HomeMy WebLinkAbout2 of 1939 - A resolution accepting offer of F. T. Boise and Gordon Snow to purchase $356,000.00 Refunding Bonds REMARKS
Resolution Nt 2
By Commissioner Murdoch
tI Accepting offer of F. T.
Boise and Gordon Snow to
purchase $356,000.00 Refunding
Bonds of Salt Lake City, Utah,
issued to redeem $206,000.00
Waterworks Series III Bonds;
$100,000.00 Waterworks Series
IV Binds and $50,000.00
Sanitary Sewer Series 'HI BondS,
I all falling due Feb. 1, 1940.,
; and submitting ordinance covering
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Date Filed
Address
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1.
Rec. 104 -- [d�
ROLL CALL
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VOTING AYE I NAY kz. Salt Lake City,Utah, I — / 7 - 193.41
SBi
I move that resolution No by Mr
Keyser - - • - •
be adopted.
Murdoch
iCmi4bme
Mr.Chairman - -
Result
_R_E_S_O L U T I ON_
WHEREAS, at a special election duly and lawfully called and
held in Salt Lake City, Utah, on the 25th day of February, 1919,
there was authorized the issuance, among others, of bonds of Salt Lake
City in the amounts and for the purposes as follows:
Two Hundred and Fifty Thousand Dollars ($250,000.00) for the
purpose of increasing, improving, enlarging, extending, perfecting and
adding to the present water supply of the city by acquiring addition-
al water rights in canyons and creeks adjacent to the city and other
sources of water supply, and for the development of the local sources
of supply,
One Hundred Thousand. Dollars ( ;100,000.CO) for the .purpose of
increasing, improving and adding to the present water supply from City
Creek Canyon by construction of additional small storage reservoirs,
Fifty Thousand Dollars ($'50,000.00) for the purpose of defray-
ing the cost of the city's portion of laying additional sanitary sewers
to serve the southern portion of the city, and
OHEREAS, pursuant to an ordinance duly passed by the Board of
Commissioners of Salt Lake City on the 26th day of February, 1920,
the issuance and sale of the following described bonds was authorized:
Two Hundred and Thirty-six Thousand Dollars (t27,6,000.00)
Salt Lake City Water Series "I" Bonds, being part of the authorized
issue of Two Hundred and Fifty Thousand Dollars (' 250,000.00) above
referred to, dated February 17 1920, due February 1, 1940, bearing
interest at the rate of five per centum (5°'-) ner annum,
One Hundred Thousand Dollars ($100,000.00) Salt Lake City
Water Series ".;" Bonds, dated February 1, 1920, due February 1, 1940,
bearing interest at the rate of five per centum (55) per annum,
Fifty Thousand Dollars ( "50,000.00) Salt Lake City Sanitary
Sewer Bonds Series "H", dated February 1, 1920, due February 1, 1940,
bearing interest at the rate of five per centum (_e) per annum, and
WHEREAS, Thirty Thousand Dollars (A30,000.00) of the above
described Water Series "I" Bonds have heretofore been paid, redeemed
and cancelled, and
WHEREAS, Two Hundred and Six Thousand Dollars W06,000.00)
of the above described Water Series "I" Bonds, all of the above
described 'Plater Series"J" Bonds, and all of the above described
Sanitary Serer Bonds Series "H" Bonds were legally issued and sold
and are now the _legal and valid obligations of Salt Lake City, and
WHEREAS, there is no money in the sinking fund of Salt Lake
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City available for the payment of said bonds or any of them, and
it will be necessary to refund said bonds at or before maturity,
and
WHEREAS, this Board of Commissiolers has given due and
adequate consideration to the refunding of said bonds and believes
it will be for the best interests of the City and the taxpayers
thereof to arrange now for such refunding the Board having no
assurance that when the bonds become due and are presented for
payment on February 1, 1940, it will be able to sell refunding bonds
at the very favorable rate of interest for which such refunding
bonds can now be sold, and
WHEREAS, F. T. Boise and Gordon Snow have submitted an offer
for the purchase of said bonds, which offer is in words and figures
as follows:
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F. T. BOISE & CO.
Municipal And Corporate Securities
Ness Building-Salt Lake City, Utah
Telephone Wasatch 4652
November 3, 1938
Hon. Mayor & City Commissioners,
Salt Lake City, Utah.
Gentlemen:-
For 8356,000.00 Refunding Bonds of Salt Lake City, Utah, legally
issued to the satisfaction of our attorneys, to be issued to rec
8206,000.00 Waterworks Series "I" bonds, ,100,000.00 Waterworks
Series "J" bonds and 850,000.00 Sanitary Sewer Series "H" bonds,
falling due February 1, 1940, we make you the following offer:
For bonds maturing as outlined in your official call for bids
bearing 21c' interest, we offer you their par value and accrue
interest, plus a premium equal to the amount of interest
accruing on the outstanding bonds from the date of delivery <
the new bonds to the maturity date of the outstanding bonds,
plus an additional premium of $125.00.
We will furnish the blank bonds and legal opinion and prenar
the proceedings without cost to the City.
It is understood and agreed that the proceeds of the sale of
Refunding Bonds shall be deposited in the bank where the outs
bonds are payable, or in some other bank as shall be agreed
under an escrow arrangement satisfactory to our attorneys, th
be held to take up and pay for the outstanding bonds, both pr
and interest, as said bonds shall be presented. Cost of esci
such funds shall be borne by us.
You agree to pass such resolutions and ordinances and to tak
ly such steps as our attorneys may require, to the end that
Refunding Bonds shall be legally issued in their opinion, ar
eyed to us without unnecessary delay.
This offer is subject to the rights of the State of Utah.
prompt acceptance.
Respectfully submitted,
F. T. BOISE
GORDON SNOW
By
and they have advised this Board that the Premium offered
than sufficient to offset, and is intended to offset the
on said 'Waterworks and Sanitary Sewer Bonds from the date
to the date of their maturity, to-wit: February 1, 1940,
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Board will not at any time nor in any way be paying interest on dup-
licate issues of bonds, nor will the debt of the City be increased;
and that they are in touch with the holders of a substantial portion
of the said !Waterworks and Sanitary Sewer Bonds and believe that many
of the holders will be willing to surrender their bonds upon receipt
of the principal thereof and interest in full to maturity, as soon as
the necessary funds are provided to pay the same; and that they will
use their best efforts to persuade such bondholders to so surrender
their bonds, and
WHEREAS, the above offer is the highest, best and most ad-
vantageous one received, and it is believed by this Board of Commis-
sioners that it should be accepted,
NOW, THEREFORE, BE IT RESOLVED that the above offer of F. T.
Boise and Gordon Snow be and the same is hereby accepted, and that
said bonds shall be issued and delivered to said purchasers as soon
as legally possible.
Commissioner seconded the motion for
the adoption of said resolution and the acceptance of said offer, and
the same upon being out to a vote, was carried by the affirmative
vote of all Commissioners present, the vote being as fol_]owe:
Mayor "Aye"
Commissioner _ "Aye"
Commissioner "Pye"
Commissioner "Aye"
Commissioner "Aye"
ADOPTED AND APPROVED this f day of
A. D. 19 X7iliiYr4l��/
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ATTEST: ??ayor
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CityRecorder.
ill (S]AL)
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