HomeMy WebLinkAboutReso. 78-232 - Awarding Sale of Bonds North Bonnyview Area Sewer Assessment District 1978-1 RESOLUTION NO.
RESOLUTION AWARDING SALE OF BONDS
NORTH BONNYVIEW AREA SEWER ASSESSMENT DISTRICT 1978-1
The City Council of the City of Redding resolves :
1. Pursuant to Resolution No. 78-138 adopted by
this City Council on August 21 , 1978 , sealed bids for the pur-
chase of assessment bonds for these assessment proceedings
were received and opened on Monday, September 18 , 1978 ; WULFF,
HANSEN & COMPANY submitted the best bid for a net interest
cost of 7 . 13767% .
2 . In view of the necessity to reject all construc-
tion bids and to invite new bids , the Council was not able to
award sale of bonds within the time period provided in the
Notice Inviting Bids on Improvement Bonds . On the recommendation
of bond counsel , the City Council confirmed instead that it would
negotiate the sale of the bonds to WULFF, HANSEN & COMPANY on
appropriate terms , to be determined on the basis of market condi-
tions at the time of award .
3 . Attached hereto as Exhibit A and by reference in-
corporated herein is a letter from WULFF, HANSEN & COMPANY outlin-
ing a proposal for the terms and conditions of sale , based upon
the difference between the BOND BUYERS '• INDEX for the week of
September 18 , 1978 and the week of November 27 , 1978 .
4 . This Council hereby finds that the proposal of
WULFF , HANSEN & COMPANY is fair and reasonable and hereby awards >-j
the sale of said bonds to them in conformity with said proposal .
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I HEREBY CERTIFY that the foregoing resolution was
duly and regularly adopted by the City Council of the City of
Redding, Shasta County, California , at a regular meeting
thereof , held on the 9th day of December , 1978 , by the follow-
ing vote , to wit:
AYES : Councilmembers Fulton, Gard, Kirkpatrick, and Demsher
NOES : Councilmembers None
ABSENT: Councilmembers Pugh
MILDRED L. BRAYTON, City Clerk,
City of Redding , Shasta County,
California
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Wr TAT IT, sE Co.
Csr.s..:s.CD 193i
INVESTMENT SECURITIES
235 MONTGOMERY STREET
SAN FRANCISCO 94104
[415] 421-6900
November 30, 1978
Mr. Robert Cortney
Director of Finance
City of Redding
Redding, California
Re: North Bonnyview Area Sewer Assessment
District No. 1978-1 , City of Redding,
Shasta County, California
Dear Mr. Cortney:
As per our agreement, which has been cleared with Mr. Samuel
A. Sperry of the law firm of Sturgis, Ness & Brunsell , the above
bond issue should have the following coupons:
7 .00% for 7-2-80 through 7-2-89 maturities inclusive
7 .30% for 7-2-90 through 7-2-93 maturities inclusive
5. 70% for 7-2-94 maturity
Our bid will be 95. 12, reflecting a net interest cost of 7 .406167 .
On September 18, 1978, the Bond Buyer's Index stood at 6.02.
Today, November 30, 1978, the BBI is 6.29, an increase of .27
basis. We have increased our net interest cost to you .268496, •
which is as close as we can calculate .
I am waiting to hear from you on the final award of the bonds on
Monday, December 4.
Respectfully submitted,
WULFF, HANSEN & CO.
By ���,�t.���/yJ7�
J . Paul Dumont
Senior Vice President
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