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HomeMy WebLinkAbout87-09CITY OF UKIAH RESOLUTION NO. ~-9-- A Resolution of the City Council of the City of Ukiah Authorizing the Sale of $2,890,000 Principal Amount of City of Ukiah Electric Revenue Bonds, Series 1986 B, and Directing Notice of Sale of Said Bonds to be Given, and Approving the Official Statement Relating to Said Bonds Adopted July 16, 1986 CITY OF UKIAH RESOLUTION NO. 8~-9 A Resolution of the City Council of the City of Ukiah Authorizing the Sale of $2,890,000 Principal Amount of City of Ukiah Electric Revenue Bonds, Series 1986 B, and Directing Notice of Sale of Said Bonds to be Given, and Approving the Official Statement Relating to Said Bonds WHEREAS, the City Council of the City of Ukiah (the "City"), by proceedings duly had and taken, has authorized the issuance of $2,890,000 principal amount of City of Ukiah Electric Revenue Bonds, Series 1986 B (the "Series 1986 B Bonds"); and WHEREAS, it is desirable that the Series 1986 B Bonds be offered for public sale at this time; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah as follows: Section 1. The Series 1986 B Bonds shall be offered for Dublic sale bv the City Council of the City on August 6, 1986, and the City Clerk of the City is hereby authorized and directed to cause a notice of the sale of the Series 1986 B Bonds to be published once at least seven (7) days prior to said sale date in the Ukiah Daily Journal, a newspaper of general circulation published within the City, which such notice shall be substantially in the form set forth in Exhibit A attached hereto and incorporated herein. The City Council hereby authorizes the publication of a notice of intention to sell the Series 1986 B Bonds once at least fifteen (15) days prior to said sale date in the Western Edition of The Wall Street Journal, a financial publication generally circulated throughout the State of California, which such notice shall be in substantially the form set forth in Exhibit B attached hereto and incorporated herein. Section 2. The City Council of the City hereby approves the form of Official Statement relating to the Series 1986 B Bonds which was submitted to this meeting by Rauscher Pierce Refsnes, Inc., the public finance consultant to the City for the Series 1986 B Bonds, and the City Clerk of the City is hereby directed to file a copy of said Official Statement with the minutes of this meeting, and said public finance consultant is hereby authorized and directed to cause to be printed and mailed to prospective bidders for the Series 1986 B Bonds copies of said Official Statement in substantially the form thereof so submitted (with such changes as may be approved by bond counsel to the City and the Director of Finance of the City) and copies of the attached notice of sale of the Series 1986 B Bonds. Section 3. This resolution shall take effect from and after its passage and approval. OFFICIAL NOTICE OF SALE $2,890,000 CITY OF UKIAH ELECTRIC REVENUE BONDS, -SERIES 1986 NOTICE IS HEREBY GIVEN that sealed proposals will be received and opened by an authorized representative of the City of Ukiah (the "City") at the office of Rauscher Pierce Refsnes, Inc., One California Street, Suite 2630, San Francisco, California 94111, on WEDNESDAY, AUGUST 6, 1986 at 10:00 o'clock A.M. (P.D.T.) for the purchase of $2,890,000 principal amount of electric revenue bonds of the City designated "City of Ukiah Electric Revenue Bonds, Series 1986 B" (the "Bonds") authorized to be issued under the provisions of a resolution (the "General Resolution") of the City Council of the City adopted on June 4, 1986, and a resolution (the "Second SuDplemental Resolution") of the City Council of the City adopted on July 16, 1986 (which General Resolution and Second Supplemental Resolution are herein called the "Resolutions"), and pursuant to the Revenue Bond Law of 1941 (being Chapter 6 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, as amended) and all laws amendatory thereof or supplemental thereto, including without limitation Article 8 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. The Bonds are more particularly described in the Resolutions (which are incorporated herein by reference), and are generally described herein. DENOMINATION AND DATE: The Bonds consist of fully registered bonds of the denomination of $5,000 or any integral multiple thereof (but not exceeding the principal amount of Bonds maturing at any one time), and are all dated August 1, 1986. INTEREST RATE: Maximum not to exceed nine and fifty-hundredths per cent (9.50%) per annum, payable on December 1, 1986, and semiannually thereafter on June 1 and December 1 of each year. Bidders must specify the rate or rates of interest which the Bonds shall bear; provided that (i) all Bonds maturing by their terms in any one year must bear the same rate of interest; (ii) the difference between the highest and lowest interest rates specified in any bid shall not exceed three per cent (3%) per annum; (iii) each interest rate specified must be in a multiple of 1/8 or 1/20 of 1% and a zero rate of interest cannot be specified; (iv) no Bond shall bear more than one rate of interest; (v) each Bond EXHIBIT A shall bear interest from its date to its stated maturity date at the interest rate specified in the bid; and (vi) the interest rate bid for the Bonds maturing in any one year shall not be less than the interest rate bid for the Bonds maturing in any prior year. MATURITIES: The Bonds will mature in consecutive numerical order as follows: Maturity Maturity Date Principal Date Principal (June 1) Amount (June 1) Amount 1988 $25,000 ~996 $ 45,000 1989 30,000 1997 45,000 1990 30,000 1998 50,000 1991 30,000 1999 55,000 1992 35,000 2000 60,000 1993 35,000 2001 65,000 1994 40,000 2006 405,000 1995 40,000 2018 1,900,000 SINKING FUND: The Resolutions create a Series 1986 B 2006 Sinking Fund Account and a Series 1986 B 2018 Sinking Fund Account to be used for the redemption and payment of the term Bonds maturing on June 1, 2006, and on June 1, 2018, respectively, and the City is required to deposit minimum sinking fund account payments therein during the years ending on the dates and in the amounts as set forth in the following schedules: Series 1986 B 2006 Sinking Fund Account Year Minimum Year Ending Sinking Fund Ending June 1 Account Payment June 1 2002 $ 70,000 2005 2003 75,000 2006 2004 80,000 Minimumum Sinking Fund Account Payment $ 85,000 95,000 Series 1986 B 2018 Sinking Fund Account Year Minimum Year Ending Sinking Fund Ending June 1 Account Payment June 1 2007 $ 100,000 2013 2008 110,000 2014 2009 115,000 2015 2010 125,000 2016 2011 135,000 2017 2012 150,000 2018 Minimumum Sinking Fund Account Payment $ 160,000 170,000 185,000 200,000 215,000 235,000 A-2 REDEMPTION: Bonds maturing on June 1, 2006, are subject to mandatory redemption bv the City prior to their maturity date on any June 1 on or after June 1, 2002, in Dart solely from minimum sinking fund account payments deposited in the Series 1986 B 2006 Sinking Fund Account (as defined and provided in the Resolutions),. uDon mailed notice as provided in the Resolutions, at the principal amount thereof and accrued interest thereon to the date of redemption. Bonds maturing on June 1, 2018, are subject to mandatory redemption by the City prior to their maturity date on any June 1 on or after June 1, 2007, in part solely from minimum sinking fund account payments deposited in the Series 1986 B 2018 Sinking Fund Account (as defined and provided in the ReSolutions), upon mailed notice as provided in the Resolutions, at the principal amount thereof and accrued interest thereon to the date of redemption. Bonds maturing by their terms on or after June 1, 1997, are subject to optional redemption by the City prior to their respective maturity dates, 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) on any interest payment date on or after June 1, 1996, from funds derived by the City from any source other such minimum sinking fund account payments, upon mailed notice as provided in the Resolutions, at the following redemption prices (computed upon the principal amount of Bonds or portions thereof called for redemption) together with accrued interest to the date of redemption, to wit: 102.50% if redeemed on or after June 1, 1996, and prior to June 1, 1997; 102% if redeemed on or after June 1, 1997, and prior to June 1, 1998; 101.50% if redeemed on or after June 1, 1998, and prior to June 1, 1999; 101% if redeemed on or after June 1, 1999, and prior to June 1, 2000; 100.50% if redeemed on or after June 1, 2000, and prior to June 1, 2001; and 100% if redeemed on or after June 1, 2001, and prior to maturitv. PAYMENT: The interest on and principal of and redemption premiums, if any, on the Bonds are payable in lawful money of the United States of America at the principal corporate trust office of Bank of America National Trust and Savings Association, the Fiscal Agent of the City, in San A-3 Francisco, California. Interest due on or before the maturity or prior redemption of the Bonds is pavable only by check mailed by the Fiscal Agent to the registered owners thereof as of the fifteenth (15th) day. of the month preceding each interest payment date, and the principal of the Bonds and the redemption premiums, if any, thereon are payable to the registered owners thereof on the maturity or prior redemption of the Bonds only upon surrender thereof. PURPOSE: The Bonds are authorized for the purpose of providing funds for the acquisition and construction of additions and betterments to the electric generation and transmission system of the City. SECURITY: The Bonds are revenue bonds payable solely from the Net Revenues and the Net Distribution Income (as those terms are defined in the Resolutions) and certain other funds of the City as in the Resolutions provided. Bidders are referred to the Resolutions and to the Official Statement hereinafter referred to (copies of which will be furnished to any interested bidder on request) for further particulars. A bond reserve account will be maintained in an amount equal to the Maximum Annual Debt Service (as that term is defined in the Resolutions) on the Bonds and on the outstanding City of Ukiah Electric Revenue Bonds, Refunding Series 1986 A. TAX EXEMPT STATUS: In the event that prior to the delivery of the Bonds (a) the income received by any individual 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 (b) any federal income tax law is adopted which will have a substantial adverse tax effect on individual 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. See the discussion of Pending Federal Tax Legislation in the Official Statement hereinafter referred to. LEGAL OPINION: The legal opinion of Orrick, Herrington & 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 official in whose office the original is filed, will be printed on each Bond without charge to the purchaser. A-4 TERMS OF SALE Highest Bid: The Bonds will be awarded to the highest bidder, considering the interest rate or rates specified and the premium offered, if any, or the discount sDecified, if any. The highest bid will be determined by deducting the amount of the premium bid (if any) from, or by adding the amount of the discount specified (if any) to, the total amount of interest which the City would be required to pay from the date of the Bonds to the respective maturity dates of the Bonds (assuming that the term Bonds maturing on June 1, 2006, and the term Bonds maturing on June 1, 2018, are redeemed from minimum sinking fund account payments as scheduled) at the interest rate or rates specified in the bid, and the award will be made on the basis of the lowest net interest cost to the City. The purchaser must pay accrued interest from the date of the Bonds to the date of delivery. All interest shall be computed on a 360-day year basis. The cost of printing the Bonds will be borne by the City. Right of Rejection: The City Council of the City 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 of the City will take action awarding the Bonds or rejecting all bids not later than twenty-six (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. Notice of the award will be given promptly to the successful bidder. Delivery and Payment: Delivery of the Bonds will be made to the successful bidder at the principal corporate trust office of Bank of America National Trust and Savings Association in San Francisco, California, as soon as the Bonds can be prepared, which delivery date is presently scheduled to be on August 20, 1986. Payment for the Bonds must be made in funds immediately available to the City at such office in San Francisco, California, and any expense of providing such immediately available funds shall be borne by the successful bidder. 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. A-5 Form of Bid: Each bid must be for not less than ninety-eight and one-half per cent (98-1/2%) of the principal amount of the Bonds and accrued interest from the date of the Bonds to the date of delivery. Each bid must provide that any premium shall be paid in bank funds as part of the purchase price, and no bid will be accepted which contemplates the waiver of any interest or other concession by the bidder as a substitute for payment in full of the purchase price in bank funds. Bids which do not conform to the terms of this paragraph will be rejected. Each bid, together with bidder's check, must be enclosed in a sealed envelope addressed to the City and delivered to its authorized representative by 10:00 o'clock A.M. (P.D.T.) on August 6, 1986, at the office of Rauscher Pierce Refsnes, Inc., One California Street, Suite 2630, San Francisco, California 94111, and endorsed "Proposal for City of Ukiah Electric Revenue Bonds, Series 1986 B." Bid Check: With each bid must be submitted a certified check or cashier's check for $25,000 drawn on a bank or trust company transacting business in the State of California, payable to the order of the City to secure the City from any loss resulting from the failure of the bidder to comply with the terms of his bid. Checks of the unsuccessful bidders will be returned by the City Clerk of the City by mail promptly after the date of sale above specified. No interest will be paid upon the deposit made by any bidder. Official Statement: The City has prepared an Official Statement relating to the Bonds, a copy of which, along with related legal documents, will be furnished upon request made to Rauscher Pierce Refsnes, Inc., One California Street, Suite 2630, San Francisco, California 94111, the City's financial consultant for the Bonds, or telephoned to said consultant at (415) 989-2300. 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. Net Interest Cost: Ail 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. A-6 California Debt Advisory Commission Fee: Attention of bidders is directed to California Government Code Section 8856, which provides that the successful bidder for the Bonds will be charged the California Debt Advisory Commission fee, which is 1/40th of 1 per cent of the principal amount of the Bonds. There is no controversy or litigation pending concerning the validity of the Bonds, 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 certificate certifying to the foregoing as of and at the time of delivery of the Bonds. Dated: July 16, 1986. - ' ct~t.~ '~o~f ~a~he A-7 NOTICE OF INTENTION TO SELL $2,890,000 CITY OF UKIAH ELECTRIC REVENUE BONDS, SERIES 1986 B NOTICE IS HEREBY GIVEN that the City of Ukiah (the "City"), in Mendocino County, State of California, intends to offer for public sale on Wednesday, August 6, 1986, at the hour of 10:00 o'clock A.M. (P.D.T.) at the office of Rauscher Pierce Refsnes, Inc., One California Street, Suite 2630, San Francisco, California 94111, $2,890,000 principal amount of revenue bonds of the City designated "City of Ukiah Electric Revenue Bonds, Series 1986 B." Dated: July 16, 1986. ( City of Ukiah~ EXHIBIT B PASSED AND ADOPTED on July 16, 1986, by the following vote: Ayes: Noes: Councilmembers Schneiter, Shoemaker, Hickey, and Mayor Henderson None Absent: Councilmember Kier Approved: (Seal) ~ ~~~~/~~.~_ ~ ~ ~ Mayor ~)~T~'the ----' ~' City of Ukiah Attest: CITY CLERK'S CERTIFICATE I, Yvette S. Hayes, City Clerk of the City of Ukiah, hereby certify as follows: The foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Ukiah duly and regularly and legally held at the regular meeting place thereof on July 16, 1986, of which meeting all the members of said City Council had due notice and at which a majority thereof was present. At said meeting said resolution was adopted by the following vote: AYES: Councilmember Schneiter, Shoemaker, Hickey, and Mayor Henderson NOES: None ABSENT: Councilmember Kier I have carefully compared the same with the original minutes of said meeting on file and of record in my office and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes and said original resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full ~,~ and effect. Dated: ~/~, 1986. (Seal) 'City of Ukiahu'e