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Home My WebLink AboutRES NO 203-87RESOLUTION NO. 203-87 A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD, ORDERING SALE OF BONDS ]iN THE MATTER OF CITY OF BAKERSFIELD ASSESSMENT DISTRICT NO. 87-1 WHEREAS, the Council by Resolution No. 202-87 , adopted October 21, 1987, authorized the issuance of not to exceed $1,179,229 amount of bonds to be known as "IMPROVEMENT BONDS, CITY OF BAKERSFIELD ASSESSMENT DISTRICT NO. 87-1", all dated the date of delivery, which is expected to be November 10 , 1987, and further authorized the sale of such bonds by negotiation; and WHEREAS, sale of such bonds has been duly negotiated in the manner prescribed by Resolution No. 202-87 ; and WHEREAS, a Purchase Agreement has been submitted by Stone & Youngberg on file with the City Clerk of the City of Bakersfield and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF BAKERSFIELD, CALIFORNIA, as follows: 1. The offer of Stone & Youngberg (the "Underwriters") as contained in the Purchase Agreement for $1,179,229 principal amount of Improvement Bonds, City of Bakersfield Assessment Dis- trict No. 87-1 is hereby approved and accepted and the Finance Director is authorized to execute said Purchase Agreement. The Offering Memorandum is hereby authorized for distribution in accordance with said Purchase Agreement. to the stated passed and 2. Further, this Council directs Underwriters in accordance with the the sale and delivery terms and conditions in the Purchase Agreement. 3. This Resolution shall take effect upon adoption. I HEREBY CERTIFY that the foregoing Resolution was adopted by the Council of the City of Bakersfield at a regular meeting thereof held on October 21, 1987 , by the following roll call vote: AYES: COLI¢,~CILM£MD[j~ ~ C~dLGS, CHI~IS~ENSEN, o JITH. RACY, MOORE, E~,kERoON. SALVAGGIO ABSENT: COUNCILMFM:iERS ~ ABSTAINING. COU~CILMEM~RS ~ CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED October 21, 1987 of the City of BakersYield MAYOR PRO TE~JZqO_RE CITY AT T OR ~E Y~/t hg~t y ?oY~ STONE & YOUNGBERG MEMEIERS: PACIFIC STOCK EXCHANGE October 21, 1987 The Honorable Members of the City Council of the City of Bakersfield 650 Merchant Street Bakersfield, CA 95688 Re: Offer to Purchase Bonds in the Sum of $1,179,229 par value City of Bakersfield Improvement Bonds Assessment District No. 87-1 (South Jenkins Road to Buena Vista Road Sewer Project) (Kern County, California) Honorable Members of the Council: Stone & Youngberg ("the Underwriter") hereby offers to purchase all of the referenced bonds subject to the following conditions: 1. The bonds shall be issued pursuant to the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915. 2. The par value of the bonds shall be in the amount of $1,179,229. The bonds shall be issued in denominations of $5,000, or in integral multiples thereof as may be requested by the Underwriter, and one bond containing an odd amount due in 1989. o All bonds shall be issued in registered form in accordance with instructions to be determined by the Underwriter prior to closing. The City shall retain Bank of America, N.T. & S.A., as Paying Agent, Registrar and Transfer Agent. The bonds shall be dated November lO, 1987 and be delivered on or about their date but in any event no later than 30 days thereafter. The bonds shall mature in each of the years and in the amounts and at the rates of interest set forth on the attached maturity schedule marked Exhibit A. The City shall establish from the proceeds of the bonds a reserve fund equal to seven percent (7~) of the principal amount of the bonds. The reserve fund shall be administered pursuant to the Resolution of Issuance for the bonds, as well as pursuant to applicable federal laws and regulations. The reserve fund balance shall be shown as a separately stated item in the City's annual financial report. ONE CALIFORNIA STREET · SAN FRANCISCO, CALIFORNIA 94111 · (415) 981-1314 The Honorable Members of the City Council October 21, 1987 of the City of Bakersfield Page 2 9. 10. ll. 12. The City shall covenant to commence judicial foreclosure of delinquent assessments within 150 days after any delinquency. The City shall award the sale of the bonds to us at the City Council meeting on October 21, lg87. The purchase price shall be 98.2 percent of par, plus accrued interest, if applicable, and shall be paid in full upon delivery to us of the Bonds. The City will deliver to the Underwriter at closing in forms suitable to the Underwriter: (a) The unqualified approving legal opinion of Richard H. Hargrove, Attorney At Law, Fresno, California, Bond Counsel. The legal opinion shall be printed on the bonds at no charge to us. (b) A no-litigation certificate of the City. The obligations of the Underwriter to accept delivery of and pay for the bonds on the Closing Date shall be subject, at the option of the Underwriter to the following additional conditions: (a) At the Closing Date, the Resolution and any other applicable agreements shall be in full force and effect, and shall not have been amended, modified or supplemented except as may have been agreed in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the bonds and with the transactions contemplated thereby and by this Purchase Contract, all such actions as, in the opinion of Bond Counsel, shall be necessary and appropriate; (b) Between the date hereof and the Closing Date, the market price or marketability of the bonds at the initial offering prices set forth in the Offering Memorandum shall not have been materially adversely affected, in the judgment of the Underwriter (evidenced by a written notice to the City terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds) by reason of any of the following: (l) Legislation enacted (or resolution passed) by the Congress of the United States of America or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department or the Internal Revenue Service of the United States of America, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest as would be received by the owners of the bonds: The Honorable Members of the City Council October 21, 1987 of the City of BaKersfield Page 3 (2) Legislation enacted (or resolution passed) by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent Jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the bonds, or the bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Resolution is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the bonds, or of the bonds, including any or all underwriting arrangements, as contemplated hereby or by the Offering Memorandum or otherwise is or would be in violation of the federal securities laws as amended and then in effect: (3) The withdrawal or downgrading of any rating of any securities of the City by a national municipal bond rating agency; (4) Any amendment to the Federal or California Constitution or action by any Federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the City, its property, income, securities (or interest thereon), validity or enforceability of the assessments or the ability of the City to construct or acquire the improvements as contemplated by the Resolution and the Offering Memorandum~ or (5) Any event occurring, or information becoming Known which, in the judgment of the Underwriter makes untrue or misleading in any material respect any statement or information contained in the Offering Memorandum concerning the City, the Improvement Project, the major landowner or the property assessed. CITY.~OF BAKERSFIELD STONE & YOUNGBERG Kimberly S~ansbury KS:crq (3068A) The Honorable Members of the City Council October 21, 1987 of the City of BaKersfield Page 4 EXHIBIT A $1,179,229 CITY OF BAKERSFIELD IMPROVEMENT BONDS ASSESSMENT DISTRICT NO. 87-1 (SOUTH JENKINS ROAD TO BUENA VISTA ROAD SEWER PROJECT) (KERN COUNTY, CALIFORNIA) Maturity Date (September 2) 1989 1990 1991 992 993 994 995 996 997 998 g99 2000 Principal Interest Amount Rate $ 64,229.00 7.25% 70,000.00 7.50% 75,000.00 7.75% 80,000.00 8.00% 85,000.00 8.20% 90,000.00 8.40% 95,000.00 8.60% 100,000.00 8.80% 115,000.00 9.00% 125,000.00 9.20% 135,000.00 9.30% 145,000.00 9.40% The net interest cost of the bonds based on the above maturity schedule and a discount of 1.8% is 9.118%. The average interest rate is 8.898%. (3068A)