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HomeMy WebLinkAbout4330_CCv0001.pdf RESOLUTION NO. 4330 RESOLUTION CSE THE CITY COUNCIL OF THE CITY OF REDLAN S AUTHORIZING AND DIRECTING THE NOTICE OF SALE OF NOT TO EXCEED $7,620, 000 PRINCIPAL AMOUNT GENERAL OBLIGATION BONDS, SERIES IBA, APPROVING AN OFFICIAL NOTICE OF SALE, APPROVING THE PREPARATION ANIS DISTRIBUTIONOF A PRELIMINARY OFFICIAL STATEMENT, AUTHORIZING THE SALE OF THE BONDS ON CERTAIN TERMS AND CONDITIONS, APPOINTING BOND COUNSEL, AUTHORIZING ING CERTAIN OTHER OFFICIAL ACTIONS AND PROVIDING FOR OTHER MATTERS PROPERLY RELAT- ING THERETO WHEREAS, the City Council of the City of Redlands, California (the "City" ) intends to authorize by a separate resolution the issuance by the City of its General... Obliga- tion tion, Bonds, Series 18A, in the principal amount of not to exceed $7,620, 000 (the "Bonds") , and it is desirable that the Bonds be offered for public sale at this time; and WHEREAS, proceeds of the Bonds will be used to acquire certain park: and recreation lands and open space lands for the benefit of the City and its inhabitants; and WHEREAS, this City Council desires to authorize the sale of the Bonds upon the teems and conditions hereinafter' set forth; NOW, THEREFORE, the City Council, of the City of Redlands does hereby resolve and declare as follows:' SECTION 1. Sale Authorized, Time and Place for Bids. The sale of not to exceed Seven Million Six Hundred Twenty Thousand Dollars ($7 ,620,000) principal amount CITY OF REI LANDS GENERAL OBLIGATION BONDS, SERIES 1988A, (herein sometimes referred to as the "Bonds" ) , in accordance with law, is hereby authorized. Tuesday, February 2, 1986 (and without further advertising and so long as a proposal has not theretofore been accepted by the City, Tuesday, February 9, 1988 and each Tuesday thereafter ) , and the hour of 1100 a.m. Pacific Standard Time, is hereby fixed as the time, and the offices of Seidler-Fitzgerald Public Finance, 515 South Figueroa Street, Sixth Floor , Los Angeles, California, is hereby fixed as the place at which bids will be received for the purchase of the Bonds, as described in and subject to the terms and conditions of the Official Notice of Sale hereinafter referred to. The Bonds shall be awarded within 26 hours thereafter by the City to the responsible bidder offering the lowest net interest cost to the City, all as determined by the City, with the right being reserved to reject any and all bids. The City Man- ager , in consultation with the City' s Financial Consultant and Bond Counsel, is hereby authorized to establish the final principal amount of the Bonds prior to the publication of the official Notice of Sale, provided that said amount shall not exceed $7,620, 000. SECTION 2. official Notice of Sale. The invita- tion for bids for the purchase of the Bonds is hereby autho- -2- rued, such invitation to be substantially in accordance with the Official Notice of Sale, which includes a bid form, all attached to and incorporated herein as Exhibit A ( the "Official Notice of Sale" ) , with such changes and modifica- tions as may be deemed appropriate or necessary by City staff and counsel to the City, including the final principal amount of the Bonds, to cause the Official Notice of Sale to conform to the terms of the Bonds as such terms are set forth in the hereinafter-referred-to Preliminary Official Statement. SECTION 3 . Publication of Official Notice of Sale. The City Clerk shall cause the official Notice of Sale, with such changes and modifications referred to in Section 2 hereof, to be published once in the Daily_j�acts, a newspaper published and of general circulation in the City of Redlands, California, on or before January 22 , 1988, which is a date at least ten ( 10) days prior to the day fixed for the receipt of bids. SECTION 4. Terms and Conditions of Sale. The terms and conditions of the offering and the sale of the Bonds shall be as specified in the Official Notice of Sale, including such modifications thereto as permitted pursuant to Section 2 hereof. SECTION 5. Official Statement Authorized. The City hereby approves the preparation of a preliminary offi- cial statement ( the "Preliminary Official Statement" ) by -3- Seidler-Fitzgerald Public Finance (the "Financial Consul- tant" ) , and authorizes its distribution in connection with the sale of the Bonds. The City Manager is authorized to approve the amendment of the Preliminary official Statement from time to time, pending distribution of the Preliminary Official Statement, as shall be required to cause the Pre- liminary Official Statement to contain any further informa- tion necessary to accurately describe the Bonds. The form of final Official Statement relating to the Bonds shall be submitted to this City Council for its approval prior to its use. SECTION 6. Furnishing of Official Notice of Sale and Preliminary official Statement. The City Clerk and the Financial Consultant are hereby authorized and directed to cause to be furnished to prospective bidders a reasonable number of copies of the Official Notice of Sale ( including the Bid Form) and a reasonable number of copies of the Pre- liminary Official Statement. SECTION 7. Publication of Intention to Sell. The City Clerk shall cause a copy of a Notice of Intention to Sell Bonds to be published once in the RRpj Buyer , One State Street Plaza, New York, New York, substantially in the form attached hereto as Exhibit B with such changes and modifica- tions as may be deemed appropriate and necessary by the City Manager and counsel to the City to cause said Notice of Intention to Sell Bonds to conform to the terms of the Bonds -4- as such terms are set forth in the Preliminary Official Statement . Such publication shall be on or before Janu- ary 18, 1988, which is a date at least fifteen (15) days prior to the date fixed for the receipt of bids. SECTION 8. Financial Consultant and Bond Counsel. The financial consulting firm of Seidler- Fitzgerald Public Finance has been retained as Financial Consultant for this transaction and the law firm of Best, Best & Krieger is hereby retained as Bond Counsel on the terms set forth in the proposal letter of said firm presented to this meeting, and the Mayor is hereby authorized and directed to execute said proposal letter for and in the name of the City. SECTION 9. Financial Consultant to Bid. Pursuant to Government Code Sections 53690 and 53692, inclusive, the Financial Consultant named in Section 8 hereof has given the City written notice that it intends to bid on the Bonds, and the City hereby consents to the Financial Consultant acting as underwriter at such sale. SECTION 10 . Piling of CAC Notice. The City hereby approves the filing by Bond Counsel of a notice of the City's intent to sell the Bonds with the California Debt Advisory Commission pursuant to Section 8855 of the Califor- nia Government Code. SECTION 11 . General Authorization. The Financial Consultant and/or Bond Counsel are hereby authorized and directed to open' the bids at the time and place specified in -5- said official Notice of Sale and to present the same to this City Council. The Financial Consultant and/or Bond Counsel are hereby authorized and directed to receive and record the receipt of all bids made pursuant to said official Notice of Sale, to cause said bids to be examined for compliance with said official Notice of Sale, to cause computations to be made as to which bidder has bid the lowest net interest cost to the City and to present such bids to this city Council, as provided in said official Notice of Sale, along with a report as to the foregoing and any other matters deemed pertinent to the award of the Bonds and the proceedings for the issuance thereof. SECTION 12. Supersedes. This Resolution shall supersede all prior action of this city Council relating to the solicitation of bids for the Bonds and the other matters contained herein. -6- SECTION 13. Effective Date. This Resolution shall take effect upon adoption. ADOPTED AND APPROVED t",,,s 5th day of January, 1988. Mayor of the City of Redlands ATTEST: ctt-y 1 e--r k (SEAL) -7- GES0255C LORRIE POYZER, city Clerk of the City of Red- lands, California, do hereby certify that the foregoing Resolution No. 4330 was regularly introduced and adopted by the city Council of the City of Redlands, California, at a regular meeting thereof held on the 5th day of January, 1988, by the following vote of the city Council: AYES: Councilmembers Wormser, DeMirjyn, Johnson, Cunningham; Mayor Beswick NOES: None ABSENT: None and that said resolution has not been amended, superseded or repealed, and is in full force and effect . IN WITNESS WHEREOF, I have hereunto set my hand this l6th day of February 1988. City Clerk City of Redlands, California GES0255C EXHIBIT OFFICIAL NOTICE OF SALE CITY OF R EDLANDS COUNTY OF SAN BERNARDINO, CALIFORNIA NOTICE INVITING BIDS 7,620,000 CITY OF REDLANDS GENERAL OBLIGATION BONDS SERIES 1988 NOTICE IS HEREBY EBY CIV N that sealed proposals for the purchase of Seven Million Six r Hundred Twenty Thousand Dollars (87,628, 808) principal amount of general obligation bands of the City of Redlands (hereinafter referred is as the "City" ) will be received by the City up to the time and t the place specified: TIME: Tuesday, February 2, 1988 11.86 o'clock a.m. Pacific Standard Time PLACE. Seidler-Fitzgerald Public Finance 516 South Figueroa Street, Sixth Floor Less Angeles, California 0072-3396 The bids will be :received at the above time and place, will be opened by the 'Financial Consultant and/or Band. Coun- sel and will be presented to the City Council of the City at its meeting to be held within 26 hours thereafter. There- after, without further advertising and so long as a proposal- has not theretofore been accepted by the City, bids will be received. on Tuesday, February 9, 1988 and each Tuesday thereafter at 11:00 a.m. Pacific Standard Time at the above location until bids are received and accepted. The Bonds will be issued pursuant to Article 1 of Chap- ter 4 of Division 4 of Title 4 of the Government Code of the State of California (commencing with Section 43680 thereof) (the "Laws" ) and a Resolution to ,be adopted by the City Coun- cil prior to the delivery of the Bonds to the successful bidder (the "Resolution" ) . The Scads are more particularly described in the Preliminary Official Statement, cosies of which will be furnished to any interested bidder upon request. See "Official Statement" herein. The Bards are generally described as follows A-1 r t of k ;s ISSUE: Seven Million Six Hundred Twenty Thousand Dollars ($7, 620,000) designated "City of Redlands General_ Obligation Bands, Series 1988A"" (the "Bonds")-. The Bonds shall be in registered fora only, in the principal amount of $5,000 or any integral multiple thereof and shall be dated as of February 1, 1988 MATURITIES: The Bonds will mature an February l as follows Maturity Date Principal Amount 1989 65,000 1990 75,000 1991 80,000 1992 85,000 1993' 90,000 1994; 100,000 1995 105,00 1996 115,000 1997 125,000 1998 135, 000 1999' 145,000 2000 155,000 2001- 170,000 2002 185,000 2003 200,000 2004 215,000 2005 230,000 2006 250,000 2007 270,000 2005 290, 000 2009` 315,000 2010; 340,000 2011 365,000 2012 395,000 .2013 425,000 2014 460,000 2015 495,000 2016 535, 000 2017 580,000 2018 625,000 INTEREST: The Bands will bear interest at a rate to be fixed upon the sale thereof, but not to exceed twelve per- cent ( 12%) per annum, payable commencing August 1, 1988, and semiannually thereafter on February 1 and August 1 in each. year. A PAYMENT: The Bonds and the interest thereon and any premiums upon the redemption thereof prior to maturity are payable in lawful money of the United States of America. Interest on the Bonds is payable by mailed check or draft except for final interest payment at maturity or upon redemption. Principal on the Bonds is payable at the prin- cipal corporate trust office of the Paying Agent for the City, Bank of America National Trust and Savings Associa- tion, San Francisco, California. REGISTRATION: The Bonds are issued as fully registered Bonds payable to the registered owner . Transfer of owner- ship of a Bond or Bonds shall be made by exchanging the same for a new Bond or Bonds of the same maturity. All of such exchanges shall be made in such manner and upon such reason- able terms and conditions as may from time to time be deter- mined and prescribed by the City; provided, however, no such exchange shall be made between the fifteenth (15th) day of a month preceding any interest payment date and such interest payment date. OPTIONAL REDEMPTION: Bonds maturing on or before Febru- ary 1, 1993, are not subject to redemption before their stated maturities. Bonds maturing by their terms on or after February 1, 1994, are subject to redemption as a whole or in part in inverse order of maturity (and by lot within any one maturity) prior to their respective maturity dates, at the option of the City, on any interest payment date on or after February 1, 1993, from moneys< derived by the City from any source, at the following redemption prices (expressed as a percentage of the principal amount of bonds called for redemption) together with accrued interest thereon to the date fixed for redemption: Redemption Dates Redemption Price February 1, 1993 to August 1, 1993 102 % February 1, 1994 to August 1, 1,994 1012, February 1, 1995 to August 1 , 1.995 101 February 1, 1996 to August 1, 1996 10012 February 1, 1997 and thereafter 100 NOTICE OF REDEMPTION: Notice of any redemption will be mailed to the respective registered owners of the Bonds designated for redemption as provided in the Resolution. Bidders are referred to the Preliminary Official Statement for further particulars (see "Official Statement" herein) . PURPOSE OF ISSUE: The Bonds are to be issued by the City in order to acquire certain park and recreation lands and open space lands for the benefit of the City and its A-1 inhabitants Bidders are referred to the Preliminary Official on all Bonds from February 1, 1988, to the stated maturity date of the Bonds at the applicable interest rate specified in the bid, and the award will be made on the basis of the lowest net interest cost to the City. The purchaser gust pay accrued interest, computed on a 860-dayyear basis, from the date of the Bonds to the date of delivery. The cost of printing the Bonds will be borne by the City - RICHT OF REJECTION: The City reserves the right, in its discretion, to reject any and: all bids and, to the extent not prohibited by law, to waive any irregularity or infor- mality in any bid. PROMPT AWARD: The City will tale action awarding the Bonds or rejecting all bids not later than twenty-six (26)` hours atter the time herein prescribed for the receipt of bids; provided that the award may be grade after the expira- tion of the specified time if the bidder shall not have given to the City notice in writing of the withdrawal of such bid. BBIP: CUSIP identification numbers may be imprinted on the Bonds, but such numbers shall not constitute a part of the contract evidenced by the Bonds and no liability shall hereafter be attached to the City or any of the officers or agents thereof because of or on account of said numbers.. Any error or omission with respect to said numbers shall not constitute cause for refusal by the successful bidder to accept delivery of and pay for the Bonds. CALIFORNIA DEBT ADVISORY COMMISSION PEE: Attention of bidders is directed to California Government Code Section 8856, which provides that the lead underwriter or the pur- chaser of the Bonds may be charged the California Debt Advi- sory Commission fee, which is 1/80th of 1 percent of , the principal amount of the Bonds not to exceed $2, 500. DELIVERY AND PAYMENT: Delivery of the Bonds will be made to the successful bidder at the offices of Best, Best Krieger, Bond Counsel, 488 Mission Square, 3788 University Avenue, Riverside, California, on or about February 17, 1988, Payment for the ,Bonds must be made by federal funds check of funds immediately available to the City in Los Angeles, California. Any expense of providing such funds shall be borne by the purchaser. CANCELLATION FOR LATS DELIVERY': The successful bidder shall have the right , at his caption, to cancel the contract of purchase for the Bonds if the City shall: fail to execute the Bonds and tender them for delivery within 60 days from the award of the sale of the Bonds, and in such event the. A- { successful bidder shall be entitled to the return of the proceeds of the check accompanying his bid. FORM OF BIB, NO DISCOUNT: All bids rust be for not less than all of the Bonds hereby offered for sale and for not less than one hundred percent (10 0%) of the par value: thereof and accrued interest thereon to the delivery date. Each bid, together with the bid check must be in a sealed a envelope, addressed to the City, with the envelope and bid' clearly marked "Bid for $7,620,000 City of Redlands General Obligation Bonds, Series 198 A" and delivered to its repre- sentative at; the address mentioned above. Each bid must be unconditional and in accordance with the terms and condi- tions set forth herein, or permitted herein, and must be submitted on, or in substantial accordance with, bid forms provided by the City. BID CHECK: A certified or cashier ' s check on a respon- sible bank or trust company in the amount of Seventy-Five Thousand Dollars ($75,400) , payable to the carder of the City, must accompany each; bid as a guaranty that the bidder, if successful, will accept and pay for the Bonds in accor- dance with the terms of his bid. The check accompanying any accepted` bid shall be cashed and the proceeds thereof applied to the purchase price. If such bid is accepted but .not performed, unless such failure of performance shall be caused by any act or omission; of the City, the proceeds of the; check accompanying any accepted bid shall be retained by the City. The check accompanying each unaccepted bid will be returned promptly. No interest shall be paid upon the deposit made by any bidder . CHANGE Its TAX-EXEMPT STATUS: At any time before the Brands are tendered for delivery, the successful bidder may disaffirm and withdraw the bid if the interest received by private owners from notes or bonds of the same type and character shall be declared to be includable in gross income under present federal income tax laws, either by a ruling of the Internal. Revenue Service or by a decision of any federal court, or shall be declared taxable by the terms of any federal income tax law enacted subsequent to the elate of this notice. LEGAL OPINION: The opinion of the Bond Counsel: firm of Best, Best, & Krieger, Riverside, California, approving the validity of the Bonds and stating that interest on the Bonds is excluded from gross income under present federal income tax laws and that such interest is also exempt from personal income taxes of the State of California under present State income tax laws, will be furnished the successful bidder at or prior to the time of delivery of the Bonds at the expense - R,k_ a of the City. The legal opinion will be subject to laws affecting creditors' rights and to the exercise of judicial discretion in accordance with general principles of equity. A copy of such opinion, certified by an officer of the City by his facsimile signature, will be printed on the back of each definitive Bond without charge to the purchaser. ARBITRAGE: On the basis of the facts, estimates and circumstances ( including covenants of the City) in effect at the time of issuance of the Bonds, it is not expected that the proceeds of the Bonds will be used in a manner that will cause the Bonds to be arbitrage bonds and the City will fur- nish to the successful bidder at the time of delivery of the Bonds an arbitrage certificate certifying to the foregoing. NO LITIGATION: There< is no litigation pending concern- ing the validity of the Bonds, the existence of the City or the title of the officers thereto 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. Bidders are referred to the Preliminary Official Statement for further particulars. CERTIFICATE CONCERNING OFFICIAL STATEMENT: The City will provide to the purchaser of the Bonds a certificate of an appropriate officer of the City dated as of the date of delivery of the Bonds to the effect that to the best of such officer 's knowledge and belief, and after reasonable inves- tigation, (a) neither the Official Statement nor any amend- ment or supplement thereto contains any untrue statement of a material fact or omits to state any material fact neces- sary to make the statements therein, in light of the circum- stances in which they were made, not misleading; (b) since the date of the Official Statement, no event has occurred which should have been set forth in an amendment or supple- ment to the Official Statement which has not been set forth in such an amendment or supplement; and (c) there has not been any material adverse change in the operations or finan- cial affairs of the City since the date of the Official Statement. STATEMENT OF NET INTEREST COST: Each bidder is requested, but not required, to state in its bid the total net interest cost of its bid in dollars to the City, and the percentage net interest cost determined thereby, which shall be considered informative only and not binding on either the bidder or the City. OFFICIAL STATEMENT; The City has caused a Preliminary Official Statement to be prepared containing additional A-7 information relating to the Bonds and the City, copies of which may be obtained from the City 's Financial Consultant named below. The City will furnish to the successful bid- der, at no charge, a reasonable number of copies of the Anal Official Statement (but not to exceed 3 ) for this issue for use in connection with any resale of the Bonds. INFORMATION AVAILABLE: Requests for copies of the Pre- liminary Official Statement pertaining to the Bonds, or for other information concerning the City, should be addressed to the Financial Consultant tai= the City: Seidler-Fitzgerald Public Finance 515 South Figueroa Street, Sixth Floor Los Angeles, California 90071-3396 ( 213) 624-4232 A-8 GIVEN by the order of the City Council of the City of Redlands by resolution adapted on January 5, 1988. i fsj Lorrie Poyzer City Clerk of the City of Redlands, California A-9 GE 0255C BID FOR THE PURCHASE OF $7 ,620,000 CITY OF REDLANDS GENERAL OBLIGATION BONDS SERIES 1988A February —, 1988 City Council of the City of Redlands Redlands, California Pursuant to the Notice Inviting Bids hereinafter men- tioned, we offer to purchase the Bonds designated as "City of Redlands General Obligation Bonds, Series 1988A" in the total principal amount of $7,620,000 plus a premium of $ F making an aggregate sum of $ plus interest accrued on such Bonds from February 1, 1988 to the date of delivery thereof. The and are to bear interest at the rates set forth in the following schedule: Maturity Principal Interest Maturity Principal Interest (February 1) Amount Rate (February l Amount Rate 1989 $ 65, 000 % 2004 $215,000 % 1990 75,000 2005 230,000 1991 80,000 2006 250,000 1992 85,000 2007 270,000 1993 90,000 2008 290,000 1.994 100, 000 2009 315,000 1995 105,000 2010 340,000 1996 115,000 2011 365,000 1997 125,000 2012 395,000 1.998 135,000 2013 425,000 1999 145,000 2014 460,000 2000 155,000 2015 495,000 2001 170,000 2016 535,000 2002 185t000 2017 580,000 2003 200,000 2018 625,000 This bid is made subject to all the terms and conditions of the Notice Inviting Bids heretofore published, all of which terms and conditions are made a part hereof as fully as though set forth in full in this bid. As specified in the Notice Inviting Bids, this bid is subject to acceptance not later than twenty-six (26) hours after the expiration of the time for the receipt of bids, and the opinion of the Bond Counsel firm< of Best, Best & Krieger, Riverside, California, approving the validity of A-10 the Bonds, will be furnished us (if we are the successful bidder) at the time of delivery of the Bonds at the expense of the City. There is enclosed herewith a cashier ' s check in the amount of Seventy-Five Thousand Dollars ($75,000) payable to the order of the City. our calculation of the net interest cost and net inter- est rate, which is considered to be informative only and not a part of the bid, is as follows: Total Interest $ Less Premium Net Interest Cost Net interest Rate % Following is a list of members of our account on whose behalf this bid is made. Respectfully submitted, Name: (Account Manager ) By: Address: City: State: A-11 GES0255C ggggg", EXHIBIT B NOTICE OF INTENTION TO SELL $7,620,000 CITY OF RE LAN SGENERAL OBLIGATION BONDS SERIES 1988A NOTICE IS HEREBY GIVEN that the City of Redlands ( the "City") intends to sell at public sale $7,620,000 "City f Redlands General Obligation Sends, Series 1988A" (the "Bonds") to aid in the financing of the acquisition of park: and recreation lands and gran space lands:. Bids will be received on Tuesday, February 2, 1988 (and without further advertising and so long as ,a proposal has not theretofore been accepted by the City, Tuesday, February 9, 1988, and each Tuesday thereafter) at 1180 a.m. Pacific Standard Time at the following location; Seidler-Fitzgerald Public Finance` 515 South Figueroa Street, Sixth Floor Los Angeles, California 90071-3396 The City has caused to be prepared a detailed Offi- cial Notice of Sale and Preliminary Official Statement, copies of which will be furnished upon request from Seidler- Fitzgerald Public Finance, 515 South Figueroa Street, Sixth Floor, Los Angeles, California 0071--3396, ( 213) 624-4232. C1 ty Clerk oaf the City cf Redlands, California -- ES0 55 LAW OFFICES OF ARTHUR L-LJTTLEWORTH I,1tQGHYTA A.ETTINGER BEST, BEST & KRIEGEFS. OFF ES IN GLEN E.STEFIENS- VICTOR L,WO!F WILLIAM R,DeWOLFE OAN:EL r.OUVtER A NA—ERSHIP INCLIJOING PROFESSIVNAL CORPORATIONS BARTON C.GAUT. DANIEL:i,WHUGH 400 MISSION SOUARE PALM SPRINGS CHARLES D.FIELD CARL F,HERBO,D '619) 32S-7264 PAUL T,SEL25R STEPHANIE K.HARLAN 3750 UNIVERSITY AVENUE DALLAS HOLMES MARC E-EMPEY CHRTSYOPHEA CARPENTER- JOHN R:ROITSCHAEFER PO-5`7 OFFICE, BOX W023 RANCHO MIRAGE RiCHAfT0 T.ANDERSON* MARTIN A.MUELLER JOHN VrWAHLIN* J,MICHAEL SUMMERCUP RIVERSIOE�CALIrORNIA 92SO2 ('a4sa"SGS—Iren MICHAEL 0 HARRIS. HOWARD B.SULDS W.CURT EALY- EUGENE TANAKA TELEPHONE 686-14SO -rHOMAS S.SLOVAK MARGARET F.TANAKA SAN DIEGO JOHN E.BROWN- SAIL T.CHAP14AN TELECOPIER '714) 686-3083 619'457-4915 RONALIT J.KOHL JEFFERY J.CRANDALL MICHAEL T.RIDDELL E 5C07T C,SWTH MEREDITH A.J(JPY* LANCE A,ADAIR RAYMOND DCS r"IS68-IAG7'' GOPCION COLOGNE 0 COUNSEL MICHAEL GRANT JACK S.CLARKE JAMES H.KRIEOt'R SON�,0" FRANCIS J.BAUM* JEANNETTE A.PETERSON JAMCS B.CORI F COUNSEL ANNE T'THOMAS- TERI L.VOLLNOGLE EuGrVc sr--r RICHARD A.OSMINS#OF:COUNSEL 0,MARTIN 14CTHERY BARBARA E.KRISTAL AMMtT7CP SN NEW YORA,HLVACA GEORGE M,REYES BRFAN M.LEWIS YES. W.FLOYD.JRV MCITHY M.CONNOR MICHAEL A.ORiSTIE A. GEORGE H,CHANT= GREGORY L,,HAROKE RONALD A.VAN BLARCOM RICHARD CROSS REBECCA 0,HIC:KOX KENDALL H,MAOVEY BRADLEY C.NEUFFLO CLARK H.ALSOP ELISE. K.TRAYNUM DAVID J,ERWIN DONALD P.BREWSTER LARCH J.ANDELSON CECT S,WU December 29, 1987 DOUGLAS S.PHILLIP$ DAVID A,ffRANDENSURG CHARLES M.E"tS- MICHAEL C.HULME.JR. LANTSON C.ELDRED* GEOFFREY K,WILLIS IRWIN L,GOUDS WILLIAM 0,0AHLING,JR, ANTONIA G.WEINER WYNNE 5,FURTH GREGORY K,WILK#NSOI,4 KANDY LEE ALLEN HARLEY L.SJELLAND T,HOMAS W,WEIOENBAC14 DAVID L,5ARON TERESA J.McEUHANNON A PROFESSIONAL CORPORATION VIA MESSENGER Ms. Lorrie Poyzer City Clerk City of Redlands 30 Cajon Street Redlands, CA 92373 Re: City of Redlands General Obligation Bond Issue Dear Lorrie: Please find enclosed the original and 12 copies of the resolution authorizing solicitation of bids for the General Obligation Bonds (Park Land and Open Space Project) . Very truly yours, n tschaefer r �s Be; est & Krieger JRR:bmf LAW OFFICES. OF ARTHUR J-LITTLEWOR th vIRGINXA A.ETTINC R BEST,.: BEST CSX KRIEGER. OFFICES IN GLEN E.STERN ENS:* VICTOR L.WOLF WILLIAM R,O€WOLF'£+ DANIEL E.L]Lt'dBER. A...PASiTNEgSHIV INCUJ' ING wa ROFt F5IdNAL rORFORATIONS- BARTON C.GAUT* DANIEL J•MCHIJG.H :PALM SPFANGS SD.FIELD CARL F.HrRHOLO CNARLES 40D MISSION 54�UARE PAS L T.:SELZER*. STEPHANIE K.HARLAN 3750 UNC VERSITY: AVENUE S6t9y 32'5-T26+6: DALLAS HOLMES* MARC E.EMPEY. CHR€STOPRCR CARPENTER'": JOHN RROTTSCHAEFER. POST OFFICE E30X IOP-S, RANCHO MIRAGE:: RSCRARD T.ANDERSON* MARTIN A.MUELLER . .'655;,^5�Fr8-261'.f .tOHN 0,WAFIUN .� MICHAEL,SUM#.t EkT.LD 17 Fe. RIVERSIDE,. CALIPC.7 F23+�IA 92S ES 2. M iCHAEL 0,HARRIS:'* HOWARD D.GOLD$ W.CURT EALY- EUGENE TANAKA TELEPHONE-7T4)686-4,450: SAW DIEGO THOMAS S.SLOVAK ti MARGARET P.TANAKA JFSNN E.BROWN BASIL T.CHAPMAN TEL.ECOPRR (734) 6815-30383. gEIR` 457-491:15 RONALD J,KOUT JEFFFRY J.CRANDALL _. MICHAEL EIT T.RI 00C JVRY L* CC.CE C.ADAIR. r�..:AYYMOND BEST(4868-18�S7.:. GORDON COLOGNE,OF COUNSEL ITH f�EREt}1YEi... A.,JURY+ L4NCE.A.A:E?AIR MICHAEL GRANT :;JACK B.CLARKE JAMES H.KMEGER'Y5a3-I97S) JAMES 9,COIRISON,OF COUNSE.L.. FRANCIS J.BAUk«D*.. JEANNETTE A.PETERSON EUGENE BEST(I89:3-t98f) RICHARD A.OSH;NS,OF CO NSCI- ANNE T.THOMAS* TEFU L.VOLLNOGLE D.MA141IN NETHERY.* BARBARA E.KRISTAL A�MEsvC€�IR N€^a�'YORK,i3EVAgA. G BORGE M.REY ES: BMAN M.LrWi v+A�x+.IaaG.r�,+N,�.c.UCs�+aT or�Lnq M 5: W.LLIAM W.FLOYD, „R. TIMOTHY W.CONNOR M IC HAEL.A,CRISTE* GEORGE:H,CHANT M GREGORY L.HARDKE RONALD A:.VAN BLARCOM RICHARR CROSS: REBECCA O.HICKOX KENDALL.H.M--VEY. BRADLEYE..NEUFE.LD... CLARK H.. A¢,SOP ELISE K.TRAY NOM January 1. � 198 CAVVIiD J.ER""IN x DONALD P. BREWSTER MICHAEL J.ANDELSON vt. GECIUA$:.WU DOUGLAS S.PHILLIPS* DAVID A.BRA N DEN BU RG CHARLES f+4.ELOS* MICHAEL E.HULME,JR.. LANTSON E.ELDRE€7*. GEOFFREY K.WJ LLIS.. IRWIN L. OLDS WILLIAM 0,CDAKUNG,JR:: ANTONIA G.WEMER WYNNE S-:FURTH GREGORY K.WILKI.NSON :KAN CDY LEE ALLEN HARLEY L.BJELLAND THOMAS W.WEIDENEAC-'H 6A.VIO L.BARON TERESA J.McELHANNON. A PROFESSIONAL CORPORATION The City of Redlands 30 Cajon Street P . C. Box 280 Redlands, CA 92373 Attention: Louie Pay e City Clerk Re: $7 ,620, 000 City of Redlands General Obligation Bond, Series 1988A Resolution No. 433 ; I „ F Deal Ms. Poyzer Enclosed please find Official Notice of Sale pertaining to the above. Please have this document published, in the t a l r 'a is no later than January 22 , 1988. Should you have any questions, please contact- e, eery; truly yours, en E. .9thn of } est, Best & Krieger GES -nd OFFICIAL NOTICE_OF SALE CITY OF REDLANDS COUNTY OF SAN BERNARDINO, CALIFORNIA NOTICE INVITING BIDS $7,620,000 CITY OF REDLA IDS GENERAL OBLIGATION BONDS' SERIES 1988A NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of Seven Zillion Six Hundred Twenty Thousand; Dollars ($7,620,000) principal amount of general obligation bonds of the City of Redlands (hereinafter referred to as the "City") will be received by the City up to the time and at the glace specified. TIME. Tuesday, February 2 1988 11:00 o'clock a.m. Pacific Standard Time PLACE. Seidler-Fitzgerald Public Finance 515 South Figueroa Street, Sixth- Floor Los Angeles, California 90071-3396 The bide will be received at the above time and place, will be opened by the Financial Consultant and,/or Band Coun- sel and will be presented to the City Council of the City at its meeting to be held within 26 hours thereafter . There- after, after, with out ,further advertising and so bang as a proposal has not theretofore been accepted by the City, bids will be received on Tuesday, February 9, 1985 and each Tuesday thereafter at 11: 00 a.m. Pacific Standard Time at the above location until bids are received and accepted. The Brands will be issued pursuant to Article 1 of Chap- ter 4 of Division 4 of Title 4 of the Government Code of the State of California (commencing with Section 43500 thereof) (the "Law" ) and a Resolution lution to be adopted by the City Coun- cil prior to the delivery of the Bands to the successful bidder (the "Resolution") . The Brands are more particularly described in the Preliminary Official Statement, copies of which will be furnished to any interested bidder upon request. See "Official Statement" herein. The Bands are generally described as follows q x " ISSUE: Seven Million Six Hundred 'T'wenty Thousand Dollars ($7,620,000) designated "City of Redlands General Obligation Bonds, Series 1988A" ( the "Bonds") . The Bonds shall be in registered form only, in the principal amount o ;5, 000 or any integral multiple thereof and shall be dated as of February 1, 1988. MATURITIES: The Bonds will mature on February 1 as follows: Maturity pate Principal Amount 1989 5,000 1990 75,000 1991 80,000 1992 85,000 1993 90,000 1994 100, 000 1995 105,000 1996 115,000 1997 125, 000 1998 135,000 1999 145,000 2000 155,000 2001 170,000 2002 185,000 2003 200, 000 2004 215,000 2005 230,000 2006 250,000 2007 270,000 2008 290,000 2009 315,000 2010 340,000 2011 365,000 2012 395,000 2013 425,000 2014 460,000 2015 495,000 2016 535,000 2017 580,000 2018 625,000 } r INTFRL'8T: The Bonds will bear interest at a rate to be fixed upon the sale thereof, but not to exceed twelve pier- cent (12% ) per annum, payable commencing August 1, 1988, and semiannually thereafter on February 1 and August 1 in each year. a -2- ���rtd tr�� t t PAYMENT: The Bands and the interest thereon and any premiums upon the redemption thereof prior to maturity are payable in lawful money of the United States of America. Interest on the Bonds is payable by mailed check or draft except for final interest payment at maturity or upon redemption. Principal on the Bonds is payable at the prin- cipal corporate trust office of the Paying Agent for the City, Bank of America National Trust and Savings Associa- tion, San Francisco, California. REGISTRATION: The Bonds are issued as fully registered Bonds payable to the registered owner. 'transfer of owner- ship of a Bond or Bonds shall be made by exchanging the same for a new Bend or Bonds of the same maturity. All of such exchanges shall be made in such manner and upon such reason- able e son--able teras and conditions as may from time to time be deter- mined and prescribed by the City, provided, however, no such exchange shall be made between the fifteenth ( 15th) day of a month preceding any interest payment date and such interest payment date. OPTIONAL REDEMPTION: Bonds maturing on or before Febru- ary 1, 1993, are not subject to redemption before their stated maturities. Bonds maturing by their terms on or after February 1, 1994, are subject to redemption as a whole or in part in inverse order of maturity (and by lot within any one maturity) prior to their respective maturity dates, at the option of the City, on any interest payment date on or after February 1, 1993, from moneys derived by the City from any source, at the following redemption prices (expressed as a percentage of the principal amount of bonds called for redemption) together with accrued interest thereon to the date fixed for redemptions Redemption Dates Redemption Price February 1, 1993' to August 1., 1993 10 February 1 1994 to August 1 , 1994 1012 February 1, 1995 to August 1, 1995 loll February 1 , 1996 to August 1, 1996 10021 February 1 ,- 1997 and thereafter 10 NOTICE OF REDEMPTION: Notice of any redemption jaill be mailed to the respective registered owners of the Bonds designated for redemption as provided in the Resolution. Bidders are referred to the Preliminary Official Statement for further particulars (see "Official Statement" herein) . PURPOSE OF ISSUE: The Bonds are to be issued by the City in order to acquire certain park and recreation lands and open space lands within and for the benefit of the 'City PURPOSE OF ISSUE!- The Bonds are to be issued by the City in order to acquire certain park and recreation lands and open space lands 1n,�° for the benefit of the City lzaa A pr d � 3- 4It w ( t�}t� W`'d5gy { rf$\t `1i�4t �y3a5 _Was;.akwa�s;;?n3",din.+�'ai5"srcs�u�*f�333p�a"rst,`���'i.�iak'�`���,�s��bn{�tx?�".4ttss�iNs,..1 a.f4�Rt��Ss ��tll�z�i 3x�at��1. .ht ans'�.,.. P ` and its: inhabitants. Bidders are referred to the Prelim- inary Official Statement for further particulars (see "Offi- cial Statement" herein) . SECURITY: The Bends are general obligations of the City of Redlands and the City has the power, is obligated and has covenanted to levy ad valorem takes open all property within the City subject to taxation by the City, without limitation as to rate or amount, for the payment of the Bonds and the interest thereon. TERMS ' 3F SALT: INTEREST RATE: Maximum on any maturity of the Bonds not to exceed twelve percent ( 12x) per annum, payable on August 1, 1988 and semiannually thereafter on February 1 and August l of each. year. Bidders must specify the rate or rages of interest which the Bonds shall bear; -provided that (a) all Bonds maturing by their terms in any one year rust bear the same rate of interest; (b) each interest rate spe- cified must be in a multiple of 1120 or 1,/8 of l and a zero rate of interest cannot be specified; "(c) no Band shall bear more than one rate of interest; (d) each Bond shall bear interest front its date to its stated maturity date at the interest rate specified in the bid; and (e) any premium must be paid in immediately available move' s 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 immediately available moneys;. Bids which do not conform to the tens of this paragraph will be, rejected, AWARD: The Bonds shall be sold for cash only. All bids must be for not less than all of the Bonds hereby offered` for sale and each bid shall state that the bidder offers accrued interest to the date of delivery, the purchase price, which shall not be less than one hundred percent ( 100%) of the principal amount of the Bonds hereby offered, and the interest rate does not exceed that specified herein, at which the bidder offers to buy the Bonds. Each bidder shall state in his bid the total net interest cost in dol- lars and the net interest rate determined thereby, which shall be considered informative only and not a part of the bice., HIGHEST BID: The Bonds will be awarded to the highest responsible bidder . The highest bid will be determined by deducting the amount of the premium bid (;if any) from the total amount of interest which would be required to be paid -4- �}r _.,.... . mr f.,�. 1�4�,s.,.sc 1k, r �ba' ''.tuix i:c`rt��'�„7 ;,n':.-;',r�2 Y' on all Bonds from February 1, 1988, to the stated maturity date of the Bonds at the applicable interest rate 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 accruedinterest, computed on a 360-day year basis, from the date of the Bonds to the date of delivery. The cost of printing the Bands will be borne by the City. RIGHT OF REJECTION: The City reserves the right, in its discretion, to reject any and all bids and, to the extent not prohibited by law, to waive any irregularity or infor- mality in any bid. PROMPT AWARD: The City will take action awarding the Bonds or rejecting all bids not later than twenty-six ( 26) hours after the time herein prescribed for the receipt of bids; provided that the award may be made after the expira- tion pira-tion of the specified time if the bidder shall, not have given to the City notice in writing of the withdrawal o such bid. CUBIP. CUBIP identification numbers may be imprinted on the Bands, but such numbers shall not constitute a part of the contract evidenced by the Bonds and no liability shall: hereafter be attached to the City or any of the officers or agents thereof because of or on account of said numbers. Any error or omission with respect to said numbers shall not constitute cause for refusal by the successful bidder to accept delivery of and pay for the Bonds. CALIFORNIA DEBT ADVISORY COMMISSION FEE, Attention of bidders is directed to California Government Code Section 8856, which provides' that the lead underwriter or the pur- chaser of the Bands may be charged the California Debt Advi- sory Commission fee, which is 1 88th of 1 percent of the principal amount of the Bonds not to exceed $2,508., DELIVERY AND PAYMENT ; Delivery of the Binds will be made to the successful bidder at the offices of Best, Best Krieger_, Bond Counsel, 488 Mission Square, 3750 University Avenue, Riverside, California, on or about February 17, 1988 , Payment for the Bonds must be made by federal funds check of funds immediately available to the City in Los Angeles, California, Any expense of providing such funds shall be borne by the purchaser. CANCELLATION FOR LATE DELIVERY: The successful bidder shall have the right, at his option, to cancel the contract of purchase for the Bonds if the City shall fail to execute the Bonds and tender them .for delivery within 68 days from as the award of the sale of the Bonds, and in such went the a a ' successful bidder shall be entitled to the return of the proceeds of the check accompanying his bid. ECRM OF BIB; NO DISCOUNT: All bids mint be for not less than all of the Bonds hereby coffered for sale and for not less than one hundred percent (100 ) of the par value thereof and accrued interest thereon to the delivery date. Each bid, together with the bid check rust be in a sealed, envelope, addressed to the City, with the envelope and bid clearly marked "Bid for $7,620,000 City of Redlands General Obl-igation Bonds, Series 1988A" and delivered to its repre- sentative presentative at the address mentioned above. Each bid mast be unconditional and in accordance with the germs and condi- tions set forth herein, or permitted herein, and must be submitted on, or in substantial accordance with, bid forms provided by the City, BILA CHECK, A certified or cashier 's check on a respon- sible bank or trust company in the amount of Seventy-Five Thousand Dollars ($75,000) , payable to the order of the City, moist accompany each bid as a guaranty that the bidder , if successful , will accept and pay for the Bunds in accor- dance with the terms of his bid. The ;check accompanying any accepted bid shall be cashed and the proceeds thereof applied to the purchase price. If such bid is accepted but not performed, unless such failure of performance shall be caused by any act or omission of the City, the proceeds of the check accompanying any accepted bid shall be retained by the City. The check accompanying each, unaccepted bid will be returned promptly. No interest shall be paid upon the deposit made by any bidder. CHANGE IN TAX-EXEMPT STATUS: At any time before the Bonds are tendered for delivery, the successful bidder may disaffirm and withdraw the bid if the interest receive by private owners from notes or bonds sof the same type, and character shall be declared to be includable in grass income under present federal income tax Saws, either by a ruling of the Internal Revenue Service or by a decision of any federal court, or shall be declared taxable by the terms of any federal income tax law enacted subsequent to the date of this notice. LEGAL OPINION: The opinion of the Bond. Counsel firm of Best, Fest & Krieger, Riverside, California, approving the validity of the Bonds and stating that interest on the Bonds is excluded from gross income under present federal income V tax laws and that such interest is also exempt from personal income taxes of the State of California under present State income tax laws, will be furnished the successful bidder at or prior to the time of delivery of the Bonds at the expense -6- of the City. The legal opinion will be subject to laws affecting creditors ' rights and to the exercise of judicial; discretion in accordance with general principles of equity.. copy of such opinion, certified by an officer of the City by his facsimile signature, will be printed on the back of each definitive Bond without charge to the purchaser. ARBITRAGE: On the basis of the facts, estimates and circumstances ( including covenants of the City) in effect at the time of issuance of the Bonds, it is not expected that the proceeds of the Bonds will be used in a manner that will. cause the Bonds to be arbitrage bends and the City will fur- nish to the successful bidder at the time of delivery of the Bonds an arbitrage certificate certifying to the foregoing. NO LITIGATION: There is no litigation pendingconcern- ing the validity of the Bonds, the existence of the City or the title of the officers thereto 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. Bidders are referred to the Preliminary Official Statement for further particulars. CERTIFICATE CONCERNING OFFICIAL STATEMENT: The City will provide to the purchaser of the Bonds a certificate of an appropriate officer of the City dated as of the date of delivery of the Bonds to the effect that to the best of such officer 's knowledge and belief, and after reasonable inves- tigation, (a) neither the Official Statement nor anis amend- ment or supplement thereto contains any untrue statement of Material fact or omits to state any material fact neces- sary to 'make the statements therein, in light of the circum- stances in which they were made, not misleading; (b) since the date of the Official Statement, no event has occurred which should have been set forth in an amendment or supple- ment to the Official Statement which has not been set forth: in such an amendment or supplement , and (c) there has not been any material adverse change in the operations or finan- cial affairs of the City since: the date of the Official Statement. STA'T'EMENT OF NET INTEREST COST: Each bidder is requested, but not required, to state in ,its bid the total net interest cast of its bid in dollars to the City, and the percentage net interest cost determined thereby, which shall be considered informative only and not binding on either the bidder or the City. OFFICIAL STATEMENT: The City has caused a Preliminary Official Statement to be prepared containing additional x> -7- Alll s y! information relating to the Bonds and the City, copies of which may be obtained from theCity' s Financial Consultant named below. The City will furnish to the successful bid- der, at no charge, a reasonable number of copies of the final Official Statement (but not to exceed 00) for this issue for use in connection with any resale of the Bonds. INFORMATION AVAILABLE: Requests for copies of the Pre- liminary Official Statement pertaining to the Bonds, or for other information concerning the City, should be addressed to the Financial Consultant to the City; Seidler-Fitzgerald Public Finance 515outh---Figueroa Street, Sixth Floor Los Angeles, California 90071-3396 (213) 624-4232 �t �r GIVEN by the order of the City Council of the City of Redlands by resolution adopted on January 5, 1988. CI yclerk of, City of Redla,nds, Calf rnia i i _g_ GES0255C �M ".:, ,,,.,,.:. .anar.*cs xtirititia„>f,ssStas}i;�\\\lst4`iis;{fit2�7r{fiS11iY,�;< ttt t'€" tcs'hSSs'St3tc tt,}i�t�tz*,ssy sst�}§,roc{;gr��'��j tt,{,(�s �re.� ,s,,�$$Ms`i31"."fi�`"; BID FOR THE PURCHASE OF $7, 620, 000 CITY OF REDLANDS GENERAL OBLIGATION BONDS SERIES 1988A February r' 198$ City Council of the City of Redlands Redlands_, California Pursuant to the Notice Inviting Bids hereinaftermen- tioned, we offer to purchase the Bonds designated as "Cit of Redlands General Obligation Hands, Series 1988A" in the total principal amount of $7,620, 000 Plus a premium of , making an: aggregate sum of $ plus interest accrued on such Bonds from February, 1, 1988 to the date of delivery thereof. The Bonds are to ?year interest at the rates set forth in the following schedules Maturity Principal Interest Maturit (February l Amount Rate Y Principal Interest (Februar 1 Amount Rate 1989 55,000 1990 75, 000 2004 $215,000 1991 00,000 2005 230,000 1992 85, 000 2006 250,000 1993 90, 000 2007 270, 000 1994 100,000 2008' 290,000 1995` 105,000 2009 315,000 1996= 115,000 2010 340,000 1997 125, 000 2011 365, 000 1998 135, 000 2012 395,000 1999 145,000 2013 425,000 2000 155, 000 2014 460, 000 2001 170, 000 2015 495, 000 2002 185,000 2016 535, 000 2003 200, 000' 2017 580,010 2018 625, 000 This bid is, made subject to all the terms and conditions of the Notice Inviting Bids heretofore published, all of which teras and conditions are mage <a part hereof as fully as though set forth in full in this bid. As specified in the Notice Inviting Bids, this bid is subject to acceptance not later than twenty-six (' 26) hours after the expiration of the time for the receipt of bids, and the opinion of the Band Counsel:; firm of Best, Best Krieger, Riverside, California, approving the validity of d 10�° the Bonds, will be furnished us bidders at the time Of delivery of h Bonds atif we are expenssuccessfue of the City- P ase There is enclosed herewith a cashier 's check in the amount of ;eventY -Five Thousand Dollars ($75,000) Payable to the order of the City. Our calculation of the net interest cost and net inter- est rate, which is considered to be informative only and not a ,part of the bid, is as follows: Total Interest Less Premium $ Net interest Cost Net Interest Rate Following is a list of members of our account on whose behalf this bid is made. Respectfully submitted, dame (Account Manager} By: Address: City: State: i k. i t k CF 02550 rc tis ,x Yz,�tzii�;5�,tsTM,ztiti��Sg�ttl7ltkaifi,lif'� «„�2L ,r�i 7,1.. �c„3 �At�t�. "fi4}} �: art Sir Y tuft rai,Sl t �'1.� 11 t, � C. c i i t „L}, F'RC9Ct,4 THF. ['7}Fft.E 7f Th§E CITY CLERK 31) G1TV KALI, cr:,rc�uSaaFT ate C)L ANtl`, &A.9',1371 & PHONE (7”t 4)798-753.9 CITY OF REDLANDS, CALIFORNIA January 27, 1988 Glen E Stephens Best, Best & Krieger Post Office Box 1028 Riverside, CA 9502f Lear Mr. Stephens: Enclosed Please find Proof of Publication of the 7, 620,000 City of Redlands General Obligation Bond, Series 1988A, Sincerely, Lorre Poy e City Clerk LP:calm Enclosure 3 ti i LAW OF-FIcES OF- ARTHUR L-LST LEWORTH'* V:RGfNfA A.ETTUYG ER S E ST, BEST K R t EER GLEN E.STEPHENS' VICTOR L.WOLF OFFICES roc WILLIAM R OtWOLFE'�. DAN EL E.OUVIEFP A PrRTNCRSHIP eNC.UC1W.lAOtC5510NAL COR�R,+.Ts4N5 BANTON C.GAUT w DANIEL J.MCHUG:R %HARLES D.F€ELD* CARL.F.HERBOLD 400 MISSION 50OARE PALM SPRIAGS DALLAS S SELME � STEPN IE K.Yf.ARLVN 37-5C} UNIVERSITY AVENUE (615 12F.-7c64 LJ.aLLAS Ht)(,M ES s MARCMAR4�.E.Ehi P£Y CFIRISTOPMFI'4 CAR PEItTE:R* JOHN R.POTT SCHAEFEP r-'C1 .7 OFFICE SC3X IBJ..? + RICHARD T.ANDERSON* MARTIN A,MUELLER fthNar.Mp MIRAGE .#E3NN Ct WAHLiN" J MIC:.HAEL, SLIMMEROuR F'�'l V:F'RiSIOE;CALIFORNIA:52SC7.2 =619) S68 26f MICHAEL G.HAFtRJS HOWARD B,GOLDS `Wh CURT EALI- EUGENE TANAKA: TEL CPHUTNE(714)686-1.45[3 THOMAS S.SLOVAK' MARGARET F TANAKA JOHN E..BROWN* BAS(L.:.CHAPTELEECOPJER (7t4) 666.,.3E E3.� SAN OIE�C7 RONALD J.KOHUT JEFFERY J.CRANDALL - t61.:j)457-4P15 MICHAEL T,RIDDELL.�+ SCOTT C.SMITH: MER€INTH A..JURYa LANCE:A,ADAFR RAYMOND BEST(.I8t PJ- q5) -� MtlCHAEL GRANT JACK S.CLARK€. -`MES M.KRi>•:GT::R{I9r3-S97S) GORDON DON Ci%�.:QGzp£.OF v?54FM5EG FRANCIS J.BAUM. JE.ANNCTTV A PETERSON ,NAMES B..CQRBGNN,OF'COUNSEL ANNE T.THOMAS- TFRt L.VOLLNOGLE F,UGENE BEST(i&�3-IB@i): f�1Ck#AH{}A.:4'a"tal#5.13F. 'T"'NS£'L 0 MARTIN NETHERY>b BARBARA E.KRISTAL GEGFtGE M.REiYES FRIAR M,tCW15 aaMtnes�xro aerr YtxnK;:HevAaA WELLIAM W.FLOYD,JR, TIMOTHY M.CONNOR w+isxrNGrt tca;�c.c�um of rwl+es MICHAEL A.C..RiSTE+. GEORGE H CHANT'T,T{ GREGORY �L-HARDKE RONALD A,VAN BLARCOM RICHARD CROSS REBECCA 0,HIC:KOX: KENDALL H.MACVEY BRADLEY E.NEUFELD ry 1988 T [ p CLARK H,ALSOP ELISE K.TRAYNUM February r�.#�.r� .G� 1 IY7 C3 DAVID J.ERWIN- DONALD P.BREWSTER MICHAEL J.A:NDELSON A: CECILIA S.WU DOUG LAS S.PHILLIPS* DAVID A,BRANDENBURi, CHARLES M.ELLIS* MICHA:.:CL E.HULME,JR, LANTSON E ELDRED A GEOFFREY K.WILLIS IRWIN L.GOLO5WILLIAM O7 DARLING,JR.ANTONIA G.WEINER WYNNE:S.FURTH GREGORYK-WILKINSON KANDY LEE ALLEN HARLEY L.SJELLA €3 THOMAS W.WEB)rNBACH DAVID L.EIARON TERESA J.MtELNANNfON 'k A PROFESSIONAL CORPORATION Mayer and Citic Council of the City of Redlands 30 Cajon Street Redlands, CA 92373 Re: Proposal for Brand Counsel Services for General Obligation Band Issue Wadies and Gentlemen: We are pleased to submit this proposal for bond counsel services in connection with the issuance of general obligation bands in the principal amount of $7,620,000 by the City of Redlands. The firm of Fest, Best & Krieger would be pleased to serve as bund counsel on this financing and proposes to perform the following services on the basis :set forth in this letter . We will confer and d consult with City staff .'anal the City's financial consultant on all ratters relating to the financing including participation in the review and selection of appropriate .financing methods. We will assist the City in identifying the most advantageous method of financing based upon our experience and we will attend all meetings of the City's staff and consultants at which i financing methods are to be discussed and analyzed for successful completion of the financing. 4,4 Our services will include the preparation of all ordinances, resolutions, notices, bid forms, band forms and ftp, x� r LAW OrPICES OF EBE T, EENT & KRIEGER Mayor and City Council of the City of Redlands February 2, 1908 Page other documents required in the proceedings. We will also review any official statement prepared on behalf of the City, and attend all meetings in which any action in connection with the proceedings is to be taken. Subject to completion of the financing satisfaction, Best, Best to our Krieger will issue its approving legal opinion to the purchasers of the bands to the effect that all proceedings have been legally undertaken for the authorization, issuance, sale and delivery of such bands, or other transactions relating to the financing and that interest paid with respect to the bonds is excluded from gross income for purposes of federal income taxation and is exempt from State of California personal income taxation. We will also issue appropriate supplemental opinions and certificates as may be necessary or appropriate. Our fee for the foregoing legal services, will be based on the total principal amount of bonds to be sold and will be computed as follows: Total Amount of Bonds authorized Fee $1. 000,003 or less $10,000 $1,000, 000 to $5,000,000 $10,000 plus . 40% of the excess over $1,000,000 $5,000,0oo to $10,000,000 $20,000 plus . 15% of the excess over $5,000,000 $10,000, 000 of more $33, 500 plus . 10% of the excess over $10,000,000 The above fees will be payable only upon completion and sale of the bonds from the proceeds of the financing, and not otherwise. if other services are requested by the City which are not within the scrape of those outlined above, they will be performed on a time basis at the hourly rate of the attorneys involved. In the event this financing is not completed for any reason, the City will have no liability �r s LAW OFPICES OF SEST. B ST & KRI GE Mayor and City Council of the City of Redlands February 2, 1988 Page 3 for any fees incurred by our firm with respect: to the financing. In addition to theabove band counsel fees, we would expect to be reimbursed by the City for out-of-pocket expenses incurred by us on behalf of the City, such as long distance telephone calls, telegrams, messenger and courier services, travel at the request of appropriate City officials, duplicating, computer time sharing and the like. If this arrangement is satisfactory to you, please; authorize our employment according to the terms of this letter and return to us a copy of this letter executed by an authorized officer of the City. Respectfully submitted, Glen E. Stephens of Best , Best & Krieger CES*ec TERMS OF BOND COUNSEL EMPLOYMENT APPROVED THIS , DAY OF FEBRUARY, 1988. thorn. ed Officer of the ty of 'Redlands t