Loading...
92-040 CITY OF ANAHEIM RESOLUTION NO. 92R-40 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA AUTHORIZING THE INVITATION OF PROPOSALS FOR THE PURCHASE OF NOT TO EXCEED $6,400,000 WATER REVENUE BONDS, 1992 SERIES, OF SAID CITY; APPROVING THE NOTICE INVITING BIDS AND THE NOTICE OF INTENTION TO SELL BONDS; AND AUTHORIZING THE DELIVERY OF THE PRELIMINARY OFFICIAL STATEMENT AND THE PUBLICATION OF THE NOTICE OF INTENTION TO SELL BONDS AND THE NOTICE INVITING BIDS WHEREAS, this City Council deems it necessary and proper that proposals be invited for the purchase of not to exceed $6,400,000 principal amount of Water Revenue Bonds, 1992 Series (the "Bonds") of the city of Anaheim, California (the "city"), and that the Bonds be sold in the manner described below; NOW, THEREFORE, the City Council of the City of Anaheim, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: SECTION 1. Sealed proposals for the purchase of the Bonds shall be received by the City Clerk of the City at the Office of said City Clerk at the date and time provided for in the Notice Inviting Bids as hereinafter approved or at such other dates and times as shall be determined by the Public Utilities General Manager or the Public Utilities Financial Services Manager of the City (the "Manager"). SECTION 2. The form, terms and provisions of the Notice Inviting Bids, as submitted to this meeting, are hereby approved and adopted as part of this Resolution. The City Clerk is hereby authorized and directed to cause such notice to be published once, at least fifteen (15) days prior to the earliest date for receiving proposals provided for therein, in The Anaheim Bulletin, the official newspaper of the City, with such changes, insertions and omissions as the Manager or the city Clerk shall approve, such approval to be conclusively evidenced by such publication of the Notice Inviting Bids. SECTION 3. The form, terms and provisions of the Notice of Intention to Sell Bonds, as submitted to this meeting, are hereby approved and adopted as part of this Resolution. The City Clerk is hereby authorized and directed to cause such notice to be published once, at least fifteen (15) days prior to the earliest date for receiving proposals stated therein, in the The Bond Buver, a financial publication circulated throughout California, with such changes, insertions and omissions as the Manager or the City Clerk shall approve, such approval to be conclusively evidenced by such publication of~the Notice of Intention to Sell Bonds. SECTION 4. The Manager may withdraw or modify the Notice Inviting Bids and the Notice of Intention to Sell Bonds, or either, at any time by notice published via Munifacts wire or other means determined by the Manager to be reasonably calculated to reach potential bidders for the Bonds. If the Manager should withdraw the Notice Inviting Bids and the Notice of Intention to Sell Bonds. at any time before the Bonds are awarded, and should at a later date determine that it is desirable to receive bids for the Bonds, then the City Clerk is hereby authorized to republish the Notice Inviting Bids and the Notice of Intention to Sell Bonds with such modifications or revisions as are approved by the Manager. SECTION $. The Manager is hereby authorized to approve a Preliminary Official Statement relating to the Bonds (such approval to be conclusively evidenced by the delivery thereof) (the "Preliminary Official Statement") and the City Council hereby approves the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds. The Manager is authorized to deem the Preliminary Official Statement to be final within the meaning of Security and Exchange Commission Rule 15c2-12 subject to the completion of those items permitted by said Rule. SECTION 6. The City Clerk and the Manager are authorized and directed to cause to be furnished to prospective bidders for the Bonds, upon their request, a reasonable number of copies of the Notice Inviting Bids and the Preliminary official Statement. ADOPTED, SIGNEDAND APPROVED this 3rd day of March, 1992. [SEAL] city Clerk c:11080194601.201D~dUTHRES. DOC STATE OF CALIFORNIA ) COUNTY OF O~NGE ) ss. CITY OF ANAHEIM ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 92R-40 was introduced and adopted at a regular meeting provided by law, of the Anaheim city Council held on the 3rd day of March, 1992, by the following vote of the members thereof: AYES: COUNCIL MEMBERS: Simpson, Ehrle, Pickler, Daly and Hunter NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None AND I FURTHER certify that the Mayor of the city of Anaheim signed said Resolution No. 92R-40 on the 4th day of March, 1992. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Anaheim this 4th day of March, 1992. CITY CLERK OF THE CITY OF ANAHEIM ( SEAL ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Resolution No. 92R-40 duly passed and adopted by the City Couocil of the City of Anaheim on March 3, 1992. CITY CLERK OF THE CITY OF ANAHEIM NOTICE OF INTENTION TO SELL BONDS $5,735,000 City of Anaheim California Water Revenue Bonds, 1992 Series The City of Anaheim, California (the "City") intends to receive sealed bids for the above referenced series of Water Revenue Bonds (the "Bonds") until 9:00 a.m. California time. Tuesday, March 24, 1992 In the Office of the City Clerk, Room 217, 200 South Anaheim Boulevard, Anaheim, California 92805. If no acceptable bid is received on such date, the City will again accept sealed bids for the Bonds on such later day or days as shall be determined by the City, at the Office of the City Clerk set forth above, until the Bonds are sold or this Notice is withdrawn by the City. The Bonds will be dated March 15, 1992. Copies of the complete Notice Inviting Bids and Official Bid Form, together with copies of the Preliminary Official Statement issued in connection with the sale of the Bonds and copies of the Resolution authorizing the issuance of the Bonds may be obtained from the offices of the City's financial advisor, O'Brien Partners, Inc., 505 Park Avenue - 14th Floor, New York, N.Y. 10022, (212) 935-7882 and 333 South Grand Avenue, Suite 2990, Los Angeles, CA 90071, (213) 680-7768. LEONORA N. SOHL City Clerk of the City of Anaheim, California March 5, 1992 NOTICE INVITING BIDS $5,735,0OO CITY OF ANAHEIM, CALIFORNIA WATER REVENUE BONDS, 1992 SERIES Sealed Bids Sealed bids for tile City of Anaheim, California Water Revenue Bonds, 1992 Series (tile "Benels"), dated March 15, '1992 wiJl be received at the Olfice of the City Clerk, City of Anaheim, Room 217, 200 South Anaheim Blvd., Anaheim, California 92805 until 9:00 A.M., California time, on Tuesday, March 24, 1992 at which time and place all bids will be publicly opened anti read. If no acceptable bid is received on such date, the City will again accept sealed bids for tire Bonds on such later day or days as shall be determined by tile City, at 9:00 a.m. at tile Office of tile City Clerk set forth above, until the Bonds are sold or Illis Notice is withdrawn by tire City. Tuesday, March 24, 1992, or such later date on which bids may be opened in accordance with this Notice shall hereinafter be referred to as the "Bid Date." Notice of any such later day for accepting sealed bids for tile Bonds will be communicated by Munifacts New Service not later than 9:00 a.m., California time, on the second business day prior to the Bid Date. The City reserves the riglrt to sell the Bonds at a private sale. Bond Details The Bonds will be issued only as fully registered Beads and when issued will be registered in tire name of Cede & Co., as nominee for Tire Depository Trust Co. Purchases ol tile Bonds will be made in book-entry form, in the denomination of $5,000 or any integral multiple thereof. Purchasers of the Bonds will not receive certilicates representing their interests in tile Bonds. The Bonds will bear interest from March 15, 1992, payable on July 1, 1992 aad semi~annually thereafter o~ January 1 and July 1 In each year, at the rate or rates specified in such proposal as may be accepted. There will be sedat maturities only, and the amount of principal to be paid as serial maludties on the Bonds on July 1 in each year is as follows: PRINCIPAL AMORTIZATION SCHEDULE Due Principal Due Priecipal ~uly ~ Amount (0 Ju!yl Amount H) 1992 $ 45,000 1999 $425,000 1993 320,000 2000 450,000 1994 335,000 2001 475,000 1995 345,000 2002 500,000 1996 365,000 2003 530,000 1997 380,000 2004 565,000 1998 400,000 2005 600,000 Adjustment of Principal Amortization Schedule The principal amounts set forth in this Notice Inviting Bids reliect certain estimates of the City and its Financial Advisor with respect to tile likely interest rate of the winning bid and the premium/discount contained in tile winning bid. The principal amortization schedule may be changed prior to the time bids are to be received and, if adjustments are made, bidders must bid on the basis of the adjusted schedule. Such changes, if any, will be communicated by Munifacts News Service not later than 9:00 am., California time, on the second business day prior to tire Bid Date. After selecting the winning bid, tile aggregate principal amount of the Bonds and the amortization sct/odule rnay be adjusted as necessary In tile detem~ination of the City's Financial Advisor in $5,000 increments to reflect the actual interest rates and any premium/discount in tile winning bid and to create a more level annual debt service savings on tile Bonds. St~ch adjustments will not change the aggregate principal amount of tile Bollds to be Issued by more than 15% from the amount set forth herein or change tbe principal amount due on the Bonds in any year by more than 15%. The dollar amount bid for tile Bonds by the winning bidder will be adjusted proportionately to relloct any increase or decrease in the aggregate principal amount of the Bonds finally determined to be issued. Any such adjustment will be communicated to the wiening bidder within 24 hours after the opening of the bids. Redemption The Bonds are not subject to redemption prior to maturity. (I) See "Adjustment of Principal Amortization Schedule" Purpose and Authorization Tile Bonds are being issued for tile purpose of refunding the $5,680,000 aggregate principal amount of the City's outstanding Water Revenue Bollds, 1980 Series, and to pay costs of issuaace. The Bonds are to be issued pursuant to City Char[or Section 1210.1; Ordinance No. 2933, as amended, which incorporates certain provisions of the Revenue Bonds Law of 1941 (Chapter 6, Part 1, Division 2, Title 5 of the California Government Code); and a resolution of tile City Council to be adopted at the time of the award of tire Bonds. Security for and Source of Payment for tile Bonds The Bonds are a special obligation of the City, payable solely from the Not Revenues of tl~e Water System of the City and do not constitute a general obligation or Indebtedness of the City. Upon issuance and delivery thereof, tile Bonds will rank on a parity with the City's $21,195,000 water revenue bonds now outstanding. Additional parity bollds may be issued in tile future. Interest Rate and Bidding Details Bidders are required to name tile interest rate or rates in multiples of one eighth (t/8) or one- twentieth (I/20) of one percent (1%) and no interest rate shall exceed nine percent (9%) per annum. Each bidder must specify in his bid tile interest rate for the Bonds of each maturity and all Bonds maturing on the same date must bear interest at the same rate. The interest rate specified for any maturity shall no[ be less than tile interest rate specified for any eadier maturity, Tile maxinlum differential between the highest and lowest interest rates specified shall not exceed three percent (3%) per annum. No proposal for less than all of the Bonds or at a purchase price of less than 98 1/2% of par plus accrued interest to tile date of delivery of tile Bonds will be entertained. Award of Bonds and Right of Rejection Proposals will be accepted or reiected by the City at a meeting of the City Council held on the Bid Date. As between acceptable proposals complying with Illis Notice Inviting Bids, the Bonds will be sold to the responsible bidder whose proposal offers to purchase all the Bonds at such rate or rates of interest as will produce tile lowest effective interest rate to tile City based on the principal amortization schedule in effect hereunder immediately prior to tile Bid Date. Tile lowest effective interest rate will be determined In accordance with the "Canadian" or "true" inlerest cost method of calculation by doubling lhe semi-annual Interest rate (compounded semi-annually) uecessary to discount the debt service payments from tile payment dates to the date of the Bonds and Io the price bid, not including interest accrued to tile date of delivery. In the event that two or more bids have proposed the same true interest cost, the award shall be made by lot. 3 The right is reserved to reject all proposals, or any proposals not conforming to tl]is Notice Inviting Bids or not in the form of the Official Bid Form. The right is also reserved to waive, if permitted by law, any irregularity or informality in any proposal. Right to Modify or Amend The City reserves tile right to modify or amend this Notice Inviting Bids including, but not limited to the right to adjust and change the principal amount and principal amortization schedule el the Bonds. Such notifications or amendments shall be made ~ot later than 9:00 a.m., California time, on the second business day prior to the Bid Date and communicated Ihrough Munifacts News Service. Right of Postponement The City reserves tile right to postpone, from time to time, the date established for Ibe receipt of proposals. Ally such postponement will be communicated through Munifacts New Service not later than 9:00 a.m., California time on tile second business day prior to the Bid Date and communicated through Munifacts News Service. Bid Form; Good Faith Check Each proposal must be in the form of the Official Bid Form, and enclosed in a sealed envelope addressed to the City with the envelope clearly marked "Bid for City of Anaheim, Water Revenue Bonds, 1992 Series" accompanied by a certified, bank cashier's or treasurer's check dated on or before March 24, 1992 drawn upon a California bank or trust company, in the amount of $60,000 which check, on whicb no Interest will be allowed, must be payable u~lconditionally to the order of "City of Anaheim, California." The checks of unsuccessful bidders will be returned promptly after tile award. The chock of tile successful bidder will be cashed and the proceeds will be held as security for the performance of tile bid, and, in the event such successful bidder shall fail to comply wilh the terms of its bid, the proceeds will be retained by the City. Tile retention of such check will constitute full liquidated damages for such failure. If the Cily shall be unable to tender the Bonds for delivery on or before July 1, 1992 in accordance witl~ this Notice Inviting Bids, the City will deliver to the successful bidder a certified bank cashier's or treasurer's check drawn upon a bank or trust company in Anaheim, California, payable unconditionally to the order of such bidder, in the amount of $60,000. Upon delivery of the Bonds, tile amount of proceeds of such good faith check will be applied to payment of tile Bonds. CUSIP Numbers It is anticipated that CUSIP identification numbers will be printed on tile Boods, but neitber tile failure to print such numbers on any Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by tile purchasers thereof to accept delivery of or pay for the Bonds in accordance with the terms of their proposal. All expenses In relation to the printing of CUSIP numbers on said Bonds and the CUSIP Sof¥ico Bt~eau charge for tile assignment of said numbers shall be paid for by tile City. Delivery of Bonds Delivery of the Bonds in definitive form is scheduled to be made ___ days after the Bid Date through the facilities of the DTC book entry system against payment therefor in Immediately available Federal Reserve Funds to the order of the City of Anaheim, Calilornia. Legal Opinion The opinion of Mudge Rose Guthrie Alexander & Ferdon, Los Angeles, California, and Rourke & Woodruff, a Professional Corporation, Orange, California, Co-Bond Counsel, approving the legality of tile Bonds and stating that interest on tire Bonds is exempt from personal income taxation of the State of California and, assuming compliance with certain covenants, interest on the Bonds is excluded from gross income for Federal income tax purposes, will be furnished to tile successful bidder at tile time of delivery of the Bonds at the expense of the City. Official Statement The City has authorized the distribution of the Preliminary Oflicial Statement dated March 5, 1992 relating to the Bo~lds. The Preliminary Official Statement describes the Bonds and contains iniornration with respect to tile City's water utility operation and its obligations. The Preliminary Official Statement has been "deemed final" by the City as of its date for purposes of SEC Rule 15c2-12, but is subject to change without notice and to completion or amendment or supplementation in the final Official Statement. In the event of any material change to the Preliminary Official Statement between the date hereof and the date a bid Is accepted by the City, the City will prepare a supplement to tile Preliminary Official Statement and the City will give notice by publication in the Bond Buyer and/or Munifacts of the availability of lhe supplement. Upon the sale of the Bonds, tire City will complete an Olficial Statement substantially In the same form as the Preliminary Official Statenlent, subject to such stJpplomentation or amendment as is necessary. One hundred copies of the Cilicia[ Slatement will be made available to the successful bidder at the expense of the City within seven (7) business days after Ihe award of tile Bonds Additional copies may be obtained at the expense of such bidder. Blue Sky Laws Tile successful bidder will be responsible for tl~e clearance or exemption with respect Io tile slatus of the Bonds for sale under the securities or "Blue Sky" laws of the several states and Ihe preparation of any surveys or memoranda in connection therewith. ,5 California Debt Advisory Commission Fee Pursuant to Section 885§ of tire California Government Code, it will be the responsibility of the successful bidder to pay the statutory fee to tile California Debt Advisory Commission. Reoffering Price At or before delivery of the Bonds, the successful bidder shall furnish to the City a written statement in form and substance acceptable to Co Bond Counsel: (a) stating the initial reoflering prices on each maturity of tile Bonds to tile general public and tile reoffering prices of each maturity el tile bonds, if any, reeffeted to institutional or other investors with concessions or at discounts from tile reoffering prices to the general public; (b) certifying that a bona fido offering of the Bond bas by such date been made to tile public (excluding bond houses, brokers, and other intermediaries); (c) stating the price at which each Bond was sold, or will be sold, to institutional or other investors with concessions or at a discount from tile prices at which Bonds were, or will be, sold to tile general public; and (d) stating tile prices at which at least 10% of the remainder of each maturity of the Bonds wore sold, or will be sold, to the public (excluding bond houses, brokers, and other intermediaries) prior to the sale of any Bonds of each maturity at other prices. Closing Documents In additional to lhe opinion of Co-Bond Counsel referred to above, at tile lime of payment for and delivery of Bonds, the City will furnish tile successful bidder tile following documents all to be dated as of tile date of delivery: '1. No Litigation Certificate. - A cedificate of tile City Attorney certifying that tilere is no litigation pending, or to his knowledge, threatened questioning (i) the corporate existence of tile City, or the title of the officers of the City to their respective offices, (if) the validity of ~ ' tile Bonds or the power and authority of the City to issue the Bonds, (iii) the validity of the Ordinance, Resolution or the Charter, or (iv) the authority of the City Io fix, charge and collect rates for the sale of water by lhe City as provided ill the Resolution. 2. Signature Certificate. - A certificate of the appropriate officers of the City indicating that ttley have signed the Bonds by manual or facsimile signature and that they were duly authorized to execute tile same. 3. Treasurer's Receipt. - The receipt of the Treasurer of the City sitowing Illat the purchase price of the Bollds, including accrued interest to tile date of delivery, has been received by the City, and the distribution made of the [[lllds so received. 4. Certificate Concerning Official Staternent. ~ A certificate of appropriate officers of the Cily to the effect that to the best of such officers' knowledge and belief, and after reasonable Investigalion, (a) nellher tile Official Slater'nent nor any amendment or supplement thereto contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements ti~erein, In light of the circumstances in which they were made, not ~qisleading; (b) since tile date of tile Official Statement, no event has occurred which should have been set forth in an amendment or supplement 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 financial allairs o1 the Water System since the date of the Olficial Statement. 5. Tax Certificate as to Arbitrage. - A certificate of a responsible officer of the City certilying that, on tire basis of tile facts, estimates and circumstances in effect at tile time of delivery of the Bonds, it is not expected that lhe proceeds of tile Bonds will be used in a manner that will cause the Bonds to be arbitrage bonds. Tax Exempt Status In Iho event tilat prior to the delivery of the Bonds by the City (a) tile interest received by any private froicier on bonds of tile same type and character as the Bonds shall be declared to be includable in gross income for Federal income tax purposes (either at tile time of such declaration or at ally future date) under any federal income tax law, either by the terms of such law or by administrative regulations or rulings followed by the Internal Revenue Sowice, or by decision of any federal court or (b) any federal income tax law is adopted which will have a substantial adverse tax effect on holders of the Bonds as such, tile successful bidder may at its option, prior the tender of the Bonds by the City, be relieved of its obligation under the contract to pLIrchase the Bo~lds, and in such casa the amount of the proceeds of the good faith check will be returned to the successlul bidder. Additional Information Copies of tire Preliminary Official StaLemont (including tile form of tile opinion of Co~Bond Counsel), the Ofiicial Bid Form and the Notice Inviting Bids will be furnished upon application to the undersigned at the City Hall, 200 South Anaheim Boulevard, Anaheim, California 92805 (Attention: Michael A. Bell at (714) 254-5100 or to the Financial Advisor, O'Brien Pa~ners Inc., 505 Park Avenue, Now York, New York 10022, (212) 935-7882 or O'Brien Partners Inc., 333 South Grand Averrue, Los Angeles, California 90071, (213) 680-7768. LEONORA N. SOl IL City Clerk of the City of Anaheim, Carifornia 7 OFFICIAL BID FORM Proposal For Purchase of $5,735,0OO CITY OF ANAHEIM, CALIFORNIA WATER REVENUE BONDS, 1992 SERIES Office of tile Clerk City of Anaheim Room 217 200 South Anaheim Blvd Anaheim, California 92805 Ladies and Gentleman: On behalf of an underwriting syndicate which we have formed, headed by tile undersigned, and in accordance with tile terrns and conditions of the Notice of Inviting Bids for the captioned Bonds, dated March 5, 1992 which is hereby made a part of titis proposal, we offer to purchase all of the City of Aaahoim, California Water Revenue Bonds, 1992 Series (the "Bonds"), to be dated March 15, 1992 and we will pay as the purchase price tlrerefore, the aggregate sum of Dollars ($ ), at tile time of delivery, hr immediately available Federal Reserve Funds, phis accrued i~rterest from March 15, 1992 to the delivery date of the Bonds. SCHEDULE OF PRINCIPAL INSTALLMENTS AND INTEREST HATES The principal amounts for each maturity shall be completed by the undersigned bidder, The Bonds shall be payable in the Principal Amounts set forth in the Notice Inviting Bids (subject to adjustment as provided in the Notice Inviting Bids for the captioned Bonds) and shall bear interest at the rates set forth in the following schedule. Maturity Price Maturity Price Date Principal Interest or Date Principal Interest or Ju_q~_11 AInou~A Rate Yield Ju_lyj. Amount _R_aLe Y_Lel. d_ 1992 $ 1999 $ 1993 2000 1994 2001 1995 2002 1996 2003 1997 2004 1998 2005 8 We enclose herewith a certified, bank cashier's or treasurer's check, drawn on a California bank or trttst company in the amount $60,000, payable to the order of the City of Anaheim, California, which check is to be applied as provided in the Notice Inviting Bids. Accepted and agreed to Respectfully submitted , 1992 Bidder By__ By_ Title Title The following is [or information only and is not part el this bid: Effective interest rate for the Bonds calculated as described in the Notice Inviting Bids is %. The above mentioned check has been returned and receipt thereof is daly acknowledge. By Title 9