10-776Councii File # 10-776
Green Sheet # 3115879
RESOLUTION
Presented
by
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� OF
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PAUL, MINNESOTA
A RESOLUTION GRANTING APPROVAL TO THE ISSUANCE OF ONE OR
MORE SERIES OF TAXABLE OR TAX-EXEMPT GENERAL OBLIGATION
CAPITAL IMPROVEMENT BONDS IN ORDER TO FINANCE A PQRTION OF
THE PAYNE MARYLAND JOINT RECREATION CENTER AND LIBRARY
PROJECT AND THE HIGHLAND AND COMO POOL REHABILITATION AND
RECONSTRUCTION PROJECTS, AND ONE OR MORE SERIES OF TAXABLE
OR TAX-EXEMPT GENERAL OBLIGATION LIBRARY BONDS TO BE
ISSUED BY THE SAINT PAUL PUBLIC LIBRARY AGEl�CY IN ORDER TO
FTNANCE THE LIBRARY PORTION OF THE PAYNE MARYLAND JOINT
RECREATION CENTER AND LIBRARY PROJECT
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WHEREAS, the City of Saint Paul, Minnesota, a home rule charter city a�d a political
subdivision of the State of Minnesota (the "City"), is authorized by Laws of Minnesota 1971, Chapter
773, as amended (the "C1B AcP'), and the provisions of Minnesota Statutes, Chapter 475, as amended
(the "Municipal Debt AcP' and together wiCh the CIB Act, the "AcP'), to issue capital noCes, bonds or
certificates of indebtedness in order to finance capital improvements in the City if such capital
improvements aze made in accordance with the requirements of the City Charter; and
WHEREAS, pursuant to the CIB Act and the Ciry Charter, the City adopts an annual Capital
Improvement Budget (the "CIB") that includes numerous capital improvement projects in the City that
are to be financed or funded from various sources; and
WHEREAS, the City is proposing to issue its tarable or tax-exempt General Obligations Capital
Improvement Bonds (the "CIB Bonds"), in one or more series, pursuant to the terms of the Act in the
original aggregate amount not to exceed $17,000,000, iu order to finance: (i) the costs of constmction,
installation, and equipping of a portion of the approximately 36,000 squaze foot Payne Maryland Joint
Recieation Center and Library (the "Payne Maryland Project"), (ii) the costs of the renovation and
reconstruction to the Como Aquatics Ceoter and the Highland Pool and Bath House Renovation (the
"Municipal Pool Projects"), and (iii) the costs of issuance of the CI�3 Bonds; and
17 WHEREAS, pursuant to CF 09-1095 adopted in October 2009, the City Council of the City
18 approved a finance plan (the "Finance Plan") for the Payne Maryland Project and the issuance of up to
19 $14,000,000 of taxable bonds (RZED Bonds (as defined below)) and/or ta�c-exempt bonds, in one or more
20 series, for the Payne Maryland Project; and
21 WHEREAS, pursuant to CF 10-591 adopted on June 2, lO1Q the City Council of the City
22 reaffirmed the Finance Plan for the Payne Maryland Project and approved a finance plan for the
23 Municipal Pool Frojects that allows for the issuance of up to $6,70Q000 of capital improvement budget
24 bonds (the "CIB Bonds Pool Portion), in one or more series of taxable and/or tas-exempt bonds, in order
10-776
1 to finance (i) a portion of the costs of the Municipal Pool Projects, and (ii) the payment of the costs of
2 issuance of the CIB Bonds Pool Portion; and
3 WHEREAS, City fmance staff and Kennedy & Graven, Chartered, as bond counsel to the City,
4 have deternuned that the library portion of the Payne Maryland Project may be financed by bonds issued
5 by the 5aint Paul Public Library Agency (the "Library Agency") pursuant to Laws of Minnesota 2002,
6 Chapter 39Q Sections 36 through 38 (the "Library Bonds AcY'), and the Municipal Debt Act; and
7 WHEREAS, the Library Agency has proposed to issue its taxable or tas-exempt General
8 Obligation Library Bonds (the "Library Bonds"), in one or more series, pursuant to the Library Bonds Act
9 and the Municipal Debt Act, in the original aga egate amount of not less than $3,70Q000 and not more
10 than $7,OOQ000, in order to finance (i) the costs of a portion of the construction, installation and
11 equipping of the library portion (the "Librazy Project") of the Payne Maryland Project, and (ii) the costs
12 of issuance of the Library Bonds; and
13 WHEREAS, the portion of the CIB Bonds to be issued by the City to finance the Payne Maryland
14 Project shall not be issued in a principal amount less than $7,0�0,0�0 and not more than $1�,30�,OQ0; and
15 WHEREAS, the aggregate principal amount of CIB Bonds to be issued by the City for the Payne
16 Maryland Project and the Municipal Pools Project shall not exceed $17,000,000 which amount is the
17 amount set forth in the CIB and in the previously adopted Finance Plan for both projects; and
18 WHEREAS, the aggregate principal amount of the CIB Bonds and the Library Bonds to be issued
19 by the City and the Library Agency to fund a portion of the cost of the Payne Maryland Project shall not
20 exceed $14,000,000; and
21 WFIEREAS, the aggregate principal amount of the new money General Obligation Capital
22 Improvement Bonds, Series 2010B previously issued by the City and the CIB Bonds shall not exceed the
23 $20,000,000 amount of capital improvement bonds of the City that may be issued in fiscal year 2010; and
24 WHEREAS, the City previously selected Piper Jaffray & Co. as underwriter for the bonds
25 relating to the Payne Maryland Project (including the Library Project); and
26 WHEREAS, the Office of Financial Services of the City, through a competitive process, has
27 selected Wells Fargo Securities as underwriter for the bonds relating to the Municipal Pool Projects; and
28 WHEREAS, after discussions with Piper 7affray & Co. and Wells Fargo Securities, it has been
29 determined that a joint underwriting of the CIB Boads and the Library Bonds by Piper Jaffray & Co. and
30 Wells Fazgo Securities (collectively, the "Undeiwxiters") will pzovide fox the most efficient and cost-
31 effecave financing structure; and
32 WHEREAS, the Office of Financial Services of the City has presented a proposal to delegate to a
33 pricing committee the negotiations with the Underwriters for the sale of the CIB Bonds and the Library
34 Bonds; and
35 WHEREAS, the American Recovery and Reinvestment Act of 2009 ("ARRA") authorizes
36 municipalities (such as the City) to, among other actions, issue taxable Recovery Zone Economic
37 Development Bonds ("RZED Bonds") under the Internai Revenue Code of 1986, as amended (the
38 "Code"), and RZED Bonds receive a duect payment subsidy of 45% from the federal government for the
39 intetest cost of taxable bonds designated by a municipality as RZED Bonds; and
10-776
1 WHEREAS, pursuant to a resolution of the City Council of the City (the "Recovery Zone
2 Resolution"), the City has designated a recovery zone (the "Recovery Zone") within its temtorial
3 jurisdiction pursuant to the requirements of Section 1400U-1(b) of the Code, ARRA, and guidance
4 published by the Department of Treasury (the "Recovery Zone"); and
5 WHEREAS, the Finance Plan contemplated the use of RZED Bonds by the City in order to
6 finance all or a portion of the Payne Maryland Project; and
7 WHEREAS, the Department of Treasury previously allocated $8,76Q000 of RZED authority to
8 the City and the City subsequently applied for an received a supplemental allocation of RZED authority
9 from the State of Minnesota in the amount of $2,797,830 for a total allocation of RZED authority for the
10 City of $11,467,830; and
11 WHEREAS, the Payne Maryland Project is located in the Recovery Zone Designated by the City
12 and the Recovery Zone Resolution has not been repealed or amended by the City as the date hereof; and
13 WHEREAS, ARRA requires that the federal Davis-Bacon Act shali apply to projects such as the
14 Payne Maryland Project that are financed with proceeds of RZED Bonds.
15 NOW THEREFORE, BE 1T RESOLVED by the City Council of the City of Saint Paul,
16 Minnesota, as follows:
17 1. Aporoval of Issuance. The City Council hexeby confirms its previous approval to provide
18 financing for the Payne Maryland Project, pursuant to the CIB Act, the Library Act and the Municipal
19 Debt Act, and the City Council hereby authorizes the issuance and sale (i) of its tasable or tax-exempt
20 General Obligation Capital Improvement Bonds, in one or more series, the original aggregate principal
21 amount shall not be less than $13,700,000 and not more than $17,OOQ000, and (ii) the issuance by the
22 Saint Paul Library Agency of its ta�cable or tax-exempt General Obligation Library Bonds, in one or more
23 series, in the original aggregate principal amount of not less than $3,700,000 and not more than
24 $7,000,000.
25 2. Dele�ation to Pricing Committee. The City Council hereby delegates to the Director,
26 O�ce of Financial Services or her desginee, the City Treasurer, and a fina�cial advisor to be named by
27 City finance staff (the "Pricing Committee") to negotiate the sale of the CI$ Bonds and the Libcary Bonds
28 with the Underwriters. The Pricing Committee is hereby delegated the authority to set the interest rates,
29 the mamrity dates, the amortization schedules and the original principal amounts of the CIB Bonds and
30 the Library Bonds.
31 3. Financing Team. Kennedy & Graven, Chartered will act as bond counsel to the City for
32 the CIB Bonds and the Library Bonds. The Underwriters shall provide investment banking services to the
33 City and the Library Agency with respect to the CIB Bonds and the Library Bonds.
34 4. City's Full Faith, Credit and TaYina Power. The payment of the principal and interest
35 due on the CIB Bonds and the Library Bonds shall be secured by the pledge of the full faith, credit and
36 tasing powers of the City.
37 5. Sale of the CIB Bonds and the Librazy Bonds. It is anticipated that the sale of the CIB
38 Bonds and the Library Bonds to the Underwriters will take place on or about September 21, 2010 or such
39 other date as determined to be most advantageovs by the Pricing Cominittee.
LO-776
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6. Tax Izvy Resolutions. On or after the date of sale of the CIB Bonds and the Library
Bonds, the City Council of the City shall consider (i) a resolution authorizing the final terms of the
Library Bonds as adopted by the Library Agency and levying property taxes in an amount sufficient to
comply with the provisions of the Library Bonds Act and the Municipal Debt Act so that the Library
Bonds valid general obligations of the City payable from the full faith, credit and taxing power of the
City, and (ii) a resolution adopting the final terms of the C1B Bonds and levying property tases in an
amount sufficient to comply with the provisions of the Act so that the CIB Bonds valid general
obligations of the City payable from the full faith, credit and tasing power of the City.
7. Allocation of RZED Authority to Librarv Asency. As authorized by ARRA, the Code,
and the Treasury Department guidance, the City hereby allocates up to the Librazy Agency up to
$7,000,000 of its RZED allocation, to be used for the issuance of the Library Bonds as RZED Bonds in
connection with the Library Portion of the Payne Maryland Project in such amounts as deemed necessazy
by the Library Agency. In the event that the Librazy Agency does not fully utilize all of the $7,000,000 of
RZED allocation, such unused amount shall be deemed returned to the City and utilized by the City to the
full extent possible for the Payne Maryland Project. In order to comply with the provisions of ARRA for
R7F Bonds, all construction contracts for the Payne Maryland Project shall be subject to federal Davis-
Bacon Act.
18 8. Severabilitv. If any section, pazagraph, or provision of this resolution shall be held to be
19 invalid or unenforceable for any reason, the invalidity, or unenforceability of such section, paragraph, or
20 provision shall not affect any of the remaining provisions of this Resolution.
21 9. Headings. Headings in this Resolution are included for convenience of reference only
22 and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
Bos[rom
Stark
Thune
Approved by the Office of
Adopted by Council: Date
Yeas Na s Absent Requested by Depar[men[ of: � A`.,`� /�
✓ �� TF� I
✓ By:
By: ��
Approved by City
By:
Approved
Adoption Certified by Cou eil Secre[ary g //
jt
By: � � 7 (��
Appro y 2 Date ��7 Zp G
By:
Services
Coancil
SA385-27(BW.n
371511v4
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
LV-IItl
DepartrnenUOffioelCouncil: Date InitiateQ:
FS —F�nancialServices 14JUL2010 Green Sheet NO: 3115879 �
I Contaet Person & Phone: Deoartment Sent To Person Initiai/Date
Bob Geurs � o mancist services �--�—�
I 266-8837 1 inavcialServices Ae ar�mentDirector
Assign 2 ' Attorne � CityAttorneY
( Must Be on Couneil Agenda by (Date): Namber 3 or's Of6ce odAssistant
� 21-JUL-10 For
ROUtfng 4 ouncil Ci Couucil
Doa Type: RESOLUTION Order 5 ' Clerk C' Clerk
E-DocumentRequired: Y
Document Corrtact: Bob Geurs
ContactPhone: 266-8837
ToWI # of Signature Pages �(Clip All Locations for Signature)
Action Requested: .
Apptove attached resolution granting the issuance of one or more series of taxable or taac-exempt general ob3igarion Capital
Improvement Bonds in order to finance the recreation portion of the Payne Mazyland joint Recreation Center and Library project and
the Highland & Como Aquaric Projects & one or moxe series of taxable and/or BAB's & RZED's tae-exempt GO Library bonds.
Recommendations: Approve (A) or Rejed (R): Personal Service Contrects Must Answer the following Questions: �
P{anning Commission 1. Has this persoNfirtn ever worked under a contrad for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firm ever been a city empioyee?
Yes No
3. Does this person/firtn possess a skill not norznafly possessed by any
cufrent aty employee?
Yes No
Expiain all yes answers on separate sheet and attach to green sheet.
inkiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
The City will issue its talcable or t�-exempt General Obligarion Capital Improvement Bonds in original aggregate amount not to
exceed $17,000,000 to finance Payne Maryland joint Reaeation Center & Library, Como & Highland Aquatics Projects. Of the
$17M; $6.7M wil] be for the pools. The Recovery Zone Economic Development bonds must be issued by December 31, 2010.
Advantages ff Approved:
Bonds proceeds will be available to finance the construction and renovation of the projects.
DisadvanWges If Apprpved:
None known
Disadvantages ff Not Approved:
Bonds proceeds will not be available as a financing source.
Total Amount of � 7 p00,000.00 �C �u !�
Transaction: $ CosURevenue Budgeted: N
Funainy source: Taxabte & Tax-exempt Bonds Activity Number:
��� r �� �f-����
Financial lnformation: gudget amendtnent for August 4, 2010
(Ezplain)
Julv 14. 2010 10:08 AM p �
10-776
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