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HomeMy WebLinkAboutReso. 1979-156 Providing for the Sale of $5,700,000 Principal Amount of "City of Redding 1979 Water Revenue Bonds" and Directing Notice of Sale of Said Bonds to be Given tit CITY OF REDDING RESOLUTION NO. 757-/S L PROVIDING FOR THE SALE OF $5 , 700, 000 PRINCIPAL AMOUNT OF "CITY OF REDDING 1979 WATER REVENUE BONDS" AND DI- RECTING NOTICE OF SALE OF SAID BONDS TO BE GIVEN WHEREAS, the City Council , by proceedings duly had and taken, has authorized the issuance of $5 ,700, 000 principal amount of City of Redding 1979 Water Revenue Bonds (herein called the "1979 Water Revenue Bonds") ; and WHEREAS, it is desirable that the 1979 Water Revenue Bonds be offered for public sale; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding, as follows : Section 1 . All of the 1979 Water Revenue Bonds shall be offered for public sale by the City Council on September 11 , 1979 , and the City Clerk is hereby author- ized and directed to cause a notice of the sale of the 1979 Water Revenue Bonds to be published once prior to such date in the Record Searchlight, a newspaper of gen- eral circulation published in the City, which such notice shall be substantially in the form set forth in Exhibit A attached hereto and incorporated herein. Section 2 . The City Council hereby approves the form of official statement relating to the 1979 Water Revenue Bonds which was submitted to this meeting by John 1 < f • • • Vande Po1 & Associates and Bank of America National Trust and Savings Association, co-financing consultants to the City for the 1979 Water Revenue Bonds , and the City Clerk is hereby directed to file said form of offi- cial statement with the minutes of this meeting . John Vande Pol & Associates and Bank of America National Trust and Savings Association are hereby authorized and directed to cause to be printed and mailed to prospective bidders for the 1979 Water Revenue Bonds copies of said official statement in substantially the form thereof so submitted and copies of the attached notice of sale of said bonds. PASSED AND ADOPTED this 20th day of August, 1979, by the following vote : AYES: Councilmembers : Gard, . Kirkpatrick, and Demsher NOES : Councilmembers : None ABSENT: Councilmembers : . Fulton and Pugh mayor of theCity of Redding, California [Seal] Attest : City Clerk of the City Redding, California i By: � z c� v , Deputy 2 11. • OFFICIAL NOTICE OF SALE $5,700,000 City of Redding 1979 Water Revenue Bonds • NOTICE IS HEREBY GIVEN that sealed proposals will be received and opened by a representative of the City Council of the City of Redding, Shasta County, State of California, at the office of Messrs. Orrick, Herrington, Rowley 8. Sutcliffe, Eleventh Floor, 600 Montgomery Street, San Francisco, California 94111, on TUESDAY,SEPTEMBER 11,1979 at the hour of 10:00 o'clock A.M. for the purchase of $5,700,000 principal amount of revenue bonds of the City designated "City of Redding 1979 Water Revenue Bonds" (the "bonds"), more particularly described below. The bonds are authorized to be issued under the provisions of a resolution (the "1959 Resolution") adopted by the City Council of the City on July 20, 1959, as supple-- mented by a resolution(the "1979 Resolution")adopted by the City Council of the City on July 30, 1979 (which 1959 Resolution and 1979 Resolution are herein called the "Resolutions"),and pursuant to the Revenue Bond Law of 1941 of the State of California. The bonds are the total amount of an issue in the aggregate principal amount of S5,700,000 authorized at an election held in the City on November 7, 1978.The bonds are more particularly described in the Resolutions, which are incorporated herein by reference. ISSUE AND DENOMINATION: S5,700,000 principal amount of coupon bonds, numbered consecutively from 1 to 1140, both inclusive, of the denomination of S5,000. DATE: The bonds are dated September 1, 1979. MATURITIES: The bonds mature serially in consecutive numerical order, from lower to higher, on September 1 In each of the years,as follows: Principal Maturity Date Principal Maturity Date Amount (September 7) Amount (September 7) S 50,000 1981 S275,000 1994 50,000 1982 275,000 1995 50,000 1983 300,000 1996 75,000 1984 325,000 1997 100,000 1985 350,000 1998 100,000 1986 375,000 1999 100,000 1987 375,000 2000 125,000 1988 400,000 2001 125,000 1989 400,000 2002 150,000 1990 400,000 2003 150,000 1991 400,000 2004 175,000 1992 400,000 2005 175,000 1993 REDEMPTION: Bonds maturing by their terms on or before September 1, 1991 are not subject to redemption prior to their respective maturity dates. Bonds maturing by their terms on or after September 1, 1992 are subject to redemption prior to their respective maturity dates, at the option of the City, as a whole, or in part in inverse order of maturity and by lot within any one maturity if less than all of the bonds of such maturity be redeemed,from any source of available funds,on any interest payment date on or after September 1,1991,at the principal amount thereof and accrued interest thereon to the date fixed for redemption, plus a premium of one-fourth of one per cent (Y. of 1%) of such principal amount for each whole year and any remaining fraction of a year between the date fixed for redemption and their respective stated maturities, said premium not to exceed two and one-half per cent (21/2%)of such principal amount. INTEREST RATE: Maximum eight per cent (8%) per annum, payable annually the first year on September 1, 1980 and semi- annually thereafter on March 1 and September 1 in each year. Bidders must specify the rate or rates of interest which the bonds hereby offered for sale shall bear. Bidders may specify any number of separate interest rates irrespective of the maturities of the bonds, and the same rate or rates may be repeated as often as desired; provided, however, that (i) the difference between the highest and lowest coupon rates specified in any bid shall not exceed two per cent (2%); (iil each interest rate specified must be • in a multiple of 1/20 of one percent; (iii)the rate specified for bonds maturing on or after September 1, 1993 shall equal or exceed the rate specified for bonds maturing in the immediately preceding year; (iv) no bond shall bear more than one rate of inter- est, no interest payment shall be evidenced by more than one coupon and supplemental coupons will not be permitted; Iv) each bond shall bear interest from its date to its stated maturity date at the interest rate specified in the bid; (vi) all bonds of the same maturity shall bear the same rate of interest; and(vii)any premium must be paid in bank funds as part of the purchase price, and no bid will be accepted which provides for the cancellation and surrender of any interest coupon or for the waiver of interest or other concession by the bidder as a substitute for bank funds. Bids which do not conform to the terms of this paragraph will be rejected. PAYMENT: Both principal and interest are payable in lawful money of the United States of America at the principal office of Crocker National Bank in San Francisco, California, or at holder's option, at the principal office of Irving Trust Company in New York, New York, or at the office of Harris Trust and Savings Bank in Chicago, Illinois. EXECUTION AND REGISTRATION: Coupon bonds will be issued by the City. The bonds will be executed by the manual sig- nature of at least one official authorized to execute the bonds.The bonds are registrable only as to both principal and interest, and are subject to de-registration and re-registration. PURPOSE OF ISSUE: The bonds are authorized by a vote of a majority of the qualified voters voting at a special revenue bond election for the purpose of authorizing revenue bonds to provide funds for the improvement of the municipal water system of the City. SECURITY: The bonds are revenue bonds payable (together with the outstanding 1959 Water Revenue Bonds of the City) solely from the Revenues (as that term is defined in the Resolutions) as provided in the Resolutions, and the City is not obligated to pay them except from the Revenues. A bond reserve account will be maintained in an amount equal to the Maximum Annual EXHIBIT A • Debt Service (as that term is defined in the Resolutions) on the 1959 Water Revenue Bonds and on the bonds. Bidders are referred to the official statement for further particulars. MBIA INSURANCE: Municipal Issuers Service Corporation has indicated to the City that the bonds will qualify for MBIA insurance. Each bidder shall state in his bid whether he requests that insurance. If requested, the premium (in the amount of f t70O will be paid by the City, and that cost will be treated as an interest cost in determining the highest bid for the bonds. TAX EXEMPT STATUS: In the event that prior to the delivery of the bonds (i) the income received by any private holder from bonds of the same type and character shall be declared to be taxable (either at the time of such declaration or at any future date) under any federal income tax laws,either by the terms of such laws or by ruling of a federal income tax authority or official which is followed by the Internal Revenue Service,or by decision of any federal court, or (ii) any federal income tax law is adopted which will have a substantial adverse tax effect on holders of the bonds as such, the successful bidder may, at his option, prior to the tender of the bonds by the City, be relieved of his obligation under the contract to purchase the bonds and in such case the deposit accompanying his bid will be returned. LEGAL OPINION: The legal opinion of Messrs. Orrick, Herrington, Rowley & Sutcliffe of San Francisco, California, approving the validity of the bonds,will be furnished to the successful bidder without charge. A copy of the legal opinion, certified by the officer in whose office the original is filed, will be printed on each bond without charge to the successful bidder. TERMS OF SALE HIGHEST BID: The bonds will be awarded to the highest bidder, considering the interest rate or rates specified and the pre- mium offered, if any. The highest bid will be determined by deducting the amount of the premium bid (if any) from the total amount of interest which the City would be required to pay from the date of the bonds to their respective maturity dates at the coupon rate or rates specified in the bid, and by adding the (City-paid) cost of the premium for MBIA insurance, if requested, and the award will be made on the basis of the lowest net interest cost to the City. The purchaser must pay accrued interest computed on a 360-day year basis from the date of the bonds to the date of delivery.The cost of printing the bonds will be borne by the City. RIGHT OF REJECTION: The City Council reserves the right, in its discretion, to reject any and all bids and to waive any irregularity or informality in any bid. PROMPT AWARD: The City Council will take action awarding the bonds or rejecting all bids not later than 26 hours after the expiration of the time herein prescribed for the receipt of proposals, unless such time of award is waived by the successful bidder. PROMPT DELIVERY: Delivery of the bonds will be made to the successful bidder at the principal office of Crocker National Bank in San Francisco,California, as soon as the bonds can be prepared, which it is estimated will be September 27, 1979. Payment for the bonds must be made in bank funds immediately available to the City in San Francisco, California. RIGHT OF CANCELLATION: The successful bidder shall have the right, at his option, to cancel the contract of purchase if the City shall fail to execute the bonds and tender the same for delivery within sixty (60) days from the date of sale thereof, and in such event the successful bidder shall be entitled to the return of the deposit accompanying his bid. FORM OF BID: All bids must be for not less than all of the bonds hereby offered for sale and for not less than the par value thereof and accrued interest to date of delivery. Each bid, together with bidder's check, must be enclosed in a sealed envelope addressed to the City Council of the City of Redding and endorsed "Proposal for City of Redding 1979 Water Revenue Bonds." All bids must be delivered to the representative of the City Council at the office of Messrs. Orrick, Herrington, Rowley & Sutcliffe, Eleventh Floor,600 Montgomery Street,San Francisco. California 94111, in time to be received by 10:00 o'clock A.M. on September 11,1979. BID CHECK: With each bid must be submitted a certified check or cashier's check for S50,000 drawn on a bank or trust com- pany transacting business in the State of California, payable to the order of the Treasurer of the City of Redding to secure the City from any loss resulting from the failure of the bidder to comply with the terms of his bid. Checks of all bidders (except the suc- cessful bidder)will be returned by the City by mail promptly following the sale date above specified. No interest will be paid upon the deposit made by any bidder. ESTIMATE OF NET INTEREST COST: Bidders are requested, but not required, to supply an estimate of the total net interest cost to the City on the basis of their respective bids, which shall be considered as informative only and not binding on either the bidder or the City. CUSIP NUMBERS: It is anticipated that CUSIP numbers will be printed on the bonds, but neither the failure to print such numbers on any bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the bonds in accordance with the terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the bonds shall be paid for by the City; provided, however, that the fee of the CUSIP Service Bureau for the assignment of said numbers shall be the responsibility of and shall be paid for by said purchaser. OFFICIAL STATEMENT: The City has caused an official statement to be prepared, a copy of which, together with copies of the Resolutions,will be furnished upon request made to John Vande Pol & Associates, Post Office Box 1097, Lafayette, California 94549 (telephone (415)284-5862), or upon request mailed to the Bank of America National Trust and Savings Association, Public Finance (No. 3295), Post Office Box 37003, San Francisco, California 94137 or telephoned to said bank at (415) 622-2465, or upon request made to the Public Finance Advisory, 10th floor, Bank of America World Headquarters Building, 555 California Street, San Francisco, California,co-financing consultants to the City for the bonds. There is no controversy or litigation pending concerning the validity of the above issue, the corporate existence of the City, or the title of the officers thereof to their respective offices, and the City will furnish to the successful bidder a no-litigation certifi- cate certifying to the foregoing as of and at the time of the delivery of the bonds. DATED: August 20,1979. MILDRED L.BRAYTON City Clerk of the City of Redding, California EXHIBIT A • 0 CLERK' S CERTIFICATE I , MILDRED L. BRAYTON, City Clerk of the City of Redding, California, hereby certify that• the foregoing is a full , true and correct copy of a resolution duly adopted at a regular meeting of the City Council of said City duly and legally held at the regular meeting place thereof on the 20th day of August , 1979 , of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; that at said meeting said resolution was adopted by the following vote : AYES: Councilmembers : Gard, Kirkpatrick, and Demsher NOES: Councilmembers : None ABSENT: Councilmembers: Fulton and Pugh that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that said resolution is a full , true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified or rescinded since the date of its adoption, and is now in full force and effect. WITNESS my hand and the seal of the City of Redding this 21st day of August, 1979 . City" Clerk of the Cit'of Redding, California' [Seal] By: K-ghd ><«-` .- Deputy City Clerk