Loading...
HomeMy WebLinkAbout1990 Resolution No. 089_,..... RESO LUTION NO, 81 SE RI ES OF 1990 A RESOLUTION PROVIDING ·FOR THE NOTICE OF SALE OF A SPECIAL REVENUE GOVERNMENTAL AGENCY BOND OF THE CITY OF ENGLEWOOD, COLORADO, IN THE PRINCIPAL AMOUNT OF $12,750,000 AND PROVIDING FOR THE PUBLICATION OF SUCH NOTICE. WHEREAS, the City owns, operates, and maintains a municipal sanitary sewer system and a sewage treatment plant as an income producing enterprise (the "System"); and WHEREAS, the City Council (the "Council") o! the city has determined that it is ne c essary to extend and improve tho sewage treatment plant, and that there are insufficient moneys in the city traasury to pay the costs thereof; and WHEREAS, the Council has determined that in order to finance such ca pital improvements to the sewage treatment plant, it is necess ary and advisable and in the best interests of the City to issue its special revenue governmental agency bond in the principal amount of $12,750,000 (the "Bond"); and WHEREAS, in accordance with Section 110 of the City Charter, it is necessary to advertise for the sale of such &ond: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO: Section 1. Of!icial Notice of Sale . The Official Notice of Sale of the Bond shall be published one time at least five days prior to such sale in the Enql£·1ood Sentinel and i n a financial newspaper published in Denver, Colorado. The Official N~tice of Sale shall be in substantially the following form: -2 - @ OFFICIAL NOTICE OF BO ND SALE $12,750,000 CIT'i OF ENGLEWOOD, COLORADO SPECIAL REVENUE GOVERNMENTAL AGENCY BOND SALE DATE: 2:00 P.M., MONDAY, DECEMBER 17, 1990 PUBLIC NOTICE IS HEREBY GIVEN that the City Council of the city of Englewood, Colorado, (the "City") will on Monday, December 17, 1990, at 2:00 P.M. local time, at the office of the Director of Finance, 3400 so. Elati Street, in Englewood, Colorado 80110, receive sealed bids and publicly open the same for the purchase of a special revenue governmental agency bond of the city, more particularly described below: ISSUE: City of Englewood, Colorado, Governmental Agency Bond, consisting of a single bond in the principal amount of $12,750,000 (the "Bond"). MATURITY: The Bond shall finally mature on September 1, 2012, and principal payments shall be scheduled to provide for substantially equal debt service payments. PURPOSE OF ISSUE: The Bond will be issued in connection with the paying of the cost cf extending and improving the City's sewage treatment plant. SECURITY: The principal of and interest on the Bond shall be payable solely fro~ the net revenues derived by the City fr om the operation of its s a nitary sewer system. TAX STATUS: The interest on the Bond shall be subject to federal and State of Colorado income taxation. SPECIAL RESERVE ACCOUNT: Each bidder will be required to establishaspecial reserve account in the anount of at least $1,000,000, with its own moneys and not from the proceeds of the Bond, to secure the payment of the principal of and interest on the Bond. Moneys contained in the reserve account shall be invested in obligations of the United States of America. All interest income from such reserve account shall be applied to reduce the interest payments due from the City on its Bond. The bidder will receive no credit or other repayment from the City in conside ration of establishing such reservo account. BID PROPOSALS: Any bidder is required to submit a written bid for the entire issue, specifying a not-to-exceed interest rate for the Bond. The City anticipates that the net effective interest rate for the Bond will be approximately 5.25t, and the City will not accept any bid at a net effective interest rate in excess of such amount. Each bid must be in a sealed -3 - n C envelope addressed to Linda Martin, Acting Director of Finance, City of Englewood, 3400 So. Elati Str eet, Englewood, Colorado 80110 . SALE (l) (2) (3) RESERVATIONS: the City reserves the privilege: Of waiving any irregularity or informality in any bid; Of rejecting any and all bids for the Bond; and Of reoffaring the Bond for sale in any mennar permitted by law . BASIS OF AWARD: The Bond will be awarded to the highest and best bidder, and to the best advantage of the City. TIME OF AWARD: The City will have bids opened at the time .'l erainabova specified. An announcement of the bast bid will be made immediately following the bid opening. The City intends to take action to award the best bid by resolution of the City Council at the regular meeting on December 17, 1990. INFORMATION: other informa tion concerning the City and the Bond may be obtained from Hanifan, Imhoff Inc., 1125 17th Street, Suite 1600, Denver, Colorado 80202, Attenti~n: Mr. Stephen A. Lyon, Vice President , (303) 291-5368, or Linda Martin, Acting Director of Finance, 3400 So . Elati Street, Englewood, Colorado 80110. By order of the City Council of the City of Englewood, Colorado, this 3rd day o f December, 1990 . ( SE AL) /s/ Patricia H. Crow City Clerk -4 - 0 2, severa~~lity, If any one or more sections or parts of this Resolution shall be adjuuged unenforceable c.r invalid, such judgment shall not aft<.,ct, imp air or invalidate ':he remaining provisions of this Resolution, it being the intention t h'lt t he various provisions hereof are severable , 3. Repealer. All resolutions, or p nrts ther•of, in conflict with this Resoluti~n are hereby rescinded ~n d annulled, ADOPTED AND APPRO ·r:t:' This 3rd day o1 Iler.ember, 1990. ( s EAL) J.~!'n, l~van Dyk~-- ATTESTED: ~"-'di~ Patrica H, Crow, city Clerk -5 - DATE December 3, 1990 INITIATED BY STAFF SOURCE COUNCIL COMMUNICATION AGENDA ITEM 11 (0(11) Bl-City Supervisory Committee SUBJECT Resolution providing for notice of sale of boncls relating lo Water Authority loan Linda Martin , Acting 31 J 119 gc1 n~ ~-,',,~ Stu Fonda, Director of Bl -City Wastewater Treatment Plant ISSUE/ACTION PROPOSED Staff recommends the Englewood City Counclt adopt the Resolution provlrihig !lit 't ile none!' of sale of a special revenue governmental agency bond. PREVIOUS COUNCIL ACTION City Council met ,vtth the City of Littleton City Council regarding the construction project for the Bl-City Wastewater Treatment Plant on Monday, Novembe r 26 , 1990. STAFF ANALYSIS Section 11 0 of the City of Englewood Home Rule Charier s lates: "The bonds shall be sold to the high est i,nd best bidders for cash, and lo the best a:lvantage of the City. The bonds may contai n provisions for call ing the same at designated periods prior to final due date as City Council may determine." In order to comply 1vtlh this requirement, the City must adopt a resolution lo provide for the bid process and advertisement. The advertisement will go lo a ll Investment bank ing firms In Denver and \viii be In Th P. Englewood Sentinel. We 1vtll request bids fer rntes of 65% of market and anticipate U,at we 1vtll receive no bids. In the unlikely event that we wou ld receive a bid, we will certainly consider It. We believe tha t this approach complies with the City Charter and establishes proof that th e Ci ty entered ln lo the best anrl lowest cost financing \vllh the Aulhorlly. FINANCIAL No financial lmpa •~ls a re anticipated rega rding lhl ~ Item .