HomeMy WebLinkAboutRES NO 149-87RESOLUTION NO.
149-87
A RESOLUTION OF THE COUNCIL OF THE CITY
OF BAKERSFIELD, CALIFORNIA, ORDERING SALE
OF BONDS IN THE MATTER OF CITY OF BAKERSFIELD
ASSESSMENT DISTRICT NO. 87-2
WHEREAS, the Council by Resolution No. 149-87 ,
adopted August 12, 1987, authorized the issuance of not to exceed
$2,511,000 amount of bonds to be known as "IMPROVEMENT BONDS,
CITY OF BAKERSFIELD ASSESSMENT DISTRICT NO. 87-2", all dated the
date of delivery, which is expected to be August 17, 1987, and
further authorized the sale of such bonds by negotiation; and
WHEREAS, sale of such bonds has been duly negotiated in
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 $2,511,000 principal
amount of Improvement Bonds, City of Bakersfield Assessment Dis-
trict No. 87-2 is hereby approved and accepted and the Finance
Director is authorized to execute said Purchase Agreement. The
Offering Memorandum is hereby authorized for distribution in
/
accordance with said Purchase Agreement.
the manner prescribed by Resolution No. 149-87; and
WHEREAS, a Purchase Agreement has been submitted by
Stone & Youngberg on file with the City Clerk of the City of
Bakersfield and incorporated herein by reference.
2. Further, this Council directs the sale and delivery
to the Underwriters in accordance with the terms and conditions
stated in the Purchase Agreement.
3. This Resolution shall take effect upon adoption.
HEREBY CERTIFY that the foregoing Resolution was
passed and adopted by the Council of the City of Bakersfield at a
regukar meeting thereof held on August 12, 1987 , by the
following roll call vote:
A"¢E S COUNCiLMEMBERS: CHILDS, CHRISTENSEN, SMl'~1~r RATIY, t,~,~.A~., 1~Ir..K~.:R$ON, SALVAG.c'!O
NOES: COUNCiLMEM[¥ AS: ~ ~
ABSENI: CO U N C iLl~i..r,t~J ~ J~ S. L~
ABSTAINING: COUNCILMEMBERS: 0 '
CITY CLERK and Ex Officio
Clerk of the Council of the
City of Bakersfield
APPROVED August 12, 1987
MAYOR of the City of Bakcdrsfield
~I~Y ~'TTORNEY of the City of
Bakersfield
STONE &YOUNGBERG
August 12, 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 $2,511,000 par value
City of Bakersfield - Assessment District No. 87-2
(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:
The bonds shall be issued pursuant to the Municipal Improvement
Act of 1913 and the Improvement Bond Act of 1915
The par value of the bonds shall be in the amount of $2,511,000,
and the bonds shall mature serially over a period of 15 years.
3. The bonds shall be issued in denominations of $5~000, or in
integral multiples thereof as may be requested by the Underwriter.
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., Los
Angeles, California, as Paying Agent, Registrar and Transfer Agent.
The bonds shall be dated August 17, 1987 and be delivered within
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 August t2, 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 August 12, 1987.
The purchase price shall be 98.3 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 shat1 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 Ctosing 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:
(1)
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 August 12, 1987
of the City of Bakersfqeld Page 3
KS:crq
(2726A)
(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.
(c) Parcel Map 7744 shall have been approved by the City Council.
Respectfully submitted,
STONE & YOUNGBERG
The Honorable Members of the City Council August 12, 1987
of the City of Bakersfield Page 4
EXHIBIT A
$2,511,000
CITY OF BAKERSFIELD IMPROVEMENT BONDS
ASSESSMENT DISTRICT NO. 87-2
(KERN COUNTY, CALIFORNIA)
Maturity Date
(September 2)
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Principal
Amount
$101,000.00
110~000.00
115,000.00
125.000.00
130,000.00
140,000.00
150,000.00
155~000.00
170,000.00
180,000.00
195,000.00
210,000.00
225,000.00
245,000.00
260,000.00
Interest
Rate
5.00%
5.50%
5.75%
6.00%
6.25%
6.5O%
6.75%
7.00%
7.25%
7.50%
7.70%
7.80%
7.90%
7.90%
7.90%
The net interest cost of the bonds based on the above maturity schedule and a
discount of 1.7% is 7.673%. The average interest rate is 7.490%.
(2726A)