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HomeMy WebLinkAbout5048RESOLUTION NO 5048 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS SETTING THE TIME AND PLACE OF THE RECEIPT OF BIDS FOR THE PURCHASE OF THE CITY OF REDLANDS 1994 GENERAL OBLIGATION REFUNDING BONDS AND PROVIDING FOR THE PUBLICATION AND COMMUNICATION OF NOTICE THEREOF WHEREAS the City Council (the 'City Council") of the City of Redlands (the 'City") has determined that it is advisable and prudent management of the fiscal affairs of the City to provide for the defeasance and refunding of the City of Redlands General Obligation Bonds, Series 1988A, through the issuance and sale of bonds of the City in the approximate aggregate principal amount of $7,530,000 to be designated 'City of Redlands 1994 General Obligation Refunding Bonds' (the 'Bonds") under the provisions of Article 9 of Division 2 of Title 5 (commencing with Section 53550) of the California Government Code, and has further determined that it may do so without submitting the question of the issuance of the Bonds to the qualified electors of the City• and WHEREAS, the City Council has determined that the Bonds shall be sold at public sale and that notice of the time and place of the receipt of bids for the purchase of the Bonds shall be published and otherwise communicated as hereinafter provided; NOW THEREFORE, BE IT RESOLVED DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS: Section 1 Sealed bids for the purchase of the Bonds shall be received prior to 10:00 a.m. on March 1 1994 or such later date as may be set by the City Manager at the offices of Miller & Schroeder Financial, Inc., Financial Advisor to the City (the 'Financial Advisor") 150 South Los Robles Avenue, Pasadena, California 91101, or such other location KA8201218 KA8201218 as may be approved by the City Manager, together with a good faith deposit, surety bond (Sure Bid), or certified or cashier's check, as required in the attached Official Notice Inviting Bids (the 'Notice'), delivered to the Financial Advisor in a sealed envelope at such time. The Financial Advisor is authorized to and shall open all such bids which are received and to advise the City Council of the terms of all such bids and of the name and address of the bidder submitting the bid resulting in the lowest net interest cost to the City Section 2. The Notice, in the form attached hereto as Exhibit A , is hereby approved, subject to such corrections, revisions and additions as may be acceptable to Bond Counsel and the Financial Advisor The Financial Advisor is hereby authorized and directed to cause to be mailed to prospective bidders for the Bonds copies of said Notice. Section 3 The form of proposed Notice of Intention to Sell Bonds, in substantially the form set forth in Exhibit A hereto, is hereby approved, subject to such corrections, revisions or additions as may be acceptable to Bond Counsel and the Financial Consultant are hereby authorized and directed to cause said Notice of Intention to Sell Bonds to be published once at least fifteen days before the date of sale in The Bond Buyer and to publish said Notice, beginning on a date no later than the date fourteen days prior to the date of sale, once a week, on the same day of each week, for at least two weeks in a newspaper of general circulation published in the City of Redlands. Section 4 The Preliminary Official Statement with respect to the Bonds in the form of that which was presented to the City Council at the meeting at which this resolution is adopted is approved in the form submitted with such changes as may be approved by the City Manager and Financial Advisor, and the Financial Advisor is authorized to distribute said Preliminary Official Statement to persons and firms who may be interested in submitting bids 2 for the purchase of the Bonds. The Preliminary Official Statement is deemed final within the meaning of Rule 15c2 12 of the Securities and Exchange Commission under the Securities and Exchange Act of 1934 Section 5 The law firm of Best, Best & Krieger is hereby retained as Bond Counsel pursuant to the terms and conditions set forth in the engagement letter of such firm on file in the office of the City Clerk. ADOPTED this 1st day of February 1994 ATTEST. ,Le( E� . a, � City tier of the 9/o' Redlands KAB201218 3 - . ,,,,,fr,) Mayor of the City of Redlands CERTIFICATION I, Lorrie Poyzer, City Clerk of City of Redlands, hereby certify that the foregoing is a full, true and correct copy of the Resolution adopted by the City Council of said City at the regular meeting of said City Council held on the 1st day of February 1994 by the following vote: AYES. Councilmembers Foster Cunningham Gil, Gilbreath NOES Mayor Larson None ABSENT. None ABSTAIN None KAB201218 -4- EXHIBIT A CITY OF REDLANDS OFFICIAL NOTICE INVITING BIDS $7,530,000* 1994 GENERAL OBLIGATION REFUNDING BONDS NOTICE IS HEREBY GIVEN that sealed bids will be received by the City of Redlands (the City") for the purchase of approximately $7,530,000* aggregate principal amount of the City's 1994 General Obligation Refunding Bonds (the 'Bonds") more particularly described below Time: 10:00 a.m. Pacific Time March 1 1994 Place: At the offices of Miller & Schroeder Financial, Inc. 150 South Los Robles Avenue, Suite 850 Pasadena, California 91101 Mailed Sealed Bids Addressed to: City of Redlands c/o Miller & Schroeder Financial, Inc. 150 South Los Robles Avenue, Suite 850 Pasadena, California 91101 Opening Bids and Award of Bonds. The bids will be opened at 10:00 a.m. Pacific Time on March 1 1994 at the above -stated location, and will be presented to the City Council of the City at its meeting to be held on that day Late bids will be returned unopened. *Preliminary, subject to change. KA8201218 Al KAB201218 Denomination: The Bonds will be issued in denominations of $5,000 or integral multiples of $5,000, as specified by the successful bidder Date: The Bonds will be dated March 1 1994 Interest Payments. Interest will be paid on February 1 and August 1 of each year beginning August 1 1994 Maturities. The Bonds will mature on February 1 of each year as follows: Due Date (February 1) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2008 2014 *Preliminary, subject to revision. Principal Amount* Optional Redemption: The Bonds maturing February 1 2005 are subject to redemption prior to maturity at the option of the City on any Interest Payment Date on or after February 1 2004 at the redemption prices set forth below (expressed as percentages of the principal amount of the Bonds to be redeemed) together with accrued interest to the date set for redemption, by lot within a maturity in a manner determined by the City from any moneys lawfully available to the City for such purpose: A2 Redemption Dates Redemption Price February 1, 2004 and August 1 2004 102 % February 1 2005 and August 1 2005 101 February 1 2006 and thereafter 100 Mandatory Sinking Fund Redemption: The Bonds maturing February 1, 2008 and February 1 2014, respectively, are subject to mandatory sinking fund redemption in part, by lot, commencing February 1 2006, with respect to the Bonds maturing February 1 2008, and commencing February 1 2009, with respect to the Bonds maturing February 1, 2014 and on each February 1 thereafter from mandatory sinking fund payments set aside in the Bond Fund, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, in the aggregate respective principal amounts and on the dates set forth below. Bonds Maturing February 1 2008 Payment Date (February 11 2006 2007 2008 Amount* Bonds Maturing February 1 2014 Payment Date (February 11 2009 2010 2011 2012 2013 2014 *Preliminary subject to change. KA8201218 A3 Amount* KAB201218 Payment: The Bonds will be issued as fully registered bonds and, when issued, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company New York, New York ("DTC") DTC will act as securities depository for the Bonds. Individual purchases of the Bonds will be made in book -entry form only in principal amounts of $5 000, or any integral multiple thereof. Payments of principal of, redemption premium, if applicable, and interest on the Bonds are to be made to purchasers by DTC through the DTC participants (as such term is used in the official statement) Purchasers will not receive physical delivery of Bonds which they purchase. Purpose of Issue: Proceeds of the Bonds will be used to refund the City of Redlands General Obligation Bonds, Series 1988A. Security' The Bonds are general obligations of the City and (unless otherwise provided from revenues) the City Council is authorized and obligated to cause the County of San Bernardino to levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all taxable property within the City without limitation as to rate or amount. Paying Agent: First Trust of California, National Association, is Paying Agent. Tax -Exempt Status. The legal opinion of Best, Best & Krieger, Riverside, California, with respect to the validity of the Bonds and that interest on the Bonds is excludable from gross income for purposes of federal income taxation and from present State of California personal income taxes, will be furnished to the successful bidder A copy of the legal opinion will be printed on or attached to each Bond. A-4 KAB201218 TERMS OF SALE Interest Rate: Bidders must specify the rate or rates of interest per annum, and the same rate or rates may be repeated as often as desired; provided, however. (i) An interest rate may not exceed eight percent (8.0 %) per annum. (ii) Each interest rate specified must be in a multiple of 1/20 or 1/8 of 1 percent. (iii) No Bond shall bear more than one rate of interest. (iv) Each Bond shall bear interest from its date to its stated maturity date at the interest rate specified in the bid. (v) All Bonds of the same maturity shall bear the same rate of interest. (vi) The interest rate on any maturity shall not be less than the interest rate on any prior maturity Basis of Award: The Bonds will be awarded on the basis of the lowest net interest cost including premium or discount offered on the bids. No bid for less than ninety-nine percent (99 00 %) of par, and accrued interest (which interest shall be computed on a 360 -day year, 30 -day month basis), will be accepted. The lowest net interest cost will be determined by computing the total amount of interest payable on the Bonds from March 1 1994 to their respective maturity dates calculated solely on the basis of the Bonds offered in this Notice, and deducting from such total the amount of the premium offered, or adding to such total the amount of the discount offered, if any In the event two or more bids setting forth identical interest rates, premium, if any or discount, if any, are received, the City reserves the right to exercise A5 KAB201218 its own discretion and judgment in making the award and may award the Bonds on a pro rata basis in such denominations as the City shall determine. Right of Rejection: The Agency 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 Agency will take action awarding the Bonds or rejecting all bids not later than 48 hours after the hour designated above for the opening of bids, unless such time of award is waived by the successful bidder Delivery and Payment: It is estimated that delivery of the Bonds will be made to the successful bidder by March 17 1994 Payment of the purchase prices (less the amount of the bid check mentioned below) must be made in funds immediately available to the City The cost of printing the Bonds will borne by the City Right of Cancellation: The successful bidder will have the right at its option to withdraw its bid if the City fails to issue 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 will be entitled to the return of the good faith deposit accompanying its bid. Form of Bid: The bids must be for all of the bonds and for not less than ninety- nine (99 00 %) of the principal amount thereof plus accrued interest to the date of delivery Each bid, together with the good faith deposit, must be enclosed in a sealed envelope addressed to City of Redlands, c/o Miller & Schroeder Financial, Inc. 150 South Los Robles Avenue, Suite 850, Pasadena, California 91101 and endorsed 'Bid for City of Redlands 1994 General Obligation Refunding Bonds. Each bid must be in accordance with the terms and conditions set forth herein. A-6 KAB201218 Good Faith Deposit: Each bid must be accompanied by a good faith deposit, a surety bond (SureBid), or a certified check or cashier's check for $75,000 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 its bid. Good faith deposits of the unsuccessful bidders will be returned by the City promptly after the bid opening. No interest will be paid on the good faith deposit made by any bidder. The good faith deposit of the successful bidder will, immediately upon accept- ance of its bid, become the property of the City, and may be negotiated by the City The amount of the good faith deposit will be credited upon the purchase price of the Bonds at the time of delivery thereof. If the purchase price is not paid in full upon tender of the Bonds, the successful bidder shall have no right to the Bonds or to the recovery of its good faith deposit, or to any allowance or credit by reason of such deposit, unless it shall appear that the Bonds would not be validly issued if delivered to the purchaser in the form and manner proposed, and in the event of such nonpayment the City reserves any and all rights it may have to recover the agreed purchase price of the Bonds and in addition any damages suffered by it. Estimate of Net Interest Cost: Bidders are requested (but not required) to supply an estimate of the total net interest cost 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 number on any Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder to accept delivery of and pay for the Bonds. All expense in relation to the assigning and the printing of CUSIP numbers on the Bonds shall be paid for by the City A7 KAB201218 California Debt Advisory Commission Fee: Bidders are advised that, pursuant to Section 8856 of the California Government Code, it will be the responsibility of the successful bidder to pay the statutory fee to the California Debt Advisory Commission. Certificate: At the time of delivery of the Bonds, the purchaser will receive a certificate signed by an officer of the City confirming to the purchaser that, to the best of the knowledge of said officer the Official Statement, as of the date of sale of the Bonds and as of the date of delivery thereof, did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. Purchaser's Closing Certificate: The winning bidder must deliver such certificates to the City as may be required by Bond Counsel, dated the date of issuance of the Bonds, indicating: (i) the initial offering price at which not less than ten percent (10%) of the Bonds were sold to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers), (ii) the 'yield' on the Bonds as calculated in accordance with the Internal Revenue Code of 1986, as amended, and (iii) such other information as may be required to assist the City in filing the required Internal Revenue Service Form 8038-G for the Bonds. Information Available: Requests for information concerning the City or the Bonds should be addressed to the City's financial advisor Miller & Schroeder Financial, Inc. 150 South Los Robles Avenue, Suite 850, Pasadena, California 91101 Telephone (818) 792-8588, Telefax (818) 792-9398. Official Statement: The City has certified that the Preliminary Official Statement is deemed fmal within the meaning of Rule 15c2 12 of the Securities and Exchange Commission. A-8 The City will provide to the successful bidder within seven (7) business days of award of the Bonds such number of printed copies of the Official Statement for the Bonds as are requested. Up to 100 copies of the Official Statement will be furnished to the successful bidder at the City's expense. Additional copies will be printed at the expense of the bidder Dated: February 1 1994 KA8201218 City Clerk of the City of Redlands A-9 BID FORM FOR 1994 GENERAL OBLIGATION REFUNDING BONDS TO. City of Redlands, California c/o Miller & Schroeder Financial, Inc. 150 South Los Robles Avenue, Suite 850 Pasadena, California 91101 FOR. Proposal for 1994 General Obligation Refunding Bonds $7,530,000(1) In accordance with all terms and conditions of your Official Notice Inviting Bids for the above- mentioned Bonds, we submit the following bid for Bonds to be dated June 1 1994 with interest payable August 1 1994, and thereafter semiannually on February 1 and August 1 MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST YEAR AMOUNT' RATE YEAR AMOUNT') RATE 1994 1995 1996 1997 1998 1999 2000 2001 $ 2002 2003 2004 2005 2008 2014 We will pay % for a total of $ , which is par plus a discount/ premium 2 of $ , from the $ principal amount plus accrued interest, if any to date of delivery As a matter of information, the interest cost, in accordance with the above bid, is: Gross Interest Cost $ Discount/(Premium)Izl $ TOTAL NET INTEREST COST $ Effective Net Interest Rate This offer is subject to receipt of a satisfactory legal opinion by Best, Best & Krieger, Riverside, California, approving the validity of the Bonds, at your expense. cn (2) KAB201218 Preliminary subject to change to achieve desired debt service. Discount must be limited to no more than one percent (1.0%). A 10 Enclosed herein is a good faith Deposit (as defined herein) in the amount of $ payable to the order of the City of Redlands, California, which funds, if in the form of a certified or cashier's check, we request be returned promptly in the event we are not the successful bidder, otherwise to be retained and applied against the purchase price of the Bonds. Submitted By• (Representative's Printed Name) Other Members of the Syndicate are: (Representative's Signature) Check Number: KAB201218 A-11 Firm: Date: Telephone Number EXHIBIT 'B' NOTICE OF INTENTION TO SELL BONDS $7,530,000* CITY OF REDLANDS CALIFORNIA 1994 General Obligation Refunding Bonds Agency. City of Redlands Project: Refunding of General Obligation Bonds, Series 1988A Type of Bonds: General Obligation Bonds Maturities: February 1 1995 February 1 2005 February 1 2008 and February 1 2014 Interest Rate: Not to exceed 8% Per Annum Bond Date: March 1 1994 Legal Opinion: Best, Best & Krieger Riverside, California BIDS ARE TO BE RECEIVED ON OR BEFORE THE 1st DAY OF MARCH, 1994 AT 10:00 A.M., PACIFIC TIME provided, however, that without further advertising and so long as a bid has not been accepted by the City sealed bids will be accepted at such time and place on March 15 1994 AT THE OFFICE OP MILLER & SCHROEDER FINANCIAL, INC. 150 SOUTH LOS ROBLES AVENUE, SUITE 850 PASADENA, CA 91101 For further information, please contact the following: MILLER & SCHROEDER FINANCIAL, INC. Telephone: (818) 792-8588 For publication in THE BOND BUYER on February 1994 Approximately 4-3/4 inches double column, bordered. * Approximate KAB201218 B-1 NOTICE OF INTENTION TO SELL $7,530,000* CITY OF REDLANDS CALIFORNIA 1994 GENERAL OBLIGATION REFUNDING BONDS NOTICE IS HEREBY GIVEN that the City Council of the City of Redlands, California, State of California, intends to offer for public sale on Tuesday, March 1 1994 at the hour of 10.00 a.m. California time, at the office of Miller & Schroeder Financial, Inc. 150 South Los Robles Avenue, Suite 850 Pasadena, California 91101 $7,530,000* principal amount of bonds designated the 1994 General Obligation Refunding Bonds' (the 'Bonds") and if no legal or acceptable bid is received on March 1 1994 Miller & Schroeder Financial, Inc. will accept bids for the purchase of the Bonds at the same time, place and in the same manner on March 15 1994 NOTICE IS HEREBY FURTHER GIVEN that the Bonds will be offered for public sale subject to the terms and conditions of the Official Notice Inviting Bids for the Bonds, dated , 1994, and copies of the Official Notice Inviting Bids and of a Preliminary Official Statement relating to the Bonds will be furnished upon request to Miller & Schroeder Financial, Inc. 150 South Los Robles Avenue, Pasadena, California 91101 (818) 792-8588. Dated: , 1994 *Preliminary, subject to change. KA0201218 Lorrie Poyzer, City Clerk of the City of Redlands, California B-2