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HomeMy WebLinkAbout1974-049-05/02/1974-SEWER IMPROVEMENT REVENUE BONDS $2,000,000 I�C" � Move STATE OF COLORADO ) COUNTY OF LARIMER ) SS CITY OF FORT COLLINS ) The City Council of the City of Fort Collins, ,in the County of Larimer and State of Colorado, met in regular session, in full conformity with law and the ordinances and rules of the City at the Council Chambers in the City Hall in said City, being the regular meeting place of the Council, on Thursday, the 2nd day of May, 1974, at the hour of 6 ,30 p m , at which meeting there were present and answer- ing the roll call the following, constitution a quorum Present Assistant Mayor Nan_X Cr,av Other Councilmembers Charles Royal ing Mabel prQh 1 e Margaret Reeyec r Jack �iiggAl1 ,— Earl R Wilkinson Absent �.N FPa� constituting all of the members of the Council There were also present , Robert Brunton Verna Lewis Arthur E March, Jr Thereupon, the following proceedings, among others, were had and taken, to wit r Councilwoman _ Preble introduced a resolution which resolution was thereupon read in full and is as follows RESOLUTION 74-49 WHEREAS , the City of Fort Collins, in the County of Lar�mer and state of Colorado now owns and operates a munici- pal sanitary sewerage system, and WHEREAS , the City Council has determined, and does hereby determine, to improve and extend the system, the cost thereof to be defrayed in ma]or part from the proceeds of the revenue bonds heroin authorized to be sold, and WHEREAS , the Council deems it necessary and advisable that the bonds be publicly sold at this time pursuant to Sec- tion 139-52-4, Colorado Revised Statutes 1963, as amended, and WHEREAS, copies of the proposed bond ordinance are now on file in the office of the City Clerk NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS Section 1 The City of Fort Collins, Colorado, Sewer Improvement Revenue Bonds , Series June 1, 1974, in the princi- pal amount of $2 , 000, 000, are hereby ordered to be advertised for public sale On Thursday, June 6, 1974, at the hour of 11 00 a m , M D T , at the City Hall Council Chambers, in the City , sealed bids shall be received and publicly opened for the purchase of the bonds Section 2 The Official Notice of Bond Sale shall be as follows -2- OFFICIAL NOTICE OF BOND SALE $2, 000, 000 CITY OF FORT COLLINS, COLORADO SEWER IMPROVEMENT REVENUE BONDS SERIES JUNE 1, 1974 The City Council of the City of Fort Collins (herein "City") , in Larimer County, Colorado will receive sealed bids at the City Hall Council Chambers , at 300 LaPorte Avenue , in Fort Collins, Colorado, until 11 00 a m , M D T , on Thursday, the 6th day of June, 1974, for the pur- chase of $2 , 000, 000 of City of Fort Collins , Colorado, Sewer Improvement Revenue Bonds, Series June 1, 1974, dated June 1, �974 (herein "bonds") ISSUE, The bonds will be in the denomination of $5, 000 each, numbered 1 to 400, inclusive Interest will be payable on December 1, 1974, and semiannually thereafter on June 1 and December 1 in each year, and bonds will mature serially on December 1, as follows Amount Maturity $ 10, 000 1977 10, 000 1978 10, 000 1979 10, 000 1980 10, 000 1981 10, 000 1982 10, 000 1983 10, 000 1984 10, 000 1985 180, 000 1986 185, 000 1987 195, 000 1988 200, 000 1989 210, 000 1990 220, 000 1991 230, 000 1992 240, 000 1993 250, 000 1994 PRIOR REDEMPTION Bonds maturing on or after Decem- ber 1, 1984, will be sub3ect to prior redemption at the option of the City, in inverse numerical order on June 1, 1984, and on any interest payment date thereafter, upon payment of par and accrued interest and a premium equal to two per cent (2%) of the principal amount of each bond so redeemed, if redeemed on or before December 1, 1988 or a premium equal to one per cent (1%) of the principal amount of each bond so redeemed, if redeemed thereafter -3- PAYMENT Principal and interest will be payable at the office of the Director of Finance and ex officio City Treasurer in Fort Collins, Colorado NO REGISTRATION FOR PAYMENT The authorizing pro- ceedings and the bonds will contain no provision for the reg- istration of bonds for payment, as to principal, or interest, or both SECURITY The bonds and the interest thereon (to- gether with the City of Fort Collins, Colorado, Refunding and Improvement Revenue Bonds , Series June 1, 1965 and all parity obligations, if any, hereafter issued) shall be payable solely from, and constitute a first lien upon the revenues to be de- rived from the operation of the City' s municipal sanitary sewer system (herein "system") after payment of all necessary and reasonable operation and maintenance expenses of the system PURPOSE AND AUTHORITY The bonds will be issued for the purpose of improving and extending the municipal sewer sys- tem pursuant to the laws of the State of Colorado, and parti- cularly Chapter 139 , Article 52, Colorado Revised Statutes 1943, as amended, and consistently with the Charter and ordi- nances of the City PROPOSALS AND AWARD Each bid must be on an offi- cial bid form (addressed to Director of Finance, P 0 Box 580, Fort Collins , Colorado 80522) and be conditional upon receipt of the approving legal opinion of the bond attorneys named below, but must in all other respects be unconditional Bidders are to designate the rate or rates of interest, to be evidenced by a single set of interest coupons (no supplemental or "B" coupons) , on which their bids are based The net ef- fective interest rate for said issue of bonds may not exceed 7% (computed in accordance with the standard so-called "IBA Method") Interest rates must be stated in multiples of twentieths or eighths of one per cent, and the highest rate bid for any of the bonds may not exceed the lowest rate bid by more than three per cent (3%) No more than one interest rate may be bid for the bonds maturing in a single year A zero (0) interest rate cannot be named The bonds will be sold at, not less than par and accrued interest to the date of delivery thereof, The bonds -4- will be awarded to the bidder whose bid results in the lowest net interest cost to the City, as hereinafter defined, and in any event to the best advantage of the City If there are two (2) or more equal bids for the bonds , and such equal bids are the best bids received, the City will determine which bid will be accepted For information purposes only, the bidders are re- quested to state in their bids (a) the total net interest cost in dollars and cents, which is defined as the total amount of interest to accrue from date of issue to the respective maturi- ty dates, without regard to prior redemption provisions , less the amount of cash premium bid, if any, and (b) the net effec- tive interest rate in a stated per cent BID CHECK A cashier' s check or certified check drawn on a bank or trust company of the United States of Amer- icA, payable to the City of Fort Collins, Colorado, in the amount of $40, 000 must accompany each bid The check of the successful bidder will be retained by the City as evidence of good faith pending the delivery of the bonds Other bidders ' checks will be returned promptly SALE RESERVATIONS The City reserves the privilege (1) of waiving any irregularity or infor- mality in any bid, (2) of re3ecting any and all bids for the bonds and (3) of reoffering the bonds for sale, as provided by law TAX EXEMPT STATUS In the opinion of bond counsel , the interest on the bonds is exempt from taxation by the United States of America under present federal income tax laws and is also exempt from taxation by the State of Colo- rado under its income tax laws If prior to the delivery of the bonds to the successful bidder therefor, the income re- ceived by private holders of obligations of the same type and character will be taxable or be required to be used in any income tax computation by the terms of any applicable federal or Colorado law hereafter enacted, the successful bidder, at his election made prior to the tender by the City of the bonds for delivery, may be relieved of his obligation under the contract to purchase the bonds In such case the contract to purchase the bonds will terminate , and the deposit accompanying -5- the purchaser' s bid will be returned to the purchaser upon written request therefor Any such option shall be exer- cised by a letter addressed to the bond counsel hereinafter designated and deposited in the United States mails, prior to the tender by the City of the bonds for delivery as first-class mail, postage prepaid, and as airmail unless so mailed in Denver, Colorado TIME OF AWARD If an acceptable bid is received, the bonds will be awarded by the City Council at a meeting thereof, within twenty,-four (24) hours after the time of bid opening The bond ordinance is expected to be adopted at the regular meeting of June 6, 1974 MANNER AND TIME OF DELIVERY The deposit of the best bidder will be credited to the purchaser at the time of delivery of the bonds (without accruing interest) If the successful bidder for the bonds fails or neglects to com- plete the purchase of the bonds within ten (10) days after the bonds are made ready and are tendered by the City for delivery, the amount of this deposit will be forfeited (as liquidated damages for noncompliance with the bid) to the City, except as hereinafter provided In that event, the City Council may cause the bonds to be reoffered for sale as the Council may determine The purchasers will not be re- quired to accept delivery of any of the bonds if they are not tendered by the City for delivery within sixty (60) days from the date of opening bids, and if the bonds are not so tendered within said period of time, the good faith deposit will be returned to the purchaser upon his request The City contemplates , however, effecting the delivery of the bonds to the purchaser thereof on or about July 11, 1974 PAYMENT AT AND PLACE OF DELIVERY The successful bidder or bidders will be required to accept delivery of, and to make payment of the balance due for, the bonds (1) At some bank or trust company in Denver, Colorado, , or (2) At the successful bidder' s request and expense, at some other bank or trust company in the United States of America Payment of the balance of the purchase price due at delivery must be made in federal funds or other funds acceptable to -6- the City and to the bank or trust company designated as the place of delivery for immediate and unconditional credit to the City, or as directed by the City The balance of the purchase price, including any premium, must be paid in such funds and not by cancellation of any interest coupons , nor by any waiver of interest, nor by any other concession as a substitution for such funds CUSIP NUMBERS CUSIP numbers will be printed on the filing panel on the back of the bonds at the request and expense of the successful bidder If a wrong number is im- printed on any bond or if a number is not printed thereon, any such error or omission will not constitute cause for the successful bidder to refuse delivery of any bond INFORMATION The official bid form, an official statement prepared by the City, the bond ordinance to be adopted after the sale, .his Official Notice of pond Sale, and financial and other information concerning the City and the bonds, may be obtained upon request from the City' s fi- nancial consultant, Boettcher & Company, 828 - 17th Street, Denver, Colorado 8020� LEGAL OPINION, BONDS AND TRANSCRIPT The legality of the bond issue will be approved by the firm of Dawson, Nagel, Sherman & Howard, Attorneys at Law, 1900 First Na- tional Bank Building, Denver, Colorado 80202, whose unquali- fied, final, approving opinion, together with the printed bonds on steel engraved borders , a certified transcript of the proceedings , including a certificate stating that there is no litigation pending affecting the validity of the bonds as of the date of their delivery, and other closing docu- ments , will be furnished to the purchaser without charge by the City A certified true copy of the approving opinion of bond counsel for the issue will be printed on each bond thereof at the City' s expense Bond counsel ' s approving opinion will recite, in conventional form, that bond counsel has examined the Constitution and laws of the State of Colo- rado and a certified copy of the record of the proceedings of the City Council taken prelim;nary to and in the issue of the bonds and that bond counsel has examined bond numbered one of said issue and has found the same properly executed and in due legal form The last paragraph of the opinion will express an unqualified opinion as to legality of issue, as to -7- tax exemption of interest (sub3ect to the provisions herein- above entitled "Tax Exempt Status" ) and as to the security consistently with the provisions of the paragraph of this notice entitled "Security " By order of the City Council of the City of Fort Collins, Colorado, dated this 2nd day of May, 1974 f � Assistant Mayor (SEAL) ATTEST City Clerk -8- Section 3 The City Clerk is authorized and directed to publish a notice of bond sale at least once in at least (1) the Daily Journal, a financial newspaper published in Denver, Colorado, and (2) a newspaper circulating in the City, at least five days prior to said sale date, the notice for pub- lication to be in substantially the following form -9- (Form of Notice of Bond Sale for Publication) NOTICE OF BOND SALE $2, 000, 000 CITY OF FORT COLLINS , COLORADO SEWER IMPROVEMENT REVENUE BONDS SERIES JUNE 1, 1974 The City of Fort Collins on June 6, 1974, at 11 00 a m , M D T , at the City Hall Council Chambers, at 300 LaPorte 4yeLug , in Fort Collins , Colorado, will receive sealed bids for the purchase of the City' s Sewer Im- provement Revenue Bonds, Series June 1, 1974, dated June 1, 1974 , in the principal amount of $2 ,000, 000, and maturing ser- ially on December 1, 1977 through 1994 For provisions as to security and as to prior redemption and further details , reference ,is made to a proposed ordinance on file with the City Clerk The Official Notice of Bond Sale, said ordinance and financial and other information conerning the City and the bonds may be obtained from Boettcher & Company, Denver, Colorado The legality of the bonds will approved by Messrs Dawson, Nagel, Sherman & Howard, Denver, Colorado By order of the Council of the City of Fort Collins , Colorado, dated the 2nd day of May, 1974 i City Clerk (SEAL) (End of Form of Notice for Publication) -10-- Section 4 This resolution shall take effect immediately upon its passage and adoption PASSED, ADOPTED, SIGNED AND APPROVED this 2nd day of May, 1974 "./P rP P k Assistan Mayo (SEAL) ATTEST City Clerk -],l- It was moved by Councilwoman Preble and seconded by Councilman Russell that said resolution be now placed on its final passage and that all rules of the Council which unless suspended might prevent the final pas- sage and adoption of said resolution at this meeting be, and the same hereby are, suspended for the purpose of permitting the final passage and adoption of said resolution at this meeting The question being upon the adoption of said motion and the suspension of the rules, the roll was called with the following result Those Voting Yes Charles Bowling Nancy Gray Mabel Preble Margaret Reeves Jack Russell Earl R Wilkinson Those Voting No None At least 4 members of the Council having voted in favor of said motion, the presiding officer declared said motion carried and the rules suspended Councilman Russell then moved that said reso- lution be passed and adopted Councilman Wilkinson seconded the motion The question being upon the passage and adoption of said resolution, the roll was called with the following result Those Voting Yes Charles Bowling Nancy Gray Mabel Preble Margaret Reeves Jack Russell Earl R Wilkinson Those Voting No None The presiding officer thereupon declared that at least 4 members elected to the City Council having voted in favor thereof, said motion was carried and said resolution duly passed and adopted (SEAL) A istant May r ATTEST 1 City Clerk -12- STATE OF COLORADO ) COUNTY OF LARIMER ) SS CITY OF FORT COLLINS ) I , Verna Lewis , City Clerk of the City of Fort Collins (herein "City") , in the County of Larimer and State of Colorado, do hereby certify: 1 The foregoing pages numbered from 1 to 12 , in- clusive, constitute a full, true and correct copy of the record of the proceedings taken by the City Council of the City at a regular meeting thereof, held on the 2nd day of May, 1974, insofar as said minutes relate to a resolution, a copy of which is set forth, and said copy of said resolu- tion as contained in said minutes is a full, true and correct copy of the original of said resolution as passed by the City Council at said meeting 2 Said original resolution has been duly authenti- cated by the signature of the Mayor of the City and myself as City Clerk, sealed with the corporate seal of said City, and recorded in the book of resolutions of the City kept for that purpose in my office, which record has been duly signed by the said offic�ssisandt sealed with the seal of the City 3 The/Mayor and five other members of the City Council were present at said meeting, and the members of the Council voted on the passage of said resolution as in said minutes set forth IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City at Fort Collins this.2 1 day of May, 1974 City- Clerk (SEAL) -13- (Attach Affidavit of Publication in Newspaper Circulating in Fort Collins) AFFIDAVIT OF PUBLICATION STATE OF COLORADO COUNTY OF LARIMER } ss. __Wild-ard_D..._.1Ohnsnn________- being first duly sworn upon oath, deposes and says: That __he is theAdV._DirECttor of the Fort Collins Coloradoan; that--he has personal knowledge of all the facts set forth in this affidavit; that the Fort Collins Colo- radoan is a public daily newspaper of general circulation, having its principal office and place of business situated in said County of Larimer; that said Fort Collins Coloradoan is printed and publish- ed daily except Saturdays and legal holidays; that said Fort Collins Coloradoan is a daily newspaper, duly qualified for the purpose set forth within the meaning of Chapter 109, Article 1, Sections 1-1 to 1-8 inclusive of Colorado Revised Statutes 1963, and any amend- ment thereof passed prior to the date hereof; that said newspaper had, prior to January 1, 1936, and has ever since said date been admitted to the United States Mails as second class matter under the provisions of the Act of March 3, 1879, and any amendments y thereof; that said newspaper is printed in whole in said County of Larimer and has a general circulation therein; that said newspaper had been so printed and published as a public daily newspaper of general circulation in said County of Larimer, uninterruptedly and continuously, during the period of more than fifty-two consecutive weeks next prior to the first issue thereof containing the annexed legal notice or advertisement; that said annexed legal notice or advertisement was published in the regular and entire editions of said newspaper for day _Qne__successive 9¢OM on__Fr-idayof each successive week; that the first publication of said legal notice or advertisement was in the regular and entire edition of said newspaper on the_24.th day of.------------- ------------ A.D. 19---24; that the last publication of said legal notice or advertisement was in the regular and entire edition of said newspaper of the---2LEth--------day of------------ X__-_________.- A.D. 19-7-4-, and that copies of each number of said paper in which said notice or advertisement was published were delivered by carriers or transmitted by mail to each of the subscribers of said paper, ac ?wIn accustom- ed mode of busine th flee. Subscribed and sworn to before me,at and the County of Larimer, State of Colorado, this_ dayA.D. 19L�%r V My COMMIS51011 exk414 ucluuer. -4, 1W My commission expires------- _ _ ________ .la:72�