09-453Council File #�
Green Sheet # 3069962
RESOLUTiON
OF A�i'f PAUL, MINNESOTA /�
Presented by
1 AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION PUBLIC SAFETY BONDS,
2 SERIES 2009 (FIIZE #1 AND #10 AND ADMINISTRATION PROJECT), IN ONE OR MORE
3 SERIES INCLUDING BUILD AMERICA BONDS, AND AUTHORIZING THE EXECUTION
4 OF A BOND PURCHASE AGREEMENT IN CONNECTION WITH THE BOI�TDS
5 WHEREAS:
6 A. The City of Saint Paul, Minnesota (the "City"), under Minnesota Statutes, Section
7 475.521 (the "Act"), is authorized to issue general obligarion capital improvement bonds (the
8 "Bonds") for certain facilities, including public safety facilities, and proposes to do so for Fire
9 Station #1 and #10 and administration (the "Project"); and
10 B. The federal American Recovery and Reinvestment Tax Act of 2009 provides for
11 the issuance of `Build America Bonds" in 2009 and 2010 which bear tasable interest but for
12 which the issuer will receive payment of a refundable tax credit contemporaneously with each
13 interest payment equal to 35% of such tasable interest; and
14 C. The interest cost to the City after the receipt of such tax credits may be lower than
15 the interest cost oftax-exempt bonds, for some or all maturities, and it is desirable to determine
16 this by considering each proposed maturity of the Bonds as taY-exempt bonds and as taacable
17 Build America Bonds; and
18 D. The market for Build America Bonds is only now beginning to develop, and it is
19 desirable to negotiate their sale in order to retain masimum flexibility for the Bonds, including
20 the flexibility of having a tas-exempt series (probably for the earliest maturities of the Bonds)
21 and a taxable Build America Bonds series; and
22 E. In a Request for Proposals undertaken by Springsted Incorporated, the City's
23 financial advisor, with assistance of City staff, the City has selected Piper Jaffray & Co. as the
24 underwriter far the Bonds, based on their proposed underwriting fee, their taxable selling
25 experience, and the City's past experience; and
26 F. The City proposes to issue its General Obligation Public Safety Bonds, as taYable
27 Build America Bonds or as tas-exempt bonds, or some as taxable in a series and others as taac-
28 exempt in a second series; and
29 G. It is necessary and desirable and in the best interests of the City for the Bonds to
30 be in the aggregate principal amount not to exceed $15,500,000; and
31 H. A preliminary official statement and an official statement shall be prepared in
32 connection with the Bonds, similar in form to those for other City general obligation bonds but
33 making disclosures as appropriate for taxable Build America Bonds, to the extent applicable; and
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I. The City will adopt another resolution prior to the issuance of the Bonds,
anticipated to be adopted on May 20, 2009, which levies a tax for the payment of the Bonds,
establishes a debt service account for the Bonds, sets forth the form of the Bonds, and makes
covenants with respect to the Bonds:
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul,
Minnesota, as follows:
PART I - THE BONDS
8 1.01. Document Submitted: Parties. In connection with the proposed issuance of the
9 Bonds, a form of the following document has been submitted to the City Council for approval: a
10 Bond Purchase Ageement to be entered into by and between the City and Piper Jaffray & Co.
11 (the "Underwriter").
12 1.02. Findines. It is hereby found, determined and declared that the Act and this
13 Resolution authorize (i) the issuance and sale of the Bonds, (ii) the execution and delivery by the
14 City of the Bond Purchase Agreement, and (iii) the performance of all covenants and agreements
15 of the City contained in the Bond Purchase An eement.
16 1.03. Sale of Bonds; Dele a� tion. The City shall proceed forthwith to issue its Bonds,
17 upon the terms set forth in this Resolution and to be set forth in another resolution. The initial
18 principal amount of the Bonds shall not exceed $15,500,000.
19 There is hereby delegated to (i) the Director, Office of Financial Services (or her
20 designee), (ii) a person designated by Springsted Incorporated, acting as financial advisor with
21 respect to the Bonds, (iii) the Treasurer of the City and (iv) the City Debt Manager (collectively,
22 the "Pricing Committee") the authority to agree with the Underwriter on the principal amount of
23 Bonds to mature or be payable each year during their term, a term not longer than twenty-five
24 (25) years with relatively level annual debt service over the term, the interest rate to be borne by
25 each maturity of the Bonds, the premium, if any, payable upon optional redemption of the Bonds
26 (and the dates therefor), the original issue discount or premium, if any, to apply to all or any
27 maturities of the Bonds, and which specific maturities are to be issued as taxable bonds or tas-
28 exempt bonds; provided that the true interest cost of the Bonds, net of all refundable tax credits,
29 shall not exceed six percent (6.0%) per annum and the maximum original issue discount for any
30 Bond shall not exceed two and one-half percent (2.5%) of the principal amount thereof.
31 The determinations of the Pricing Committee as to terms shall be set forth in a certificate
32 signed by its members, and such terms shall be included in the Bond Purchase Agreement, in the
33 form of the Bonds, and in other agreements and documents as appropriate. Execution of the
34 Bond Purchase Agreement by and on behalf of the City as provided herein shall be deemed
35 conclusive ratification and approval of the determinations of the Pricing Committee.
36 The Underwriter's discount for the purchase price of the Bonds shall be thirty-seven
37 hundredths of one percent (037%) of the principal asnount thereof (reducing for this purpose the
38 principal amount by any original issue discount and increasing for this parpose the principal
39 amount by any original issue premium).
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PART II - AUTHORIZATION TO EXECUTE DOCUMENTS
AND TAKE OTHER ACTIONS
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2.01. Approval of Bond Purchase A�reement; Chanees; Execution. Subject to the
approval of the City Attomey, Briggs and Morgan, Professional Association (hereby appointed
as bond counsel), and appropriate CiTy staff, and subject to the provisions of paragraph 2.02 of
this Resolution, the Bond Purchase Agreement and exhibits thereto aze approved substantially in
the forxns submitted and on file in the offices of the City, with such subsequent changes as may
be approved by the City Attomey, bond counsel and the City staff or as may be consistent with
the determinations made herein. Except as otherwise specifically provided herein, the Bond
Purchase Agreement, in substantially the form submitted, is directed to be executed in the name
of, and on behalf of, the City by the Mayor or Executive Assistant to the Mayor and the Director,
Office of Financial Services, or her designee.
2.02. Changes; Related Documents. The approval hereby given to the Bond Purchase
Agreement includes approval of such additional details therein as may be necessary and
appropriate, such modifications thereof, deletions therefrom and additions thereto prior to its
execution as may be necessary and appropriate and approved by the City Attomey, bond counsel,
appropriate City staff and the City officials authorized herein to execute it, and includes approval
of such related instruments as may be required to be executed in connection with the Bond
Purchase Agreement. The City Attorney, bond counsel, City officials and City staff are hereby
authorized to approve said changes and related instruments on behalf of the City upon
determination by them that such changes and related instruments are consistent with this
Resolution and necessary or desirable to effectuate the purposes hereof. The execution of any
instrument by the appropriate officer or officers of the City herein authorized shall be conclusive
evidence of the approval of such documents in accardance with the terms hereo£ In the absence
of the Mayor or Director, Office of Financial Services, any of the documents authorized by this
Resolution to be executed by them may be executed by the Executive Assistant to the Mayor or
Acting Director, Office of Financial Services, respectively, or by any other duly designated
acting official.
29 2.03. Parties Involved. The City shall be the issuer of the Bonds, and the Underwriter
30 shall be the purchaser of the Bonds. In connection with the transaction involving the Bonds,
31 Briggs and Morgan, Professional Association, shall act as bond counsel, the City Attorney's
32 office shall advise the City, Springsted Incorporated shall act as financial advisor, and Kennedy
33 & Graven shall act as counsel to the Underwriter.
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Yeas Nays Absent
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Harris /
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Lan�y /
Stark ,/
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Adopted by Council: Date � ' G
Adoption Certified by Co .cil Secre
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2339732v3
� Green Sheet Green Sheet Green Sheet Green Sheet Green 5heet Green Sheet �
P'1-�f� ��
� ����rt���� Green Sheet NO: 3069962
FS — F�nancial Services Zg-APR-09
Contad Person & Phone: �evartmerrt � Se� To Person initiallDate
Bob Geurs � 8° " a � �' `""�
266-8837 1 ancialSecvices De arlmentDirectot
Assign Z anpal Services ce Financial Services�D
Must Be on Council Agenda by (Date): Number _ �
0&MAY-09 For 3 ' Att°`°
Routing 4 a or's 06ce Mayor/Assishant
Doc. Type: RESOLUTION W/$ Order 5 uncil ' Couacit
TR4NSACTION 6 ' Clerk Gtity Clerk �
EAocument Required: N
Doeument Contact: �b Geurs �
Contaet Phone: 266-8837
Total # of Signature Pages _(Ciip All Lowtions for Signature)
Action Requested:
To authorize the issuance of General Obligation Public Safety Bonds, Series 2009 (Fire Starions 1& 10 and Administrarion Project)
in one or more series including Build America Bonds, and execution of a Bond Purchase Agreement in connection with the Bonds.
Recommendations: Approve (A) or Rejed (R): Pewonal Service Contrects Must Answer the Following QuesHons:
Planning Commission 1. Has this personlfirm ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firtn ever been a city employee?
Yes No
3. Dces ihis personlfirtn possess a skill not normally possessed by any
current city employee?
Yes No
� Explain all yes answers on separete sheet and attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
The City will issue the bonds, not to exceed $15.SM, to finance Fire 1& 10 and Administration Project. The Federal American
Recovery and Reinvestmem Tax Act of 2009 provides an opportunity to issue Build America Bonds wluch may lower the Ciry's
interest cos�
AdvantagesifApproved:
The City will issue the Bonds and ha�e a lower interest cost.
DisadvanNages IfApproved:
None known
DisadvaMages If Not Approved:
The Bond's porceeds will not be available to finance Fire Starions 1& 10 and Administrarion.
Sotal AmouM of $� 5,500,000.00 CosURevenue Budgeted:
Trensaction:
Funding Source: Adivity Number:
Financial Information: gonds sold not to exceed $15.SM
(6cplain)
April 28. 2009 2:41 PM Pana 1