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HomeMy WebLinkAbout1989 Resolution No. 020RESOWTION NO. ,? rJ SERIES OF 1989 A RESOWTION PROVIDING FOR THE NOTICE OF SALE OF SPECIAL ASSESSMENT BONDS OF THE CITY OF ENGLEWOOD, COLORADO, FOR PAVING DIST~.!CT NO. 33, IN THE PRINCIPAL AMOUNT OF $705,000 AND PROVIDHIG FOR THE PUBLICATION AND MAILING OF THE IIOTICE, WHEREAS, the City Council of the City of Englewood, Colorado (the "City"), has, by Ordinance No. 36, Series of 1988, created Paving District No. 33 (the "District"), for the purpose of const1ucting and installing street p~ving, curb and gutter and sidewalk !mprovements, together with necessary incidentals, on certain street s in the City; and WHERrAS, the City council has determined that it is neceesary to issue special assessment bonds for the District, !or the purpose of paying part cf the costs of such construction and install~tion; and WHEREAS, in accordance with Section 110 of the City Charter, it is necessary to advertise for the sale of the bonds; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO: Section 1. Notice of Sale. The notice of sale of special assessment bonds of the City in the principal amount of $705,000 (the "Bonds"), shall be distributed by the City's fi.nancial consultant, Hanifan, Imhoff Inc., Denver, Colorado (the "Financial Consultant"). Section 2 . Summary of Notice of Sale. A summary notice of sale o · the Bonds shall be published in the Englewood Sentinel one time prior to the sale date. The notice of sale and the summary thereof shall be substantially in the following form: -1 - OFFICIAL NOTICE OF BOND SALE $705,000 CITY OF ENGLEWOOD, COLORADO PAVING DISTRICT NO, 33, SPECIAL ASSESSMENT BONDS SALE DATE: 2:00 P .M., MONDAY, MAY 15, 1989 PUBLIC NOTICE IS HEREBY GIVEN that the City Council of the City of Engle,:ood, Co l orado, (the "City") will on Monday, May 15, 1989, at 2 :OO P,M. local time, at the office of the Director of Finan~e, 3400 So. Elati Street, in Englewood, Colorado 8011!), receive sealed bids and publicly open the same for the purchi .. e of the registered special a s sessment bonds of the City , more particul arly described bel ow : BOND P~OVISIONS _l:SSUE: City of Englewood, Colorado, . Paving District No , 33 special Assessment Bonds, in the principal amount of $705,000, dated July 1, 1989, consisting of registered bonds in the denomination of $5,000 each (the "Bonds"). MATURITY: All Bonds shall mature on August 1, 2000. For the purpose of comparison only, bids shall be submitted on the following estimated dates of payment: ESTIMATED PAYMEN'I' DATE (August 1) Year Amount 1990 $.2.A..ll.+l).O. 1991 .l.2..0..ilfi.0 1992 .l..0.5..,..0.. 1993 _w...o.o..o 1994 _w...o.o..o 1995 ....S..0..,..0. 1996 ....S..0..,..0. -2 - The above a ■t imated payment date• are baaed upon past experience of redemption by the Cii:.y and their accuracy is not guaranteed. INTEREST RATES AND Ll~~TATIONS: The maximum net affective interest rate shall not ~xceed twelve per~ant (121) per annum. A. Interest shall be payable to the registered own er thereof semiannually on February 1 and August J. each year, commencing February 1, 1990. B. No supplemental or "B" interest shall be allowed, and bids based on split interest rates for any one estimated payment date will not be accepted. c. Each rate state d must be in multiples of one-eighth (1/8) or one-twentieth (1/20) of one percent (1\) per annum. PAYMENT AND REGISTRATION: The principal of the Bonda shall be payable in lawful money of the United States of America to the registered owner of each Bond, upon presentation thereof at the principal office of The First National Bank of Englewood, in Englewood, Colorado, as paying agent. Interest on the Bonds is payable to the person in wh..ise name each Bond is registered, at his or her address as it appears on the registration books maintained by or on behalf of the City by The First National Bank of Englewood, in Englewood, Colorado, as bond registrar. The initia l registration of the Bonds by the bond registrar shall be at the City's expense. Subsequent transfer and registrat.!.o" fees shall be at the owner's expense. PRIOR REDEMPTION: Bonds are subject to redemption at the option of the City, in d i rect numerical order on any interest payment date upon payment of par and accrued interest to the date of redemption. SECURITY: The Bonds are payable solely from special assessments to be levied against the real property within the District specially benefited by the construction and installation of the improvements. In addition, in accordance with section 108 -3 - of the Charter of the City, the ordinance authori zing the iaauance of Bond ■ will provide that whenever four-fifths (4/5) of the Bonds have been paid and cancelled, and for any reason the remaining as ■essments are not paid in time to take up the final Bonds and interest thereon, then the City shall pay said Bonds when due and interest due thereon, and reimburse itself by collecting the unpaid assessments due the District. AUTHORIZATION: An Ordinance authorizing the issuance of the Bonds will be considered on first reading by the City Council on Monday, May 15 , 1989, and on final reading, on Monday, June 5, 1989, ana will be issued in accordance wit..', Sections 107 and 110 of the City Chuter. PURPOSE OF ISSUE: The Bondi; n i.11 be issued for the purpose of p~ying part of the cost of constructing and inst ~lling street pav.lng, curb and gutter and sidewalk improvements, togethei; with necessary incidentals, on certain streets within ~~ving District No. 33 in the City. -TERMS OF SALE BID PROPOSALS: Any bidder is required to submit an unconditional and written bid for the entire issue, specifying the interest rate or rates and discount (not to exceed $10,575) or premium, if any, at which the bidder will purchase the Bonds, plus accrued interest to the date of delivery. A bid form s~all be provided by t he City and it is requested for informational purposes that each bid disclose the total net int~rest cost in dollars and cents and the net effective inter est rate. Each bid must also be in a sealed envelope add r esaed t o Margaret Freeman, Director of Finance, City of Englewood , 3400 So. Elati Street, in Englewood, Colorado 80110. BID CHECK : Each bid shall be accompanied by a cashier's check or a certified c h eck of a bank or trust company made payable to the City of Englewood, Colo~ado , in the amount of $21,000, or -4 - by a cash deposit in the ■ame ~mount. such check or cash deposit will be held as evidence of good faith pending the delivery of the Bonds, which deposit (check or cash) shall be promptly returned to any such bidder if the bid ia not accepted. Interest will not be allowed on the good faith deposit of the successful bidder. TAX STATUS: In the opinion of bond counsel, under existing laws, regulations, rulings and judicial dec i sions, the interest on t he Bonds: (a) federal income tax purposes is excluded from gross income for and (b) is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, it should be noted that with respect to corporations (as defined for federal income tax purposes) , such interest is taken into account in determining adjusted net book income (adjusted current earnings for taxable years ending after December 31, 1989) for t he purpose of computing the alternative minimum tax imposed on such corporations. The opinion set forth in clause (a) above will be subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue to be) excluded from gross income for federal income tax purposes. Failure to comply with certain of such requirements could cause the interest on the Bonds to be so included in gross income retroactive to the date of issuance of the Bonds. To the extent interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax, such interest i s not subject to income taxation by the State of Colorado. If , prior to the delivery of the Bonds to the s uccessful bidder therefor, the income received by private holders of obligations of the same type and character shall be taxable or shall b~ equired to be used in any income tax computation by the terms of any federal or Colorado law hereafter enacted, the successful b i dder, at his election may prior to the tender by the City of the Bonds -5 - for delivery, be relieved of his obligation under the contract to purchaae the Bonds. In such case the contract to purchase th<1 Bonda will terminate, and the deposit accompanying the purchaser's bid will be returned to the purchaser upon written request therefor. Any such option shall be exercised by a letter addressed to the bond counsel hereinafter designated and deposited in the United states mails, as first class mail, postage prepaid, The Bonds will be designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code. INITIAL REOFFERING PRICE: SIMULTANEOUSLY WITH OR BEFORE DELIVERY OF THE BONDS, THE SUCCESSFUL BIDDER SHALL FURNISH TO THE CITY A CERTIFICATE ACCEPTABLE TO BOND COUNSEL TO THE EFFECT THAT (I) THE SUCCESSFUL BIDDER HAS MADE A BONA FIDE. PUBLIC OFFERING OF THE BONDS AT THE INITIAL REOFFERING PRICES AND (II) A SUBSTANTIAL AMOUNT OF THE BONDS WAS SOLD TO THE PUBLIC (EXCLUDING BOND HOUSES, BROKERS AND OTHER INTERMEDIARIES) AT SUCH INITIAL REOFFERING PRICES, Bond counsel advises that (i) such certificate must be made on the best knowledge, information and belief of the successful bidder, (ii) the sale to the public of 10% or more in par amount of the Bonds of each maturity at (or below) the Initial Reoffering Prices would be sufficient to certify as to the sale of a substantial amount of the Bonds, and (iii) re l iance on other fact s as a basis for such certification would require evaluation by b,md cc.unsel to assure compliance with the applicable provisions of the Internal Revenue Code of 1986, as amended . SALE RESERVATIONS : the City reserve s the privilege: (1 ) Of waiving any irregularity or informality in any bid; (2 ) Of rejecting any and all b i ds for the Bonds; and ( 3) Of reoffering the Bonds for sale i n any manner perm i tted by l a w. BASIS OF AWARD: The Bonds will be awarded to the bidder o ffe r i ng to purchase al l o f the Bonds at the lowest net effective interest rate to the City, If there are two (2) or more equal h i ds for the Bonds , and such equal bids are the best bids -6 - received, the city will determine in its complete discretion which bid will be accepted. TIME OF AWARD: The City will have bids opened at the time hereinabove specified. An announr.:ement of the bast bid will be made i1111Dediately 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 May 15, 1989. MANNER AND TIME OF DELIVERY: The deposit of the best bidder will be credited to the purchuse at the time of delivery of the ~onds (without accruing interest). If the successful bidder for the Bonds fails or neglects to complete the purchase of the Bonda within ten (10) days next after the Bonds are tendered by the City for delivery, the amount of this deposit will be forfeited (as l i quidated damages for noncompliance with the bid) to the City, except as hereinafter provided. It is anticipated that delivery of the Bonds will be on or about July 6, 1989, PAYMENT AT AND PLACE OF DELIVERY: The successful bidder o r bidders will be required to accept delivery of, and to make paym e nt of the balance due for, the Bonds: (1) At s ome bank or trust company in Denver , Colorado; or (2) At the successful bidder's request and expense, at some other bank or trust company in the United States of America, as requested. Paymen t of the balance of the purchase price due at delivery must be made in federal funds or other funds acceptable to the City and to the bank or trust company designated as the place of delivery for immediate a nd uncondi~1on~l credit to the City , or as directed by the City. The b 1lance of the purchase price, including any premium, must be pai. ln such funds a nd not by cancel l a t i on of any ;~tere st, nor by any waiver of int erest, nor by any other concession as a s ubstitution for suc h funds. CUSIP 'NUMBERS : It is not anticipated that CUSIP identification numbers will b,a printed on the Bonds. -7 - LEGAL OPINION, BONDS AND TRANSCRIPT: The legality of the bond issue will be approved by the firm of Lamm & Edstrom, P.C., 600 17th street, suite 2500 south Tower, Denver, Colorado 80202, whose unqualified approving opinion, together with the printed bonds, a certified transcript of the proceedings, includ~ng a certificate stating that there is no litigation pending affecting the validity of the Bonds as of the date of their delivery, and other closing documents, will be furnished to the purchaser. A certified true copy of the approving opinion of boni counsel for the issue will be printed on each bond thereof at the City's expense. Bond couns9l's approving opinion will recite, in conventional form, that bond counsel has examined the constitution and laws of the State of Colorado, the Home Rule Charter of the City, and a certified copy of the record of the proceedings of the City Council taken preliminary to and in the issuance of the Bonds and that bond counsel has found the same properly executed and in due legal form. The opinion will express an unqualified opinion as to legalit:y, as to tax exemption of interest and as to the secu :y consistent with the provisions of the paragraph of this notice entitled "Security". The matters pas sed upon by bond counsel do not extend beyond those mentioned i n the preceding paragraph. The opinion will state that bond counsel has not independently investigated or verified the adequacy and accuracy of the information contained in the Official Statement, Prospectus, Offering Circular or other similar documents, if any, and therefor assumes no responsibility fo:.:-the accuracy, completeness or f a irness of any statements made in connection with any purchasP or sale of any of the Bonds. INFORMATION: This Official Notice of Bond Sale, and financial and other information concerning the District and the Bonds may be obtained from Hanifen, Imhoff Inc., 1125 17th Street, Suite 1600, Denver, Colorado 80202, or Ma rgaret L. Freeman, -8 - Director of Finance, City of Englewood, Colorado, 3400 So, Elati Street , Englewood , Colorado 80110. By order of the City Counc i l of the City of Englewood, Colorado, this 3rd day o f April, 1989 ( S E A L ) /s/ Patricia H. Crow Cit/ Cl erk -9 - SUMMARY NOTICE OF BOND SALE $705,000 CITY OF ENGLEWOOD, COLORADO SPECIAL ASSESSMENT BONDS, PAVING DISTRICT NO . 33 sealed bids will be received at the oftice of the Di rector of Finance of the City of Englewood, Colorado, 3400 so. Elati st ., in Englewood , Colorado 80110. sale Date: Monday, May 15, 1989 Time : 2:00 P .M. local tin",e Bond s Dated: Ju ly 1, 1989 Maturity: August 1, 2000 Legal Opiaion: Lamm, Edstrom, P .C. Denver, Colorado For copies of the official Notice of Sale and Offering circular of the city, please contact the Financial consultant of the city, Hanifan, Imhoff Inc., 1125 17th street, suite 1600, Denv e r , Colorado 80202, or the Director of Finance of the city, 3400 so. Elati st., Englewood, Colorado 80110. Da ted as of April 3, 198 9 . Patricia H. Crow city clerk Englewood, Colorado -10 - e 3. Financial Conaultant. In addition to the publication of the notice of aale, the Director of Finance and the Financial consultant are authorized to forward a copy of the Offering Circular and notice of aale to those investment banking firm•, banks and others who mi ght be interestad in bidding on bonds of the city. The action of the Financial Consultant i n provi ding advisory assistance in connection with the proposed Bond issue is hereby ratified an~ approved. The Financial consultant, either alone or with others, may submit a bid for the purchase of the Bonds, and in such event, the fee paid or to be paid for fi n ancial advisory services shall not be deemed to be a discou nt toward the purchase price of the Bonds. 4. Severability. That if any one or more ssctions or parts of this Resolution shall be adjudged unenforceable or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Resolution, it being the intentio~ tha t the various provisions hereof are severable . 5. Repealer. All ordinances or resolutions, or parts thereof , in con f l i ct with this Resolution are hereby rescinded and annulled. ADOPTED AND APPROVED This 3rd day of April, 1989. ( S EAL ) j \ ,~,~.-!¼L · Mayor / ATTESTED: ..LMu~-~"'--c(/ ~ur Ci ty Clerk I Pa tric i a H. Cr ow, Ci ty Clerk f or the City o f En glewood, Colorado , hereby e rtify the abow, a nd f oregoing is a true c opy of Re s o lut ion No. dQ, Series o f 1989 . .k:l~~--yJ ~ Patri c i a H. Cr ow -11 -