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09-539CouncilFile# 09-539 GreenSheet# 3070379 RESOLiJTION TY OF AI PAUL, MINNESOTA Presented By (�� �,f 1�t� � � Refecred To Committee: 1 ACCEPTING PROPOSAL ON SALE OF APPROXIMATELY 2 $4,500,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT 3 BONDS, SERIES 2009A, 4 PROVIDING FOR THEIR ISSUANCE, AND LEVYING 5 A TAX FOR THE PAYMENT THEREOF WHEREAS, the Director, Office oi Financial Services, has presented proposals received for the sale of approximately $4,500,000 General Obligation Capital Improvement Bonds, Series 2009A (the "Bonds"), of the City of Saint Paul, Minnesota (the "City"); and 4 WHEREAS, the proposals set forth on Exhibit A attached hereto were received 10 pursuant to the Terms of Proposal at the offices of Springsted Incorporated at 10:00 A.M., ll Central Time, ihis same day; and 12 WHEREAS, the Director, Office of Financial Services, has advised this Council 13 that the proposal of �-t �� �,,� ,: f t.� z �� was found to be the most advantageous 14 and has recommended that said proposal be accepted; and 15 WHEREAS, the proceeds of the Bonds will finance certain capital improvements, 16 for which the City is proceeding pursuant to its Charter and Laws of Minnesota for 1971, 17 Chapter 773, as amended, with any excess to be used for any other purpose permitted by law; 18 and 19 WHEREAS, the City has heretofore issued registered obligations in certificated 20 form, and incurs substantial costs associated with their printing and issuance, and substantial 21 continuing transacrion costs relating to their payment, transfet and exchange; and 22 WHEREAS, the City has determined that significant savings in transaction costs 23 will result from issuing bonds in "global book-entry form", by which bonds are issued in 24 certificated form in large denominations, registered on the books of the City in the name of a 25 depository or its nominee, and held in safekeeping and immobilized by such depository, and such 26 depository as part of the computerized national securities clearance and settlement system (the 27 'National System") registers transfers of ownership interests in the bonds by making 28 computerized book entries on its own books and distributes payments on the bonds to its 29 Participants shown on its books as the owners of such interests; and such Participants and other 30 banks, brokers and dealers participating in the National System will do likewise (not as agents of 31 the City) if not the beneficial owners of the bonds; and 2348410v3 7 09-539 i WF3EREAS, 'Participants" means those financial institutions for whom the 2 Depository effects book-entry transfers and pledges of securities deposited and immobilized with 3 the Depository; and 4 WHEREAS, The Depository Trust Company, a limited purpose trust company 5 organized under the laws of the State of New York, or any of its successors or successors to its 6 functions hereunder (the "Depository"}, will act as such depository with respect to the Bonds 7 except as set forth below, and the City has heretofore delivered a letter of representations (the 8 "Letter of Representations") setting forth various matters relating to the Depository and its role 9 with respect to the Bonds; and 10 WHEREAS, the City will deliver the Bonds in the form of one certificate per 11 maturity, each representing the entire principal amount of the Bonds due on a particular maturity 12 date (each a"Global Certificate"), which single certificate per maturity may be transferred on the 13 City's bond register as required by the Uniform Commercial Code, but not exchanged for smaller 14 denominations unless the City detemunes to issue Replacement Bonds as provided below; and 15 WHEREAS, the City will be able to replace the Depository or under certain 16 circumstances to abandon the "global book-entry form" by permitting the Global Certi�cates to 17 be exchanged for smaller denominations typical of ordinary bonds registered on the City's bond 18 register; and "Replacement Bonds" means the certificates representing the Bonds so 19 authenticated and delivered by the Bond Registru pursuant to paragraphs 6 and 12 hereof; and 20 WHEREAS, °Holder° as used herein means the person in whose name a Bond is 21 registered on the registration books of the City maintained by the registrar appointed as provided 22 in paragraph 8(the "Bond Registrar"); and 23 WHEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits 24 "participating underwriters" from purchasing or selling the Bonds unless the City undertakes to 25 provide certain continuing disclosure with respect to the Bonds; and 26 WHEREA5, pursuant to Minnesota Statutes, Secdon 475.60, Subdivision 2(9), 27 public sale requirements do not appiy to the Bonds if the City retains an independent financial 28 advisor and determines to sell the Bonds by private negotiation, and the City has instead 29 authorized a competitive sale without publication of nouce thereof as a form of private 30 negotiaCion; and 31 WHEREAS, proposals for the Bonds have been solicited by Springsted 32 Incorporated gursuant to an Official Statement and Terms of Proposal therein; and 33 WHEREAS, the City retained the right to increase or reduce the principal amount 34 of the Bonds from the proposed $4,500,000, but the City has deternuned to make no change: 35 NOW, Tf�REFORE, BE TT RESOLVED by the Council of the City of Saint 36 Paul, Minnesota, as follows: 37 i. Acceptance of Pro�osal. The proposal of BMO Capital Markets (the 38 "Purchaser") to purchase $4,500,000 General Obligation Capital Improvement Bonds, 2348410v3 7 :�T' c � 1 Series 2009A, of the City (the "Bonds", or individually a"Bond"), in accordance with the Terms 2 of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for the 3 Bonds the sum of $4,549,447.00, plus interest accrued to settlement, is hereby found, detemuned 4 and declared to be the most favorable proposal received and is hereby accepted for Bonds in the 5 principal amount of �4,500,000 for a purchase price of $4,549,447.00, plus interest accrued to 6 settlement, and the Bonds are hereby awazded to the Purchaser. The Director, Office of 7 Financial Services, or her designee, is directed to retain the deposit of the Purchaser and to 8 forthwith retum to the others making proposals their good faith checks or drafts. 10 11 12 13 14 15 16 17 2. Title; Oriainal Issue Date: Denominations Maturities. The Bonds shall be titled "General Obligation Capital Improvement Bonds, Series 2009A", shail be dated June 1, 2009, as the date of original issue and shall be issued forthwith on or aftez such date as fu11y registered bonds. The Bonds shall be numbered from R-I upward. Giobal Certlficates shall each be in the denomination of the entire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on March 1 and September 1 on the dates and in the amounts as follows: Date iE 19 20 21 22 23 24 25 26 March 1, 2010 September 1, 2010 Mazch 1, 2011 September 1, 2011 March 1, 2012 September 1, 2012 March 1, 2013 Amount $200,000 220,OOG 225,000 225,000 23Q,OOQ 230,000 230,000 Date September 1, 2013 March 1, 2014 September 1, 2014 March 1, 2016 September 1, 2017 March 1, 2Q19 Amount $230,000 235,000 235,000 720 745,000 780,000 The above maturity schedule does not differ from the schedule in the Terms of Proposal. 3. Purpose. The Bonds shall provide funds for the construction of the capital improvements in the City's 2009 capital improvement budget (the "Improvements"). The proceeds of the Bonds shall be deposited and used as provided in pazagraph 17, for the purpose described by Laws of Minnesota for 1971, Chapter 773, as amended, and any excess moneys shall be devoted to any other purpose pernutted by law. The total cost of the linprovements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Impzovements shail proceed with due diligence to completion. 27 4. Interest. The Bonds shall bear interest payable semiannually on March 1 28 and September 1 oP each yeaz (each, an "Interest Payment Date"), commencing Mazch 1, 2010, 29 calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per 30 annum set forth opposite the maturity dates as follows: 2348410v3 09-539 Maturitv Date 4 5 6 7 8 9 10 11 12 13 14 15 16 March 1, 2010 September 1, 2010 Mazch i, 2011 Septembec 1, 2011 Mazch 1, 2012 September 1, 2012 March 1, 2013 Interest Rate 2.00% 2.00 2.00 2.Q� 2.00 2.00 2.00 Maturity Date September 1, 2013 March 1, 2014 September l, 2�14 March 1, 2016 September l, 2017 Mazch 1, 2019 Interest Rate 2.00% 2.25 2.25 3.00 3.00 3.25 5. Description of the Global Certificates and Global Book-Entry Svstem. Upon their original issuance the Bonds will be issued in the form of a sinale Global Certificate for each maturity, deposited with the Depository or its agent by the Purchaser and immobilized as provided in pazagtaph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respective interests in the Bonds except as provided in pazagraph 6. Except as so provided, during the term of the Bonds, beneficial ownerslup (and subsequent transfers of beneficial ownership) of inCerests in the Giobal Certificates will be reflected by book entries made on the records of the Depository and its Participants and other banks, brokers, and dealers participating in the National System. The Depository's book entries of beneficial ownership interests are authorized to be in increments of $5,000 of principal of the Bonds, but not smaller increments, despite the larger authorized denominaUons of the Global Certificates. Payment of principal of, premium, if any, and interest on the Global Certificates will be made to the Bond Registraz as paying agent, and in turn by the Bond Registrar to the Depository or its nominee as registered owner of the Global Certificates, and the Depository according to the laws and rules governing it will receive and forward payments on behalf of the beneficial owners of the Global Certificates. 17 Payment of principal of, premium, if any, and interest on a Global Certificate may in the 18 City's discretion be made by such other method of transferring funds as may be requested by the 19 Holder of a Global Certificate. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 6. Immobilization of Global Certificates bv the Depositorv• Successor Depository; Replacement Bonds. Pursuant to the reqaest of the Purchaser to the Depository, which request is required by the Terms of Proposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the pepository ar its agent. The Global Certificates shall be in typewritten form or otherwise as acceptabie to the Depository, shall be registered in the name of the Depository or its nominee and shall be held immobilized from circulation at the offices of the Depository or its agent on behalf of the Purchaser and subsequent bondowners. The Depository or its nominee will be the sole hoider of record of the CTlobal Certificates and no investor or other party purchasing, selling or otherwise transfening ownership of interests in any Bond is to receive, hold or deliver any bond certificates so long as the Depository holds the Global Certificates iznmobilized from circulation, except as provided below in this paragraph and in paragraph 12. Certificates evidencing the Bonds may not after their original delivery be transferred or exchanged except: 2348410v3 09-539 (i) Upon registration of transfer of ownership of a Global Certificate, as provided in pazagraph 12, 3 (ii) To any successor of the Depository (or its nominee) or any substitute 4 depository (a "substitute depository") designated pursuant to clause (iii) of this 5 subpazagraph, provided that any successor of the Depository or any substitute depository 6 must be both a"clearing corporation" as defined in the Minnesota Uniform Commercial 7 Code at Minnesota Statutes, Section 336.8-102, and a qualified and registered "clearing 8 agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended, 4 (iii) To a substitute depository designated by and acceptable to the City upon 10 (a) the deternunauon by the Depository that the Bonds shall no longer be eligible for its 11 depository services or (b) a determination by the City that the Depository is no longer 12 able to carry out its functions, provided that any substitute depository must be qualified to 13 act as such, as provided in clause (ii) of this subparagraph, or 14 (iv) To those persons to whom transfer is requested in written transfer 15 instructions in the event that: 16 (a) the Depositary shall resign or discontinue its services for the 17 Bonds and the City is unable to locate a substitute depository within two (2) 1 g months following the resignation or deternunation of non-eligibility, or 19 (b) upon a determination by the City in its sole discretion that (1) the 20 continuation of the book-entry spstem described herein, which precludes the 21 issuance of certificates (other than Global Certificates) to any Holder other than 22 the Depository (oc its nominee), might adversely affect the interest of the 23 beneficial ownexs of the Bonds, oc (2) that it is in the best interest of the beneficial 24 owners of the Bonds that they be able to obtain certificated bonds, 25 in either of which events the City shall notify Holders of its deternunation and of the 26 availability of certificates (the "Replacement Bonds") to Holders requesting the same and 27 the registration, transfer and exchange of such Bonds will be conducted as provided in 28 paragraphs 9B and 12 hereof. 29 In the event of a succession of the Depository as may be authorized by this 30 paragraph, the Bond Registraz upon presentation of Global Certificates shall register their 31 transfer to the substitute or successor depository, and the substitute or successor depository shall 32 be treated as the Depository for all purposes and functions under this resolution. The Letter of 33 Representations shall not appiy to a substitute or successor depository unless the City and the 34 substitute or successor depository so agree, and a similar agreement may be entered into. 35 7. Redemption. 36 (a) Optional Redemption; Due Date. A11 Bonds maturing after September 1, 2017, 37 sha11 be subject to redemption and prepayment at the option of the City on such date and on any 38 day thereafter at a price of par pius accrued interest. Redemption may be in whole or in part of 39 the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be 2348410v3 04-539 1 prepaid in such order of maturiry and in such amount per maturity as the City shall deternune 2 (treating amounts scheduled for mandatory redemption as maturities); and if only part of the 3 Bonds having a common maturity date aze called for prepayment, the Glohal Certificates may be 4 prepaid in $5,000 increments of principal and, if applicable, the specific Replacement Bonds to 5 be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof cailed for 6 redemption shall be due and payable on the redemption date, and interest thereon shall cease to 7 accrue from and after ihe redemption date. 8 (b) Scheduled Mandatorv Redemption. Term Bonds maturing on Mazch 1, 2016, are 9 subject to redemption and prepayment at a price of par plus accrued interest, without premium, 10 on the dates and in the amounts set forth below: Date March 1, 2015 September 1, 2015 March 1, 2016 Amount $235,000 240,OQ0 245,000 (Maturity) 11 Term Bonds maturing on September l, 2017, are subject to redemption and prepayment at a 12 price of pu plus accrued interest, without premium, on the dates and in the amounts set forth 13 below: Date September 1, 2016 March 1, 2017 Septembee 1, 2017 14 15 Amount $245 250,000 25o,000 (Maturity) Term Bonds maturing on March 1, 2019, are subject to redempfion and prepayment at a price of par pius accrued interest, without premium, on the dates and in the amounts set forth below: Date Amount 16 17 18 19 20 21 22 23 24 March 1, 2018 $255,000 September l, 2018 260,000 Mazch 1, 2019 265,000 (Maturiry) (c) Notation on Global Certificate. Upon a reduction in the aggregate principal amount of a Global Certificate, the Holder may make a notation of such redemption on the panel provided on the Global Certificate stating the amount so redeemed, or may return the Global Certificate to the Bond Registrar in exchange for a new Global Certificate authenticated by the Bond Registraz, in proper principal amount. Such notation, if made by the Holder, sha11 be for reference only, and may not be relied upon by any other person as being in any way deternunative of the principal amount of such G1oba1 Certificate outstanding, unless the Bond Registraz has signed the appropriate column of the panel. 25 (d) Selection of Replacement Bonds. To effect a partial redemption of Replacement 26 Bonds having a common maturity date, the Bond Registrar priar to giving notice of redemption 27 shall assign to each Repiacement Bond having a common maturity date a distinctave number far 28 each $5,000 of the principal amount of such Replacement Bond. The Bond Registrar sha11 then 2348410v3 09-539 1 select by lot, using such method of selection as it shall deem proper in its discretion, from the 2 numbers so assigned to such Replacement Bonds, as many numbers as, at $5,000 for each 3 number, shall equal the principal amount of such Replacement Bonds to be redeemed. The 4 Replacement Bonds to be redeemed shall be the Replacement Bonds to which were assigned 5 numbers so selected; provided, however, that only so much of the principal amount of each such 6 Replacement Bond of a denomination of more than $5,000 shall be redeemed as shall equal 7 $5,000 for each number assigned to it and so selected. 9 10 11 12 13 14 15 16 17 (e) Partial Redemption of Replacement Bonds. If a Replacement Bond is to be redeemed only in part, it shall be sunendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writin�} and the City shall execute (if necessary) and the Bond Registraz shall authenticate and deliver ta the Holder of such Replacement Bond, without service charge, a new Replacement Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so sunendered. 18 (f j Request for Redemption. The Bond Registraz shali call Bonds for redemption and 19 payment as herein provided upon receipt by the Bond Registrar at least forty-five (45) days prior 20 to the redemption date of a request of the City, in written form if the Sond Registrar is other than 21 a City officer. Such request shall specify the principal amount of Bonds to be called fox 22 redemption and the redemption date. 23 24 25 26 27 28 29 30 31 (g) Notice. Mailed notice of redemption shail be given to the paying agent (if other than a Ciry officeT} and to each affected Holder. If and when the City shall call any of the Bonds for redemption and payment prior to the stated maturity thereof, the Bond Registrar sha11 give written notice in the name of the City of its intention to cedeem and pay such Bonds at the office of the Bond Registrar. Notice of redemption shall be given by first class mail, postage prapaid, mailed not less than thirty (30) days prior to the redemption date, to each Holder of Bonds to be redeemed, at the address appeazing in the Bond Register. All notices of redemption shall state: (i) (ii) The redemption date; The redemption price; 32 (iii) If less than all ouCstanding Bonds are to be redeemed, the identification 33 (and, in the case of partial redemption, the respective principal amounts) of the Bonds to 34 be redeemed; 35 (iv) That on the redemption date, the redemption price will become due and 36 payable upon each such Bond, and that inTerest thereon shall cease to accme from and 37 after said date; and 38 {v) The place where such Bonds aze to be sunendered for payment of the 39 redemption price (which shall be the office of the Bond Registrar). 2348410v3 09-539 1 (h) Notice to Depositorv. Notices to The Depository Trust Company or its nominee 2 shall contain the CUSIP numbers of the Bonds. If there aze any Holders of the Bonds other than 3 the Depository or its nominee, the Bond Registrar shall use its best efforts to deliver any such 4 notice to the Depository on the business day next preceding the date of mailing of such notice to 5 ail other Holders. b 8. Bond Reeistrar. The Treasurer of the City is appointed to act as bond 7 registrar and transfer agent with respect to the Bonds (the "Bond Registraz"), and shall do so 8 unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the 9 City and Bond Registraz shall execute which is consistent herewith. A successor Bond Registrar 10 shall be an officer of the City or a bank or trust company eligible for designation as bond 11 registtar pursuant to Minnesota Statutes, Chapter 475, and may be appointed pursuant to any 12 contract the City and such successor Bond Registrar shall execute which is consistent herewith. 13 The Bond Registrar shall also serve as paying agent unless and unUl a successor paying agent is 14 duly appolnted. Principal and interest on the Bonds shall be paid to the Holders (or record 15 holders) of the Bonds in the manner set forth in the forms of Bond and paragraph 14 of this 16 resolution. 17 9. Forms of Bond. The Bonds shall be in the form of Global Certificates 18 unless and until Repiacement Bonds are made available as provided in paragraph 6. Each form 19 of bond may contain such additional or different terms and provisions as to the form of payment, 20 record date, notices and other matters as aze consistent with the Letter of Representations and 21 approved by the City Attorney. 22 A. Global Certificates. The Global Certificates, together with the Bond Registrar's 23 Certificate of Authentication, Certificate of Registration, the Register of Partial Payments, the 24 form of Assignment and the registration information thereon, shall be in substantially the 25 following form and may be typewritten rather than printed: 2348410v3 8 09-539 2 � GENERAL OBLIGATION CAPTI'AL IMPROVEMENT INTEREST RATE UNTTED STATES OP AMERICA STATE OF MINNESOTA RAMSEY COUNTY CTTY OF SAINT PAUL BOND, SERIES 2009A MATURTTY DATE OF DATE ORIGINAL ISSUE 1, 20_ June 1, 2009 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 REGISTEEtED QWNER: PRINCIPAL AMOUNT: DOLLARS � CUSIP KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or °City"), certifies that it is indebted and for value received nromises to pay to the registered owner specified above or on the certificate of registration below, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on Mazch 1 and Septerriber 1 of each year (each, an"Interest Payment Date"), commencing March 1, 2010, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will beaz interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable in same-day funds by 2:3Q p.m., Eastern time, upon presentation and sunender hereof at the principal office of in , Minnesota (the "Bond Registraz"), acting as paying agent, or any successor paying agent duly appointed by the Issuer; provided, however, that upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion be paid without presentation of this Bond, which payment shall be received no later than 2:30 p.m., Eastern time, and may make a notation on the panel provided herein of such redemption, stating the amount so redeemed, or may return the Bond to the Bond Registraz in exchange for a new Bond in the proper principal amount. Such notation, if made by the Holder, shall be for reference only, and may not be relied upon by any other person as being an any way deternunafive of the principal amount of this Bond outstanding, unless the Bond Registrar has signed the appropriate column of the panel. Interest on this Bond will be paid on each Interest Payment Date in same-day funds by 230 p.m., Eastern time, to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the 2348410v3 9 09-539 1 "Regular Record Date"). Interest payments shall be received by the Holder no later than 2:30 2 p.m., Eastern 6me; and principal and premium payments shall be received by the Hoider no later 3 than 2:30 p.m., Eastem time, if the Bond is surrendered for payment enough in advance to pernut 4 payment to he made by such time. Any interest not so timely paid shall cease to be payable to 5 the person who is the Holder hereof as of the Regulaz Record Date, and shall be payable to the 6 person who is the Holder hereof at the close of business on a date (the "Special Record Date") 7 fued by the Bond Registrar whenever money becomes available for payment of the defaulted 8 interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days 9 prior to the Speciai Record Date. The principal of and premium, if any, and interest on this Bond 10 are payable in lawful money of the United States of America. 11 Date of PaVment Not Business Da,y. If the date for payment of the principal of, 12 premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on 13 which banking insUtutions in the City of New York, New York, or the city where the principal l4 office of the Bond Registrar is located are authorized by law or executive order to close, then the 15 date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal 16 holiday or a day on which such banking insritutions aze authorized to close, and payment on such 17 date shall have the same force and effect as if made on the nominal date of payment. 18 Optional Redemotion. All Bonds of this issue (the "Bonds") maturing after 19 September 1, 2017, aze subject to redempfion and prepayment at the option of the Issuer on such 20 date and on any day thereafter at a price of par pius accrued interest. Redemption may be in 21 whole or in park of the Bonds subject to prepayment. If redemption is in part, those Bonds 22 remaining unpaid may be prepaid in such order of maturity and in such amount per maturity as 23 the Ciry shall determine (treating amounts scheduled for mandatory redemption as maturities); 24 and if only part of the Bonds having a common maturity date aze called for prepayment, this 25 Bond may be prepaid in $5,000 increments of principal. Bonds or portions thereof called for 26 redemption shall be due and payable on the redemption date, and interest thereon sha11 cease to 27 accrue from and after the redemption date. 28 Scheduled Mandatorv RedemQtion. The Bonds maturing on Mazch 1, 2016, aze 29 subject to redemption and prepayment at a price of par plus accrued interest, without premium, 30 on the dates and in the amounts set forth below: Date Mazch 1, 2015 September 1, 2015 March i, 2016 31 32 33 Amount $235,000 240,000 245,000 (Maturity) The Bonds maturing on September i, 2017, aze subject to redemption and prepayment at a price of par plus accrued interest, without premium, on the dates and in the amounts set forth below: Date September 1, 2Q16 1Vlarch 1, 2017 September l, 2017 2348410v3 1� Amount $245,000 250,000 250,000 (Maturity) 49-539 The Bonds maturing on Mazch 1, 2019, aze subject to redemption and prepayment at a price of paz plus accrued interest, without premium, on the dates and in the amounts set forth below: Date Amount March 1, 2018 $255,000 September 1, 2018 260,000 March 1, 2019 265,000 (Maturity) 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Notice of Redemotion. Mailed notice of redemption shall be given to the paying agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of the Bonds are called for redemption, written notice thereof will be given by first class mail mailed not less than thirty (30) days prior to the redemption date to each Holder of Bonds to be redeemed. In connection with any such notice, the "CUS1P" numbers assigned to the Bonds shall be used. Replacement or Notation of BQnds after Partial Redemgtion. Upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion make a notation on the panel provided herein of such redemption, staling tne amount so redeemed. Such notation, if made by the Holder, shall be for reference only, and may not be relied upon by any other person as being in any way determinative of the principal amount of the Bond outstanding, unless the Bond Registrar has signed the appropriate column of the panel. Otherwise, the Holder may surrender this Bond to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attomey duly authorized in writing) and the Issuer shall execute (if necessazy) and the Bond Registrar shall authenucate and deliver to the Holder of such Bond, without service chazge, a new Bond of the same series having the same stated maturity and interest rate and of the authorized denomination in aggregate principal amount equal to and in exchange far the u�redeemed portion of the principal of the Band so sunendered. Issuance; Purpose; General Obli ag tion. This Bond is one of an issue in the total principal amount of $4,500,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination, and redemption privilege, which Bond has been issued pursuant to and in full confornuty with the Constitution and laws of the State of Minnesota, including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on May 20, 20Q9 (the "Resolution"), for the purpose of providing money to finance the acquisition, construction and repair of various capital improvements in the City. This Bond is payable out of the General Debt 5ervice Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taYing powers of the Issuer have been and are hereby irrevocabiy pledged. 36 Denominations; Exchan�e; Resolution. The Bonds aze issuable originally only as 37 Global Certificates in the denomination of the entire principal amount of the issue maturing on a 38 single date, or, if a portion of said principal is prepaid, said principal amount less the 39 prepayment. Global Certificates are not exchangeable for fully registered bonds of smaller 234841av3 j 1 09-539 1 denominations except to evidence a partial prepayment or in exchange for Replacement Bonds if 2 then available. Replacement Bonds, if made available as provided below, aze issuable solely as 3 fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single 4 maturity and are exchangeable for fully registered Bonds of other authorized denominations in 5 equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the 6 manner and subject to the limitations provided in the Resolution. Reference is hereby made to 7 the Resolution for a description of the rights and duties of the Bond Regisuar. Copies of the 8 Resolution are on file ln the principal office of the Bond Registraz. 9 Replacement Bonds. Replacement Bonds may be issued by the Issuer in the event 10 that: ll (a) the Depository shall resign or discontinue its services for the Bonds, and 12 only if the Issuer is unable to locate a substitute depository within two (2) months 13 following the resignation or determination of non-eligibility, or 14 (b) upon a determination by the Issuer in its sole discretion that (1) the 15 continuarion of the book-entry system described in the Resolution, which precludes the 16 issuance of certificates (other than Global Certificates) to any Holder other than the 17 Depository (or its nominee), might adversely affect the interest of the beneficial owners 18 of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that 19 they be able to obtain certificated bonds. 20 21 22 23 24 25 26 21 28 29 30 31 32 33 Transfer. This Bond shall be registered in the name of the payee on the books of the Issuer by presenting this Bond for registration to the Bond Registrar, who will endorse his, her or its name and note the date of registration opposite the name of the payee in the certificate of registration attached hereto. Thereafter this Bond may be transferred by delivery with an assignment duly exectited by the Holder or his, her or its legal representatives, and the Issuer and Bond Registraz may treat the Holder as the person exclusively entitled to exercise a11 the rights and powers of an owner until this Bond is presented with such assignment for registration of transfer, accompanied by assurance of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted hereon by the Bond Registrar, all subject to the terms and conditions pcovided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with, or notiee to, the Band Registrar. Transfer of this Bond may, at the direction and expense of the Issuer, be subject to certain other restrictions if required to qualify this Bond as being "in registered form" within the meaning of Section 149(a) of the federal Tntemal Revenue Code of 1986, as amended. 34 Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum 35 sufficient to cover any tax or other governmental charge payable in connection with the transfer 36 or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. 37 Treatment of Registered Owner. The Issuer and Bond Registraz may treat the 38 person in whose name this Bond is registered as the owner hereof for the purpose of receiving 39 payment as herein provided (except as otherwise provided with respect to the Record Date) and 40 for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the 41 Bond Registrar shali be affected by notice to the contrazy. 2348410v3 1 Z 09-539 Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitied to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Not Oualified Tax-Exempt Qblieations. The Bonds have not been designated by the Issuer as "qualified ta�-exempt obligations" for purposes of Section 265(b)(3) of the federal Internal Revenue Code of 1986, as amended. The Bonds do not qualify for such designation. 7 IT IS HEREBY CERTIFIED AND RECTTED that all acts, conditions and things 8 required by the Constitution and laws of the State of Minnesota and the Charter of the Issuer to 9 be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been ? 0 done, have happened and have been performed, in regular and due form, :ime and manner as 11 required by law, and that this Bond, together with all other debts of the Issuer outstanding on the 12 date of original issue hereof and on the date of its issuance and delivery to the original purchaser, 13 does not exceed any constitutional or statutory or Charter limitation of indebtedness. 14 IN WTTNESS WHEREOF, the City of Saint Paul, Ramsey Counry, Minnesota, by I S its City Council has caused this Bond to be sealed with its official seal and to be executed on its 16 behalf by the photocopied facsimile signature of its Mayor, attested by the photocopied facsimile 17 signature of ats Cierk, and countersigned by the photocopied facsimile signature of its Director, 18 Office of Financiai Services. 2348410v3 13 09-539 1 2 3 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 24 30 31 32 33 34 35 36 37 38 39 Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AIJTT�NTICATION This Bond is one of the Sonds described in the Resolution mentioned within. Bond Registrar Authorized Signature (SEAL) Registrable hy: Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General OblagaYion Capital Improvement Bond, Series 2009A, No. R-_ 2348410v3 14 09-539 CERTTFICATE OF REGISTRATION 3 The transfer of ownership of the principal amount of the attached Bond may be made only by the 4 registered owner or his, her or its legal representative last noted below. DATE OF SIGNATLTRE OF REGIS'TRATION REGISTERED OWNER BOND REGIS'I'RAR z3naaio�s 15 09-539 2 REGISTER OF PARTIAL PAYMENTS The principal amount of the attached Bond has been prepaid on the dates and in the amounts noted below: Date Amount Bondholder Bond Reeistraz 5 If a notation is made on this register, such notation has the effect stated in the attached Bond. 6 Partial payments do not require the presentation of the attached Bond to the Bond Registrar, and 7 a Holder could fail to note the partial payment here. 2348410v3 16 C1I�e39 ABBREVIATIONS 2 The following abbreviations, when used in the inscription on the face of this Bond, shall 3 be construed as though they were written out in full according to applicable laws or rea lations: 4 TEN COM - as tenants in common S TEN ENT - as tenants by the entireties 6 7T TEN - as joint tenants with right of survivorship 7 and not as tenants in common 8 UTMA - as custodian for 9 (Cust) 10 under the 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ASSIGNNIENT For value received, the undersigned hereby sells, assigns and transfers unto Che attached Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the pxemises. Dated: Norice: Signature Guazanteed: The assignor's signature to this assignment must conespond with the name as it appears upon the face of the attached Bond in every particular, without alteration or any change whatever. 26 27 Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm 28 having a membership in one of the major stock exchanges or any other "Eligible Guarantor 29 Institution" as defined in 17 CF12 240.17Ad-15(a)(2). 30 The Bond Registraz will not effect transfer of this Bond unless the information 31 conceming the transferee requested below is provided. 32 Name and Address: 33 34 35 (Include information for all joint owners if the Bond is heid 36 by joint account.) (Minor) Uniform Transfers to Minors Act (State) Additional abbreviations may also be used though not in the above list. 2sasaiaos 17 09-539 2 B. Replaceznent Bonds. If the City has notified Holders that Replacement Bonds 3 have been made available as provided in paragraph 6, then for every Bond thereafter transferred 4 or exchanged (including an exchange to reflect the partiai prepayment of a Globai Certificate not 5 pteviously exchanged for Replacement Bonds) the Bond Registraz shall deliver a certificate in 6 the form of the Replacement Bond rather than the Global Certificate, but the Holder of a Globai 7 Certificate shall not otherwise be required to exchange the Global Certificate for one or mare S Replacement Bonds since the City recognizes that some beneficial owners may prefer the 9 convenience of the Depository's registered ownership of the Bonds even though the entire issue 10 is no longer required to be in global book-entry form. The Replacement Bonds, together with the 11 Bond Regisuar's Certificate of Authentication, the form of Assignment and the registration 12 information thereon, shall be in substantially the following form, with paragraphs identical to the 13 form of Global Certi£cate stated by heading ar initial text only: 2348410v3 j $ 09-539 UNPI'ED STA'I'ES OF AMERICA 2 STATE OF MINNESOTA 3 RAMSEY COUNTY 4 CITY OF SAINT PAUL i� GENERAI.OBLICTATION CAPITAL IMPROVEMENT BOND, SEI2IES 2009A 10 INTEREST RATE MATURTI'Y DATE 1, 20_ DATE OF ORIGINAL ISSUE REGISTERED OWNER: June 1, 2009 DOLLARS 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 PRINCIPAL AMOUNT: $ CUSIP KNOW ALL PERSOIVS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the °Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on March 1 and September 1 of each year (each, an"Interest Payment Date"), commencing March 1, 2010, at the rate per annum specified above (calculated on the basis of a 360-day yeaz of twelve 30-day months) until the principal sum is paid or has been provided far. This Bond will beaz interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereo£ The principal of and premium, if any, on this Bond are payable upon presentation and sunender hereof at the principal office of , in , (the "Bond Registrar"), acting as paying agent, ar any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Aate by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendaz month preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regulaz Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Reg}strar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date sha11 be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. 2348410v3 1(� 09-539 1 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF 2 THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL 3 FOR ALL PURPOSES HAVE TI� SAME EFFECT AS IF SET FORTH HERE. � TI' IS HEREBY CER'T7FIED AND RECTI'ED.... 5 IN WTINESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by 6 its Ciry Council has caused this Bond to be executed on its behalf by the original or facsimile 7 signature of its Mayor, auested by the original or facsimile signature of its Clerk, and 8 countersigned by the original or facsimile signature of its Director, Office of Financial Services, 4 the official seal having been omitted as permitted by law. 10 Date of Registration: Registrable by: il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 24 30 BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the ResoluCion menrioned within. Bond Registrar B Authorized Signature 2348410v3 Payable at: CTI'Y OF SAINT PAUL, 12AMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services � 04-539 ON REVERSE OF BOND Date of Pavment Not Business Day. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Optional Redemption. All Bonds of this issue (the "Bonds") maturing after September 1, 2017, are subject to redemption and prepayment at the option of the Issuer on such date and on any day thereafter at a price of paz plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be prepaid in such order of maturity and in such amount per maturity as the City shall deternune; and if only part of the Bonds having a common maturiry date are called far prepaymert, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon sha11 cease to accrue from and after the redemption date. Scheduled Mandatorv Redem�t�ion. Notice of Redemption. Selection of Bonds for Redem tion. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shail then select by lot, using such method of selection as it sha11 deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $S,OOQ for each number, shali equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to wluch were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,Q00 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registraz (with, if the Issuer or Bond Registru so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shali authenticate and deliver to the Hoider of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equai to and in exchange for the unredeemed portion of the principal of the Bond so sunendered. Issuance; Purpose; General Obli ation. Denominations: Exchanee� Resolution. The Bonds aze issuable solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fu11y registered Bonds of other authorized denominations in equai aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registraz. 2348410v3 21 09-539 1 Transfer. This Bond is transferable by the Holder in person or by his, her or its 2 attorney duly authorized in writing at the principal office of the Bond Regisuaz upon 3 presentation and sunender hereof to the Bond Registraz, all subject to the terms and conditions 4 grovided in the Resolution and to reasonable regulations of the Issuer contained in any 5 agreement with, or notice to, the Bond Registraz. Thereupon the Issuer shall execute and the 6 Bond Registraz sha11 authenticate and deliver, in exchange for this Bond, one or more new fully 7 registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or 8 sunilar designation), of an authorized denomination or denominations, in aggregate principal 9 amount equal to the principal amount of this Bond, of the same maturity and beazing interest at 10 the same rate. 11 Fees upon Transfer or Loss. 12 Treatment of Registered Owner. 13 Authentication 14 Not Oualified TaY-Exem�t Obligations. 15 16 17 ABBREVIATIONS 2348410d3 22 09-539 2 For value received, the undersigned hereby sells, assigns and transfers unto ASSIGNMENT � the within 4 Bond and does hereby irrevocably constitute and appoint 5 attomey to transfer the Bond on the books kept for the 6 registration thereof, with full power of substitution in the premises. 8 4 10 11 Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particulaz, withont alteration or any change whatever. 12 13 Signature Guaranteed: 14 Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm 15 having a membership in one of the major stock exchanges or any other 'Biigible Guarantor 16 Institution" as defined in 17 CPR 240.17Ad-15(a)(2). 17 The Bond Registrar will not effect transfer of this Bond unless the information 18 concerning the transferee requested below is provided. 19 20 21 22 23 Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 234S410v3 23 09-539 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 10. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and D'uector, Office of Financial Services, each with the effect noted on the forms of the Bonds, and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed or photocopied facsimile; and provided further that any of such signatures may be printed or photocopied facsimiles and the corporate seal may be omitted on the Bonds as pernutted by law. In the event of disability or resignation or other absence of any such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case any such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. 11. Authentication; Date of Registration. No Bond shall be valid or obligatory for any purpose or be entifled to any security or benefat under this resolution unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bor.d Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is aathenticated. For purposes of delivering the original Global Certificates to the Purchaser, the Bond Registraz shall insert as the date of registration the date of original issue, which date is June 1, 2009. The Certificate of Authentication so executed on each Bond shail be conclusive evidence that it has been authenticated and delivered under this resolution. 24 12. Registration; Transfer; Exchange. The City will cause to be kept at the 25 principal office of the Bond Registraz a bond register in which, subject to such reasonable 26 regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the 27 registration of Bonds and the registration of transfers of Bonds entitled to be registered or 28 transferred as herein provided. 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A Global Certificate shall be registered in the name of the payee on the books of the Bond Registrar by presenting the Globai Certificate for registration to the Bond Registrar, who will endorse his or her name and note the date of registration opposite the name of the payee in the certificate of registration on the Global Certificate. Thereafter a Global Certificate may be transfened by delivery with an assignment duly executed by the Holder or his, her or its legal representative, and the City and Bond Registraz may treat the Holder as the person exclusively entitled to exercise all the rights and powers of an owner until a Global Certificate is presented with such assignment for registration of transfer, accompanied by assurance of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted thereon by the Bond Registrar, all subject to the terms and conditions provided in this resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registraz. Transfer of a Global Certificate may, at the direction and expense of the Ciry, be subject to other restrictions if required to qualify the Global Certificates as being "in registered 2348410v3 24 09-539 1 form" within the meaning of Section 149(a) of the federal Internal Revenue Code of 1986, as 2 amended. 3 If a Global Certificate is to be exchanged for one or more Replacement Bonds, all 4 of the principal amount of the Global Certificate sha11 be so exchanged. 5 Upon surrender for transfer of any Replacement Bond at the principal office of 6 the Bond Registrar, the City shall execute (if necessazy), and the Bond Registraz shall 7 authenticate, insert the date of registration (as provided in pazagraph i l) of, and deliver, in the 8 name of the designated transferee or transferees, one or more new Replacement Bonds of any 9 authorized denomination or denominations of a like aggregate principal amount, having the same 10 stated maturity and interest rate, as requested by the transferor; provided, however, that no bond 11 may be registered in blank or in the name of "beazer" or similar designation. 12 At the option of the Holder of a Replacement Bond, Replacement Bonds may be 13 exchanged for Replacement Bonds of any authorized denomination or denominations of a like 14 aggregate principal amount and stated maturity, upon surrender of the Replacement Bonds to be 15 exchanged at the principai office of the Bond Registrar. Whenever any Replacement Bonds are 16 so sunendered for exchange, the City shall execute (if necessary), and the Bond Registraz shall 17 authenticate, insert the date of registration of, and deliver the Replacement Bonds which the 18 Holder making the exchange is entitled to receive. Global Certificates may not be exchanged for 19 Global Certificates of smaller denominations. 2Q All Bonds surrendered upon any exchange or transfer provided for in this 21 resolution shall be promptly cancelled by the Bond Registraz and thereafter disposed of as 22 directed by the City. 23 All Bonds delivered in exchange for or upon transfer of Bonds shall be valid 24 general obligations of the City evidencing the same debt, and entitled to the same benefits under 25 this resolution, as the Bonds surrendered for such exchange or transfer. 26 Every Bond presented or surrendered for transfer or exchange shall be duly 27 endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond 28 Registraz, duly executed by the Holder thereof or his, her or its attorney duly authorized in 29 writing. 30 The Bond Registrar may require payment of a sum sufficient to cover any ta7c or 31 other govemmental chazge payable in connection with the transfer or exchange of any Bond and 32 any legal or unusual costs regarding transfers and lost Bonds. 33 Transfers shall also be subject to reasonabie regulations of the City contained in 34 any agreement with, or notice to, the Bond Registrar, including regulations which pernut the 35 Bond Registrar to close its transfer books between record dates and payment dates. 36 13. Riehts Upon Transfer or Exchan�e. Each Bond delivered upon transfer of 37 or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and 38 unpaid, and to accrue, which were carried by such other Bond. 2348410v3 25 04-534 1 14. Interest Pavment; Record Date. Interest on any Global Certificate shall be 2 paid as provided in the first paragraph thereof, and interest on any Replacement Bond shall be 3 paid on each Tnterest Payment Date by check or draft mailed to the person in whose name the 4 Bond is registered (the "Holder") on the registration books of the City maintained by the Bond 5 Registraz, and in each case at the address appearina thereon at the close of business on the 6 fifteenth (15th) day of the calendaz month preceding such Tnterest Payment Date (the "Regular 7 Record Date"). Any such interest not so timely paid shall cease to be payable to the person who 8 is the Holder thereof as of the Regulaz Record Date, and shall be payable to the person who is the 9 Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond 10 Registrar whenever money becomes available far paytnent of the defaulted interest. Notice of 11 the Special Record Data shall be given by the Bond Registraz to the Holders not less than ten 12 (10) days prior to the Special Record Date. 13 14 15 16 17 18 19 20 15. Holders Treatment of Reeistered Owner; Consent of Holders. A. For the purposes of all actions, consents and other matters affecting Holders of the Bonds, other than payments, redemptions, and purchases, the City may (but shall not be obiigated to) treat as the Holder of a Bond the beneficial owner of the Bond instead of the persor in whose name the Bond is registered. Far that purpose, the City may ascertain the identity of the beneficial owner of the Bond by such means as the Bond Registrar in its sole discret3on deems appropriate, including but not limited to a certificate from the person in whose name the Bond is registered identifying such beneficial owner. 21 B. The City and Bond Registrar may treat the person in whose name any Bond is 22 registered as the owner of such Bond for the purpose of receiving payment of principal of and 23 premium, if any, and interest (subject to the payment provisions in paragraph 14 above) on, such 24 Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and 25 neither the City nor the Bond Registrar shall be affected by notice to the contrary. 26 27 28 29 30 31 32 33 C. Any consent, request, direction, approval, objection or other instrument to be signed and executed by the Holders may be in any number of concunent wriungs of similar tenor and must be signed or executed by such Holders in person or by agent appointed in writing. Proof of the execution of any such consent, request, direction, approval, objection or other instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this resolution, and shall be conclusive in favor of the City with regard to any action taken by it under such request or other instrument, namely: 34 (1) The fact and date of the execution by any person of any such writing may 35 be proved by the certificate of any officer in any jurisdiction who by law has power to 36 take acknowledgments within such jurisdiction that the person signing such writing 37 acknowledged before him or her the execution thereof, or by an affidavit of any witness 38 to such execution. 39 (2) Subject to the provisions of subparagraph (A) above, the fact of the 40 ownership by any person of Bonds and the amounts and numbers of such Bonds, and the 41 date of the holding of the same, may be proved by reference to the bond register. 2348410v3 26 09-539 1 16. Deliverv: Apolication of Proceeds. The Global Certificates when so 2 prepared and executed shall be delivered by the Director, O�ce of Financial Services, to the 3 Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the 4 proper application thereof. 5 17. Fund and Account. There is hereby created a special account to be 6 designated the "Capital Improvement Bonds of 2009A Account" (the "Capital Account"). There 7 has been heretofore created and established the General Debt Service Fund (numbered 960, 8 herein the "Fund"). The Fund and Capital Account shall each be maintained in the manner 9 herein specified until all of the Bonds and the interest thereon have been fully paid. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 (i) Capital Account. To the Capital Account there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the Bonds in excess of $4,461,750. From the Capital Account there shall be paid all costs and expenses of making the Improvements, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65 (including interest on the Bonds payable during the construction period); and the moneys in the Capital Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes levied herein; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Capital Account, the balance may be transferred by the Council to the fund af any other improvement instituted pursuant to Laws of Minnesota for 1971, Chapter 773, as amended, or used foz any other purpose permitted by law, or transfetted to the Fund. All earnings on the Capital Account shall be transferred to the Fund, or may remain in the Capital Account. (ii) Fund. There is hereby pledged and there shall be credited to the Fund, to a special sinking fund account which is hereby created and established therein for the payment of the Bonds: (a) all accrued interest received upon delivery of the Bonds, (b) all funds paid for the Bonds in excess of $4,461,750; (c) any collections of all taYes which are herein levied for the payment of the Bonds and interest thereon as provided in pazagraph 18; (d) all funds remaining in the Capital Account after completion of the Improvements and payment of the costs thereof, not so transfened to the account of another improvement or used for any other purpose pemutted by law; (e) all investment earnings on moneys held in said special account in the Fund; and ( fl any and all other moneys which aze properly available and aze appropriated by the governing body of the City to said special account in the Fund. 39 Said special account created in the Fund shall be used solely to pay the principal and 40 interest and any premiums for redemption of the Bonds and any other bonds of the City 41 heretofore or hereafter issued by the City and made payabie fr4m said special account in the 42 Fund as provided by law, or to pay any rebate due to the United States. No portion of the 43 proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments 2348410v3 2-� 09-539 2 3 4 5 6 7 8 9 10 11 12 13 14 15 or to repiace funds which were used directly or indirecdy to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an amount not greater than $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Capital Account or said special account in the Fund (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then-applicable federal azbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investrnents after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Capital Account or Fund 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 investment would cause the Bonds to be"federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 16 18. Ta:c L.evv; Coverage Test. To provide moneys for payment of the 17 principal and interest on the $onds there is hereby levied upon all of the tasable property in the 18 City a direct annual ad valorem talc which shail be spread upon the tas rolls and collected with 19 and as part of other general property tases in the City for the years and in the amounts as 20 follows: Year of TaY Lew 20�8* 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year of Ta� Collection 2009* 2010 2011 2012 2013 2014 2015 2016 2017 2018 21 % heretofore levied or provided from other available City funds Amount $301,01531* 582,093.75 577,946.25 578,943.75 574,533.75 569,040.94 570,832.50 565,976.25 560,805.00 564,729.38 22 The tas levies are such that if collected in full they, together with estimated 23 collecfions of any other revenues herein pledged for the payment of the Bonds, will produce at 24 least five percent (5%) in excess of the amount needed to meet when due the principal and 25 interest payments on the Bonds. The taY levies shall be urepealable so long as any of the Bonds 26 aze outstanding and unpaid, provided ttiat the City reserves the right and power to reduce the 27 levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, 28 Subdivision 3. 2348410v3 28 r^ � 09-539 1 19. General Oblieation Pled�e. For the prompt and fu11 payment of the 2 pzincipal and interest on the Bonds, as the same respectively become due, the full faith, credit 3 and taxing powers of the City shall be and aze hereby irrevocably pledged. If the balance in the 4 Fund (as defined in paragraph 17 hereo� is ever insufficient to pay all principal and interest then 5 due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds 6 of the City which are available for such purpose, including the general fund of the City, and such 7 other funds may be reimbursed with or without interest from the Fund when a sufficient balance 8 is available therein. 4 20. Certificate of Re�istration. The Director, Office of Financial Services, is 10 hereby directed to file a certified copy of this resolution with the officer of Ramsey County, 11 Minnesota, performing the functions of the county auditor (the "County Auditor"), together with 12 such other information as the County Auditor shall require, and to obtain the County Auditor's 13 ceztificate that the Boads have been entered in the County Auditor's Bond Register, and that the 14 ta7c levy required by law has been made. 15 21. Records and Certificates. The officers of the City aze hereby authorized 16 and directed to prepare and furnish to the Purchaser, and to the attomeys approvang the legality 17 of the issuance of the Bonds, certified copies of all proceedings and recards of the Ciry relating 18 to the Bonds and to the financial condition and affairs of the City, and such other affidavits, 19 certificates and inPormation as are required to show the facts relating to the legality and 20 marketability of the Bonds as the same appear from the books and records under their custody 21 and cor.trol or as otherwise known to them, and a11 such certified copies, certificates and 22 affidavits, including any heretofore furnished, shall be deemed representations of the City as to 23 the facts recited therein. 24 22. Nepative Covenants as to Use of Proceeds and Improvements. The City 25 hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or 26 pernut them to be used, or to enter into any deferred payment arrangements for the cost of the 27 Improvements, in such a manner as to cause the Bonds to be "privata activity bonds" within the 28 meaning of Sections 1Q3 and 141 through 150 of the Code. The City reasonably expects that no 29 actions will be taken over the term of the Bonds that would cause them to be private activity 30 bonds, and the average term of the Bonds is not longer than reasonably necessazy for the 31 governmental purpose of the issue. The City hereby covenants not to use the proceeds of the 32 Bonds in such a manner as to cause the Bonds to be "hedge bonds" within the meaning of 33 Section 149(g) of the Code. 34 23. TaY-Exempt Status of the Bonds; Rebate; Elections. The City sha11 35 comply with requirements necessary under the Code to establish and maintain the exclusion from 36 gross income under SecUon 103 of the Code of the interest on the Bonds, including without 37 limitation requirements relating to temporary periods for investments, limitations on amounts 38 invested at a yield greater than the yield on the Bonds, and the rebate of excess investment 39 earnings to the United States. 40 The City expects that the two-yeaz expenditure exception to the rebate 41 requirements may apply to the construction proceeds of the Bonds. 234S410v3 29 09-539 1 If any elections aze available now or hereafter with respect to azbitrage or rebate 2 matters relating to the Bonds, the Mayor, Clerk, Treasurer and Director, Office of Financial 3 Services, or any of them, aze hereby authorized and directed to make such elections as they deem 4 necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, 5 and shall be deemed and treated as, elections of the City. 6 24. No Desianation of Oualified Tae-Exempt Obligations. The Bonds, 7 together with other obligations issued by the City in 2009, exceed in amount those which may be 8 qualified as "qualified tae-exempt obligations" within the meaning of Section 265(b)(3) of the 9 Code, and hence are not designated for such purpose. 10 25. I,etter of Representations. The Letter of Representations for the Bonds is 11 hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1996, by the 12 City and received and accepted by The Depository Trust Company. So long as The Depository 13 Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the 14 City shall comply with the provisions of the I.etter of Representations, as it may be amended or 15 supplemented by the City from time to time with the agreement or consent of The Depository 16 Trust Company. 17 26. Neootlated 5ale. The City has retained Springsted Incoiporated as an 18 independent financial advisor, and the City has heretofore detemuned, and hereby determines, to 19 sell the Bonds by private negotiation, all as provided by Minnesota SCatutes, Section 475.60, 20 Subdivision 2(9). 21 27. Continuin� Disclosure. The City is an obligated person with respect to the 22 Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), 23 promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the 24 Securifies Exchange Act of 1934, as amended, and a Con6nuing Disclosure Undertaking (the 25 "Undertaking") hereinafter described, to: 26 A. Provide or cause to be provided to each nationally recognized municipal 27 securities information repository ('NRMSIR") and to the appropriate state information 28 depository ("SID"), if any, for the State of Minnesota, in each case as designated by the 29 Commission in accordance with the Rule, certain annual financial information and 30 operating data in accordance with the Undertaking. The City reserves the right to modify 31 from time to time the terms of the Undertaking as provided therein. 32 B. Provide or cause to be provided, in a Umely manner, to (i) each NRMSIR 33 or to the Municipal Securities Rulemaking Board ("MSRB") and (ii} the SID, notice of 34 the occurrence of certain material events with respect to the Bonds in accordance with the 35 Undertaking. 36 C. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR 37 or to the MSRB and (ii) the SID, notice of a failure by the City to provide the annual 38 financial information with respect to the City described in the Undertaking. 39 The Ciry agrees that its covenants pursuant to the Rule set forth in this paragraph 40 27 and in the Undertaking aze intended to be for the benefit of the Hoiders of the Bonds and shall 29A tn, ', ',! 1 be enforceable on behalf of such Holders; provided that the right to enforce the provisions of 2 these covenants shall be limited to a right to obtain specific enforcement of the City's obligations 3 under the covenants. 4 The Mayor and Director, Office of Financial Services, or any other officers of the 5 City authorized to act in their stead (the "Officers"), aze hereby authorized and directed to 6 execute on behalf of the City the Undertaking in substantially the form presented to the City 7 Council, subject to such modifications thereof or additions thereto as are (i) consistent with the 8 requirements under the Rule, (i) required by the Purchaser, and (iii) acceptable to the Officers. 9 28. Severabilitv. If any section, pazagraph or provision of tius resolution 10 shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of ll such section, pazagraph or provision shall not affect any of the remaining provisions of this 12 resolution. 13 29. Headines. Headings in this resolution are induded for convenience of 14 reference only and are not a part hereof, and shall not limit or define the meaning of any 15 provision hereof. Adoption Certified by Council Secretary � Approved � � 2348410v2 30 Adopted by Council: Date /. l,�G Requested by Departmeut of: IYtiA,KGtIt,t, S�YVt �!S By: 3 � �' � � COMPLETTONS t1ND CONF012MING DETAILS —Agenda #24 FOR \ GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS, SERIES 2009A CF-09-539; GS 30'10379 There is before this Council a draft resolution for the sale of the above bonds that requires certain completions and details that conform to those. The Clerk or bond counsel for the Bonds shall revise the draft resolurion to zead as it should with the completions and details provided here directly or by reference to other materials before this Council. Spots in the resolution aze noted in the second column. The third column is optional but may contain the completion or note the specific source of the other materials. SPOTS IN THE COMPLETION, DETAII.OR COMPLETIONS AND DETAILS RESOLUTION SOURCE (OPTIONAL 1. Winnine Pronoser. Other materials before 3rd Whereas $MO Capital Mazkets this Council indicate the winning ¶ 1 proposer, whose name shall be inserted in the third whereas and in pazagraph 1. 2. Principal Amount, Other materials befoze Last Whereas No change this Council indicate the principal amount ¶ 1 of the Bonds; the last whereas shall be Form of Bond $4,500,000 revised to conform, the second statement of the principal amount in pazagraph 1 sha11 be revised to conform if necessary, and the issue amount stated in the form of bond shall be revised to conform if necessary. 3. Purchase Price. Other maierials before ¶ 1 $4,549,447.00 this Council indicate the proposed purchase price and, if applicable, the purchase price for a revised issue size. The blanks in paragraph 1 shall be compieted with purchase prices. 4. Term Bonds. Other materials before this ¶ 2 Term bonds as follows: Council indicate whether there aze term ¶ 4 bonds. If not, no changes aze necessary. ¶ 7 3/1/2015 — 3/1/2016$720,000 If so, the maturity schedule in pazagraph 2 Form of Bond 9/1/2016 — 9/1/2017$745,000 shall be revised to conform, the schedule 311I2018 — 3/1/2019$780,000 of maturity dates for interest rates in pazagraph 4 shall be revised to conform, 2349454v2 ���� teat providing for scheduled mandatory redemption shall be added as pazagraph 7(b) and draft pazagraphs (b) through (g) shall be relettered, a sunilaz paragraph for scheduled mandatory redemption shall be added to the form of bond, and paragraph 7(a) and the form of bond shall be revised to treat amounts scheduled for mandatory redemption as an amount per mahuity. 5. Interest Rates. Other materials before this ¶ 4 See column 3 of attached Council indicate the interest rates for the schedule on page A-1 maturity dates of the Bonds, and the schedule in pazagraph 4 shall be Tme Interest Cost is 2.5797% completed for the maturity dates consistent with term bonds, if any, in conformance therewith. 6. TaY Levies. A schedule of tax levies is � 18 See attached schedule on page before this Council, and pazagraph 18 A-1 shall be completed in confortnance therewith. 2349454v2 09-539 EXHIBIT A $4,500,000 City of Saint Paul, Minnesota General Obligation Capital Improvement Bonds Series 2�09A Post-Sale 7ax Levies Date 03/01l20N 03/012012 03791/2013 03/01/2014 03/O1/2015 03f0112016 03lOt/2017 03/O7/2018 0310'f 120'19 Principal 200,000,00 445,000.00 450,000.00 asa,000.00 465,000.00 470,000.00 485,000.00 495,000.00 505,000.00 525,000.00 Coupon 2.900% 2.000% 2.000% s.000�� 2.250% 3.000% 3.000°!0 3.000% 3.250% 3250°!0 Interest 86,68125 109,375.00 100,425.00 91,375.D0 82,175.00 71,943.75 58,650.00 44,025.00 29,100.00 12,837 �686.587.50 Total P+I 286,68'125 554,375.00 550,425.00 551,375.00 547,175.00 541,943.75 543,650.00 539,025.00 534,100.00 537,837.50 105% Overlery Lery Amount Lery Year 301,0'15.35 582,093.75 577,946.25 578,94375 5�4,533.75 569,040.94 570,832.50 565,97625 560,805.00 564,729.38 301,015.31 582,093.75 577,94625 578,943.75 574,533.75 569,040.94 570,832.50 565,97625 560,805.00 564,�29.38 2008 2009 2010 2011 2012 2073 2D14 2015 2016 2017 2009AGOOB-fOSf.GGC / SPJG/EPURPJSC / 5/20/2009 / >025AM Springsted A-1 � � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � DepartmenNOffice/Council: Date Initiated: uy-7.sy � _Financial Services ,2_,�,,,, Green Sheet NO: 3470379 CoMactPerson & Phone: Deaartrnent S T on UDat BobGeurs � 0 ;nanclalServ;ces � 266$837 1 mancial Services De eut Director � � Assign 2 ' Attome ��� Must Be on Councii Agenda by (Date): Number 3 or's Office Ma or/Assistaot 20-MAY-09 for Roufing 4 ouncil Doa Type: RESOLUTtON W/$ Order 5 ' Clerk Ciri Clerk � TRqNSACTION E-Document Required: Y Document Contact: Bob Geurs ContactPhone: 266-8837 ToWI # of Signature Pages, (Clip All Lowtions for Signature) Action Requested: Accept proposal on the sale of approximately $4.SM General Obligation CIB Bonds, providing for their issuance and levying a tax for the payment thereof. Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer tM1e Following Questions: Planning Commission 1, Has this person/firtn 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. Does this pewoNfirm possess a skill not normalfy possessed by any current city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet. Inkiating Probtem, tss�es, Opportunity (WNO, What, When, Where, Why): Approximately $4.5M CIB Bonds is a part of the Spring Bond sale. AdvantageslfApproved: CIB piojects will be financed by the Bond proceeds ���CE1VE� Disadvantages If Approved: ��! 1 G �UU7 Noneknown o �l AT7'ORN DisadvaMages If Not Approved: The Bonds will not be sold. Total Amount of Transaction: $4,500,000.00 CosURevenue Budgeted: Y Funding Source: Activity Number: Financial Information: (Explain) Mav 12. 2009 936 AM c�„o �