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HomeMy WebLinkAbout24 of 1977 - A resolution authorizing the advertisement for sale of $8,000,000 General Obligation Airport Bonds, i' PPIV . . • Resolution No. 24 By Jennings Phillips, Jr. - COMMISSIONER Authorizing the advertisement for sale of $8,000,000.00 General Obliga- tion Airport Bonds, Series 1977, of Salt Lake City, Salt Lake County, . Utah. (Bid opening March 29. 1977) } puled tom PAS Commissiones FEB 2419T' 444.70, 4 r SALT'I AI CITY CORPORATION MILORLD V. HIGHAM OFFICE OF KATHERINE L. BARSNICK CITY RE007050. CHIEF DEPUTY CITY RECORDER 200 CITY&COUNTY BUILDING MARILYN SMYTH CHIEF CLERK SALT La r.F CITY,UTAH 84111 February 24, 1977 The Daily Bond Buyer One State Street Plaza New York, New York 10004 Gentlemen: Enclosed is a copy of a NOTICE OF BOND SALE which the Board of City Commissioners of Salt Lake City, Utah, would like to have published. This notice should be published one (1) time only in THE DAILY BOND BUYER, as soon as possible after receiving this notification. I would also like to request that you furnish five (5) copies of the Affidavit of Publication. The Affidavits and any correspondence con- nected with this publication should be mailed to the City Recorder, 200 City and County Building, Salt Lake City, Utah 84111. Yours truly, 7iidAd /, 1r City Recorder MVH:ph Enclosure - 1 CC: Burrows Smith _ \City Attorney Files ,brassy 24, 1477 goaarabie Tea L.wibsa, NV*: 300 City sad Catty$*ddlwp sett Lake City, utak Olt Mayer Wriseat The Basal at City CeasraiNisseto, at its meet*today, passel Resnintisa Ne.34 at 1017, aakbaei*dn(tits adwrtteeR+ast tar salt of 40.000,000.00 Geneva&C Oti0atiIa Airport Roads, Series lffi', of gait Lake City. Sot Lake Caasty, Utak, with tit*bid*sodas sehodrie4 fey Marsh 20, Wt. Years truly, • 7i'4.4.e "14"e) City Ressevier zss CC: Auditor Tressaarer Coa snisaieeer Apr x Cenaaiesieaar Gruver Cssnwdasierwr hostages Carranisstnasrrt Plat* Attessey Airport —Elise Burrows, Smith & Co. Salt Lake City, Utah February 24 , 1977 The Board of Commissioners of Salt Lake City, Salt Lake County, Utah, met in regular public session at its regular meeting place in Room 301, in the City and County Building in Salt Lake City, Utah, at 10:00 o'clock A .M., on February 24 , 1977, with the following members present: Jennings Phillips, Jr. Commissioner - TEMPORARY CHAIRMAN Herman J. Hogensen Commissioner Jess A. Agraz Commissioner Commissioner There were absent: Ted L. Wilson Mayor Glen N. Greener Commissioner There were also present Mildred V. Higham, City Assistant Recorder, and 0. Wallace Earl , City Attorney. After the meeting had been duly called to order and the roll called with the above results, and after the conduct of other business, the following resolution was introduced in written form by Jennings Phillips, Jr. , was read in full, and pursuant to motion made by Herman J. Hogensen and seconded by Jess A. Agraz , was adopted by the ROLL CALL following vote: VOTING Aye Nay Mr.Chairman . . . Agraz y Greener Hogensen Phillips Result -2- Aye: Jennings Phillips, Jr. Herman J. Hogensen Jess A. Agraz Nay: None. Temporary Chairman The resolution was then signed by the P y sr- in open meeting and recorded by the City Recorder. The resolu- tion is as follows: A RESOLUTION authorizing the advertisement for sale of $8,000,000 General Obligation Airport Bonds, Series 1977, of Salt Lake City, Salt Lake County, Utah. * * * * * * * * * Be It and It Is Hereby Resolved by the Board of Commissioners of Salt Lake City, Salt Lake County, Utah, as follows: Section 1. That the remaining $8,000,000 of the $25,000,000 General Obligation Airport Bonds of Salt Lake City, Salt Lake County, Utah, authorized at the special bond election held in said city on December 1, 1970, such bonds to be denominated $8,000,000 General Obligation Airport Bonds, Series 1977, shall be sold as herein directed. Section 2. That sealed bids shall be received for the purchase of said bonds, and that said bids shall be opened in regular public session of the Board of Commissioners on March 29 , 1977, at 10:30 o'clock A .M., -3- M.S.T., at the regular meeting place of the board in Room 301 in the City and County Building in Salt Lake City, Utah. Section 3. That the City Recorder shall cause a notice of sale in substantially the following form to be published one time in 'The Daily Bond Buyer," a financial newspaper published in New York, New York, said publication to be made not less than seven (7) days prior to the date of sale: NOTICE OF BOND SALE Sealed bids for the purchase of $8,000,000 General Obligation Airport Bonds, Series 1977, of Salt Lake City, Salt Lake County, Utah, will be received up to 10:30 o'clock A .M., M.S.T., on March 29 , 1977, at the regular meeting place of the Board of Commissioners of said city in Room 301 in the City and County Building, in Salt Lake City, Utah. Copies of the OFFICIAL NOTICE OF BOND SALE, the OFFICIAL PROSPECTUS and other related information with respect to the bonds being offered subject to the approval as to legality of Jones, Waldo, Holbrook & McDonough of Salt Lake City, Utah, may be obtained from Paul B. Gaines, Director of Airports, AMF Box 22084, Salt Lake City, Utah 84122 or Burrows, Smith and Company, Suite 1003, Kearns Building, Salt Lake City, Utah 84101, the Financial Consultant to the City. DATED this 24th day of February , 19 77 City Recorder Salt Lake City, Utah -4- Section 4. That said sale shall be conducted in accordance with the terms set out in the following Official Notice of Bond Sale: OFFICIAL NOTICE OF BOND SALE $8,000,000 GENERAL OBLIGATION AIRPORT BONDS, SERIES 1977, SALT LAKE CITY, SALT LAKE COUNTY, UTAH The City Recorder of Salt Lake City, Salt Lake County, Utah, will receive sealed bids for the purchase of $8,000,000 General Obligation Airport Bonds, Series 1977, of Salt Lake City, Salt Lake County, Utah, up to 10:300'clock A .M., M.S.T., on March 29 , 1977, at the regular meeting place of the Board of Commissioners of said city in Room 301 in the City and County Building in Salt Lake City, Utah, at which hour and place said bids will be opened. The bonds are the third and final series of a total authorized issue of $25,000,000 General Obligation Airport Bonds of the city authorized at a special bond election held on December 1, 1970. The bonds are dated January 1, 1977, denomination $5,000, are not registrable as to principal and interest, or either, and mature serially in numerical order on July 1 of each of the years and in the amounts as follows: YEAR AMOUNT 1980 $10,000.00 1981 15,000.00 1982 20,000.00 1983 25,000.00 1984 30,000.00 1985 35,000.00 -5- YEAR AMOUNT 1986 $ 45,000.00 1987 35,000.00 1988 45,000.00 1989 60,000.00 1990 45,000.00 1991 325,000.00 1992 870,000.00 1993 925,000.00 1994 985,000.00 1995 1,045,000.00 1996 1,115,000.00 1997 1,200,000.00 1998 1,170,000.00 OPTION FOR REDEMPTION: The bonds maturing in the years 1980 to 1987, inclusive, are not subject to prior redemp- tion. The bonds maturing in the years 1988 to 1998, inclu- sive, are subject to the right of the city to redeem the same in inverse numerical order on July 1, 1987, and on any interest payment date thereafter at the price of par and accrued interest to the date fixed for redemption plus a premium of 2% of the principal amount of each bond so called for redemption on or prior to July 1, 1987, which premium is to reduce by 1/4 of 1% in each twelve month period follow- ing July 1, 1987, until reduced to 1/2%, so that the premium payable on bonds redeemed on July 1, 1993, and thereafter prior to maturity, is to be 1/2% of the principal amount of each bond so called for redemption. INTEREST RATES: The bonds will bear interest at any number of different rates not exceeding five, expressed in multiples of one-eighth or one-twentieth of one per cent (1/8th or 1/20th of 1%) , but the highest rate bid for any of the bonds shall not exceed the lowest rate by more than one and one-half per cent (1-1/2%) . All bonds of the same -6- maturity must bear a single rate of interest and only one coupon will be attached to each bond for each installment of interest thereon. A zero rate cannot be named for all or any part of the time from the date of any bond to its stated maturity, and any premium must be paid in the funds specified for the payment of the bonds as part of the pur- chase price. Interest will be payable January 1, 1978, and semiannually thereafter at a rate or rates not greater than seven per cent (7%) per annum to be fixed at the time the bonds are sold. PLACE OF PAYMENT: Both principal of and interest on the bonds will be payable in lawful money of the United States of America at a bank or trust company named by the successful bidder within three (3) days subsequent to the receipt of bids as is acceptable to the Board of Commis- sioners of the city. SECURITY: The bonds will be full general obliga- tions of the city payable from the proceeds of ad valorem taxes to be levied without limitation as to rate or amount. AWARD: Award or rejection of bids will be made on the date above stated for receipt of bids, and the good faith checks of the unsuccessful bidders will be returned immediately. The bonds will be awarded to the responsible bidder offering to pay par and accrued interest and specifying a rate or rates which result in the lowest net interest costs to the city, computed from the date of the bonds to maturity, after the deduction of premium, if any. FORM OF BID: Each bidder is required to submit an unconditional bid specifying: (a) the lowest rate or -7- rates of interest and premium, if any, above par at which the bidder will purchase the bonds; (b) the lowest rate or rates of interest at which the bidder will purchase the bonds at par. Each bid must be on a bidding form which will be furnished by the city, and, together with the bidder's check, must be enclosed in a sealed envelope marked on the outside "Proposal for Airport Bonds" and addressed to the City Recor- der of Salt Lake City, Utah. For informative purposes only, the bidders are requested to state in their bids the net effective interest costs and the net effective interest rate represented by the rates of interest specified in each bid. BID CHECK: Each bid shall be accompanied by a cashier's or certified check drawn upon an incorporated bank or trust company in the amount of $170,000 payable to the City Treasurer of Salt Lake City. The check of the success- ful bidder will be held uncashed as evidence of good faith pending the delivery of the bonds, but which check will be forfeited as liquidated damages if such bid is accepted and the bidder fails to take up and pay for the bonds when ten- dered. Such check shall be promptly returned to any such bidder if his bid be not accepted. SALE RESERVATIONS: The Board of Commissioners reserves the rights to (1) waive any irregularity or informality in any bid, (2) to reject any and all bids for the bonds, and (3) to resell the bonds as provided by law. MANNER AND TIME OF DELIVERY: The purchaser will be given at least seven days advance notice of the proposed date of delivery of the bonds when that date has been tenta- tively determined. It is now estimated that the bonds will -8- be delivered approximately 45 days after the date of the opening of bids. The city will supply the printed bonds. Delivery of the bonds will be made in Salt Lake City, Utah, except that the successful bidder may at his option and expense designate some other place of delivery. The success- ful bidder must also agree to pay for the bonds in federal funds which will be immediately available to the city in Salt Lake City, Utah, on the day of delivery. The city shall have the right, at its option, to cancel the contract of purchase if within five (5) days after the tender of the bonds for delivery, the purchasers shall not have accepted delivery and paid for the bonds, in which event the good faith deposit accompanying the bid shall be forfeited to the city as liquidated damages for failure to comply with the contract of purchase. TAX EXEMPT STATUS: In the opinion of bond counsel, interest on these bonds is exempt from federal income taxes under presently existing law, regulations, decisions and inter- pretations, except to the extent otherwise provided by the Internal Revenue Code and any regulations adopted thereunder relating to any of said bonds held by any substantial user of the facilities to be acquired or constructed with the proceeds of the sale of said bonds or held by any related person as defined in the Internal Revenue Code. The purchaser will not be required to take up and pay for the bonds if at the time of delivery there has been any federal legislation, decisions or regulations which would affect the tax exemption on all or any part of the interest on these bonds. -9- It is further the opinion of bond counsel that under the Utah Municipal Bond Act interest on the bonds is exempt from taxation in the State of Utah except for the Utah Inheritance Tax. LEGAL OPINION: The unqualified approving opinion of Jones, Waldo, Holbrook & McDonough covering the legality of the bonds will be furnished to the purchasers and will be printed on the backs of the bonds without charge. There will also be furnished the usual closing certificates, dated as of the date of delivery of and payment for the bonds, including a statement that there is no litigation pending or, to the knowledge of the signer thereof, threatened, affecting the validity of the bonds. CUSIP NUMBERS: It is anticipated that CUSIP identi- fication numbers will be printed on the bonds, but neither the failure to print such numbers on any bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for said bonds in accordance with terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on said bonds shall be paid for by the city; provided, however, that the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the purchaser. DISCLOSURE STATEMENT: An Official Statement will be prepared which will be examined in detail by the Mayor and City Treasurer. On the date the bonds are delivered, the Mayor and City Treasurer will execute a certificate -10- confirming to the successful bidder that, to the best of the knowledge and belief of the Mayor and City Treasurer the descriptions and statements contained in the Official Statement with respect to the bonds were at the time of the acceptance of the bid and, at the time of the closing, are true and correct in all material respects and did not at the time of the acceptance of the bid and, at the time of the closing, do not contain an untrue statement of a material fact or omit to state a material fact required to be stated where necessary to make the statements, in light of the cir- cumstances under which they were made, not misleading; pro- vided, however, should the Official Statement be supplemented or amended, the foregoing confirmation to be made at the time of closing shall be with respect to the Official Statement and all supplements and amendments thereto. OFFICIAL STATEMENT: To obtain a copy of the Official Statement, bid form, and Official Notice of Sale, contact Paul B. Gaines, Director of Airports, A.M.F. Box 22084, Salt Lake City, Utah 84122, or Burrows Smith and Company, Suite 1003, Kearns Building, Salt Lake City, Utah 84101, tl(e Financial Consultant to the city. DATED this 24th ka of February , 1' 77 . / � t./Pf; ft( 7� MMOR E 'ORA' C MAN ` J CITY RECORI -11- Section 5. That this resolution shall become effec- tive immediately upon its adoption. PASSED AND APPROVED by the Board of Commissioners, of Salt Lake City, Salt Lake County, Utah, this 24th day of February , 19 77 .( ATTEST: (/ R T. �O CHA I RMA CITY RECORL? R / j (Other business not pertinent to the above appears in the minutes of the meeting) . Upon motion duly made and carried, the meeting was adjourned. \ i ATTEST: l-` C MPORA Y C IRMAN CITY RECORD STATE OF UTAH ss. COUNTY OF SALT LAKE ) I, Mildred V. Higham, the duly qualified and acting City Recorder of Salt Lake City, Utah, do hereby certify -12- according to the records of said city in my official posses- sion, that the above and foregoing constitutes a true and correct copy of excerpts from the minutes of the meeting of the Board of Commissioners of Salt Lake City, Utah, held on February 24 , 1977, including a resolution adopted at said meeting, as said minutes and resolution are offi- cially of record in my possession. IN WITNESS WHEREOF, I have hereunto subscribed my official signature and impressed hereon the corporate seal of said city, this 24thday of February, 1977. CITY RECO ER (S E A L)