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HomeMy Public PortalAboutR1726 R E S O L U T I O N NO. 1726 AWARDING THE BID FOR THE PURCHASE OF $8,600,000 PRINCIPAL AMOUNT OF THE ADJUSTABLE RATE LIMITED TENDER OPTION CLEAN WATER REVENUE BONDS, SERIES A 1985, OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT; RATIFYING THE ACTS OF THE ADMINISTRATION AND STAFF OF THE DISTRICT IN CONNECTION WITH THE SALE OF SAID BONDS; AUTHORIZING THE ISSUANCE AND FORM OF SAID BONDS; AND AUTHORIZING THE EXECUTIVE DIRECTOR, THE CHAIRMAN OF THE BOARD OF TRUSTEES, AND THE SECRETARY-TREASURER OF THE DISTRICT TO EXECUTE SAID BONDS AND OTHER NECESSARY DOCUMENTS. WHEREAS, The Metropolitan St. Louis Sewer District, a body corporate, a municipal corporation and a political subdivision of the State of Missouri (herein called the "District"), now owns and operates a revenue producing sewerage system serving the District and its inhabitants; and WHEREAS, the District is subject to the provisions of the Federal Water Pollution Control Act, as amended, 33 U.S.C. 466 et seq., commonly referred to as the Clean Water Act (the "Clean Water Act") the stated objective of which is to restore and maintain the chemical, physical and biological integrity of the nation's waters; and WHEREAS, the District desires to make extensions and improvements to its sewerage system to bring the District into compliance with the Clean Water Act; and WHEREAS, the District is authorized under the provisions of Article VI, Section 30 of the Missouri Constitution and the Plan of the District adopted by the voters within the District for its government (the "Plan"), to issue and sell revenue bonds for the purpose of paying all or part of the cost of acquiring, constructing, improving or extending sewer or drainage facilities (collectively the "sewerage system" or "system") of the District, provided that the cost of operation and maintenance thereof and the principal of and interest on such revenue bonds shall be payable solely from the revenues derived by the District from the operation of such system; and WHEREAS, pursuant to such authority, a special election was held in the District on Tuesday, August 7, 1984, for the purpose of submitting to the qualified electors of the District the question whether to issue the Clean Water Revenue Bonds of the District in the amount of $60,000,000 for the purpose of extending and improving the sewerage system of the District, the cost of operation and maintenance of said system and the principal of and interest on said revenue bonds to be payable solely from the revenues derived by the District from the operation of its sewerage system, including all future extensions and improvements thereto; and 2 WHEREAS, said special election was held in the District on Tuesday, August 7, 1984, pursuant to the Plan of the District and the Constitution and laws of the State of Missouri and it was found and determined that more than four-sevenths of the qualified electors of the District voting on the question had voted in favor of the issuance of said sewerage system revenue bonds for the purpose of aforesaid, the vote on said question having been 154,168 votes for said question to 81,764 votes against said question; and WHEREAS, the Board of Trustees of the District has caused plans for a five year capital improvement program to be prepared to bring the District into compliance with the Clean Water Act (the "Clean Water Capital Improvement Program"); and WHEREAS, the estimated cost of the first phase of the Clean Water Capital Improvement Program is $99,350,000, to be funded $45,551,000 from federal grants, $17,922,000 from state grants and $35,877,000 from funds to be provided by the District; and WHEREAS, none of the bonds so authorized by the voters of the District have heretofore been issued, and it is hereby found and determined that it is necessary that the District issue and deliver forthwith its Adjustable Rate Limited Tender Option Clean Water Revenue Bonds in the principal amount of $8,600,000 for the purpose of paying a portion of the cost of said Clean Water Capital Improvement Program; and WHEREAS, the staff, administration, and advisors of the District did prepare an Official Statement and a Notice of Sale to be used in connection with the public sale of the Bonds; and WHEREAS, the Secretary-Treasurer of the District did advertise in the St. Louis Post Dispatch and did mail Notices of Sale to bond dealers and banks with municipal bond departments located in the State of Missouri and elsewhere which might be interested in the purchase of said Bonds, for sealed bids for the purchase of said Bonds; and WHEREAS, pursuant to said Notice, sealed bids were submitted on March 13, 1985, at public sale, for the purchase of said Bonds, in the office of the Secretary-Treasurer of the District, and the following Bids were submitted: TOTAL NET BIDDER RATE PREMIUM INTEREST COST Mercantile Trust 10-7/8% -0- $ 2,686,245.83 Company National Association 3 and 4 WHEREAS, the Secretary-Treasurer of the District has determined that the bid submitted by Mercantile Trust Company National Association was the best bid submitted based on the lowest net interest cost to the District and has recommended to the Board of Trustees the acceptance of said bid. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT, AS FOLLOWS: SECTION 1. The bid of Mercantile Trust Company National Association is accepted as the best bid submitted at public sale on March 13, 1985, for the purchase of $8,600,000 Adjustable Rate Limited Tender Option Clean Water Revenue Bonds, Series A 1985, and the Executive Director is authorized to enter into a contract selling the Bonds to Mercantile Trust Company National Association on the basis of said bid and the terms specified in the Notice of Sale. SECTION 2. All actions taken by the staff, administration and advisors to the District pertaining to the publication of the Notice of Sale and the sale of said Bonds are hereby ratified, confirmed and adopted. SECTION 3. The Notice of Sale dated February 20, 1985, and the Official Statement dated March 5, 1985, attached hereto as Exhibit "A", are hereby ratified, confirmed and adopted. SECTION 4. The principal of and interest on the Bonds shall be payable in lawful money of the United States of America at Mercantile Trust Company National Association, in the City of St. Louis, Missouri, said bank being hereby designated as the District's paying agent for the payment of the principal of and interest on the Bonds. SECTION 5. The Executive Director, the Chairman of the Board of Trustees and the Secretary-Treasurer of the District are hereby authorized and directed to execute said Bonds and such other documents and take such other actions as may be necessary to effectuate said loan on behalf of the District. The foregoing Resolution was adopted March 13, 1985.