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Authorizing the issuance and sale of Recycling and Solid Waste Revenue Bonds, Series 2024E; awarding the sale thereof to the purchaser named herein; and fixing the form and specifications of the Recycling and Solid Waste Revenue Bonds, Series 2024E and providing the requirement for future parity revenue bonds.
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A. WHEREAS, in 2018 the City of Saint Paul, Minnesota (the “City”) established an organized collection system for residential refuse services (defined as residential buildings with 1 - 4 units) and commercial property owners; and
B. WHEREAS, the City had a five-year contract with the St. Paul Haulers, LLC (consortium of haulers) to provide residential garbage services for more than 74,000 1- to 4-unit dwelling properties from October 1, 2018 - September 30, 2023. In September 2023, the City and St. Paul Haulers, LLC agreed to an 18-month contract extension to provide residential garbage services through March 31, 2025; and
C. WHEREAS, beginning in April of 2025, the City has chosen to contract with a single trash hauler, FCC Environmental (“FCC”), to provide service to approximately 90% of residents in the City. The City will provide refuse hauling services to the remaining 10% of residents, primarily in areas that present logistical challenges to organized waste hauling; and
D. WHEREAS, the City has acquired five (5) trucks for hauling that are expected to be placed into service in the first quarter of 2025 and is in the process of staffing the service and administrative needs of the solid waste and recycling operations and such hauling trucks were internally financed using a combination of cash and an internal loan in the approximate amount of $1.1 million (the “2024 Internal Loan”); and
E. WHEREAS, the 2024 Internal Loan is secured by net revenues of the Public Works Special Services Enterprise Fund which may also be known as the Recycling and Solid Waste Fund (the “Recycling and Solid Waste Fund” and payable in annual installments of approximately $185,000 over a total of seven (7) years (final scheduled payment in 2031), or such earlier time as the internal loan is fully repaid; and
F. WHEREAS, the City has incurred and will incur costs for the property acquisition and for the programming, customer service and collection staff as well as the collection equipment and vehicles for the City’s solid waste and recycling operations that are accounted for in the Recycling and Solid Waste Fund; and
G. WHEREAS, under Minnesota Statutes, Chapter 475, as amended (the “Municipal Debt Act”), the City is authorized to issue revenue obligations payable wholly from the income of revenue producing conveniences to finance the purposes authorized by the Municipal Debt Act, including recycling and solid waste facilities and utility or other public conveniences from which a revenue is or may be derived; and
H. WHEREAS, this Council has determined that the capital costs of the City’s approximately 54,600 square foot Public Works Department’s Recycling and Solid Waste Services Facility to be located at 60 West Sycamore, Saint Paul, Minnesota on approximately 3.75 acres (the “Facility” or the “2024E Project”) should be financed in whole or in part through the issuance of gross revenue bonds pursuant to the authority granted by the City’s home rule charter and by the Municipal Debt Act; and
I. WHEREAS, on September 3, 2024, the City issued a Request for Proposals (the “2024 RFP”) to lenders for the financing of the Facility and related costs; and
J. WHEREAS, the City has engaged Ehlers & Associates, Inc., (“Ehlers”) as its registered municipal advisor with respect to the financing evidenced by the Series 2024E Bond (as defined below) and the City received responses on September 25, 2024 to the 2024 RFP; and
K. WHEREAS, the response and proposal of Huntington Public Capital Corporation (the “2024E Purchaser”) was deemed by City finance staff and Ehlers to be the most advantageous proposal; and
L. WHEREAS, the City’s Office of Financial Services has recommended that the City issue its Gross Revenue Recycling and Solid Waste Bond, Series 2024E (the “Series 2024E Bond”), under the terms of the Municipal Debt Act and this Resolution, in the original aggregate principal amount of $6,576,000, and apply the proceeds derived from the sale of the Series 2024E Bond, along with other City funds in the Recycling and Solid Waste Fund, to the: (i) payment or reimbursement to the City of the costs of the acquisition and equipping of the Facility; and (ii) payment of the costs of issuing the Series 2024E Bond; and
M. WHEREAS, the Series 2024E Bond shall be payable solely from the Revenues (as defined herein) and shall not be a general obligation of the City nor secured by the City’s full faith and credit; and
N. WHEREAS, the Series 2024E Bond and any Additional Bonds will be payable from a first lien and charge on all Revenues of the Recycling and Solid Waste Fund; and
O. WHEREAS, the City has further determined that bonds shall be issuable under this Resolution, as from time to time supplemented, (1) as taxable or tax-exempt bonds, (2) as fixed rate obligations or as variable rate obligations, (3) as bonds on which interest is paid currently or as bonds for which the payment of interest is deferred, and (4) as bonds which are subject to optional or mandatory redemption or mandatory purchase or with provisions allowing the holders thereof to tender their bonds for purchase; and
P. WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), public sale requirements do not apply to the Series 2024E Bond if the City retains an independent financial advisor and determines to sell the Series 2024E Bond by private negotiation, and the City has retained Ehlers and has determined to sell the Series 2024E Bond by private negotiation to the 2024E Purchaser:
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows, including all exhibits and attachments: