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HomeMy WebLinkAbout6217 RESOLUTION NO. 6217 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DECLARING ITS INTENTION TO SELL BONDS OF SAID CITY IN THE AMOUNT OF NOT TO EXCEED EIGHT MILLION DOLLARS ($8,000,000), FIXING THE TIME AND PLACE FOR TAKING BIDS AND DIRECTING PUBLICATION OF NOTICE INVITING BIDS WHEREAS, this City Council deems it proper and the necessity therefor appears that bids be invited for bonds (the "Bonds") of the CITY OF ARCADIA in the amount of not to exceed $8,000,000, and that ifbids are satisfactory, said Bonds be sold in the manner and at the time and place hereinafter set forth; . NOW, THEREFORE, the CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. Sealed proposals for the purchase of Bonds of said City in the amount of not to exceed $8,000,000 be received by the City at Fieldman, Rolapp & Associates, Irvine, California, on May 16, 200 I, up to the hour of 9:00 A.M., and, if determined to be in the best interests of the City by the City Manager, on each consecutive day until the Bonds are sold. In addition, the City Manager may determine to receive sealed bids at the same time by electronic means, through the use of MuniAuction or other Internet-based service provider. SECTION 2. The City Clerk is hereby authorized and directed to cause to be published a notice inviting such sealed proposals by one insertion in the Arcadia Weekly and in The Bond Buyer, a newspaper of general circulation, circulated within the State, said publication to be at least five (5) days and fifteen (15) days, respectively, prior to the date of opening bids stated in said notice. The notice shall be substantially as follows: - DOCSOC1802683v3\24217,0002 6217 NOTICE OF SALE NOT TO EXCEED $8,000,000 SERIES A OF 2001 GENERAL OBLIGATION BONDS OF CITY OF ARCADIA (POLICE STATION PROJECT) LOS ANGELES COUNTY, CALIFORNIA Proposals will be received up to 9:00 o'clock A.M., May 16, 2001 at Fieldman, Rolapp & Associates, Attention: Timothy T. Schaefer, 2100 Main Street, Suite 210, Irvine, California 92614, for the purchase of general obligation bonds (the "Bonds") of CITY OF ARCADIA (the "City"). The principal of and the interest on the Bonds will be paid from ad valorem taxes to be levied on all taxable propertY within the City, without limitation of rate or amount. The Bonds will mature serially on August I of each year, commencing August 1,2002, as provided in the Resolution oflssuance for such issue. Interest will be paid on February 2, 2002 and semiannualIy thereafter on August I and February I of each year. The legal opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California will be furnished to the successful bidder. Further information may be obtained from Fieldman, Rolapp Associates, Attention: Timothy T. Schaefer, 2100 Main Street, Suite 210, Irvine, California 92614 (949) 660-8500. June D. Alford City Clerk 2 DOCSOC\802683v3\24217.0002 6217 SECTION 3. The preliminary official statement presented to this City Council is approved in substantially the form presented. Fieldman, Rolapp & Associates is authorized to make such changes in and additions to the preliminary official statement prior to mailing as may be approved by the City Manager or required by the City's Bond Counsel; and the City Manager is hereby authorized and directed to deem such form, as modified, "final," except for information relating to the offering prices, interest rates, selling compensation, rating and other terms of the Bonds depending on such matters. The execution of the official statement by the Mayor and the printing and distribution , thereof (in both preliminary and final forms) in connection with the sale of the Bonds, with such changes as are approved or required as set forth above, are hereby authorized, approved and directed. SECTION 4. The City Clerk is hereby authorized and directed to cause to be furnished to prospective bidders copies of a notice inviting proposals, the bid form and the preliminary official statement relating to the properties, operations and finances of the City; but the failure, in whole or in part, to comply with this section shall not in any manner affect the validity of the sale of said Bonds. Said notice and bid form shall be substantially set forth in Exhibit A hereto. SECTION 5. On any date on which bids are duly received, the City Manager is hereby authorized and directed to award the Bonds to the best bidder at a price of par or better, provided the true interest cost to the City shall not exceed seven percent (7%) per annum; provided he may, in his discretion, reject all bids. 3 DOCSOC1802683v3\24217,0002 6217 PASSED, APPROVED AND ADOPTED this 3rd day of April, 2001. (SEAL) ATTEST: j Ci APPROVE AS TO FORM: ~~.~ City Attorney DOCSOC\802683v3\24217.0002 ~~'~.J Mayo fthe of Arcadia 4 6217 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF ARCADIA ) I, JUNE D. ALFORD, City Clerk of the City of Arcadia, hereby certifies that the foregoing Resolution No. 6217 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 3rd day of April, 2001 and that said Resolution was adopted by the following vote, to wit: AYES: Councilmember Chandler, Chang, Marshall, Segal and Kovacic NOES:' None ABSENT: None ~ Clerk of the 5 6217 EXHffiIT "A" OFFICIAL NOTICE INVITING BIDS AND BID FORM Not to Exceed $8,000,000 SERIES A OF 2001 GENERAL OBLIGATION BONDS OF THE CITY OF ARCADIA (POLICE STATION PROJECT) (Los Angeles County, California) Date of Sale Wednesday, May 16, 2001 , 9:00 a.m., Pacific Daylight Time Bids to be received at: Fieldman, Rolapp & Associates 2100 Main Street, Suite 210 Irvine, California 92614 Phone: (949) 660-8500 Fax: (949) 474-8773 or (949) 474-8701 Attn: Timothy T. Schaefer James Fabian J A-I DOcsoa802683v3\24217.0002 OFFICIAL NOTICE INVITING BIDS AND BID FORM Not to Exceed $8,000,000 SERIES A OF 2001 GENERAL OBLIGATION BONDS OF THE CITY OF ARCADIA (POLICE STATION PROJECT) NOTICE IS HEREBY GIVEN that sealed bids will be received by the City of Arcadia (the "City") for the purchase of not to exceed $8,000,000 aggregate principal amount of Series A of2001 General Obligation Bonds (the "Bonds"). The Bonds are general obligations of the City, payable from ad valorem taxes, unlimited as to rate or amount, levied against all taxable real property in the City (except for certain classes of personal property). The Bonds are more particularly described in the Resolution of the City Council and Supplement to Resolution (collectively, the "Resolution"). Copies of the Resolution will be furnished to any interested bidder upon request. The sealed bids will be received and opened by a representative of the City up to the time and at the place specified as follows: Time: At the hour of9:00 a.m., Pacific Daylight Time Wednesday, May 16, 2001 Place: Fieldman, Rolapp & Associates 2100 Main Street, Suite 210 Irvine, California 92614 \ Opening Bids and Award of the Bonds. Sealed bids for the purchase of the Bonds will be received and opened at the date and time specified above by the financial advisor and a City representative, and considered subject :to the terms and conditions specified as follows; provided however, that without further advertising and so long as a bid has not been accepted, sealed bids will be accepted at such time and place at 9:00 a.m. Pacific Daylight Time on Wednesday, May 16, 2001, and at the same time and place on each succeeding Wednesday thereafter until a bid is accepted. Late bids will be returned unopened. The Bonds will be presented to the City Council of the City at its meeting later the same day on which bids are received. Bids for the purchase of the Bonds will be received and considered subject to the following terms and conditions: Issue. Not to exceed $8,000,000 Series A of2001 General Obligation Bonds. Denomination. The Bonds will be executed and delivered in fully registered form without coupons, in the denominations of$5,000 each or any integral multiple thereof within a maturity, and numbered consecutively upward in order of authentication. Date of Bonds. The Bonds will be dated the Date of Delivery, which is currently anticipated to be on or about June 5, 2001. A-2 DOCS00802683v3\24217.0002 Interest Payments. Interest with respect to the Bonds will be paid semiannually on February I and August I of each year, commencing February 1, 2002. Maturities. The final principal amount and exact maturity schedule for the Bonds will be determined at the time of award. For the purposes of calculating the best bid for the Bonds the following maturity schedule, which assumes that Bonds, payable August I, will be issued for the full not-to-exceed amount of $8,000,000, shall be used. Maturity Principal Maturity Principal Au!!ust I Amount" Au!!ust I Amount " 2002 $ 2017 $ 2003 2018 2004 2019 2005 2020 2006 2021 2007 2022 2008 2023 2009 2024 2010 2025 2011 2026 2012 2027 2013 2028 2014 2029 2015 2030 2016 2031 Adjustment of Principal Amounts. The principal amounts set forth in this Official Notice Inviting Bids reflect certain estimates of the City and its financial advisor with respect to the likely interest rates of the winning bid contained in the winning bid and/or the premium contained in the winning bid. The total principal amount of the Bonds and the principal amounts payable in each of the years set forth above are subject to adjustment in $5,000 increments to reflect the actual interest rates and any premium/discount contained in the winning bid, and to maintain substantially level annual debt service payments on the Bonds. The winning bidder will be notified of any adjustment in principal amounts prior to the time the Bonds are awarded. Optional Prepayment. Bonds maturing after August I, 20 II are subject, at the option of the City, to call for redemption prior to their stated maturities in whole or in part on any Interest Payment Date commencing August I, 2011, as a whole or in part among maturities, and if in part as nearly as practicable on a pro-rata basis, and by lot within a maturity, at the following redemption prices, expressed as a percentage of the principal amount thereof, together with accrued interest to the date fixed for redemption: . . Preliminary, subject to adjustment as set forth herein. A-3 DOCSOC\802683v3\24217.0002 Dates of Redemption Redemption Prices 102% 101 100 August 1,2011 through July 31, 2012 August 1,2012 through July 31, 2013 August I, 2013 and thereafter Book-Entry Only: The Bonds when executed and delivered, will be issued as fully-registered securities registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the Bonds. Individual purchases of the Bonds will be made in book-entry form only, in principal amounts of $5,000, or any integral multiple thereof. Payments of principal prepayment premium, if applicable, and interest evidenced by the Bonds are to be made to purchasers by DTC through the Participants (as such term is used in the Official Statement). Purchasers will not receive physical delivery of Bonds with their purchase. Purpose of Issue: The proceeds of the sale of the Bonds will be used for the purpose of providing funds to pay the cost of constructing a police station in the Arcadia Civic Center and to pay certain costs of issuance with respect to the Bonds. Security: The Bonds are general obligations of the City, payable from ad valorem taxes, unlimited as to rate or amount, levied against all taxable real property in the City (except for certain classes of personal property). Paying Agent: BNY Western Trust Company, Los Angeles, California. Legal Opinion: The unqualified opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, Bond Counsel, approving the validity of the Bonds and stating that under existing statutes, regulations, rulings and court decisions, interest with respect to the Bonds is excluded from gross income for federal income tax purposes, and such interest is also exempt from personal income taxes of the State of California under present State income tax laws, will be furnished to the Purchaser at the time of delivery of the Bonds at the expense of the City. A copy of such opinion, certified by an officer at the time of delivery of the City by his facsimile signature, will be printed on the back of each Bond. No charge will be made to the Purchaser for such opinion, printing or certification. Ratings: Standard & Poor's Credit Markets Services will assign its rating of "AAA" to the Bonds with the understanding that upon delivery of the Bonds, a policy insuring the payment when due of the principal of and interest on the Bonds will be issued by . (the "Policy"). In addition, Standard & Poor's Credit Market Services and Moody's have assigned their municipal bond rating of "_" and "_," respectively, to the Bonds. The ratings reflect only the views of the respective rating organization, and an explanation of the significance of such ratings may be obtained from such organizations. There is no assurance that the ratings will continue for any given period of time or that such ratings will not be revised downward or withdrawn entirely by the rating agencies that issued them, if, in the judgment of such rating agencies, circumstances so warrant. Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of the Bonds. Municipal Bond Insurance: The Bonds have been submitted to various municipal bond insurance providers and a request for an insurance commitment has been made. If insurance is available it may A-4 DOCSOC1802683v3\24217,0002 be purchased on the bid date at the bidder's option and expense. Information on whether an insurance commitment has been obtained and the cost of insurance will be available prior to the bid date from the financial advisor to the City or from insurance providers. TERMS OF SALE Interest Rate. Bidders 'must specify the rate or rates of interest per annum to be evidenced by the Bonds, and the same rate or rates may be repeated as often as desired provided, however: (i) An interest rate may not exceed twelve percent (12%) per annum. (ii) Each interest rate specified must be in a multiple of 1/20 or 1/8 of I percent. (iii) No Bond may evidence interest at more than one rate. (iv) Each Bond must bear interest from its date to its stated principal payment date at the interest rate specified in the bid. (v) All Bonds of the same stated principal payment date must bear interest at the same rate. Basis of Award. Subject to the limitations set forth above, the Bonds will be awarded on the basis of the lowest true interest cost, including premium, if any, offered in the bids. In the event two or more bids setting forth identical interest rates, premium, if any, are received, the City reserves the right to exercise its own discretion and judgment in making the award and may award the Bonds on a pro rata basis in such denominations as the City shall determine. No Discount. No bid will be considered for less than the par value of the Bonds offered for sale. Right of Rejection. The City reserves the right, in its discretion, to reject any and all bids and to waive any irregularity or informality in any bid. Prompt Award. The City will take action awarding the Bonds or rejecting all bids not later than 24 hours after the hour designated above for the opening of bids, unless such time of award is waived by the Purchaser. Delivery and Payment. It is estimated that delivery of the Bonds will be made to the Purchaser by June 5, 2001. Payment of the purchase price (less the amount of the bid check mentioned below) must be made in funds immediately available to the City. Right of Cancellation. The Purchaser will have the right at its option to withdraw its bid if the Bonds are not executed and tendered the same for delivery within sixty (60) days from the date of sale thereof, and in such event, the successful bidder will be entitled to the return of the good faith deposit accompanying its bid. Form of Bid. The bids must be for all of the Bonds and for not less than one hundred percent (100%) of the principal amount thereof. Each bid, together with a bidder's check (unless a Financial Surety Bond is provided in the manner described below), must be enclosed in a sealed envelope addressed to the City of. Arcadia, c/o Fieldman, Rolapp & Associates, 2100 Main Street, Suite 210, A-5 DOCSOC\802683v3\24217.0002 Irvine, California 92614, and endorsed "Bid for City of Arcadia 2001 General Obligation Bonds." Each bid must be in accordance with the terms and conditions set forth herein and must be delivered to the office of Fieldman, Rolapp & Associates. Telecopied Bids. Telecopied bids are at the sole risk of the bidder and will be accepted only if such telecopied bid is received by Fieldman, Rolapp & Associates at their Irvine office no later than 9:00 a.m. Pacific Daylight Time, May 16, 2001. Neither the City nor Fieldman, Rolapp & Associates shall be responsible if a busy signal is reached or for any transmission equipment failure resulting in a bid not being accurately received or received later than 9:00 a.m. Pacific Daylight Time, or other designated bid cut-off time or bid date. Telecopied bids should be sent to (949) 474-8773 or (949) 474-8701- on the morning of the bid in sufficient time to be received prior to 9:00 a.m. Pacific Daylight Time. Facsimile signatures are valid and shall be legally binding against the purchaser of the Bonds. Good Faith Deposit. A good faith deposit (the "Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of One Hundred Thousand dollars ($100,000), payable to the order of the City, is required for each bid to be considered. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of California, and such bond must be submitted to the City (in care of Fieldman, Rolapp & Associates) prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder utilizing a Financial Surety Bond, then that Purchaser is required to submit its Deposit to the City in the form of a cashier's check (or wire transfer such amount as instructed by the City or by Fieldman, Rolapp & Associates) not later than 3:30 p.m. Pacific Daylight Time on the next business day following the award of the Bonds. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. No interest on the Deposit will accrue to the Purchaser_ The Deposit will be applied to the purchase price of the Bonds. In the event the Purchaser fails to honor its accepted bid, the Deposit will be retained by the City. If a check is utilized as the Deposit, the check must accompany each accepted bid and such check may be cashed after the award of the Bonds and applied to the purchase price or, if such bid is accepted but not performed, unless such failure of performance is caused solely by any act or omission of the City, shall be retained by the City and be applied by the City in partial satisfaction of whatever actual damages the City may suffer by reason of the successful bidder's failure to perform hereunder in accordance with the terms of the sale. In such instances, should the City's actual damages be determined to be less than said amount, thirty (30) days after any s~ch determination by a court having jurisdiction thereof becomes final, the balance of this amount shall be returned to the successful bidder without interest. Should the successful bidder fail to perform hereunder, the City may also recover all costs relating thereto, including a reasonable amount for attorney's fees. The check accompanying each unaccepted bid shall be returned promptly. Estimate of True Interest Cost. Bidders are requested to supply a calculation of the total true interest cost and the true interest rate of the Bonds on the basis of their respective bids, which shall be considered as informative only and not binding on either the bidder or the City. CUSIP Numbers. It is anticipated that CUSIP identification numbers will be assigned to the Bonds. It shall be the responsibility of the Purchaser to obtain CUSIP numbers. Neither the failure to print such numbers on any Certificate nor any error with respect thereto shall constitute cause for failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance with the terms of A-6 DOCSOCI802683v3\24217.0002 this Official Notice Inviting Bids. The CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the Purchaser. California Debt and Investment Advisory Commission Fee. Bidders are advised that, pursuant to Section 8856 of the California Government Code, it will be the responsibility of the Purchaser to pay the statutory fee to the California Debt and Investment Advisory Commission. Closing Documents. In addition to the opinion of Bond Counsel referred to above, at the time of payment for the delivery of the Bonds, the City will furnish the successful bidder the following documents, all to be dated as of the date of delivery: I. No Litigation Certificate. At the time of delivery of the Bonds, the Purchaser will receive a certificate of the City to the effect that there is no litigation pending or, to the best of such officer's knowledge, threatened against the City affecting the validity of the Bonds. 2. Signature Certificate. A certificate of appropriate officers of the City indicating that they have signed the Bonds by manual or facsimile signature and that they were duly authorized to execute the same. 3. Treasurer's Receipts. The receipt of the Treasurer of the City showing that the purchase price of the Bonds has been received by the City. 4. Certificate Concerning Official Statement. A certificate of an appropriate officer of the City, acting in such person's official and not personal capacity, to the effect that at the time of the sale of the Bonds and at all times subsequent thereto up to and including the time of delivery of the Bonds, to the best knowledge of such officer, after due inquiry, the Official Statement relating to the Bonds did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 5. Continuing Disclosure Agreement. An agreement executed by the City as Issuer covenanting to comply with the annual reporting requirements ofSEC Rule 15c2-12. Purchaser's Closing Certificate. The Purchaser must deliver such certificates to the City as may be required by Bond Counsel dated the date of execution and delivery of the Bonds, indicating: (i) the initial offering price at which not less than ten percent (10%) of the Bonds were sold to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers), (ii) the "yield" on the Bonds as calculated in accordance with the Internal Revenue Code of 1986, as amended, and (iii) such other information as may be required to assist the City in filing the required Internal Revenue Service Form 8038-G for the Bonds. Preliminary Official Statement and Final Official Statement. The Preliminary Official Statement, dated April_, 2001 distributed in connection with the sale of the Bonds, as the same may be supplemented on or prior to the bid date, (the "Preliminary Official Statement"), has been deemed final by the City for purposes of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), but is subject to revision, amendment and completion in a final Official Statement (the "Official Statement") as provided in the Rule. Within seven (7) business days after the award of the bid, the City will furnish to the Purchaser, at no charge, up to 150 copies of the Official Statement. A-7 DOCSOC\802683v3\24217.0002 Information Available. Requests for copies of the Official Statement pertaining to the Bonds, the Official Notice Inviting Bids, or for other information concerning the City or the Bonds should be addressed to the City's financial advisor: Fieldman, Rolapp & Associates, 2100 Main Street, Suite 210, Irvine, California 92614. Telephone (949) 660-8500, Telefax (949) 474-8773. CITY OF ARCADIA By: /s/ June D. Alford City Clerk A-8 DOCSOC1802683v3\24217,0002 BlD FORM FOR SERIES A OF 2001 GENERAL Obligation Bonds TO: City of Arcadia c/o Fieldman, R'olapp & Associates 2100 Main Street, Sui1e 210 Irvine, California 92614 " Bid for Series A of 200 1 General Obligation Bonds Not to exceed $8,000,000 In accordance with all terms and conditions of your Official Notice Inviting Bids for the above mentioned Bonds, we submit the following bid for Bonds to be dated _' 2001, with interest payable February 1, 2002 and thereafter semiannually on August 1 and February 1: FOR: Maturity Principal Interest Maturity Principal Interest Aue-ust 1 Amount Rate Au!!ust 1 Amount Rate 2002 $ % 2017 $ % 2003 % 2018 % 2004 % 2019 % 2005 % 2020 % 2006 % 2021 % 2007 % 2022 % 2008 % 2023 % 2009 % 2024 % 2010 % 2025 % 2011 % 2026 % 2012 % 2027 % 2013 % 2028 % 2014 % 2029 % 2015 % 2030 % 2016 % 2031 % \ We will pay % for a total of$ which is a premium of $ from the $ I par value. Our calculation of the true interest cost (TIC), which is considered to be informative only and not a part of the bid, is %. Enclosed is a Good Faith Deposit (as defined in the Official Notice Inviting Bids), cashier's or certified check in the amount of $ payable to the order of the City of Arcadia which funds we request be returned promptly in the event we are not the successful bidder, otherwise to be retained and applied against the purchase price of the Bonds. Facsimile signatures are valid and legally binding against us. We recognize that the principal amount set forth in the Official Notice Inviting Bids reflects certain estimates of the City and its financial advisor with respect to the interest rates of the winning bid, the premium contained in the winning bid. We agree that the principal amount of the ~onds and the aggregate principal amount of any maturity an; subject to adjustment in $5,000 increments to reflect the actual! interest rates and any premium contained in the winning bid. This bid is subject to acceptance within 24 hours after the expiration of the time for the receipt of bids, as specified in said Official Notice Inviting Bids and we agree that, if we are the winning bidder, we will be notified of any adjustment in the principal amount of the Bonds within such 24-hour period. This otTer is subject to receipt "of a satisfactory legal opinion by Stradling Y occa Carlson & Rauth, a Professional Corporation, Newport Beach, California, as described in the Official Notice Inviting Bids. Suhmltted By: Other Members of the Syndicate are: (Representative's Printed Name) (Representative's Signature) Check Number: Date: Telephone Number: Fax Number: Firm: A-9 DOCSOC1802683v3\24217,0002