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HomeMy WebLinkAbout1977-051-08/02/1977-PROVIDING FOR THE PUBLICATION AND DISTRIBUTION OF A NOTICE OF SALE OF GENERAL OBLIGATION WATER BONDS J RESOLUTION . 77-51 OF THE COUNCIL OF THE CITY OF .FORT COLLINS PROVIDING FOR THE PUBLICATION AND DISTRIBUTION OF A NOTICE OF SALE OF GENERAL OBLIGATION WATER BONDS AND ESTABLISHING THE FORM OF SUCH NOTICE WHEREAS , the City Council has determined that it is necessary to extend and improve the municipal waterworks system of the City, and to issue general obligation bonds in the amount of $5 ,000,000 for such purpose; and WHEREAS ; pursuant to Sec. 20. 3 of the City Charter, securities issued for water purposes may be issued by Council action without an election on the question of issuing bonds ; and WHEREAS , the City Council has further determined that such bonds shall be sold at a public sale and that it is necessary to . provide for the notice of sale of bonds : BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO: 1 . That notice of sale of General Obligation Water Bonds , in the principal amount of $5 ,000,000, shall be published one time in- the Fort .Collins Coloradoan, Fort Collins, Colorado, a newspaper having general circulation in the City. 2. The notice of sale shall be in substantially the following form: F . ' NOTICE OF SALE '! GENERAL OBLIGATION WATER BONDS, SERIES 1977, $5, 000; 000 j CITY OF FORT COLLINS, LARIMER COUNTY, COLORADO . SALE DATE: TUESDAY; SEPTEMBER 6, 1977 The City Council of the City of Fort Collins , Colorado, will receive sealed bids at the Council Chambers , City Hall , _- 300 LaPorte Avenue, P.O. Box 580, Fort Collins , Colorado. 805221, until 10 : 00 A.M. M.S .D.T. on Tuesday, September 6, 1977, for the purchase of $5,000,000 of General Obligation Water Bonds, Series 1977, dated October 1, 1977 . The bonds shall be in the denomination of $5, 000 each, numbered l to 1 , 000 , inclusive, shall bear interest payable on . April 1 , 1978 , and semi-annually thereafter on the 1st day of April and the lst day of October .each year, and shall mature serially on October 1, as follows: Amount . , Maturity $ 50, 000 .1979 to 1984, incl. 175, 000 . 1985 250, 000 1986 . 275,000 1987 300,000 1988 $ 325,000 1989 350 , 000 1990 375, 000 1991 400, 000 1992 and 1993 425, 000 1994 $ 450 ,000 1995 475, 000 1996 500, 000 1997 Bonds of this issue maturing on or before October 1 , 1988 , shall not be redeemable prior to their respective maturity dates. Those bonds maturing in the years 1989 and there- after shall be redeemable at the option of the City, in inverse numerical order, on October 1, 1988, and on any interest payment date thereafter, upon payment of par, accrued interest , and the following redemption premium: i 28 of principal; if redeemed from October 1 , i 1988 to April 1 , 1990, inclusive; 1% of principal, if redeemed from October 1, 1990 to April 1 , 1992, inclusive; at par and accrued interest only , if redeemed on or after October 1, 1992. Principal and interest will be payable at the office of the Director of Finance, in FortCollins , Colorado. The bonds will be issued for the purpose of paying the cost of extending and improving the municipal waterworks system of the City. The Ordinance authorizing the issuance of bonds will provide for the levy and collection of a .general ad valorem tax on all of the taxable property within the City, without limit as to rate or amount, for the payment. of the principal of and interest on the bonds . In addition, in the 3 - ordinance authorizing the issuance of the bonds , the City will pledge to pay the principal of and the interest on the Bonds from the net revenues of the municipal waterworks system. The City also has covenanted to fix and annually to maintain rates and charges for water and services furnished by the system which , together with moneys on hand and available therefor, will be . sufficient to pay operation and maintenance expenses of the system j and the principal of and interest . on all bonds and other obli- gations of the waterworks system. The bonds will be delivered at any bank or trust company in Fort Collins or Denver, Colorado, or any other place at the request and expense of the purchaser. It is anticipated that delivery of the bonds will be made within 60 days following the award of the bonds . Bids may be ' conditioned upon receipt of the approving legal opinion of the bond attorneys named below , but must in any and all other respects be unconditional . No bid for less than par and accrued interest to the date of delivery will be accepted . The net effective interest rate of this issue shall not exceed 7% per annum. Supplemental or "B" interest coupons and interest coupons with a 0% interest rate, are not allowed . One interest rate only shall be stated for any maturity. The maximum allowable spread between the highest and lowest interest rates is 3% . Interest rates should be stated in multiples of twentieths or eighths of one ( 1) per cent. The bonds will be awarded to the bidder naming the lowest net interest cost to the City, which is defined as the total amount of interest to accrue from the date of the bonds to the date of maturity, without regard to the prior redemption provision, less the total amount of cash premium bid, if any. The City will furnish the executed bonds, a certified transcript of legal proceedings and the approving legal opinion. The legality of the bonds will be approved by Messrs . Willson and Lamm, P.C. , Attorneys . at Law, Denver, Colorado, whose legal opinion will be printed on each bond. Bond counsel ' s approving opinion will recite, in conventional form, that bond counsel has examined the Constitution and Laws of the State of Colorado, the Charter of the City and a certified copy of the record of the proceedings of the City taken preliminary to the issuance 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 opinion will express an unqualified opinion as to j legality and as to tax exemption of interest on the bonds . The matters passed upon by bond counsel do not extend beyond those mentioned in the preceding paragraph and bond counsel specifically has no responsibility for the accuracy or complete- ness of any information furnished to any person in connection with any offer or sale .of the bonds . The City shall reserve the right to waive any defect or irregularity in any bid . 0 4 - 1 " A cashier' s check or certified check drawn on a bank or trust company, payable to the City of Fort Collins, Colorado, in the amount of $100, 000 must accompany each bid . The check of the successful bidder will be retained by the City as liquidated damages in the event the bonds are not .taken up and paid for in accordance with the bid . Checks of unsuccessful bidders will be returned immediately . Payment for the bonds must be made in federal funds or funds acceptable to the City, at a commercial bank or trust company in Denver or Fort Collins, or elsewhere at the successful bidder' s request and expense. The City Council will meet within 24 hours following the opening of bids to consider the award of the bonds . . Additional information concerning the City and this ' issue can be obtained from Mr. Ronald R . Wood , Director of Finance or from Boettcher and Company, 828 17th Street, Denver, Colorado, 80202 the financial consultant to the City. BY ORDER OF THE CITY COUNCIL This 2nd day of August, 1977. /s/ Ronald R. Wood Director of Finance Fort Collins, Colorado Publish in: Fort Collins Coloradoan Publish on: Friday, August 19,. 1977 j .. L - 5 .- i A cashier' s check or certified check drawn on a bank or ' trust company, payable to the City of Fort Collins, Colorado, - in the amount of $100, 000 must accompany each bid .. The check of the successful bidder will be retained by the City as liquidated damages in the event the bonds are not .taken up and paid for in accordance with the bid . Checks of unsuccessful bidders will be returned immediately . Payment for the bonds must be made in federal funds or funds acceptable to . the City, at a commercial bank or trust company in Denver or Fort Collins, or elsewhere at the successful bidder' s request and expense. The City Council will meet within 24 hours following the opening of bids to consider the award of the bonds . , Additional information concerning the City and this issue can be obtained from Mr. Ronald R. Wood , Director of Finance or from Boettcher and Company, 828 1.7th Street, Denver, Colorado, 80202 the financial consultant to the City. BY ORDER OF THE CITY COUNCIL This 2nd day of August, 1977. /s/ Ronald R. Wood Director of Finance Fort Collins, Colorado Publish in: Fort Collins Coloradoan Publish on: Friday, August 19,. 1977 y - 5 .-