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R-72-188_ ; •{ . l . 9 RESOLUTION N0. 188 RESOLUTION DIRECTING PUBLICATION OF NOTICE OF SALE OF $800,000 SANITARY SEWERAGE IM- PROVE6IENT CERTIFICATES OF Tick; CITY OF CLERMONT, FLORIDA. } :' WHEREAS, the City of Clermont, Florida, hereinafter ~` sometimes called the "Issuer", has authorized an issue of Sanitary Sewerage Improvement Certificates, dated as of April 1, 1969, in ~~~ the sum of $800,000, for the purpose of financing a part of the cost of acquiring and constructing a new municipal sewer system, all with necessary appurtenances; and WHEREAS, a public sale of these obligations must be ad- vertised; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Clermont, Florida, as follows: SECTION 1. $800,000 Sanitary Sewerage Improvement Certi- ficates, herein sometimes called the "obligations", dated as of ' April 1, 1969, of the Issuer shall be offered at public sale on Feb Marv 22 , 1972, pursuant to the notices hereinafter provided for. SECTION 2. The official notice of sale calling for bids for the purchase of the obligations shall be substantially as follows: OFFICIAL NOTICE OF SALE ' $$00,000.00 CITY OF CLERMONT, FLORIDA .SANITARY SEWER IMPROVEMENT CERTIFICATES Dated as of April 1, 1969 The City of Clermont, Florida (herein sometimes called the "Issuer") invites sealed bids for the purchase from it of all or any of the hereinafter described blocks of $800,000 principal a- mount of Sanitary Sewerage Improvement Certificates, to be dated as of April 1, 1969 (herein called the "obligations"), which bids will be publicaly opened and read at the Issuer's City Hall at 7:30 o'clock, p.M., on February 22 , 1972. The obligations will consist of coupon certificates, registrable as to principal only, numbered from 1 upwards, in the denomination of $5,000 each ,• and will mature on April 1, 1981. The obligations shall be redeemable at any time prior to maturity, at the option of the Issuer in whole or in part, in ' inverse numerical order if less than all, at the price of par and accrued interest to the date of redemption; provided, how- ever, that notice of such redemption shall be given in the manner 147 provided in Resolution No./, adopted by the Issuer on,Iuly 15,1969, authorizing issuance of the obligations (hereinafter called the "enabling instrument"). The principal of the obligations and interest thereon (payable on April 1 of each year at a rate or rates not exceeding the legal rate hereinafter specified) will be payable with par clearance guaranteed, at Clermont , Florida, or, at the option of the holder, at the main office of First National City Bank , in the Borough of Manhattan, City and State of New York. The obligations, which will be issued to finance a part of the cost of acquiring and constructing a new municipal sewer system, all with necessary appurtenances, for the Issuer, are pay- able solely from the levy and collection of special assessments against the property abutting or adjoining the project and specially benefitted by the construction thereof. The enabling instrument contains provisions similar to those customarily included in bond ordinances of Florida munici- palities relating to obligations such as those offered hereby. The obligations are issued under the authority of and in full com- pliance with the Constitution and Statutes of the State of Florida, including particularly Chapter 170, r^lorida Statutes. Bids wi1.1 be considered on the following bases: (1) Obligations numbered 1 through 144, in the principal amount of $720,000, at an interest cost not greater than four and one-half per centum (4 1/2~) per annum; (2) 'Obligations numbered 145 through 160, in the principal amount of $80,000, at an interest cost not greater than four and one-half per centum (4 1/2~) per annum; and (3) All the obligations, at an interest cost not greater than four and one-half per centum (4 1/2$) per annum. -2- • • Each bidder shall state in his bid (1) the dollar price he will pay • for those of the obligations for which such bid is submitted, which must be not less than the par value thereof, plus accrued interest thereon from April 1, 1971 to the date of delivery thereof (or if one or more interest payment dates shall have passed prior to de- livery, interest from the interest payment date next preceding the date of delivery) and (2) the annual rate or rates of interest to be borne by those of the obligations for which such bid is submitted, in multigles of 1/8 or 1/20 of 1~, subject to the following qualifi- cations: (a) Each obligation must bear the same rate of interest throughout its life; (b) all obligations having the same maturity must bear the same rate of interest; {c) all interest on any obliga- tion payable on any interest payment date must be evidenced by a single coupon; (d) not more than two rates may be named for any of the above described blocks for which a separate bid is submitted, except that as many as four rates may be named in any bid submitted for all the obligations; and (e) the total average net interest cost shall not exceed 4 1/2$ per annum for the aggregate of all obliga- tions for which a separate bid is submitted. The obligations will be awarded to the bidder or bidders offering to purchase them, or a portion thereof as set forth above, at the lowest net interest cost to the Issuer, computed from April 1, 1971, to their respective maturities; provided, that the Issuer reserves the right to reject any or all bids; and provided further, that if the same lowest net interest cost is reflected by more than one bid, the obligations or portion thereof for which such bids were made will be awarded to the bidder offering to pay the highest dollar price therefor, that bids for all the obligations will be accorded preference over bids for individual blocks, except where the sum of the bids for the individual blocks results in a lower net interest cost for all. the obligations. The lowest net interest cost will be determined by aggregating the total amount of interest pay- able on the obligations for which such bid is submitted from April 1, 1971 until their respective maturities, computed at the rate or rates specified in such bid, and deducting therefrom the amount of -3- • • any premium reflected by such bid. For the purpose of determining the lowest bidder, calculations of net interest cost will exclude the bid of the Department of Housing and Urban Development (herein called the "government"~. The government has entered into a loan agreement with the Issuer, pursuant to which it proposes to buy all the obligations at par plus accured interest at a 4 1/2$ interest rate, providing no other bidder or bidders offer to gurchase all or any block of the obligations on the terms indicated. The Issuer desires to sell all the obligations. In the event the Issuer re- ceives bids for one of the sgecified blocks of the obligations and one or more bids for all the obligations, then, subject to the pro- visions of this paragraph with respect to offers by bidders other than the government, the obligations will be awarded to the best bidder for all of the obligations, even though his bid reflects an interest cost greater than that reflected by one or more of the block bids. Each proposal (other than t;at of the government) must be accompanied by a certified check or a cashier's check in the amount of 2$ of the face value of the obligations for which such bid is submitted, which 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 obligations. The check or checks of the successful bidder or bidders will be retained by the Issuer as security for the per- formance of the successful bid or bids and at the time the sale is consummated will either be returned or applied on the purchase price of the obligations, at the option of the Issuer. As soon after the award as they and the supporting docu- ments may be prepared, the obligations will be delivered as a whole against payment therefor in bankable funds, in Jacksonville, Florida; or elsewhere, at the purchaser's expense, at the option of the successful bidder or by agreement amcng the successful bidders. The obligations will be accompanied by the customary closing papers re- citing that there is no litigation pending affecting their validity. -4- • ~ The Issuer will furnish the successful bidder, without cost, the printed obligations and the legal opinion of Messrs. Freeman, Richardson, Watson, Slade & McCarthy, of Jacksonville, Florida, approving their validity. Under the existing statutes and court decisions, the interest on the obligations will be exempt from Federal income taxation. No conditional bids will be considered, except that all bids will be construed as having been conditioned on the pro- visions of this official invitation for bids and except that the government's bid may be conditioned as aforesaid. CITY OF CLERMONT, FLORIDA By City C erk SECTION 3. The City Clerk is hereby authorized and directed to publish in the South Lake Press , a newspaper in general circulation in Clermont, Florida, once a week for two consecutive weeks, the first publication to be not less than fifteen {15) days prior to the date of sale, and in The Daily Bond Buyer, a financial newspaper of national circula- tion, at least once not less than fifteen (15) days prior to the date of sale, a condensed form of notice calling for bids for the purchase of said obligations in substantially the following form: NOTICE OF SALE $800,000 CITY OF CLERMONT, FLORIDA SANITARY GEWER ZMPROVEMENT~CERTIFICATES Dated as of April 1, 1969 Sealed bids will be received by the City of Clermont, Florida, hereinafter called the "Issuer", at its City Hall, up to 7_:30 o'clock, P .M., on February 22 , 1972, for the pur- chase of all or any of the hereinafter designated blocks of $800,000 Sanitary Sewerage Improvement Certificates (hereinafter called the "obligations"). -5- The obligations will be in the denomination of $5,000 each, will be dated as of April 1, 1969, and will bear interest at such rate or rates, not exceeding the legal rates hereinafter set forth, as are specified in the successful bid. Interest is payable on the obligations annually on April 1 in each year. The obligations shall mature on April 1, 1981, The obligations are subject to redemption prior to ma- turity, the details of which may be secured from the undersigned. The obligations will 'be issued to finance a part of the cost of acquiring and constructing a new municipal sewer system and will be payable solely from and secured by a prior lien upon and pledge of the levy and collection of special assessments against the property abutting or adjoining the project and specially benefitted by the construction thereof. only. The obligations are subject to registration as to principal Bids will be considered on the following bases: (1) Obligations numbered 1 through 144, in the principal amount of $720,000, at an interest cost not greater than four and one-half per centum (4 1/2$) per annum; (2) Obligations numbered 145 through 160, in the principal amount of $80,000, at an interest cost not greater than four and one-half per centum (4 1/2$) per annum; and (3) All the obligations, at an interest cost not greater than four and one-half per centum (4 1/2~) per annum. The Department of Housing and Urban Development (herein called the "government") has entered into a loan agreement with the Issuer pursuant to which it proposes to buy all the obliga- tions at par plus accrued interest at a four and one-half per centum (4 1/2$) interest rate, providing no other bidder or bidders offer to purchase all or any block of the obligations on the terms indi- cated. The Issuer desires to sell all the obligations. For the purpose of determining the lowest bidder, calculations of net in- terest cost will exclude the bid of the government. Bidders may name the interest rate or rates for each block of obligations or all the obligations in multiples of 1/8 or 1/20 of 1~. Bids for all the obligations will be accorded -6- • • preference over bids for individual blocks, except where: she sum of the bids for the individual blocks results in a lower net in- terest cost for all the obligations. Except for the bid of the government, each bid must be accompanied by a Certified or Bank Cashier's or Treasurer's Check in the amount of 2$ of the face value of the obligations for which such bid is submitted, payable to the order of the Issuer as a guarantee of good faith. The successful bidder will be furnished, without cost, the legal opinion of Messrs. Freeman, Richardson, Watson, Slade & McCarthy of Jacksonville, Florida, approving the validity of the obligations. A copy of the Official Notice of Sale and a Statement of Essential Facts for this issue may be obtained from the under- signed, Clermont, Florida. The right to reject any and all bids is reserved. CITY OF CLERMONT, FLORIDA BY_/sl Dolor s W._ Carroll G'ity ~e SECTION 4. This resolution shall take effect immediately upon its passage. DONE AND RESOLVED this 25th day of January, A.D. 1972, CITY OF CLERMONT ATTEST: / s/ Dolores W. Carroll BY: /s/ Don ~. Smith pity Clerk-`~' D N E. S NTH, ayor CORPORATE SEAL) -?-