08-985 �
Presented by
— �ouueil Fite� �
Green Sheet # 3058999
RESOLUTIO
1 RESOLiJTION FOR TAXABLE FINANCING FOR THE DSI LEASE INCLUDING (1) SETTING
2 A PUBLIC HEARING FOR THE APPROVAL
3 FOR THE ISSUANCE OF TAXABLE GENERAI. OBLIGATION
4 CAPTTAL IMPROVEMENT PLAN NOTE ( 2008 PUBLTC SAFETY DSI NOTE) IN AN
5 AMOIINT
6 NOT TO EXCEED $1,500,000 FOR THE ASI LEASE PROJECT AND (2)
7 PREPARE A SPECIAL PURPOSE CAPITAL IMPROVEMENT PLAN AND (3) MINIMIZE
L
COST OF ISSUAIYCE
9 WHBREAS, THE City approved CF 08-425 that authorized executing a 10 year lease for DSI at
10 375 Jackson Street ( Floors 2 and 3); and
11 WHEREAS, CF 08-600 directed OFS staff to arrange tax —exempC financing for � 1,�00,000 for
12 remodeling, maving, office equipment, and cost of issuance which is attached in Exhibit A; and
13 WHEREAS, OFS staff in consultation with outside counsel Kennedy and Graven has determined
14 that this financing needs to be done taxable because of federal IRS private use issues; and
15 WHEREAS, the City Debt Manager recommends proceeding to issue taxable Public Safety Bonds
16 in amount of up to $1,500,OQ0 after following the steps of holding a public hearing for a special capital
17 improvement plan described below; and
18 WHEREAS, the City of Saint Paul, Minnesota (the "City"), annually adopts a Capital Improvement
19 Budget and Program in accordance with a locallaw, being Laws of Minnesota for 1974, Chapter 351, as
20 amended (the "Local Law"); and
21 WAERL'AS, since 2003 a general law, Minnesota Statutes, Section 475.521 (the "General Law"),
22 permits the issuance of general obligation bottds without an election in accordance with a capital
23 improvement plan adopted under such la�v, and such bonds are required to mature within thirty yeazs; and
24 WHEREAS, the City's Capital Improvement Budget and Program comprehensively addresses
25 capital improvements and factors relating thereto over a£xve year period, but does not necessarily address
26 far each improvement all of the eight factors required by the General Law to be considered; and
27 WHEREAS, as an aspect of its Capital Improvement Budget anci Program the City will address in a
28 portion thereof entitled "Minnesota Statutes 475.521 Special Purpose Plan" (the "Special Puipose Plan")
29 all the factors required by the General Law to be considered for capital improvements which are financed
30 by bonds issued pursuant to the General Law; and
�
b��?g�
3i=p�ait�on s t e"NOTE") and adopt its Special Purpose Plan as a capital improvement plan under the
33 General Law (the "Plan"); and names the DSI LEASE PROJECT as a CIB project, after review and
34 recommendation by CIB Committee on September 8; and
35 VJHEREAS, the City has caused notice of the public hearing on the intention to issue the Bonds
36 and on the proposed adoption of the Special Purpose Pian to be published pursuant to and in accordance
37 with the General Law; and
38 WHEREAS, a public hearing on the intention to issue the NOTE and on the proposed Special
39 Purpose Plan is scheduled to be held on October 1, 200$, following published notice of the hearing as
40 required by law; and
41 WHEREAS, in approving the Special Purpose Plan, the City Council will considered for each
42 project and for the overall Specia] Purpose Plan the following ei�ht factors:
43 1. The condition of the City's existing infrastructure, including the projected need for
44 repair and replacement;
45 2. The likely demand for the improvement;
46 3. The estimated cost of the improvement;
47 4. The available pubfic resources;
48 5. The level of overlapping debt in the City;
49 6. The relative benefits and costs of alternative uses of Yhe funds;
50 7. Operating costs of the proposed improvements; and
51 8. Alternatiees for providing services more efficiently through shared facilities with
53 other local government units:
53 WHEREAS, OF5 staff continues to look far ways to reduce issuance costs for new city debt;
54
55 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, that
56 the Ciry Council:
57 1} Sets the required public hearing for October 1, 2008 and
58 2) Request OFS staff to prepare Special piupose plan for public review
59 3) Gives preliminary approval to proceed with issuance taxable general obligation financing up to
60 $1,500,000 aggregate principal amount of the Bonds and names Kennedy and Graven as Bond Counsel
61 4) In order to reduce cost of issuance fees, directs staff to consult with the City Financial Advisor
62 Springsted and Kennedy and Graven to determine this debt instrument, if it would qualify to be rated and
63 satisfy Mn statute 118A, can be purchased by the City Treasurer, for the City Poo1, as a 10 year
64 investment, for a rate of approximately 510 to 5.50 percent, depending on current market conditions in
65 October.
66 5) Return on October 1, 2008, after public hearing for consideration of fina] approval of taxable
67 financing for the DSI LEASE PR07ECT.
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69
Bos4om
Cazter
Harris
"°, " """"` Requested b epar[mentAf: T\
✓ r� �/
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✓ BY:
Approved by the Office of Financial Services
Thune
Adopted by Council: Dafe
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Adoprion Certified by Cou il Secretary
By: �
Approve M o . ➢ / �� ,�j`
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Sy:
App oved by C ty Att e
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By:
Approved by May for Submission o Council
BY� �1� � � V
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sfieet Green
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� DepartmenUoffice%ounc'rl: "
FS - fivapciaiServices
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....�.....�.W.�— .__ —. -
on Person 8. Phone:� � �` ' '
Bob Geurs ,
266-8837
Must Be on Council Agemia by (Date}:
IOSEP-08
' Doa Type: RESOLUT�ON W/� TRANSAC
. E-DOCUme�t Required: Y
DocumentContact: Bob Geurs
�
Assign
Number
For
Routing
Order
Contad Phone: 2668837 , I
Total # of Sigaature Peges ` (Clip At! Locations for Signatuse)
0 �F'inancisl5ervices I I A "�.1
1 �naocisi Services Department Director
2 inanciat Services ce Einancial Servic
3 iri Attornev f , %r' � G.�Zr
4 avor's Office Mavor/Assistant
5 �ouncii Citv Cauncil
6 i Cterk Ci Cierk
7 inancialServices Bob Geurs
Pre2iminary resolurion for taxahle financing fot $1S millian for DST lease impzovements at 375 7ackson through 2008 Generai
Obligation Note snd set a public hearing for October 1, 2008 for a special capital improvement plan.
itlations: Approve (A) or Reject (R): Personal Service Contrects Must Answer the Aollowing Questions:
Planning Commission �, Has this perso�/firm ever worked under a contract forthis department7
Cf8 Committee Yes No
Civit Service Commission 2. Has this person/5rm ever been a city empfoyee?
Yes No
3. Does this person/firm possess a slull not normally possessed by any
current city employee?
Yes No
Explai� all yes answers on separate sheet and attach to g�een sheet
Initiating Problem, Issues, Opportunity (INho, What, When, Where, Why):
CF 08 600 directed the Office of Financial Services staff to complete tax exempt financing for DSI lease that upon further review have
determinded the fmancing needs to be taxable.
AdvantageslfApproved:
Financing will be completed
Disadvantages If Approved:
Taxable financing has a higher interest rate of.75% to 1.0 percent pex year ($11,250-15,000).
Disadvantages If Not Approved:
City does not have funds to complete remodeling and mova.
Totaf Amount of
Transaction: $1,500,�00.00
Funding Source: p�bIIC S2f0ty NotO
Financial Information:
(Explain)
Activity Number: F_320-33351-6260
CosURevenue Budgeted: Y
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Coufl�il Fiie # C� o� 4�
Green Sheet #
CITY OF SA{NT PAUL, MINNESOTA
Presented by
3 RESOLUTION PROVIDING FIivAi�TCING TO THE AEPARTbiENT
4 OF SAFTEY AND Ivi SPECTIONS FOR TENANT INIPROVEMENTS AriD KELATED i140VING COSTS
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WHEREAS, the City Council authorized the Depaztment of Safety and Inspections via Resolution 08-425 on April
23, 2008 to enter into the attached 10 yeu lease a�reement for office space at 375 3ackson Streei, and
WFIEREAS, the Office of Financial 5ervices ("OFS") completed a Reques[ for Financing on May 22, 2008 and
recommends to proceed with Wells Fargo Brokerage Services, LLC (Wells Pargo") for a 10 yeaz tax-exempt
borrowing for up to $1,500,000 at 4.55 % to finance tenant improvements, equipping, and moving the Department of
Safety and Inspections to 375 Sackson, and
WFIEREAS, the Preliminaty Repayment Schedule is attached as Exhibit A; with the proposed 10 yeaz lease for the
space together with the cost estimates for Tenant Improvements and the cost of moving to the new location, and
WHEREAS, the Mayor, in accordance with Section ]0.07.1 of the City Charter, certifies that there aze revenues
available for appropriation totaling $1,500,006 in excess of the revenue estimated in the 2008 budget; now,
therefore, be it
RESOLVED, ttaat the Council of the City of Saint Paul apptoves these amendments to the 2008 DSI budget, for
financing the lease hold improvements and the cost of moving fumiture, equipment and all normally related moving
costs, and be
FtJRTF3ER RESOLVED, that the total cost of the tenant improvements and office furniture and equ9pment costs
shall not exceed $1.5 million, from any and al] City sources, and, be it
FINALLY RESOLVED, that the Office of Financial Services shall return for City Councll approval of the 10
yeaz tas exempt borrowing instrument with Wells Fazgo as soon as the legal documents and t� exempt
authorizing resolufion are prepared in substantially final form.
CURRENTBUDGET CHANGES AMENDED BUDGET
FINANCING PLAN:
320 - License and Pernuts Fund
33351- Operations
6200 - Borrowing $0 $1.500,000 $1,500,000
Total Changes to Financing $1,500,000