Account,
29 Operation and Maintenance Account, Revenue Bond Debt Service
30 Account, Reserve Account, Excess Investment Earnings Account and
31 1993 Refunding Escrow Account heretofore established with respect
32 to the Bonds, the following two (2) separate accounts which have
33 heretofore been established by the resolution authorizing the
34 issuance of the 1993 Note, to which shall be credited and debited
35 all income and disbursements of the Fund relating to the 1993
36 Note, 1994 Note, 1995 Note and Note as hereinafter set forth.
37 The Treasurer and all municipal officials and employees concerned
38 therewith shall establish and maintain financial records of the
39 receipts and disbursements of the Sewer System in accordance with
40 this resolution. In such records there shall be maintained
41 accounts of the Fund for the purposes and in the amounts as
42 follows :
43
44 a. A "PFA Construction Account" , to which shall be
45 credited all proceeds received from the sale of the 1993
46 Note, 1994 Note, 1995 Note and Note. The 1993 Note, 1994
47 Note, 1995 Note and Note shall be the only sources of moneys
48 credited to the PFA Construction Account. It is recognized
49 that the sale proceeds of the 1993 Note, 1994 Note, 1995
50 Note and Note are received in reimbursement for costs
51 expended on the Project and the projects funded by the 1993
52 Note, 1994 Note and 1995 Note or in direct payment of such
53 costs, and that accordingly the moneys need not be placed in
338262.2 1 1
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1 the PFA Construction Account upon receipt but may be applied
2 immediately to reimburse the source from which the
3 expenditure was made. The moneys in the PFA Construction
4 Account shall be used solely for the purpose of paying for
5 the cost of constructing the Project and the projects funded
6 by the 1993 Note, 1994 Note and 1995 Note, including all
7 costs enumerated in Minnesota Statutes, Section 475 .65,
8 provided that such moneys shall only be expended for costs
9 and expenses which are permitted under the Project Loan
10 Agreement or the Project Loan Agreements relating to the
11 1993 Note, 1994 Note and 1995 Note, as applicable. The PFA
12 prohibits the use of proceeds of the 1993 Note, 1994 Note,
13 1995 Note and Note to reimburse costs initially paid from
14 proceeds of other obligations of the City, such as the
15 Bonds . Upon completion of the Project and the projects
16 financed by the 1993 Note, 1994 Note and 1995 Note and the
17 payment of the costs thereof, any surplus shall be
18 transferred to the PFA Debt Service Account .
19
20 b. A '�PFA Debt Service Account" , to which shall be
21 irrevocably appropriated, pledged and credited: (1)
22 Revenues (as defined in the General Resolution, and as
23 provided in Section 4 .03 (A) Sixth thereof) in an amount
24 sufficient, with other moneys, to pay the principal of, and
25 interest on, the 1993 Note, 1994 Note, 1995 Note and Note
26 when due; (2) all collections of taxes which may hereafter
27 be levied for the payment of the principal of, and interest
28 on, the 1993 Note, 1994 Note, 1995 Note or Note; (3) the
29 proceeds of any grant which by the terms of the Project Loan
30 Agreement or the Project Loan Agreements relating to the
31 1993 Note, 1994 Note and 1995 Note is required to be applied
32 to reduction or repayment of the 1993 Note, 1994 Note, 1995
33 Note or Note; (4) all investment earnings on moneys held in
34 the PFA Debt Service Account; (5) any amounts transferred
35 from the PFA Construction Account; and (6) any other moneys
36 which are properly available and are appropriated by the
37 City Council to the PFA Debt Service Account . The moneys in
38 said account shall be used only to pay or prepay the
39 principal of, and interest on, the 1993 Note, 1994 Note,
40 1995 Note and Note and any other general obligation bonds
41 hereafter issued and made payable from said account, and to
42 pay any rebate due to the United States with respect to the
43 PFA Bonds in connection with the Note.
44
45 c. Excess Revenues may be used for any proper purpose
46 to the extent provided in the General Resolution.
47
48 The City shall observe the covenants of paragraphs 16 and 17 of
49 this resolution and of sections 13 and 17 of the Project Loan
50 Agreement with regard to the Fund.
51
52 10 . Coverage Test; Pledge of Revenues; Excess
53 Revenues; Parity Bonds. It is hereby found, determined and
338262.2 1 2
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1 declared that the Revenues of the Sewer System are sufficient in
2 amount, when used in the order provided in the General
3 Resolution, to pay when due one hundred five percent (105�) of
4 the principal of and interest on the Note, and the Revenues of
5 the Sewer System are hereby pledged for the payment of the Note,
6 but solely to the extent required to meet, with other pledged
7 sources, one hundred five percent (105�) of the principal and
8 interest requirements of the Note as the same become due. Excess
9 Revenues may be used for any proper purpose as provided in the
10 General Resolution.
il
12 Nothing contained herein shall be deemed to preclude
13 the City from making further pledges and appropriations of the
14 Revenues of the Sewer System for the payment of other or
15 additional obligations of the City, provided that it has first
16 been determined by the City Council that estimated Revenues of
17 the Sewer System will be sufficient, in addition to all other
18 sources, for the payment of the Note and such additional
19 obligations, and any such pledge and appropriation of the
20 . Revenues may be made superior or subordinate to, or on a parity
21 with, the pledge and appropriation herein. The Note is issued
22 pursuant to Minnesota Statutes, Section 115 .46, and nothing
23 herein shall preclude the City from levying taxes for the payment
24 of the Note.
25
26 Revenues are hereby pledged to the payment of the Note.
27 The lien on Revenues securing the Note is hereby expressly made a
28 lien on Revenues junior and subsequent to the lien of the General
29 Resolution as it applies to the Bonds (as therein defined) , all
30 as provided in Section 6 . 01 (A) of the General Resolution. The
31 Note shall be paid from the Operation and Maintenance Account of
32 the Sewer Service Enterprise Fund as provided in Section 4 . 03 (A)
33 Sixth of the General Resolution, and for this purpose it is
34 hereby found, determined and declared that the Note finances
35 Improvements (as defined in the General Resolution) .
36
37 As provided in paragraph 10 of the resolution
38 authorizing issuance of the 1993 Note and in paragraph 10 of the
39 resolution authorizing issuance of the 1994 Note and in paragraph
40 10 of the resolution authorizing issuance of the 1995 Note, it is
41 hereby found, determined and declared that estimated revenues of
42 the Sewer System will be sufficient, in addition to all other
43 sources, for the payment of the 1993 Note, 1994 Note, 1995 Note
44 and Note. The pledge and appropriation of the Revenues to the
45 payment of the Note shall be on a parity with the pledge and
46 appropriation to the payment of the 1993 Note, 1994 Note and 1995
47 Note.
48
49 il. Pledge to Produce Revenues. In accordance with
50 Minnesota Statutes, Section 116 .19, the City hereby covenants and
51 agrees with the holder of the Note that it will impose and
52 collect charges for the service, use and availability of and
53 connection to the Sewer System at the times and in the amounts
338262.2 1 3
"l�,���
1 required to produce Revenues adequate to pay all principal and
2 interest when due on the Note. Nothing herein shall preclude the
3 City from levying taxes for the payment of the Note as permitted
4 by Minnesota Statutes, Section 115 .46 .
5
6 12 . General Obligation Pledge. The full faith, credit
7 and taxing powers of the City shall be, and are hereby,
8 irrevocably pledged for the prompt and full payment of the
9 principal and interest on the Note as the same respectively
10 become due. If the Revenues of the Sewer System appropriated and
11 pledged to the payment of principal and interest on the Note,
12 together with other funds irrevocably appropriated to the PFA
13 Debt Service Account referred to in paragraph 9 of this
14 resolution, shall at any time be insufficient to pay such
15 principal and interest when due, the City covenants and agrees to
16 levy, without limitation as to rate or amount, an ad valorem tax
17 upon all taxable property in the City sufficient to pay such
18 principal and interest as they become due. If the balance in the
19 PFA Debt Service Account is ever insufficient to pay all
20 principal and interest then due on the Note and any other
21 obligations payable therefrom, the deficiency shall be promptly
22 paid out of any other funds of the City which are available for
23 such purpose, and such other funds may be reimbursed, with or
24 without interest, from the PFA Debt Service Account when a
25 sufficient balance is available therein.
26
27 13 . Certificate of ReQistration. The Director,
28 Department of Finance and Management Services, is hereby directed
29 to file a certified copy of this resolution with the officer of
30 Ramsey County, Minnesota, performing the functions of the county
31 auditor (the "County Auditor") , together with such other infor-
32 mation as the County Auditor shall require, and to obtain the
33 County Auditor� s certificate that the Note has been entered in
34 the County Auditor' s Bond Register.
35
36 14 . Project Loan Agreement . The Project Loan
37 Agreement is hereby approved in substantially the form heretofore
38 presented to the City Council, and in the form executed is hereby
39 incorporated by reference and made a part of this resolution.
40 Each and all of the provisions of this resolution relating to the
41 Note are intended to be consistent with the provisions of the
42 Project Loan Agreement, and to the extent that any provision in
43 the Project Loan Agreement is in conflict with this resolution as
44 it relates to the Note, that provision shall control and this
45 resolution shall be deemed accordingly modified. The Mayor and
46 Director, Department of Finance and Management Services, are
47 hereby authorized and directed to execute the Project Loan
48 Agreement . The execution of the Project Loan Agreement by the
49 appropriate officers shall be conclusive evidence of the approval
50 of the Project Loan Agreement in accordance with the terms
51 hereof . The Project Loan Agreement may be attached to the Note,
52 and shall be attached to the Note if the holder of the Note is
53 any person other than the PFA.
338262.2 1 4
��`��0�
1 15 . Records and Certificates. The officers of the
2 City are hereby authorized and directed to prepare and furnish to
3 the PFA, and to the attorneys approving the legality of the
4 issuance of the Note, certified copies of all proceedings and
5 records of the City relating to the Note and to the financial
6 condition and affairs of the City, and such other affidavits,
7 certificates and information as are required to show the facts
8 relating to the legality and marketability of the Note as the
9 same appear from the books and records under their custody and
10 control or as otherwise known to them, and all such certified
li copies, certificates and affidavits, including any heretofore
12 furnished, shall be deemed representations of the City as to the
13 facts recited therein.
14
15 16 . Negative Covenants as to Use of Proceeds and
16 Pro,j ect . The City hereby covenants not to use the proceeds of
17 the Note or to use the Project, or to cause or permit them to be
18 used, or to enter into any deferred payment arrangement for the
19 cost of the Project, in such a manner as to cause the PFA Bonds
20 to be "private activity bonds" within the meaning of Sections 103
21 and 141 through 150 of the federal Internal Revenue Code of 1986,
22 as amended (the "Code") .
23
24 17 . Tax-Exem�t Status of the PFA Bonds: Rebate. The
25 City with respect to the Note shall comply with requirements
26 necessary under the Code to establish and maintain the exclusion
27 from gross income under Section 103 of the Code of the interest
28 on the PFA Bonds, including without limitation (1) requirements
29 relating to temporary periods for investments, (2) limitations on
30 amounts invested at a yield greater than the yield on the PFA
31 Bonds, and (3) the rebate of excess investment earnings to the
32 United States . The City covenants and agrees with the PFA and
33 holders of the Note that the investments of proceeds of the Note,
34 including the investment of any revenues pledged to the Note
35 which are considered gross proceeds of the PFA Bonds under the
36 applicable regulations, and accumulated sinking funds, if any,
37 shall be limited as to amount and yield in such manner that the
38 PFA Bonds shall not be arbitrage bonds within the meaning of
39 Section 148 of the Code and any regulations thereunder. On the
40 basis of the existing facts, estimates and circumstances,
41 including the foregoing findings and covenants, the City hereby
42 certifies that it is not expected that the proceeds of the Note
43 will be used in such manner as to cause the PFA Bonds to be
44 arbitrage bonds under Section 148 of the Code and any regulations
45 thereunder. The Mayor, Clerk, Director, Department of Finance
46 and Management Services, and Treasurer shall furnish a
47 certificate to the PFA embracing or based on the foregoing
48 certification at the time of delivery of the Note to the PFA.
49 The proceeds of the Note will likewise be used in such manner
50 that the Note is not a private activity bond under Section 103 (b)
51 of the Code.
52
338262.2 1 5
q����3
1 18 . No Designation of Oualified Tax-Exem�t Oblig�tion.
2 The Note, as a taxable obligation, may not be qualified as a
3 "qualified tax-exempt obligation" within the meaning of Section
4 265 (b) (3) of the Code, and hence is not designated for such
5 purpose.
6
7 19 . Resolutions Supplemented. The General Resolution
8 and the resolutions authorizing the issuance of the 1993 Note,
9 1994 Note and 1995 Note are hereby supplemented to the extent
10 necessary to give effect to the provisions of paragraph 9 of this
11 resolution.
12
13 20 . Severabilit,y. If any section, paragraph or
14 provision of this resolution shall be held to be invalid or
15 unenforceable for any reason, the invalidity or unenforceability
16 of such section, paragraph or provision shall not affect any of
17 the remaining provisions of this resolution.
18
19 21 . Headinas . Headings in this resolution are
20 included for convenience of reference only and are not a part
21 hereof, and shall not limit or define the meaning of any
22 provision hereof .
23
Yeas Na s Absent
Blake / Requested by Department of:
Bostrom ✓
Guerin ✓ Finance and Management Se ices
Harris � -
Me ard ✓
Rettman ✓ BY�
Thune
Adopted by Council: D � - Form Ap roved by Ciry Attomey
Adoption Certified y Council Secret By:��"�— �• �
� /a— c- 9 t
By:
Approved by M r: Date 1 � ' Approve ayor for Sub ion to Council
gy; `%��� g ����
16 y•
��'���o�
ement Services '"m^ ° o
g i2 3 96 �REEN SHEET _N_ 3.2 4 2
�oe�i�r aRE�"��� �cm caxra� iHmnuaare
��� �cm n�r�w �cm c�RK
ecem e , c �� ❑e�'°°�°'RECr� Q flN.&MOT SERVICE8 DIR.
�p �MAVOR(OR ASSISTAWT) �
rar�u.+�oF sro�u►�r�►bEe 1 �cuP nu u1�►noNS FoR s�aa�►TUR��
ACTION REGUEETED:
Resolution accepts the offer of the. Minnesota Public Facilities Authority (PFA) to purchase
a $1,500,000 General Obligation Sewer Revenue Not'e of 1996, provide for its issuance and
authorize execution of a pro�ect loan agreement.
'�0������B�'��R� PERSONAL SERYICE CONTRACTS MUST ANBWER TNF FOLLOWINO�11E=TIONi:
_P�A�a�c�1is�1• _...c�va sE��ior� �. Has mis pereorvnrm ewr woAcsd unde�a oonva�ror mb d.p�ranw�t? -
_���E _ YES NO
2. Has MM psrson/flrm ev�r bssn a city employee?
—��� — YES NO
_DISTRICT c�uRT _ 3. Does this pareoMfirm possess a aklll not nonnely Poase�sd bY e^Y a►r�t cllY employea�
BUPPOR'f'8 W11K�M t�OBJEC17VE9 YE3 NO
8xpliin NI yN Miw�ro on��thNt a�M Nhch t0 pnN+�Mst
INITIATMIQ PROBLEM�ISSUE.OPPORTUNI'TY(Wlw.YVhat.When.WhM.WhY):
A loan application for $1,500,000 to the PFA has been approved by the State. The procedure
to follow is for the City to issue a general obligation note to the State for that amount.
The _loan is interest free until February 20, 1998, and after that d�te bears interest at a
rate of 3.82Z per annum. The installments are for 20 years, 1998 through 2018.
ADVANTAQE8 IF AM�ROVED:
The City receives a loan from the State which is interest free for slightly over one year an
then bears interest at a rate of 3.827, which is well below market rates. The loan carries
G.O. pledge, but will be repaid by the sewer service fund.
D18ADVANTAGE8 IF APP�IED:
None ,
� Council Res�arch Center
DEC 10 1996
., .�_ ... _��
DISACYAlfTA0E8 IF NOT APP1i0YED: ._ '
The City loses the opportunity to borrow funds from the State at a low rate, to support the
Publ�c Works inflow and infiltration program.
1,500,000
TOTAL AMOUNT OF TRANfACT10N = C08T/REVENUE dUDOETE�(CIRCLE ONE) YES NO
FUNDINO YOURCE ACTIVITY NUMBER -
FMIANCIAL INFORMATION:(EXPL.AIN)
NOTE: COMPIETE DIRECTtONS ARE 1NCLU[3HD IN THE aREEN SFIEE?i�ISTRUCTIONAI �
MANUAL AVAILABLf 1N TME PURCNASING OfFICE(PHONE NO���.',; . '
ROUTING ORDER:
Bebw are co►roM rouGrqs for ths tivs moat froquen!typ�es of doarments: : ,
�
CONTRACTS(eaaumss euthorizsd budget exkts) , COUNCII RE30LUTION(M►s�d 8udp�W�oc!PI.(�aeqs)
. . . , ,
i: Outside Agsncy t: Depeu�ment DireeOor�
2. DepertmsM Director 2. Budpet Director '
3. City Attomey 3. City AtOomey
4. Msyor(fa cont�acts over St5.000) 4. MayoNAsaistamt
5. Human RiqMa(tor conhacts o�rsr a50.000) 5. City Coundl
8. Ffnancs and Manpsment Servicss Director _. . _ . . 6. Chief Accamtant,Finanoe arld.�Aa�'�,apement,Servio�s.. .
�. Fi�ancb/�ccountMp .. .
ADMINISTRATIVE ORDERS(Budpst Revjsbn) COUNCII flE90lUTION t+�M oit�,�nd Ord�nos�) . ,,
1. ACtivity Maneger 1. Dspenmsnt Director '
2. Depe�tment Accou�tant 2. CHy Attornsy
3. Departmsnt Director 3. Mayor Aasiatant :
4. Budget Director 4. Gty Coundl ,
5. City Clerk .:,
6. Chfet AccouMaM,Finence and Managsmsnt Services
r
ADMfNiSTRA'FIVE ORDEFiS(eN others) I;
1. Dspartment Qfreator
2. City Attorney
3. Finance arul Management Services Director
4. City Clerk
TOTAL NUMBER OF SI(3NATURE PAGES
Ind�ate the#�ot�pages on which sipnatures are required and pap�re8p or tl�p
uch of tMN ps�s. ;
ACTION REOUESTED li
Qescribe what ths project/request seeks to aa�:omplish in sither chronolopi-
cel ordsr or order oi Nnportance.whichever ia moat epp►opriate tor Me i
issue.Do not write complste sentencsa.Begin each item in your list with I.
a verb. � '
RECOMMENDATIONS '
Complete�it the issus in question has been prosentsd before any body,publ�
or private.
3UPPORTS WHICH COUNCIL OBJECTIVE� �
Indicats which Council objective(s)your projecthequeat supports by listing
the key word(s)(HOUSINEi,RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT,
BUDOET,SEWER SEPARAT10tJj.(SEE COMPLETE LIST IN tNSTRUCT10NAl MANUALJ ,
PERSONAL SERVICE CONTRACTS:
This Uformation wNl be used to determine ths cityb NabNlty tor workers cQmpensation claims,taxsa and propsr olvll�hl►inp ntks. ,
INITIATING PROBIEM, ISSUE,OPPORTUNiTY ,
Expleln the situation or conditions thet croeted s need for your project '
or request.
ADVANTA(3ES IF APPROVEQ
Indicate whsther this is simply an annuai budget procedure roquired by iaw/ '
charter or whethsr there are apecffic ways in which the C1ty ot Saint Paul
and its citize�a will be�etit(rom thls pnoject/actbn.
OISADVANTACiES IF APPROVEO
What negative etfects or major changes W existing or past processes mipht
this project/request producs if R k pasaed(e.g.,t�attic dslays,ndse,
tax incrsasea o►asseasments)4 To Whom�N�en?For how bng4 ,
DISADVANTA(3ES IF NOT APPROVED ;
What will be the negativs consequences ii the promised action is not �
approved?Inability to deliver aervk�4 ContMued high traHic,noise, j
accide�t rate�Loss oi revenue? I
FINANCIAL IMPACT
Afthough you must tailor the fnformation you provide here to the issue you �
ere,addroaaing,in ge�eral you must answer twa quesNons'c How much ia N � � ' '
going to cost�Who is going to pay?
i
�lb- ►5�3
PUBLIC FACILITIES AUTHORITY PROJECT LOAN AGREEMENT AND
GENERAL OBLIGATION REVENUE BOND PURCHASE AGREEMENT
(WITH BOND PROCEEDS)
CDAP-92-0234-R-FY97
THIS PROJECT LOAN AND GENERAL OBLIGATION REVENUE BOND PURCHASE AGREEMENT("the
Agreement"), is made November 21, 1996, bet�veen the Minnesota Puhlic Facilities Authority (the "Authority") and the St.
Paul, (ihe "Borrower"), c/o Martha Kantorowicz, Department of Finance & Management Services, Treasury Division,
160 City Hall, St. Paul, MN 55102. Any amenclments to this Agreement shall be in writing and shall be executed by the
Borrower by the same ofticials which signed this Agreement, or their successors.
The followina sets forth the terms and conditions of the loan:
Section 1. The Authoriry hereby commits, subject to the conditions hereinafter set forth, to lend ONE MILLION FIVE
HUNDRED THOUSAND DOLLARS ($1,500,000) to the Borrower for the purp�se of tiinding the eligible project cost of
the wastewater treatment project (the "Pruject ) described as follows: Improvements to wastewater treatment facilities,
upgrading and ex�ansion of the waste�vater system as iclentitied in the loan a�plication. The term of the loan shall be 20
years, at an interest rate of 3.82% per annum, as set forth in section 3, and Exhibit A. Repayment of the loan by the
Borrower to the Authority shall be at such times, anil in such amoiints as set forth in Exhibit A.
The Authoriry's commitment to lend is subject to the availability of fiinds, and the Authority reserves the right to reimburse
the Borrower for costs incurred prior to the executicm of d�is Agreement hy the Borro�ver over a two year period in eight
equal c�uarterly payments. No funcls shall be clisbursed by the Authority to the Borrower until sueh time as the Borrower
delivers its General Ohligation Revemie Boncl to the Authority for the full amount of the loan.
The Borrower acknowledges its resPonsibiliry to complete the project regardless of the availabiliry of additional loan funds
from the Authority.
Section 2. The Loan �vill be ciisbursed on a cost reimbursement basis, but not in violation of any provisions of applicable
federal and state re�ilations. All Borrower disbursement requests shall be revi�wed by the Authority and subject to the
a��roval of the Authority in accordance with Minnesota Rules 7380.0400 to 7380.0480, as amended or supplemented from
time to time. The Authority may withhold all or part of the amount requested if the Authority determines the Borrower's
disbursement request is not in compliance with pmgram statutes, rules, or terms and conditions of this Agreement.
Dishursements shall be made by the Authority ro the Borrower within 30 days of a rec�uest therefor made by the Borrower
in the form, and at the times, cleterminecl by the At�thoriry, unless the Authoriry cletermines to withhold disbursement in
accordance with the provisions of this Agreement.
Section 3. The principal amount of the Loan will be repaid in the amounts and on the dates set forth in the schedule set
forth in Exhibit A hereto (notwithstancling the rate of disbursement of the proceeds of the Loan), subject to adjustment as
set forth in Section 5 below, together with interest and service fees collectively at the rate of 0% per annum, for the period
starting on the date of this Agreement through Febrtiary 20, 1998, and at the rate of 3.82% for the period starting the day
following February 20, 1993, through the date on which no Principal remains unpaid, provided, however, that interest and
service fees shall accrue only on the aggregate amount of the Loan disbursed; ancl Proviclect fiirther that the Authority shall
be entitled to retain for its own purposes any interest earnings on undisbursed fiinds and shall not be obligated to credit
against any required repayment of principal or payment of interest ancl service fees any such interest earnings on
1
q(o - 15(03
undisbursed funds.
Section 4. The Borrower shall issue to the Authoriry its general obligation promissory note (the "Notz"), evidencing its
obligation to repay the Loan. The Borrower shali attach to this agreement a certitied copy of resolutions or other authoriry
by the appropriate governing body or bodies, as shall legally authorize the execution and performance of this agreement
and the Note on behalf of the Borrower. For purposes of permitting issuance of the Note, the Authority represents that it is
a "board, Department or agency" of the State of Minnesota within the meaning of I�linnesota Statutes, Section 475.60,
subd. 2, clause (4), as amended or su�ptemented from time to time.
Section 5. The Borrower shall have the oPtion ta Prepay the Loan (A) on any February 1 or August 1 immediately
preceding an interest payment date on the Water Pollution Control Revenue Bonds, Series 1996B of the Authority (the
"Bonds") on or after the earliest date on which the Bonds may be prepaid in part at the option of the Authority, upon forty-
five days prior notice, prior to such February 1 ar At�gust 1, as the case may be, in whole or in part, and if in part iri
$5,000 increments by depositing with the Authoriry on such February 1 or Aug�ist 1 as the case may be (i) the principal
amuunt to he prepaid together «�ith a pre►nium thereon equal to the redemption premium, if any, payable with respect to
the Bonds if such Bonds were to be optionatly redeemed on the immediately succeeding March 1 or September 1, as the
case may be, plus (ii) interest and service fees on the principal amount being prepaid to the March 1 or September 1, as tha
case may be, immediately following the date of the �repayment hereunder, and plus (iii) all fees and expenses of the
Authority incurred in connection with such prepayment, including any rec�uired rebate; and (B) at any other time, upon
fifteen days prior notice to the Authority in whole or in Part, by depositing with the Authoriry the (i) money in an amount
sufficient, or (ii) obligations issued by, or payment of the principal of and interest on which are fully and unconditionally
guaranteed by the United States of America, the principal of and interest on which, when due, without reinvestment, will
provide an amount sufticient, with any money so deposited, to pay (a) the Loan payments as they become due according to
the repayment schedule attached as Exhibit A or, if earlier, on the tirst date on which the Loan may be prepaid as provided
in clause (A) above, plus (b) interest and service fees to the date of prepayment, �lus (c) a premium, calculated as in clausz
(A) above, on the principal amount to be prepaid on the tirst date on which this Loan may be prepaid, and plus (d) all fees
and expenses of the Authority incurred in connection with such payment, including any rec�uired rebate; provided that the
Authoriry shall have received an opinion of its bond counsel that the pre�ayments as provided in this clause (B) will not
cause the interest on the bonds to become includable in gross income for federal tax purposes.
Section 6. The Borrower acknowledges that the Authority may apply up to 5% of any loan repayment to payment of its
administrative costs or administrative costs of the Minnesota Pollution Control Agency ("MPCA") and that such application
shali not increase the amount of any repayments or exten� the period of repayment.
Section 7. The Borrower shall not enter into a sale, lease or transfer of any part of the Project if such sale, lease or
transfer would (i) violate the covenants set forth in Section 13, or (ii) violate the conditions under which any capitalization
grants were furnished by the United States Environmental Protection Agency, or (iii) otherwise violate any terms or
conditions of the Agreement.
Section 8. The Borrower shall maintain adequate property insurance coverage for the Project in such amounts with such
limits as it determines in good faith to be reasonable or in such amounts and with such limits as may be required by the
Authority from time to time.
Section 9. The Borrower agrees that it shall accomplish the Project for which tinancial assistance has been awarded under
this Agreement in accordance with all a�pficable MPCA statutes, rules, regulations, reporting requirements, approvals, and
certifications governing the design and construction of the Project, and shall operate its wastewater treatment system in
compliance with MPCA permit rec�uirements.
2
qt� - 15(�3
Upon notification from the MPCA to the Authoriry chat there has been a violation by the Borrower of MPCA statutes,
rules, regulations, reporting requirement, approvals, certifications, or permit requirements, as amended or supplemented
from time to time; or if the Authoriry determines that the Borrower is in dafault with any section of the Agreement, the
Authority may exercise any remedies available at law or in equity.
Section 10. With respect to the Project, the Borrower agrees to:
(a) comply with the provisions of State wage requirements given in Minnesota Statute, Sections 177.41 to 177.44, as
amended or supplemented from time to time; and
(b) submit a U.S. Environmental Protection Agency Form SF334 to the Authoriry within 20 days of the end of each
calendar quarter, until the project is complete, reporting any prime contracts or subcontracts awarded during the quarter
and which were awarded to Minoriry or Woman Business Enterprises (MBE/WBE); and
(c) make a good faith efPort to prepare and im�lement an aftirmative action plan for the employment of minority
persons, women, and disabled and submit the �lan to the Commissioner uf Human Rights, and
(d) comply with Minnesota Statutes, Section 290.9705, as amended or supplemented from time to time, Withholding
of Payment to Out-of-State Contractors, for all contracts that exceed, or are expected to exceed $100,000 by either:
(1) Depositing with the Commissioner of the Minnesota Department of Revenue eight(8%) percent of every payment made
to non-resident (of Minnesota) construction contractors; or
(2) Receiving a waiver of the reqtiirement from the Commissioner of the Minnesota Department of Revenue.
Section 11. For all expenditures of funds made pursuant to this Agreement, the Borrower shali keep financial accounts and
records in accordance with generally acczpted government accounting principles including invoices, contracts, receipts,
vouchers and other documents sufticient to evidence in proper detail the nature and propriery of the expenditures. Such
accounu and records shall be accessible and available for examination to authorized representatives of: the Authoriry, the
Department of Trade and Economic Development, the Legislative Auditar, and the State Audiror's Oftice.
Section 12. The Borrower agrees to exert all reasonable efforts to investigate claims which the Borrower may have against
third parties with respect to the construction of the Project and, in appropriate circumstances, take whatever action,
including legal action, the Borrower reasonably determines to be appropriate.
Section 13. The Borrower agrees to cooperate with the Authority as necessary to maintain the tax exempt status of the
Bonds issued by the Authoriry to fund the loan. The Borrower s�iecitically agrees:
(a) Investments. Any sums from time to time held by or under the control of the Borrower which would constitute
"gross proceeds" of Bonds ("Gross Proceeds"), as detined in the Internal Revenue Code of 1986, as amended, and the
regulations in effect with respect thereto (the "Code") shall not be invested at a yield in excess of the applicable yield on the
Bonds. Disbursements of proceeds of the Loan shall not be reinvested by the Borrower. In addirion, said Gross Proceeds
shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or
instrumentality thereof if and to the extent that such investtnent would cause the Bonds to be "federally guaranteed" within
the meaning of Section 149(b) of the Code.
(b) Negative Cavenant as to Use of Project. The Borrower hereby covenanu not to use the proceeds of the Bonds
3
� ��- f 5(�3
or to use the Project financed with the proceeds of the Bonds or to cause or permit them or any of them to be used, or to
enter into any deferred payment arrangements for the cost of such Project, in such a manner to cause the Bonds to be
"private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
(c) Tax-Exempt Status of the Bonds; Rebate. With respect to any Gross Proceeds, the Borrower shall comply with
requirements necessary under the Code to estabtish and maintain the exclusion from gross income under Section 103 of the
Code and the interest on any Bonils, including without limitation requirements relating to temporary periods for
investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess
investment earnings to the United States. �
(d) The Borrower shall comply �vith such instructions as may be provided from time to time by the Authority with
respect to gross proceeds of Bonds.
Section 14. The obligarions of the Borrower under this Agreement (except the obligations set forth in Sections 16 and 21
hereo� shall terminate when the Loan is fully paid and retired.
Section 15. The Bocrower may not use fedzrally appropriated funds tu pay any parson for intluencing or attempting to
intluence an ofticer or employee of a federal agency, a member of Congress, an ofticer or employee of Congress or any
employee of a member of Congress in connection with the awarding of any federal contract, the mal:ing of a federal grant,
the mal�inJ of a federal loan, the entering into of any cooperative agreement or the extension, continuation, renewal,
amendment or moilitication of any federal contract, grant, loan or cooperative agreement. If the Borrower uses non-
fzderal funds to conduct any of the aforementioned activities, the Borrower must complete and submit Standard Form LLL,
"Disclusure Form to Report Lobbying." The Borrower shall provide to the Authoriry a certitication to this effect at the
time it signs this agreement, unless such certitication was provided at the time that it submitted its application, and shall
forward disclosure forms to the Authority at the time it executes or receives such forms. Further, the Borrower must
include the language of this provision in all contracts and subcontracts exceeding $100,000 and all such contractors and
subcontractors must comply accordingly.
Section 16. (a) The Borrower shall provide the Authority with acceptable independent annual audits for the term of the
loan. All audits must be submitted within 30 days after the compietion of the audit but no later than one year after the end
of the audit period.
(b) The Borrower agrees to provide to the Authority such information with respect to the Borrower, its duties,
operations and functions as may be reasonably requested by the Ai�thoriry and hereby consenu to such inclusion in the
Authority's official statement used in connection with the issuance of the Authority's bonds, the proceeds of which are to be
used to fund the Authority loan to the Borrower and from time to time thereafter, for inclusion in its ofticial statements
used in connecrion with issuance and sale or the remarketing of other Authoriry bonds whether or not all or a portion of the
proceeds of which will be loaned to the Borro�ver.
(c) At the request of the Authority, the Borrower will certify and represent that such information in such official
statements does not contain any untrue statements of a material fact or omit to state a material fact necessary to make such
information, in light of.the circumstances under which it was given, not misleading; provided, however, that in no event
shail the Borrower be required to make any representation about any othzr information in such official statements or as to
any such ofticial statements in their entirety. If for any reason the Borrower determines that it shall not be able to make
such certiFication and representation, it will provide such information as is necessary for inclusion in such official
statements so as to enable it to make such certification and representation.
4
°�1� - 15(�3
(d) If at any time during the period ending 90 days after the date of an Authority ofticial statement any event occurs
which the Borrower believes would cause the information in such ofticial statement to omit a material fact or make the
statements therein misleading, the Borrower shall prom�tly noti'ty the Authoriry in writing of such information and consent
to its inclusion in the ofticia! statement, an amenciment thereof or a sup�lement thereto. At the request of the Authoriry,
the Borrower will alsu provide the certitication and representation required in (c) above with respect to such official
statement as then amended or supplemented.
(e) The Borrower wiil furnish such information, execute suc:h instruments and take such other action in cooperation
with tha underwriters of the Authority's bonds as such underwriters may from time to time reasonably request in order (i)
to qualify, and maintain the c�ualitication of, any such honds for offer and sale under the Blue Sky or other securities laws
and regulations of such states and other jurisdictions of the United States as such underwriters may designate, and (ii) �o
determine the eligibility of such bonds for investment under the laws of such states and other jurisdictions.
(� The Borrower wiil provide such information as may be reasonal�ly requested by any rating agency in connecpon
with rating the bonds of the Authority.
(g) If the Authority, in i�s sole discretion, determines, at any time Prior to the termination of the Loan Term, that
the Borrower is a material "obligatecl person", as the term "obligate� person" is detined in Rule 15c2-12 promulgated
pursuant to the Securities Exchange Act of 1934, as amen�ed or supplemented, including any successor regulation or
statute thereto ("Rule 15c2-12"), with materiality bein�detzrmined by the Authoriry pursuant to criteria established, from
time to time, by the Authority in its sole discretion anil set forth in a rzsolution of otiticial statement of the Authority, the
Borrower hereby covenants that it will authorize and provide to the Authority, for inclusion in any preliminary official
statement or ofticial statement of the Authoriry, all statements anil information relating to the Borrower deemed material by
the Authoriry for the purpose of satisfying Rule 15c2-12 as �vell as Rule lOb-5 promulgated pursuant to the Securities
Exchange Act of 1934, as amended or supplemented, including any successor regulation or statute thereto ("Rule lOb-5"),
including certiticates and written representations of the Borrower evidencing its compliance with Rule 15c2-12 and Rule
lOb-5; and the Borrower hereby further covenants that the Borrawer shall execute and deliver a continuing disclosure
agreement, in the form as the Authoriry shall determine to be•necessary, desirable or convenient, in its sole discredon, for
the purpose of satisfying Rule 15c2-12, and pursuant to the terms and provisic�ns of such continuing disclosure agreement,
the Borrower shall thereafter �rovide ongoing disclosure with respect to all annual an�l event information and financial
statements relating to the Borrower required by Rule 15c-12 and pursuant to the terms of such continuing disclosure
agreement.
Section 17. In order to comply with Minnesota Statutes Section 16A.695, as amended or supplemented from time to rime,
and the order of the Commissioner of Finance (the "Commissioner") of the Department of Finance of the State of
Minnesota (the "Order") promulgated in connection with Section 16A.695 on July 14, 199�, if this loan is funded with
State match proceeds derived from State General Obligation Bonds, the Borrower agrees that: (i) any lease or management
contract entered into by the Borrower within respect to property constiniting all or a part of the Project shall be for the
express purpose of carrying out of a governmenta( program established or authorized by law and established by official
action of the Borrower and the Borrower shall ohtain the prior written cansent of the Commissioner; (ii) any such lease or
management contract, including any renewals that are solely at the option of the lessee or manager, must be for a term
substantially less than the useful life of the property subject to such lease or management contract, but may allow renewal
beyond that term upon determination by the Borrower that the use continues to carry out the governmental program; (iii)
any such lease or management contract will be terminable by the Borrower if the other contracting parry defaults under the
contract, or if the governmental program is terminated or changed; and wil! provide for program oversight by the
Borrower; (iv) the Borrower will not sell any property constituting all or a part of the Project unless the Borrower
determines by ofticial action that such properry is no longer usable or neeJed by the Borro�ver to carry out the
5
a�- � ��3
governmental program for which it was acquired or constructed; and (v) any such sale must be made as authorized by law
for fair market value as defined in Section 16A.695 and the Borrower shall obtain the prior written consent of the
Commissioner. •
. . 6
q��- � 5(� 3
By Minnesota Statutes, Secrion 270.66, the Borrower is required to provide its Minnesota tax idendfication number if it
does business with the State of Minnesota. 'This information may be used in the enforcement of federal and state tax laws.
Supplying these numbers could result in actions to require the Borrower to tile state tax reharns and pay delinquent state tax
liabilities. These numbers will be available to federal and state tax authorities and state personnel involved in the payment
of state obliga[ions.
BnRRQ�VFR: I have read and I agree to all of the STATF�nF MiNNF'SnTA by and through the
above provisions of this agreement. Public Facilities Authority, Department of Trade
and Economic evelo ent
By B
The Honorable Nonn Colemnn
Tide Mavnr ('itv nf Ct Paul Tide C'HATR/DF.SiC;NFF.
Date Date � � (' Z. � �G
gY FN('�i1��rRF.BEI�: �
Assistant City Attorney Department of Trade and Economic Development
Attest gY �1�.��►' �'`_� � �li'.�`'
Frederick O�wsu, Gerk � � .�
,� it 7i �
Date Encumbered
�i INTF.R�i(iNF.D: [Individual signing certities that funds have been
Martha Larson encumbered as required by Minnesota Statute 16A.]
Director, Department of Finance &Management
Services
Date
APPRnVFD A4 Tn FnRM ANn F.XF.C'ilTinN;
Attorney General's Oftice
By
Title
Date
CONTRACT/13PSTPL2.CON
� _
Exhibit A ��' ���3
St Paul,City of-Sth Fund Source Reference Amount
1996B 8L 1,500,000.00
CDAP-92-0234-R-FY97
Loan Date:
Rate: 3.820%
Accrual: 02/20/98 Total Loan: 1,�00,000.00
Date Effective Disbursement ref Re a ment Interest Due Princi al End Balance
projected 02/20/98 1,500,000.00 - - - 1,500,000.00
08/20/98 53,971.83 28,650.00 25,321.83 1,474,678.17
02/20/99 - 53,971.83 28,166.35 25,805.48 1,448,872.69
08/20/99 - 53,971.83 27,673.47 26,298.36 1,422,57433
02/20/2000 - 53,971.83 27,171.17 26,800.66 1,395,773.67
08/20/2000 - 53,971.83 26,659.28 27,312.55 1,368,461.12
02/20/2001 - 53,971.83 26,137.61 27,834.22 1,340,626.90
08/20/2001 - 53,971.83 25,605.97 28,365.86 1,312,261.04
02/20/2002 - 53,971.83 25,064.19 28,907.64 1,283,353.40
08/20/2002 53,971.83 24,512.05 29,459.78 1,253,893.62
02/20/2003 - 53,971.83 23,94937 30,022.46 1,223,871.16
08/20/2003 53,971.83 23,375.94 30,595.89 1,193,275.27
02/20/2004 - 53,971.83 22,791.56 31,180.27 1,162,095.00
08/20/2004 53,971.83 22,196.01 31,775.82 1,130,319.18
02/20/2005 - 53,971.83 21,589.10 32,382.73 1,097,936.45
08/20/2005 - 53,971.83 20,970.59 33,001.24 1,064,935.21
02/20/2006 53,971.83 20,340.26 33,631.57 1,031,303.64
08/20/2006 53,971.83 19,697.90 34,273.93 997,029.71
02/20/2007 - 53,971.83 19,043.27 34,928.56 962,101.15
' 08/20/2007 53,971.83 18,376.13 35,595.70 926,505.45
02/20/2008 53,971.83 17,696.25 36,275.58 890,229.87
. 08/20/2008 - 53,971.83 17,00339 36,968.44 853,261.43
02/20/2009 - 53,971.83 16,297.29 37,674.54 815,586.89
08/20/2009 53,971.83 15,577.71 38,394.12 777,192.77
02/20/2010 - 53,971.83 14,84438 39,127.45 738,065.32
08/20/2010 53,971.83 14,097.05 39,874.78 698,190.54
02/20/2011 53,971.83 13,335.44 40,636.39 657,554.15
08/20/2011 53,971.83 12,559.28 41,412.55 6I6,141.60
02/20/2012 - 53,971.83 11,768.30 42,203.53 573,938.07
08/20/2012 - 53,971.83 10,962.22 43,009.61 530,928.46
02/20/2013 - 53,971.83 10,140.73 43,831.10 487,097.36
08/20/2013 - 53,971.83 9,303.56 44,668.27 442,429.09
02/20/2014 � - 53,971.83 8,450.40 45,521.43 396,907.66
08/20/2014 53,971.83 7,580.94 46,390.89 350,516.77
02/20/2015 - 53,971.83 6,694.87 47,276.96 303,239.81
08/20/2015 - 53,971.83 5,791.88 48,179.95 255,059.86
02/20/2016 53,971.83 4,871.64 49,100.19 205,959.67
08/20/2016 - 53,971.83 3,933.83 50,038.00 155,921.67
02/20/2017 53,971.83 2,978.10 50,993.73 104,927.94
08/20/2017 - 53,971.83 2,004.12 51,967.71 52,960.23
02/20/2018 �53,971.77 1,011.54 52,960.23 0.00
1 500 000.00 2 158 873.14 658 873.14 1 500 000.00
Fiscal Services i l/l4/96 STPALJLS.WK4
q�� f��3
IV�[NNESOTA DEPAR"CtitEM OF .�''�''�.
.' �u��m��p`.
TRADE AND ECONOhtIC DEVELOP�fENT •.����' "�� .
:� �:
500 bletro Syuare ;E= P, '
121 7th Place East :i ��
Saint Paul,hlinnesota»101-21i6 USA �'`J�� ','
. ��edaQe�°'.•
MEMORANDUM .��""'��
November 18, 1936
To: Members of the Minnesota Public Facilities Authority
From: Terry Kuhlman Executive Director
Subject: City of St. Paul loan application
The City of St. Paul has applied to the Authority for a loan in
the amount of $1, 500, 000 to assist them in the third phase of a
project that is estimated to cost approximately $8, 000, 000. Over
the previous two years three loans totaling $2, 400, 000 have been
approved for this project. The project when completed will
eliminate the inflow and infiltration of storm water into the
sewer system.
The required certification from the commissioner of the Minnesota
Pollution Control Agency is attached.
The loan will be funded from the 1996B Series Bonds.
(612)297-1291
� _� (S00)657-3358
T1Y/TDD(612)282-61�2
An Equat�bpportunity Employer FAX(612)296-1290
q(�- 15(03
Borrower: City of St. Paul
Population: 272, 235 (1990 census)
Households: 110, 608 (1990 census)
Median Household Income: $26, 498
PROJECT
The City is under federal and state mandates to eliminate the •
regulator devices that allow the diversion of some sewer flow
directly to the Mississippi river during heavy rainfall . The
project is segmented over a five year period and is estimated to
cost $8, 000, 000. This will be the third year of the project, and
this segment will cost $1, 500, 000. �
PROJECT FINANCING
The Public facilities Authority is being asked to assist with .the
entire $1, 500, 000 cost of the project. The loan will be for a
term of 20 years at an interest rate of 3 . 82�, and as in previous
loans St. Paul will provide its general obligation. pledge to the
Authority.
FINANCIAL ANALYSIS �
St Paul ' s population appears to have stabilized during the past
ten years, growing slightly from 270, 230 in 1980 to 272, 235 in
1990. While the median household income at $26, 498 is far below
the Metro average of $36, 816, the low level of net direct G.O.
debt per capita of $570, and debt to estimated market value of
1 . 61$ alleviates somewhat the low income level. St Paul received
a AA credit rating from Standard & Poors on a recent G.O. bond
issue.
✓
Recommended for funding
Recommended for funding with conditions
Not recommended for funding
1 .,
� . �. , �
�/����, , wn .,,�.�-�, I ,.... L�2
��Exe tive Dire �tor '/� A
Reviewer ,,}� )/� ��;: f
i�ti�.u.ti�.�.�..
q� - 15�03
LOAN INTEREST RATE CALCULATION City of: St. Paul
See Rules 7380 0440 Interest Rate Determination for Explanation
of Factors
Part A A�plicant Data
1 . Population 272, 235 (90 census)
2 . Median Household �Income $26, 498 " "
3. Number of Households 110, 608 " "
4 . Percentage of Poverty Level 16.7� " "
Households
Part B Interest Rate Calculation
1 . Quarterly 5et Rate 4 • 82�
Discount Factors
2 . Population �
3. Median Household Income �
4 . Poverty Level 100
5. Total Discount 100
6. Tentative Int. Rate 3•82 $
(line 1 minus line 5)
7 . Sewer Service. Charge as � �
of MHI (see part C, line 8 .
column 1) �
' 8 . � Fina1 Interest Rate 3 • 82 �
(line 6 minus line 7) •
Part C Cost Calculation Utilizing: TENTATIVE RATE FINAL RATE
1 . Estimated Loan Amount $ 1, 500, 000 $
2 . Int Rates (part B, line 6 3. 82 $ $
& line 8 respectively)
3. Annual Debt Service $ 2, 954, 000 $
4 . Estimated O, M, & R Costs $24, 354, 000 $
5. Est. Total Charges (3+4) $27, 308, 000 $
6. Less Non-residential Share $15, 292, 000 $
(56$) �
7. Estimated Total Charges Per
Household (annually/monthly) $173 /14 .45 $ /
(Based on 69, 327 avg. users
8 . Charges as $ of MHI - If lg
or more, insert 50 basis pts. ,
1 1/2� 100 pts . , 2� 150 basis pts. . 66 '�
. . � �y �I
PROJECT CERTIFICATION A�� �� 1996 ��"���3
FoR ''OJ�IMUNI?Y f1�tAN
�VATER POLLUTION CONTROL REVOLVING FUND PROGRAM
SECTION I - PROJECT INFORMATION
Name and Address of Applicant: City of St. Paul
Department of Public Works
1000 City Hall Annex
25 West Fourth Street
St. Paul, Minnesota 55102
MPCA Project Number: L272103-04
Authorized Representative: Roger Puchreiter
Assistant City Engineer
" SECTION II - PROJECT DESCRIPTION
All project components, as described in the plans and specifications approval letter dated
August 23, 1996, are eligible for loan funding.
_
SEGTION III - ESSENTIAL PROJECT COMPONEN"�S
The Essential Project Components percentage is 100,based on calculations from the
Loan Rules (Minn. R. 7077.0276).
.
' SECTION IV-CERTIFICATION � ' '
The Minnesota Pollution Control Agency hereby certifies that the loan application for the
project described above meets the applicable criteria set forth in the Federal Water
Pollution Control Act, Minn.,Stat. ch. 446A, and Minn. R. ch. 7077.
���R-LC.( �.. Q�G� ��j n
Russell C. Felt, Supervisor Date �
Minnesota Pollution Control Agency
TchpfacLdot l l/93