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R-83-426w ~ No. 426 RESOLUTION DIRECTING PUBLICATION OF NOTICE OF SALE OF $700,000 1982 WATER AND SEWER REVENUE BOND ANTICIPATION NOTES. WHEREAS, the City of Clermont, Florida (the "Issuer"), has authorized the issuance of not exceeding $700,000 1982 Water and Sewer Revenue Bond Anticipation Notes for the purpose of pro- viding interim construction financing of a part of the cost of acquiring, erecting and constructing extensions and improvements to the sewer facilities of its combined municipal water and sewer system pending the issuance of its revenue bonds which will pro- vide the necessary long-term financing of such cost; and WHEREAS, it is now proper that a public sale of such revenue bond anticipation notes be advertized: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CLERMONT, FLORIDA, as follows: SECTION 1. $700,000 principal amount of the City of Clermont 1982 Water and Sewer Revenue Bond Anticipation Notes shall be offered at public sale on the 1.3th day of June 1983, Pursuant to the notices hereinafter provided for. SECTION 2. The Official Notice of Sale calling for bids for the purchase of such revenue bond anticipation notes shall be substantially as follows: OFFICIAL NOTICE OF SALE $700,000 CITY OF CLERMONT, FLORIDA 1982 WATER AND SEWER REVENUE BOND ANTICIPATION NOTES The City of Clermont, Florida (the "Issuer") invites sealed bids for the purchase from it of not less than all of the $700,000 principal amount of its 1982 Water and Sewer Revenue Bond Anticipation Notes (the "Notes"), to be dated as of the date of their delivery to the purchaser or purchasers thereof, which bids will be publicly opened and read at the Issuer's City Hall at 10 o'clock, a .M., on June T3 1983. The Notes will mature twelve (12) months from the date of delivery, will be in such denomination or denominations as shall be acceptable to the purchaser or purchasers thereof, will bear interest at such rate as is specified in the successful bid, not exceeding the legal rate, payable at maturity, and will be redeemable in whole or in part prior to maturity, at par plus accrued interest and without premium, at the option of the Issuer, provided that notice of any such redemption prior to maturity shall be given in the manner provided in Resolution No. 394 adopted by the Issuer on March 23, 1982, as amended, -1- 0 • • authorizing issuance of the Notes and the Bonds hereinafter described (the "Resolution"). The principal of and interest on the Notes will be payable, with par clearance guaranteed, at such place or places as shall be designated by the Issuer upon award of the Notes to the successful bidder or bidders. The Notes, which will be issued for the purpose of pro- viding interim construction financing of a part of the cost of acquiring, erecting and constructing extensions and improvements to the sewer facilities of the combined municipal water and sewer system of the Issuer (the "System") which will be financed ulti- mately through the issuance of Water and Sewer Revenue Bonds, Series 1982 of the Issuer (the "Bonds"), will be payable solely from and secured by a prior lien upon and pledge of the proceeds to be derived from the sale of the Bonds or the sale of bond anticipation notes issued to extend and renew the indebtedness evidenced by the Notes and, if necessary, from and secured by a lien upon and pledge of the revenues to be derived from the operation of the System and the proceeds of certain municipal excise taxes described in the Resolution, all in the manner pro- vided in the Resolution. Said lien on the revenues of the System and said excise taxes is junior, subordinate and inferior in every respect to the lien on such revenues and excise taxes in favor of certain outstanding prior lien obligations of the Issuer described in the Resolution. The Resolution contains provisions similar to those customarily included in similar resolutions of Florida municipal- ities relating to notes and bonds such as those authorized pur- suant thereto, including provisions requiring payments of the revenues from the operation of the System into special funds created for debt service, operation and maintenance, debt service reserve, renewal and replacement of physical properties and redemption of outstanding obligations, and provisions requiring maintenance of adequate rates, annual audits and insurance on physical properties. The Notes are issued under the authority of and in full compliance with the Constitution and the Statutes of the State of Florida. Each bidder shall state in his bid (1) the dollar price he will pay for the Notes, which must be not less than the par value thereof, and (2) the annual rate of interest to be borne by the Notes, in multiples of 1/8 or 1/20 of one percent. The Notes will be awarded to the bidder or bidders offering to purchase all of the Notes at the lowest net interest cost to the Issuer; provided, that the Issuer reserves the right to reject any and all bids; and provided further that if the same lowest net interest cost is reflected by more than one bid, the Notes will be awarded to the bidder offering to pay the highest dollar price therefor. The lowest net interest cost will be -2- determined by aggregating the total amount the Notes from the date of their delivery purchasers until maturity, computed at the bid, after deducting therefrom the amount reflected by such bid. of interest payable on to the purchaser or rate specified in such of any premium Each proposal must be accompanied by certified or cashier's check in the amount of two percent of the face value of the Notes, which such check shall be payable to the order of the Issuer and drawn on a bank having membership in the Federal Reserve System. No interest will be allowed on any such checks. The checks of the unsuccessful bidders will be returned promptly following the award of the Notes. The check of the successful bidder or bidders will be retained by the Issuer as security for the performance of the successful bid and at the time the sale is consummated will either be returned or applied on the purchase price of the Notes, at the option of the Issuer. t i t~ I. c As soon after the award as they and the supporting docu- ments may be prepared, the Notes will be delivered as a whole against payment therefor in bankable funds, in Clermont, Florida, or elsewhere, at the purchaser's expense, at the option of the successful bidder or by agreement among the successful bidders. The Notes were validated by Judgment of the Circuit Court in and for Lake County, Florida, rendered on July 20, 1982, and there is no litigation pending affecting the validity of the Notes. The Issuer will furnish the successful bidder or bidders, without cost, the printed Notes and the legal opinion of Foley, Lardner & Slade, Jacksonville, Florida, approving the validity of the Notes. Under existing statutes and court decisions, interest on the Notes will be exempt from federal income taxation. No conditional bid will be considered, except that all bids will be construed as having been conditioned on the provi- sions of this official invitation for bids. CITY OF CLERMONT, FLORIDA Cit Clerk The Issuer's City Clerk is hereby authorized and directed to mail a copy of the foregoing Official Notice of Sale and a copy of the Resolution described therein to all banks in the area of the Issuer having municipal bond departments, to all -3- ~- .. investment banking firms in the area of the Issuer, to all other parties in the area who, in her opinion, might be interested in bidding for any of the Notes, and to all parties requesting a copy thereof pursuant to publication of the notice hereinafter provided or otherwise. SECTION 3. The Issuer's City Clerk is hereby authorized and directed to publish in Orlando~Sentnel a newspaper of general circulation in the area of the Issuer, published in Orlando Florida, once each week far two consecutive weeks, the second publication date being not less than ten (10) days from the date of the sale, a condensed form of notice calling for bids for the purchase of the Notes in substan- tially the following form: NOTICE OF SALE $700,000 CITY OF CLERMONT, FLORIDA 1982 WATER AND SEWER REVENUE BOND ANTICIPATION NOTES Sealed bids will be received by the City of Clermont, Florida (the "Issuer"), at the Issuer's City Hall, up to 11.0 o'clock A~. M. on June 13 1983 for the purchase of not less than all of its issue of revenue bond anticipation notes described above (the "Notes"). The Notes will be dated as of the date of their delivery to the purchaser or purchasers, will mature twelve. (._12) months from the date of delivery, will be in such denomination or deno- minations as shall be acceptable to the purchaser or purchasers, will bear interest at such rate as is specified in the successful bid, not exceeding the legal rate, payable at maturity, and will be redeemable in whole or in part prior to maturity, at par plus accrued interest and without premium, at the option of the Issuer. The Notes, which will be issued for the purpose of pro- viding interim construction financing of a part of the cost of acquiring, erecting and constructing extensions and improvements to the sewer facilities of the combined municipal water and sewer system of the Issuer (the "System") which will be financed ulti- mately through the issuance of Water and Sewer Revenue Bonds, Series 1982, of the Issuer (the "Bonds"), will be payable from and secured by a prior lien upon and pledge of the proceeds to be derived from the sale of the Bonds or the sale of bond anticipa- tion notes issued to extend and renew the indebtedness evidenced by the Notes and, if necessary, from and secured by a lien upon and pledge of the revenues to be derived from the operation of the System and the proceeds of certain municipal excise taxes described in the Issuer's resolution authorizing issuance of the -4- ~ ~ Notes and the Bonds, all in the manner provided in such resolu- tion. Said lien on the revenues of the System and said excise taxes is junior, subordinate and inferior in every respect to the lien on such revenues and excise taxes in favor of certain outstanding prior lien obligations of the Issuer described in said resolution. Each bid must be accompanied by a Certified or a Bank Cashier's or Treasurer's Check payable to the order of the Issuer as a guarantee of good faith, in the amount of two percent of the face value of the Notes. The successful bidder will be furnished without cost, the legal opinion of Foley, Lardner & Slade, Jacksonville, Florida, approving the validity of the Notes. A copy of the Official Notice of Sale and other infor- mation pertaining to this issuance may be obtained from the undersigned. The right to reject any and all bids is reserved. CITY OF CLERMONT, FLORIDA BY /'z~~~ Cit Clerk SECTION 4. This resolution shall take effect imme- diately upon its passage. -5-