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HomeMy WebLinkAbout1991-47 Authorizing Sale of General Obligation Water Bonds RESOLUTION NO. 91 - d~' A RESOLUTION OF THE CITY OF ASHLAND, OREGON AUTHORIZING THE ISSUANCE AND SALE OF $2,060,000 GENERAL OBLIGATION WATER BONDS, SERIES 1992; AUTHORIZING A SPECIAL AD VALOREM TAX LEVY; DESIGNATING A PAYING AGENT AND BOND REGISTRAR, BOND COUNSEL AND A FINANCIAL ADVISOR; AND AUTHORIZING THE PUBLICATION OF A NOTICE OF BOND SALE. WHEREAS, the City Council of the City of Ashland, Oregon (the "City") on September 3, 1991 adopted Resolution No. 91-35 submitting to the voters of the City at a special election the question of contracting a general obligation bonded indebtedness in an amount not to exceed $2,060,000 for the costs of improvements to the City's water system and to pay the costs of issuance of the bonds (the "Project"); and WHEREAS, at a special election held within the City on November 5, 1991, voters of the City voting at the election approved of the issuance of the general obligation water bonds by a vote of Yes - 2,700, No - 1,306; and WHEREAS, in order to proceed with the improvements to the water system, it is necessary and desirable for the City to authorize the issuance and the public competitive sale of $2,060,000 of General Obligation Water Bonds, Series 1992. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF ASHLAND, OREGON AS FOLLOWS: Section 1. Issuance of Bonds. The City Council of the City authorizes the issuance and public competitive sale of $2,060,000 of its General Obligation 'Water Bonds, Series 1992 (the "Bonds"). The Bonds shall be serial negotiable Bonds of the City and shall bear interest payable semi-annually. The Bonds shall be payable in any coin or currency which at the time of payment is legal tender for the payment of public and private debts within the United States of America. Section 2. Title and Execution of Bonds. The Bonds shall be entitled "City of Ashland, Oregon General Obligation Water Bonds, Series 1992" and shall bear the facsimile signature of the Mayor of the City and shall be attested by the facsimile signature of the City Recorder. Section 3. Terms of Bonds. The Bonds shall be issued in fully registered form, may be issued in book-entry only form, shall be in denominations of Five Thousand Dollars ($5,000) each, or integral multiples thereof, shall be dated February Jl, 1992, (pp )jps\bnd\ashland-ord.291 December 12, 1991 shall be numbered sequentially beginning with R-1, and shall mature serially on the first day of February of each year, as follows: Year Amount Year Amount 1994 $65,000 2003 $100,000 1995 65,000 2004 110,000 1996 70,000 2005 115,000 1997 75,000 2006 120,000 1998 80,000 2007 130,000 1999 80,000 2008 135,000 2000 90,000 2009 145,000 2001 90,000 2010 155,000 2002 95,000 2011 165,000 2012 175,000 Section 4. Payment of Bonds. The principal of the Bonds shall be payable upon presentation of the Bonds at maturity at the principal corporate trust office of the Paying Agent in Portland, Oregon. Payment of each installment of interest d.ue on February 1, and August 1 of each year, commencing August 1, 1992, shall be made by check or draft of the Paying Agent mailed on the interest payment date to the registered owner thereof whose name and address appears on the registration books of the City maintained by thc.:~ Paying Agent as of the close of business on the 15th day of the month next preceding any interest payment date. Section 5. Optional Redemption. The Bonds of this issue maturing after February 1, 1999 are redeemable at the option of the City on February 1, 1999 and on any interest payment date thereafter at par value together with accrued interlest to the date fixed for redemption. The Bonds are redeemable, in whole, or in part, in integral multiples of $5,000, in inverse order of maturity and by lot within a maturity. Notice of redemption shall be published as provided by law and shall be given by registered or certified mail not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered owners of each Bond to be redeemed at the address shown on the registration books of the City. Bonds are redeemable at the principal corporate trust office of the Paying Agent. Section 6. Form of Bonds. The Bonds shall be issued substantially in the form as approved by the Director of Finance and Bond Counsel. Section 7. Appointment of Paying Agent and Registrar. The City Council appoints and designates United States National Bank of Oregon, Portland, Oregon, as the Paying Agent and Bond Registrar. The City Administrator or the Director of Finance is authorized to negotiate and execute on behalf of the City a Paying Agent and (pp )jps\bnd\ashland-ord.291 December 12. 1991 2 Bond Registrar Agreement. The Agreement shall provide for compliance with Oregon Administrative Rule 170-61-010. In addition, the City Council requests and authorizes the Bond Registrar to execute the Certificate of Authentication as of the datc~ of delivery of the Bonds. Section 8. Transfer of Bonds. If the Bonds are issued in book-entry only form, transfer shall be governed by the Letter of Representations entered into withthe Depository Trust Company, or its successor. If the Bonds are not issued in book-entry only form, the Bonds are transferable, or subject to exchange, for fully registered Bonds in the denomination of $5,000 or integral multiples thereof by the registered owner thereof in person, or by the owner's attorney, duly authorized in writing, at the office of the Bond Registrar. The Paying Agent shall maintain a record of the names and addresses of the registered owners of the Bonds. The records of registered bond ownership are not public records within the meaning of Oregon Revised Statllltes 192.410(4). All bonds issued upon transfer of or in exchange for Bonds shall be valid general obligations of the City evidencing the same debt and shall be entitled to the same benefits as the Bonds surrendered for such exchange or transfer. All fees, expenses and charges of the Paying Agent and Registrar shall be payable by the City. The Bond Registrar shall not be required to (1) transfer or exchange any Bond after the close of business on the 15th day of the month next preceding any interest payment date or (2) transfer or exchange any bond called or being called for redemption. Section 9. Printing of Bonds. If the Bonds are not issued in book-entry only form, the City Administrator or the Director of Finance is authorized to contract for the printing of the Bonds. The City Administrator or the Director of Finance may provide for the printing of, in addition to the original issue of Bonds, additional bonds to be printed in blank form as to registration and to be designated by appropriate number for the Bond Registrar for delivery to the registered owner upon transfer or exchange of Bonds. The additional bonds shall be dated as of February 1, 1992, shall be signed by the facsimile signature of the present Mayor and City Recorder and the Bond Registrar shall manually sign the Certificate of Authentication as of the date of transfer of the Bonds. Section 10. Pledge of Tax Levy. The full faith and credit of the City :is pledged to the successive owners of each of the Bonds for the punctual payment of the principal of and interest on the Bonds when due. The City shall levy annually, as provided by law, a direct ad valorem tax upon all of the taxable property within the City in sufficient amount, without limitation, to pay the principal of and interest on the Bonds promptly as they become due and payable, after first taking into consideration other sources and revenues available for the payment thereof. The City hereby covenants with the owners of the Bonds to levy such a tax in sufficient amount to pay the principal of and interest (pp )jps\bnd\ashland-ord.291 December 12, 1991 3 on the Bonds as they respectively become due and payable after first taking into consideration other sources and revenues available for the payment thereof. Section 11. Covenant as to Arbitrage. The proceeds of the Bonds shall be used and invested in such manner that the Bonds shall not become "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amend,ed, (the "Code") and the regulations issued thereunder. The City covenants that, within its lawful powers, it will not do, and will refrain from doing, anything in the issuance of the Bonds and in the investment and expenditure of the proceeds thereof which would result in the interest on the Bonds becoming taxable for federal income tax purposes. Section 12. Designation as Oualified Tax-Exempt Obligations. The City hereby designates the Bonds for purposes of paragraph (3) of Section 265(b) of the Code as "qualified tax-exempt obligations" and covenants that the Bonds do not constitute private activity bonds as defined in Section 141 of the Code, and that not more than $10,000,000 aggregate principal amount of obligations, the interest on which is excludable under Section 103( a) of the Code from gross income for federal income tax purpose:s (excluding, however, private activity bonds other than qualified 501(c)(3) bonds) including the Bonds, have been or shall be issued by the City, including all subordinate entities of the Ci~y, if any, during the calendar year 1992. Section 13. Exception for Small Governmental Units. The City Council finds and determines that tbe Bonds of the City comply with the statutory requirements of Section 148(f)(4)(C) of the Code in that the City is a governmental unit having general taxing powers, the Bonds are not being issued for a private activity purpose, more than 95% of the net proceeds of the Bonds will be used for local governmental activities of the City, and the aggregate face amount of all tax-exempt obligations which will be issued by the City during the calendar year 1992 is not reasonably expected to exceed $5,000,000. Section 14. Sale of Bonds. The City Administrator or the Director of Finance is authorized to establish a date of sale and to advertise the Bonds for public sale at a price not less than 98.0% par value thereof and accrued interest to date of delivery. The Notice of Bond Sale shall be published as provided by law. The Notice of Bond Sale shall specify that the City reserves the right to reject any and all bids, and in all other respects the Notice shall comply with the provisions of Chapter 287 of Oregon Revised Statutes, as amended. All rates bid must be in integral multiples of one-eighth or one- twentieth of one percent. All bonds of the same maturity must bear a single rate from the date of issue to maturity. The maximum true effective rate of interest on the Bonds shall not exceed eight percent (8%). The maximum true effective rate of interest for a single maturity shall not exceed eight percent (8.0%). Section 15. Appointment of Bond Counsel. Messrs. Rankin Mersereau & Shannon of Portland, Oregon are appointed Bond Counsel for the issuance of the Bonds. (pp )jps\bnd\ashland-ord.291 December 12, 1991 4 Section 16.. Appointment of Financial Advisor. Moore, Breithaupt & Associates, Inc. is designated as the Financial Advisor to the City for the issuance of the Bonds. Section 17.. Preliminary and Final Official Statement. The City shall prepare, with the assistance of its Financial Advisor, a preliminary official statement for the Bonds, which shall be available for distribution to prospective bidders not later than the date on which the~ Notice of Bond Sale is first published. When advised by staff that the final official statement does not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements contained in the official statement not misleading in the light of the circumstances under which they are made, the City Administrator or the Director of Finance is authorized to certify the accuracy of the official statement on behalf of the City. Section 18. Execution of Documents. The City Administrator or Din:~ctor of Finance is authorized to execute the Certificate as to Arbitrage and any and all additional documents which may reasonably be required to issue, sell and delliver the Bonds. 1991. Passed by the City Council of the City of Ashland this 17th day of December, AYES NAYS ABSTAIN -~ (:\ /) L_ Signed and approved by the Mayor of the City of Ashland this delay of December, 1991. - (' c- ;:~;-'LL'---> > 7-- ~ -~tC'cx_--~ _ Mayor ATTEST: C4onz; - / /) '- 'i- (. 'T .' / ,~ -;I ;'.2 tIC-Lit.,1L < - City Recorder (pp )jps\bnd\ashland-ord.291 De.:ember 12. 1991 5