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RESOLUTION DIRECTING PUBLICATION OF NOTICE OF
SALE OF $1y704,~00 WATER AND SEWER REVENUE
BOND ANTICIPATLON,NbTES, SERIES 1980.
,A,.. e
WHEREAS, the City df Clermont, Florida (the "Issuer"),
has authorized the issuance of not exceeding $1,700,000 Water and
Sewer Revenue Bond Anticipation Notes, Series 1980 for the pur-
pose of providing interim construction financing of the cost of
acquiring, erecting and constructing extensions and improvements
to its combined municipal water and sewer system pending the
issuance of its revenue bonds which will provide the necessary
long-term financing of such Cost; and
WHEREAS, it is how proper that a public sale of such
revenue bond anticipation notes be advertized:
NOW, 'THEREFORE 9E IT RESOLVED by the City Council of the
City of Clermofi~t, Florida, as follows:
SEC'~ION 1. $1,7p0,000 principal amount of the City of
Clermont Water and. Sewer Revenue Bond Anticipation Notes, Series
1980 shall be offered at public sale on the 24th day of
March , 1881, pursuant to the notices hereinafter provided
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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
$1,700,000
CITY OF CLERMONT, FLORIDA
WATER AND SEWER REVENUE BOND ANTICIPATION NOTES
SERIES 1980
The City of Clermont, Florida (the "Issuer") invites
sealed bids for the purchase from it of not less than all of the
$1,700,000 principal amount of its Water and Sewer Revenue Bond
Anticipation Notes, Series 1980 (the "Notes"), to be dated as of
the date of their delivery to R.he purchasers thereof, which bids
will be publicly opened and read at the Issuer's City Hall at
Ten o'clock, 11.M., vn March 20 , 1981.
The Notes will mature eighteen (18) months from the
date of delivery, will be ih such denomination or denominations
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, provided that notice of any such redemption prior to
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maturity shall be given in the manner provided in Resolution No.
351 adopted by the Issuer on July 22, 1980, authorizing issuance
of the Notes .and the Bonds..hereinafter described (the
"Resolution") . The°`~r'inCipe,l: of and interest on the Notes will
be payable, with pa~.cle~tr~nce guaranteed, at such place or
places as shall be designated by the Issuer upon award of the
Notes to the successful t~iE3cicrs.
The 1Votes, which will be issued for the purpose of pro-
vidinc~ interim constriction financing of the cost of acquiring,
erecting and constructing extensions and improvements to the com-
bined municipal water and sewer system of the Issuer (the
"System") which will be.,~ihaiiirdd ultimately through the issuance
of Water and SeweY #evenue Bends, Series 1980 of the Issuer (the
"Bonds"), will be pay~ible solely from and secured by a prior lien
upon and pledge of the piroceeds to be derived from the sale of
the Bonds and, if necessary trom and secured by a lien upon and
pledge of the net 'revenues to be derived from the operation of
the System aril the proceeds of certain municipal excise taxes
described in the Resoyutioi7,_all in the manner described in the
Resolution. Said lien on the het revenues of the System and said
excise taxes is junior, subotdinate 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 Resol~itioh contains provisions similar to those
customarily included in simi;l~r resolutions of Florida municipa-
lities relating to notes anc~ bonds such as those authorized pur-
suant thereto, incatiding provisions requiring payments of the
revenues from the operation of the System into special funds
created for debt services 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 antrual rate of interest to be borne by
the Notes, in multiples of 1/$ 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 riyht
to reject any and all bids] and provided further that if the same
lowest net interest coht 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
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determined by aggregating the total amount of interest payable on
the Notes from the date o~ their delivery to the purchaser or
purchasers until matu itl-~,.computed at the rate specified in such
bid, after deductirlg° ~~r~e~efrt~it the amount of any premium
reflected by such bid.
Each proposal triust b+~ accompanied by certified or
cashier's check in the amonn£ 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 will be retained by ,the Issuer as security for the perfor-
mance of the successful bid end at the time the sale is con-
sumated will either be 'returned or applied on the purchase price
of the Notes, at the option bf the Issuer.
As soon aftet the award as they and the supporting docu-
ments may be prepared the: Notes will be delivered as a whole
against payment therefor in b~hkable funds, in Clermont, Florida,
or elsewhere, et the pt~rch~~~r's expense, at the option of the
successful bidder or. by agxe~:tnent among the successful bidders.
The Notes were validati~d by Judgment of the Circuit Court in and
for Lake County, Florida, reHdered on January 19, 1981, and there
is no litigation pending affecting the validity of the Notes.
The Issuer will furnish the successful bidder, without cost, the
printed Notes and the legal opinion of Thomas B. Slade, IIi
Professional Associatioh o~ Jacksonville, Florida, approving the
validity of the Notes.
Under existing statl~tes and court decisions, interest on
the Notes will be exempt ~YOm Federal income taxation.
No cohditional bid ~+ill 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
Clerk
The Issuer's Clerk is hereby authorized and directed to
mail a copy of the forbgoing 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 investment
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banking firms in the area of the Issuer, to all other parties in
the area who, in his opinion, might be interested in bidding for
any of the Noes, and to all;;.parties requesting a copy thereof
pursuant. to publicatidn ofithe Notice hereinafter provided or
otherwise.
SECTION 3. The.Issder's Clerk is hereby authorized and
directed to publish in _th~ _#~~sbura _Commercial _ a
newspaper of general ~circu tt ion in t e area o the Issuer,
published in Leesburci , Florida, once each week for two
consecutive weeks, the secani~ publication date being not less
than ten (lb) days frofi 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: .
NOmICE OF SALE
$1'y700,000
CITY 4F CLERMONT, FLORIDA
WATER AND SEWER REVF}J~E $OND ANTICIPATION NOTES
SERE ES 1980
Sealed bids 1ai11 be deceived by the City of Clermont,
Florida, hereinafter sbmetimes called (the "Issuer"), at the
Issuer's City Hall, ~p td ten o'clock A M. on March 20
1981, for the purchase of ho less than all of its issue of reve-
nue bond anticipation notes described above (the "Notes").
The Notes will be dated as of the date of their delivery
to the purchaser or purchasers, will mature eighteen (18) months
from the date t~f delivery, Hill be in such denomination or deno-
minations as shall be acceptable to the purchaser or purchasers,
will bear interest at such irate as is specified in the successful
bid, not exceeding the legal rate, payable at maturity, and will
be redeemable in whole or in part prior to maturity, at par plus
accrued interest and without premium, at the option of the
Issuer.
The Notes, .which wi~~ be issued for the purpose of pro-
viding interim consitruckion financing of the cost of acquiring,
erecting and constructing extensions and improvements to the com-
bined municipal water z~iid sewer system of the Issuer (the
"System") which will be findn~ed ultimately through the issuance
of Water and Sewer hevefiue )$bnds, Series 1980 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 and, if necessary, front and secured by a lien upon and
pledge of the net 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
Notes and the Bonds, all in the manner described in such
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resolution. Said lien on the net revenues of the System and said
excise taxes is junioY subordinate and inferior in every respect
to the lien on'such revenues end excise taxes in favor of certain
outstanding prior lied obligations of the Issuer described in
said resolutioh.
Each bid musk be accbtnpanied 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 pf ~'homas ~. Slade, III Professional
Association of 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
Clerk
SECTION 4. This resolution shall take effect imme-
diately upon its passage.
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