HomeMy WebLinkAboutMINUTES - 08021988 - 1.52 5w 7Z_ P
RESOLUTION NO.
y�
A RESOLUTION OF THE BOARD OF SUPERVISORS OF CONTRA COSTA
COUNTY, CALIFORNIA, RATIFYING AND CONFIRMING THE ISSUANCE
AND SALE AND PROVIDING FOR THE AWARD OF MARTINEZ UNIFIED
SCHOOL DISTRICT, CONTRA COSTA COUNTY, CALIFORNIA 1988
GENERAL OBLIGATION BONDS, SERIES A, IN THE PRINCIPAL AMOUNT
OF $5, 000 , 000 FOR THE PURPOSE OF FINANCING REAL PROPERTY
ACQUISITION OR IMPROVEMENTS TO EXISTING SCHOOL SITES .
WHEREAS, a duly called special municipal election was held
in the Martinez Unified School District, Contra Costa County,
State of California (hereinafter referred to as the
"District" ) , on June 7 , 1988 and thereafter canvassed pursuant
to law;
WHEREAS, at such election there was submitted to and
approved by the requisite two-thirds vote of the qualified
electors of the District a cruestion as to the issuance and sale
of general obligation bonds of the District for various
purposes set forth in the ballot submitted to the voters , in
the maximum amount of $25 ,000 , 000 payable from the levy of an
ad valorem tax against the taxable property in the District;
WHEREAS, this Board has received the July 12 , 1988
Resolution of the governing board of the District requesting
the issuance of such bonds in the aggregate principal amount
not to exceed $5, 000 , 000 (the "Series A Bonds" ) and this Board
authorized and directed the issuance and sale of the Series A
Bonds and has received bids on the Series A Bonds , which bids
have been timely received and considered by this Board,
pursuant to Resolution No . 88/445 of this Board;
WHEREAS, all acts , conditions and things required by law to
be done or performed have been done and performed in strict
conformity with the laws authorizing the issuance of general
obligation bonds of the District , and the indebtedness of the
District , including this proposed issue of Series A Bonds , is
within all limits prescribed by law;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS
OF CONTRA COSTA COUNTY, CALIFORNIA, AS FOLLOWS :
SECTION 1 : That for the purpose of raising money for real
property acquisition or improvements at Alhambra High School ,
including the acquisition of land and the construction and
reconstruction of school facilities , improvements and on-site
and off-site drainage facilities , and to pay all necessary
legal , financial, engineering and contingent costs in
connection therewith, the issuance and sale of the Series A
Bonds at public sale is hereby ratified, confirmed and approved.
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3035002/5
SECTION 2 . The Series A Bonds were previously ordered sold
at public sale with bids to be received until "9 : 00 a.m. on the
date and on the terms and in accordance with the Notice
Inviting Proposals for Purchase. of Bonds attached hereto as
Exhibit A (the "Notice Inviting Proposals" ) . . The publishing of
the Notice of Intention to Sell Bonds (the "Notice of
Intention" ) , attached hereto as Exhibit B, in the "Contra Costa
Times" , which is a newspaper of general circulation in the
County, once a week for two successive weeks, and in "The Bond
Buyer" , which is a national trade publication, at 'least fifteen
days prior to August 1 , 1988 is hereby ratified, confirmed and
approved. The issuance and sale of the Series A Bonds pursuant
to the provisions of Resolution No . 88/445 of the Board of
Supervisors of Contra Costa County, California and the Notice
are hereby ratified, confirmed and approved.
SECTION 3 . The proceeds from the sale of the Series A
Bonds , to the extent of the principal amount thereof , shall be
paid to the County to the credit of the fund hereby created and
established and to be known as the "1988 Series A Martinez
Unified School District General Obligation Bond Building Fund"
(the "Building Fund" ) of the District , shall be kept separate
and distinct from all other District and County funds , and
those proceeds shall be used solely for the purpose for which
the Series A Bonds are being issued and provided further that
such proceeds shall be applied solely to authorized purposes
which relate to the acquisition or improvement of real
property. The accrued interest and any premium received by the
County from the sale of the Series A Bonds shall be kept
separate and apart in the. fund hereby created and established
and to be designated as the " 1988 Series A Martinez Unified
School District General Obligation Bond Interest and Sinking
Fund" (the "Debt Service Fund" ) for the Series A Bonds and used
only for payments of principal and interest on the Series A
Bonds. Interest earned on the investment of monies held in the
Building Fund shalc
l be retained therein. Any excess proceeds
of the Series A Bonds not needed for the authorized purposes
set forth herein for which the Series A Bonds are being issued
shall be transferred to the Debt Service Fund and applied to
the payment of principal and interest on the Series A Bonds .
If, after payment in full of the Series A Bonds, there remains
excess proceeds, any such excess amounts shall be transferred
to the general fund of the District .
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3035002/5
SECTION 4 . In accordance with provisions of Resolution
No . 88/445 , this Resolution and the Notice this Board has
caused all bids for the Series A Bonds to be received, opened
and presented to it in the manner set forth in Resolution
No. 88/445 , this Resolution and the Notice and based on an
examination of said bids and a review of the tabulation of bids
attached hereto as Exhibit C, this Board determines that the
bid of Merrill Lynch Capital Markets (the "Purchaser" ) , at a
purchase price of $5 , 000 ,000 . 00 and at an average net interest
rate of 7 . 63947'x , a copy of which bid is attached hereto as
Exhibit D, is in accordance with the Notice and is the highest
bid for the Series A Bonds based upon the lowest rate of
interest. The Series A Bonds , having the terms and maturities
as provided in Resolution No . 88/445 , this Resolution and the
Notice and bearing interest at the rate stated above and as set
forth in Exhibit D, are awarded and sold to the Purchaser at
the price stated above.
SECTION 5 . Officers of the Board and County officials and
staff are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver
any and all documents which they may- deem necessary or
advisable in order to proceed with the issuance of the Series A
Bonds and otherwise carry out, give effect to and comply with
the terms and intent of this Resolution. Such actions
heretofore taken by such officers, officials and staff are
hereby ratified, confirmed and approved.
SECTION 6 . The Clerk of this Board is hereby directed to
provide a certified copy of this Resolution to the
Auditor—Controller of Contra Costa County.
SECTION 7 . This Resolution shall take effect immediately
upon its passage .
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3035002/5
PASSED AND ADOPTED this 2nd day of August, 1988, by the
following vote:
AYES: Powers, Fanden, McPeak, Torlakson and Schroder
NOES:
ABSENT: None
ABSTENTIONS:
hairman, Boar f Supervisors
[SEAL]
Attest :
Phil Batchelor, Gert; of the Board of
Super visors and County AdmirkArator
Clerk, Board of Supervisor
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3035002/5
State of California
Contra Costa County
I, Jeanne O. Maglio, Deputy Clerk and Chief Clerk, Office of the
Clerk of the Board of Supervisors, do hereby certify the foregoing
Resolution No. gg/tq6 and minutes to be a full, true, and correct copy of
the resolution and minutes made and entered by said Board on August 2,
1988, as the same appears of record and on file in my office.
WITNESS my hand and seal of said Board of Supervisors, this 2nd
day of August, 1988.
Jeanne O. Maglio
Deputy Clerk and Chief Clerk
Office of the Clerk of the
Board of Supervisors
3035002
EXHIBIT A
NOTICE INVITING PROPOSALS FOR PURCHASE OF BONDS
$5 , 000 , 000 MARTINEZ UNIFIED SCHOOL DISTRICT
CONTRA- COSTA COUNTY, CALIFORNIA
-1988 GENERAL OBLIGATION BONDS, SERIES A
(Bank .Qualified)
NOTICE IS HEREBY GIVEN that sealed unconditioned proposals will
be received to and including the hour of 11 a . .m. , . Pacific
Daylight Time, on August 1 , 1988 , at the offices of Kelling,
Northcross & Nobriga, Inc . , 595 Market Street , Suite 1350 , San
Francisco, CA 94105 for the purchase of all , but not less than
all , of $5 , 000 , 000 principal amount of Martinez Unified School
District, Contra Costa County, California, 1988 General
Obligation Bonds , Series A (the "Bonds" ) . On August 2, 1988,
the Board of Supervisors will meet for the purpose of
considering bids received and, if an acceptable bid is
received, awarding the contract for the purchase of the Bonds .
Issue:
The Bonds will be dated August 1 , 1988, will be in the
denomination of $5 ,000 each, or integral multiples thereof , and
will bear interest from the date of the Bonds to the maturity
of each of the Bonds at the rate or rates such that the
interest rate shall not exceed 12% per annum, with interest
payable on February 1 , 1989, and semiannually thereafter on
February' l and August 1 of each year during the term of each of
the Bonds . . The Bonds mature on August 1 in each of the years
1989 to 2.013 , inclusive, 'as follows
PRINCIPAL
YEAR AMOUNT YEAR AMOUNT
1989 $ 65 ,000 2001 $170 , 000
1990 70 ,000 2002 185, 000
1991 75 , 000 2003 200 , 000
1992 85 ,000 2004 215 , 000
1993 90,000 2005 235 , 000
1994 100,000 2006 255 , 000
1995 105 , 000 2007 275, 000
1996 115,000 2008 300 , 000
1997 125 ,000 2009 320 , 000
1998 135 , 000 2010 350 , 000
1999 145,000 2011 375 , 000'
2000 160 ,000 2012 410 , 000
2013 440 , 000
A-1
Redemption:
The Bonds maturing on or before August 1 , 1996, are
non-callable. The Bonds maturing on August 1 , 1997 , or any
time thereafter, are callable for redemption prior to their
stated maturity date at the option of the District, in whole on
any date, or in part on any interest payment date, on or after
August 1 , 1996, in inverse order of maturity and by lot within
any such maturity if less than all of the Bonds of such
maturity are to be redeemed, and may be redeemed prior to the
maturity thereof by payment of all principal , plus accrued
interest to date of redemption, plus the payment of a premium
(expressed as a percentage of the principal amount) , payable
from any source lawfully available therefor , as follows :
Redemption Date Redemption Premium .
August 1 , 1996 through July 31 , 1997 102 %
August 1 , 1997 through July 31 , 1998 1011/2
August 1 , 1998 through July 31 , 1999 101
August 1 , 1999 through July 31 , 2000 1001/2
August 1 , 2000 through thereafter 100
Notice of Redemption
Notice of redemption of any . Bond will' be mailed to the
Registered Owner of each Bond to be redeemed in whole or in
part at the address shown on the registration records
maintained by the Bond Registrar designated for this issue of
Bonds; such mailing to be not more than 60 not less than 30 .
days prior to the date set for redemption. Failure to mail
notice to any owner will not affect the validity of the
proceedings for the redemption of Bonds .
Registration of Bonds as to Principal and Interest and Place of
Pa ment
Principal and premium, if any, are payable at the principal
corporate trust office of The Bank of America National Trust '
and Savings Association, San Francisco, California, the Bond
Registrar . Interest is payable by check or draft mailed from
the Bond Registrar to the person in whose name the Bond was
registered at the close of business on the 15th day of the
calendar month next preceding that interest payment date (the
record date) .
A-2
Authority,:
The Bonds will be issued pursuant to the Constitution and laws
of the State of California . The issuance of the Bonds was
authorized by a two-thirds vote of the qualified electors of
the District voting at a special election held on June 7, 1988 .
Security:
Both principal of and interest .on the Bonds are payable from an
unlimited ad valorem tax levied against all of the taxable
property in the District .
Form of Bid:
A prescribed form of bid for the ' Bonds will be prepared and all
bids must be submitted 'on such form. Copies of the prescribed
bid form will be included with the Official Statement for the
Bonds .
Interest Rates :
All - bids for the purchase of the Bonds must state the rate or
rates of- interest to be paid and no bid at a price less than
the par value of the Bonds , together with all accrued interest
thereon to the date of the delivery of the Bonds , will be
considered. All Bonds of the same maturity must bear the same
rate of interest and no Bond may bear- more than one rate.
Bidders may specify any number of different rates to be borne
on the Bonds ; all interest rates must be in multiples of 1/8 or
1/20 of one percent; and the rate of interest borne by . Bonds
maturing by their terms in any one year must be higher than or
equal to the rate of interest borne by Bonds maturing by their
terms in the immediately preceding year .
Bid Check :
All bids must be accompanied by a certified check in a sum
equal to one percent ( 1%) of the par value of the Bonds , drawn
on a bank doing business in the State of California, payable to
the order of the Auditor-Controller of Contra Costa County. No
interest will be paid on the check of any bidder . The check of
the successful bidder will be applied to the purchase price of
the Bonds or retained and forfeited as liquidated damages in
the event such bidder does not take up and pay for the Bonds
immediately upon their issuance. All checks of the
unsuccessful bidders will be returned upon the award of the
Bonds to the successful bidder .
A-3
CUSIP Numbers :
CUSIP numbers have been applied for and will be printed on the
Bonds and the cost. of printing thereof and service bureau
assignment will be purchaser ' s responsibility. Any delay,
error or omission with respect thereto will not constitute
cause for the purchaser to refuse to accept delivery of an pay
for the Bonds .
Right of Rejection:
The County reserves the right in its discretion to reject any
and� all bids received and to waive any irregularity or
informality in the bids , except that the time for receiving
bids shall be of the essence.
Cost of Bond Forms :
The District will bear the cost of the Bond forms and the
printing thereof and will furnish fully executed Bonds to the
purchaser upon payment therefor .
Award and Delivery:
. Unless all bids are rejected, the Bonds will be awarded to the
bidder whose proposal results in the lowest net interest cost
to the District . The net interest cost will be determined by
computing the aggregate amount of interest payable on the Bonds
from their stated date to their respective maturities and by
deducting therefrom any premium. Delivery of the Bonds will be
made to the purchaser upon payment in federal funds at the
offices of Brown & Wood, 555 California Street , Suite 5060 ,
San Francisco, CA 94104 , or at the purchaser '.s request and
expense, at any other place mutually agreeable to both the
County andthe purchaser .
Prompt Award:
The County will take action awarding the Bonds or rejecting all
bids not later than twenty-six (26) hours after the expiration
of the time herein prescribed for the receipt of proposals ,
unless such time award is waived by the successful bidder .
Notice of the .award will be given promptly to the successful
bidder .
Legal Opinion:
The Bonds are sold with the understanding that the purchaser
will be furnished .with the approving opinion of Brown & Wood.
A copy of the opinion, but without its date, will be printed on
A-4
the Bonds. Said attorneys have been retained by the District
as Bond Counsel and in such capacity are to render their
opinion only upon the legality of the Bonds under California
law and .on the exemption of the interest income on such Bonds
from federal and State of California income taxes . Fees of
Bond Counsel will be paid from Bond proceeds .
Tax-Exempt Status :
In the opinion of Bond Counsel , under existing laws , interest
on the Bonds is exempt from all, present State of California
personal income taxes , and assuming compliance with certain
covenants made by the District and County, interest on .the
Bonds is not includable in the gross income of the owners of
.the Bonds for federal income tax purpose, provided that such
interest may be included in the calculation for certain taxes ,
includina the corporate alternative minimum tax and the
corporate environmental tax. Should changes in the law cause
Bond Counsel ' s opinion to change prior to delivery of the Bonds
to the purchaser, the purchaser will be relieved of its
responsibility to pick up and pay for the Bonds , and in that
event his bid check will be returned.
Qualified Tax=Exempt Obligations :
The Board of Supervisors of the County -has designated the Bonds
"qualified tax-exempt obligations" under Section 265(b) (3) of
the Internal Revenue. Code of- 1986, as amended.
Qualification for Insurance:
If the Bonds qualify for issuance of any policy of
municipal bond insurance or commitment therefor at the option
of the bidder , _any purchase of such insurance or commitment
therefor shall be at the sole option and expense of the bidder
and any increased costs shall be paid by such bidder . Any
failure of the Bonds to be so insured or of any such policy of
insurance to be issued shall not in any way relieve. the
purchaser of his contractual obligations arising from the
acceptance of his proposal. to purchase the Bonds .
No Litigation and Non-Arbitrage:
The District will deliver a certificate stating that no
litigation is pending affecting the issuance and sale of the
Bonds . The District will also deliver an arbitrage certificate
covering its reasonable expectations concerning the Bonds and
the use of. proceeds thereof .
A-5
Additional Information:
Copies of the Notice Inviting Proposals for Purchase of Bonds ,
the form of bid, and the Official Statement relating to the
Bonds will be furnished to any bidder upon request made to
Kelling, Northcross & Nobriga, Inc . , 595 Market Street,
Suite 1350 , San Francisco , CA 94105 , (415) 36.2-4110 , financial
consultant to the District . Two hundred (200) extra copies of
the Official Statement will be made available to the pdrehaser
without charge and additional copies will be made available
upon request at the purchaser ' s expense .
Dated: July 14 , 1988
MARTINEZ UNIFIED SCHOOL
DISTRICT
By: /s/ Norma Masters
Business Manager
A-6
EXHIBIT B
NOTICE OF INTENTION TO SELL BONDS
$5 , 000 , 000
MARTINEZ UNIFIED
SCHOOL DISTRICT
Contra Costa County, California
1988, General Obligation Bonds , Series A
(Bank. Qualified)
NOTICE IS HEREBY GIVEN that the Martinez Unified School
District (the "District" ) , in Contra Costa County, California,
intends to` offer- for public .sale on August 1 , 1988 , `at- the hour ,
of 11 a.m: at the office of Kelling, Northcross & Nobriga,
Inc . , 595 Market Street, Suite 1350 , San Francisco, California
94105 $5,000 , 000 principal amount of general obligation bonds
of the District designated "Martinez Unified School District,
Contra Costa County, California 1,988 General Obligation Bonds ,
Series A" (the "Bonds.",)
NOTICE IS HEREBY FURTHER GIVEN that the Bonds will be
offered for Ipublic sale. subject to the terms and conditions of
the Notice Inviting Bids for the Bonds , dated July 14 , 1988 .
An Official Statement ---and a -Notice Inviting Bids relating to
the. Bonds will be furnished upon request. mailed to Kelling,
Northcross , & Nobriga, Inc . , 595 Market Street, Suite . 1350 , San ,
Francisco, California 94105 , (415) 362-4110 , the financial
consultant to the District for .the Bonds .
Dated; July 14 , 1988
By: /s/ Norma Masters
Business Manager
Martinez Unified School
?3-1
EXHIBIT C
MARTINEZ UNIFIED SCHOOL DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA
1988 GENERAL OBLIGATION BONDS, SERIES A
$5, 000., 000
TABULATION OF BIDS RECEIVED
I certify that the following bids , all in conformity with
the. Notice of Intention to Sell Bonds ,. were received by me on
.or before 11 : 00 a .m. , August 1 , 1988 , for the Bonds identified
above authorized by Resolutions of the Martinez Unified School
District :
Average Net
Name of Bidder Interest Rate Purchase Price
Merrill-Lynch 7 . 63947% $5, 000 , 000
Smith:Barney 7 . 647876 5 , 000 , 000
Bateman Eichler 7 . 6623 5, 000 , 000
Dean- Witter 7 . 70028 5 ,000 ,.000
Shearson Lehman Hutton 7 . 7224 5, 000 , 000
Bank of America 7 . 7293 5, 000 , 198 . 65
Prudential Bache - 7 . 7852 5, 000 , 000
Dated:
(Title)
C-1
08101111336, 16:24 KELL I VIG, HC1R.i Ht_HU'---b
t
EXHIBIT D ..
BIDS
FOR THE PURCHASE OF
MARTINEZ UNIFIED SCHOOL DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA
1988 GENERAL OBLIGATION BONDS, SERIES A
$5, 000, 000`
August 1, 1988
Martinez Unified School. District
Contra Costa County. 'California
On behalf of 'a group which we have formed consisting of:
MEItRILL LYNCH CAPITAL.MARKETS and 'Associates
and pursuant to . the Notice Inviting _Bids hereinafter mentioned,
we :offer to purchase all of the five million dollars
($5,000, 000) principal amount of the Bonds -designated- as
"Martinez Unified School District, Contra Costa County,
California 1988 General Obligation Bonds , Series A" , maturing
On August 1 in the years and amounts and bearing interest at
the -rate or rates set forth in the following schedule:
YEAR PRINCIPAL INTEREST YEAR PRINCIPAL INTEREST
(August-1l AMOUNT RATE s_Auzust 1) AMOCO _ RATS
1989 6s,000 ;b a z 2001 417010'00 x
1990 70,000 _�_�_0_ 2002 185,000 . _ "j -L(1
2991 75,000 bD 2003 200,000 _ -7.60
1992 85,000 7.b0 2004 215,000 4 1-hi)
1993 90,000 2.60 2005 235,000 0
1994 100,000 UO 2006 255,000
1995 105,000 2007 215,000 _ 0
1996 115,000 2008 300,000 _ -7-bio
1997 125,000 -�60 '2009 320,000 • 0
1998 135,000 -7.�, 2010 350,000 _
1999 145,000 . J"�'_- 2011 3750000 '. _ 7
2000 ' 160,000:' . .b0 2012 41.0,000
2013 440,000 _ n .
• G�gip1%'19 8 16:25, KELLI AGt NORTHC ROSS S.F. 4159-572610 14727248 P.03.
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D D�
and to pay therefor, the aggregate sum of $ .ODDi plus
interest accrued on such Bonds; to the date of: delivery thereof .
.This bid is made subjectto all the terms and 'conditions of the
Notice Invi.ting, -Bids heretofore published, all of which terms
and conditions are made a part; hereof as fully as though set
forth in full in this bid.
As specified in the Notice Inviting Bids , this bid is subject
to acceptance not later than twenty-six. (26) hours after the
expiration of the time for the receipt of bids, and the opinion
of Brown &. Wood approving the validity of the Bonds will be
furnished us (if we are the successful bidder) at the time of
the delivery of the Bonds at the expense of the Distract. .
There is enclosed herewith a (ce'rt'ified/cashier' s) chock in the
amount. of fifty thousand doll<<rs ($50,000) payable to the order
of the Auditor-Controller of Contra Costa County.
There is submitted herewith a memorandum (which shall not
constitute apart of this .bid) stating the total net :interest
cost in dollars on the Bonds during the life of the issue under
this bid, and the average net; interest rate determined thereby.
Respectfully, submitted,
Name: MERRILL LYNCH CAPITAL MARKETS
(Account Manager)
By:
ohn resch, JiZe Pres. b Regional
Address . 400 So. Hope Street Manager
J.9th Floor
City: Los Angeles
State• California
90071-9737
Please return. check to:
AT"I'N; Connie: Kessinger
MEMORANDUM OF INTEREST CCJs'C
The total net �i1nl1tgest cost ort the Bonds during the life of the
issue to a under the above bid is $
_
\i�J �pV
�
and the average net interest rate determined thereby :is
• 2 ,
Tr1Tra1_ P.M
RESOLUTION NO.
A RESOLUTION OF THE BOARD OF SUPERVISORS OF CONTRA COSTA
COUNTY, CALIFORNIA, RATIFYING AND CONFIRMING THE ISSUANCE
AND SALE AND PROVIDING FOR THE AWARD OF LIBERTY UNION HIGH
SCHOOL DISTRICT, CONTRA COSTA COUNTY, CALIFORNIA 1988
GENERAL OBLIGATION BONDS, SERIES A, IN THE PRINCIPAL AMOUNT
OF $5, 000, 000 FOR THE PURPOSE OF FINANCING REAL PROPERTY
ACQUISITION OR IMPROVEMENTS TO EXISTING SCHOOL SITES.
WHEREAS, a duly called special municipal election was held
in the Liberty Union High School District, Contra Costa County,
State of California (hereinafter referred to. as the
"District") , on June 7, 1988 and thereafter canvassed pursuant
to law;
WHEREAS, at such election there was submitted to and
approved by the requisite two-thirds vote of the qualified
electors of the District a question as to the issuance and sale
of general obligation bonds of the District for various
purposes set forth in the ballot submitted to the voters, in
the maximum amount of $10,000,000 payable from the levy of an
ad valorem tax against the taxable property in the District;
WHEREAS, this Board has received Resolution No. 88-25 of
the governing board of the District requesting the issuance of
such bonds in the aggregate principal amount not to exceed
$5., 000, 000 (the "Series A Bonds") and this Board authorized and
directed the issuance and sale of the Series A Bonds and has
received bids on the Series A Bonds, which bids have been
timely received and considered by this Board, pursuant to
Resolution No. 88/444 of this Board;
WHEREAS, all acts, conditions and things required by law to
be done or performed have been done and performed in strict
conformity with the laws authorizing the issuance of general
obligation bonds of the District, and the indebtedness of the
District, including this proposed issue of Series A Bonds, is
within all limits prescribed by law;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS
OF CONTRA COSTA COUNTY, CALIFORNIA, AS FOLLOWS:
SECTION 1. That for the purpose of raising money for real
property acquisition or improvements including (a) the
purchasing of school lots; (b) the building of school
buildings; (c) the making of alterations or additions to the
school buildings; (d) the supplying of school buildings -and
grounds with furniture and equipment of a permanent nature, and
to pay all necessary legal, financial, engineering and
1
3196001/4
contingent costs in connection therewith, the issuance and sale
of the Series A Bonds at public sale. is hereby ratified,
confirmed and approved.
SECTION 2. The =Series A Bonds were previously ordered sold
at. public sale with bids to be .received until 9 :00 a.m. on the .
date and on the terms and in accordance with the Notice
Inviting Proposals for Purchase .of Bonds attached hereto as
Exhibit A (the "Notice Inviting Proposals") . The publishing, of ,
the Notice of Intention to Sell Bonds (the "-Notice of
Intention") , attached hereto as Exhibit .B, in the "Contra Costa
Times" , which is a newspaper of general circulation in the
County, .once a .week for two successive weeks, and in "The Bond
Buyer" , which is .a national trade publication, at least fifteen .
days prior. to August 2; 1988 is hereby ratified, confirmed- and
approved. The issuance and sale of the Series A Bonds pursuant
to the provisions of Resolution No. 88/444of the -Board of
Supervisors of Contra ' Costa County, California and the Notice
are hereby ratified, confirmed and 'approved.
SECTION .3.. The proceeds from the sale °of the Series A
Bonds, to the extent of ' the principal amount 'thereof, .shall be
paid to .the County to the credit of the fund hereby created and
established and to be known as the "1988 Series A. Liberty Union
High School District General. Obligation Bond Building Fund"
(the "Building Fund") of the District, shall be kept .separate
and distinct from all other District and County funds; and
those .proceeds shall be used solely for the purpose for which
the Series A Bonds are being issued and provided further that
such proceeds shall be' applied solely to authorized purposes
which relate to the acquisition or improvement of real
property.-. The- accrued interest- and any :premium received by the
County from .the sale of the Series A Bonds shall be .kept
separate and '-apart in the fund hereby created and established
and to be. designated as the "1988 Series A Liberty Union High
School District General Obligation Bond Interest and' Sinking
Fund" (the "Debt Service' Fund") for the Series A Bonds and used
only for payments of principal. and interest on the Series A
Bonds . 'Interest earned on the investment of monies held in the
Building Fund shall be retained therein. Any excess_ proceeds
of the Series A Bonds not needed for: the authorized purposes
set forth herein for .which the Series A Bonds are being -issued
shall be transferred to the Debt Service Fund and applied to
the payment of principaland interest on the Series A Bonds .
If, after payment .in .full of the Series A Bonds, there remains
~ excess proceeds, any such excess amounts shall be transferred
to the general fund of .the. District.
. 2 .
.. 319.6001/4
SECTION 4 . In. accordance with provisions .of Resolution
No..88/444, this Resolution and the Notice this Board has caused
all bids for the Series A Bonds to be received., .opened and
presented to it in the manner set forth in Resolution No. .
88/444, this Resolution and the Notice and based .on an
examination of said bids and a review of the tabulation of. bids
attached hereto as Exhibit C, this Board determines that the ,
bid of Merrill Lynch ,Capital Markets (the "Purchaser") , at . a
purchase price of $5:,000,000 and at an average net interest
rate-of 7. 63915%, a copy. of .which bid is attached hereto as
Exhibit D, is in accordance with the Notice and is the highest „
bid for the Series A Bonds based upon the lowest rate of,
interest. The Series A Bonds, having the terms and maturities
as provided in Resolution No-. 88/444, this Resolution and the
Notice and bearing interest at the rate stated above and as set
forth 'in Exhibit ,D, are awarded and sold to the Purchaser at
the- price stated above.
SECTION 5. Officers of the Board and County officials and .
staff are hereby authorized and directed, jointly and
severally, to do any and all things and to .execute and deliver
any and all documents which they may deem necessary or
advisable in order to `proceed with the. issuance of the Series A
Bonds and otherwise carry out, give effect oto and comply with
_ the terms and intent of this Resolution. Such actions -
heretofore taken by such officers, officials and staff are
hereby ratified, confirmed and approved. :
SECTION 6. The Clerk of this Board is hereby directed to
provide a certified copy of this Resolution to the
Auditor-Controller of Contra Costa County.
SECTION .7. This Resolution shall take effect immediately
upon its passage:
- 3
3196001%4
PASSED AND ADOPTED this 2nd day of August, 1988, by the
following vote:
AYES: Supervisors Powers, Fanden, McPeak,
Torlak"son, Schroder.
NOES: None.
ABSENT: None..
ABSTENTIONS: None.
�C
Chairman, Board of Supervisors
[SEAL]
r Attest
Phil Batchelor, CteA of the Board of
SuPervixrs and County Adm6.strator
Clerk, Board of Supervis s
4
3196001/4
State of California
Contra Costa County
I, Jeanne O. Maglio,, Deputy Clerk and Chief Clerk, Office of the
Clerk of the Board of Supervisors, do hereby certify the foregoing
Resolution No. 88/49 ) and minutes to be a full, true, and correct copy of
the resolution and minutes made and entered by said Board on August 2,
1988, as the same .appears of record and on file in my office.
WITNESS'' my hand and seal of said Board of Supervisors, this 2nd
day of August, 1988.
Jeanne O. Maglio
Deputy Clerk and Chief Clerk
Office of the Clerk, of the
Board of Supervisors
3196001 .,
EXHIBIT A
NOTICE INVITING PROPOSALS FOR PURCHASE OF BONDS
$5,000,000 LIBERTY UNION HIGH SCHOOL .DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA
1988 GENERAL OBLIGATION BONDS, SERIES A
(Bank Qualified)
NOTICE IS HEREBY GIVEN. that sealed. unconditioned proposals. will
be received to and including the hour of 9 a.m. , Pacific
Daylight Time, on August 2, 1988 at the offices of 'Kellirig, .
Northcross & Nobriga, Inc. , 595 Market Street, Suite 1350, San .
Francisco, CA 94105 for the purchase of all, but not less than
all, of $5,000,000 principal amount of Liberty Union High
School District, Contra Costa County, California, 1988 General
Obligation Bonds, Series A (the "Bonds") . On August 2, 1988,
the Board of Supervisors will meet for 'the purpose of
considering bids received•-and, if an acceptable bid is
received, awarding the contract for the purchase of the Bonds.
Issue•,
The Bonds will---be dated August 1, 1988, will be in the
denomination of $5, 000 each, or integral multiples • thereof, and
will bear interest from the. date of the Bonds to •the maturity
of each of the Bonds at the rate or rates such that the
interest rate shall not exceed 12% per annum, with interest
payable on February 1, 1989, and semiannually thereafter on-
February - 1 and August 1 of each-year during the term of each of
the .Bonds . The Bonds mature on. August 1 ,in each-, of the .years
1990 to 2013, inclusive, as-follows :
PRINCIPAL
YEAR AMOUNT' YEAR AMOUNT
1990 $ 70,000 2002 $185,000
1991 ' 80,000 2003 205, 000
1992 85,000 2004 220,000 ;
1993 90, 000 2005 . 240, 000
1994. 100,000 2006 2,55,_000
1995 105, 000 2007 280, 000
19,96 1151, 000 2008 300, 000
199.7 125,000 2009 325,000
1998 135, 000, 2010 355, 000
1999. 150, 000 2011• 380, 000.
2000 160, 000 2012 415, 000
2001, 175, 600 2013 , 4501000
Redemption•
The Bonds maturing on or before August 1,` 1996, are
. non-callable. The Bonds maturing on August 1, 1997, or. any
time thereafter, are .callable for redemption prior to their
stated maturity date at the option of the District, in whole on
any date, or in part on any interest payment date, -on or after
August 1, 1996, in inverse order of maturity and by lot within
any such maturity if less than all of the Bonds of such
maturity are to be redeemed, and may be redeemed prior to the
maturity thereof by payment of all principal, plus accrued
interest to date of redemption, plus the payment of .a premium ..
(expressed as a percentage of the principal amount) , payable
from anysource lawfully available therefor, as follows :.
Redemption Date Redemption Premium
August 1, 1996 through July 31, 1997 102 %
August 1, 1997 through July 31, 1998 101h
.August 1, 1998 through July 31, 1999 101
August 1, 1999 through July 31, 2000 100%
August 1, 2000 through thereafter 100
Notice of Redemption
Notice of redemption of any Bond will be mailed to the
Registered Owner of each Bond to be redeemed in whole or in
part at the address shown on the registration records
maintained by the Bond Registrar designated for this issue of
Bonds; such mailing to be not more than 60 nor less than 30
days prior to the date set for redemption. Failure to mail
notice to any owner will not affect the validity of the
proceedings for the redemption of Bonds.
Registration of Bonds as to Principal and Interest and Place of
Payment
Principal and premium, if any, are payable at the principal
corporate trust office of The Bank of America National Trust
and Savings Association, San Francisco, California, the Bond
Registrar. Interest is payable by check or draft mailed from
the Bond Registrar to the person in whose name the Bond was
registered at the close of business on the 15th day of the
calendar month next preceding that interest payment date (the
record date) .
A-2
Authority:
The Bonds will be issued pursuant to the Constitution and laws
of- the State of California. The issuance of the Bonds was
authorized by a two-thirds vote' of the qualified electors of
the District voting at a special election held on June 7, 1988 .
Security.
Both principal of and interest on the Bonds are payable from an
unlimited. ad valorem tax levied against all of the taxable
property in the District .
Form of- Bid:
A prescribed form of bid for the Bonds will be prepared and all
bids must be submitted on -such- form. Copies of the prescribed
bid form will be included with the . Official Statement for the
Bonds .
Interest Rates :
All bids for the 'purchase of the Bonds" must state the rate or
rates of interest 'to be paid and no bid at a price less than
the par value of the Bonds, together with all accrued interest
thereon to the date of the delivery of the.Bonds, will be
considered. -, All Bonds of the same maturity must bear. the same
rate of interest and no Bond may bear more than one rate. "
Bidders may specify any number of different rates to be borne
on the Bonds; all interest rates must be in multiples of 1/8 or "
1/20 of= one percent; and the rate of interest borne by Bonds
maturing ,by their terms in any one year must be higher than or
equal to the rate of interest borne by Bonds maturing by their
terms in the immediately preceding year.
Bid Check:
All bids must be accompanied by a certified check ina sum
equal to one. percent (1%) of the par value .of. the Bonds, drawn
on a_ bank doing business ;in the State of California, payable to
the order of the -Auditor-Controller' of Contra Costa County. No
in will be paid on the check of any bidder. The check of
the successful bidder will be applied to the purchase price of
the Bonds or retained and forfeited as liquidated damages in
the event such bidder 'does not take up and pay for the Bonds
immediately upon their issuance. All checks of the
unsuccessful bidders will be returned upon the award of the
Bonds to the successful bidder.
A-3
CUSIP' Numbers :
CUSIP numbers have been applied for and will be printed on- the
Bonds and° the cost of printing thereof and service: bureau
assignment will be purchaser ' s. responsibility. Any delay,
error. or omission with respect thereto will not constitute
cause for' the purchaser .to refuse to acceptdelivery of an pay
for the Bonds . ,
Right 'of Rejection,:
.. The County reserves the right in its discretion to reject any
and al'l- bids received and to waive any irregularity or
informality in the bids, except that.` the time for receiving
bids shall beof the essence.
Cost of .Bond Forms:
The District will bear the cost of the Bond forms and the ,
printing thereof and. will furnish fully executed Bonds to the
purchaser upon payment therefor.
Award and Delivery:
Unless all bids are .rejected, the Bonds 'will be awarded to the
bidder whose proposal results in the lowest net interest cost
to the District. The net ' interest cost will be determined by
.computing the aggregate amount of interest payable on the Bonds
from their stated date to their respective maturities and by
deducting .therefrom any premium. Delivery of the Bonds will be
made to the purchaser upon payment in federal funds at the
offices of' Brown & Wood", 555 California Street, Suite 5060,
San Francisco, .CA 94104, . or at the purchaser ' s request and
expense, at any other place mutually agreeable to both the
County and the purchaser. .
Prompt Awarda
The County will take action awarding the Bonds or' rejecting all
bids not later than twenty-six (26) hours after the expiration
of the time herein prescribed for the receipt of proposals,
unless such time award" is waived, by .the successful bidder.
Notice of the award will be given promptly to the successful
bidder."
Le"dal Opinion'.
The Bonds are sold with the understanding that the purchaser
will be. furnished with the approving opinion of Brown &Wood.
A. copy of the opinion, but without its date, will be printed on
A-4
the Bonds.. Said attorneys have been retained by the District
as Bond Counsel and in such capacity are. to render their
opinion only upon the legality of the Bonds under California ,
law and on the exemption of the interest income on such Bonds
from .federal and State of California income taxes. Fees of
Bond Counsel will be paid from Bond proceeds.
Tax-Exempt , Status:
In the opinion of Bond Counsel, under existing laws, interest'
on the Bonds is exempt from all .,present State of - California
personal income taxes, and assuming compliance with certain
:covenants made by the District '. and County, interest on the
Bonds isnot includable in the gross "incomeof the owners of
the Bonds for federal income tax purpose, provided that such
interest may be included .in the calculation for certain takes,
including the corporate alternative minimum tax and the
corporate, environmental tax. Should changes in the law cause
Bond Counsel's opinion to change prior to delivery . of the Bonds
to the purchaser, the purchaser will - be relieved of its
responsibility to pick up and pay for the Bonds, and .in that
event his bid check will be returned.
'_Oualified Tax-Exempt Obligations:
The Board of Supervisors of the County has designated the Bonds
"qualified tax-exempt obligations". •under Section •265.(b) (3) of
the Internal Revenue Code. of 1986, .as amended.
Oualification for. Insurance:
If ,the Bonds qualify for issuance of any policy of
municipal bond insurance, or commitment therefor at the option
of the bidder, any purchase of such insurance or commitment
therefor shall be at .the sole option and expense of the bidder
and any increased costs shall be -paid by such bidder. Any .
failure of the Bonds to be so insured or of any such policy of
insurance to be issued shall not in any way relieve the
purchaser of his contractual obligations arising from the
Acceptance- of his proposal to purchase the Bonds .
No Litigation and Non-Arbitrage:
The - District will deliver a certificate stating that no
litigation As pending affecting the issuance and sale of the
Bonds . The District will also deliveranarbitrage certificate
covering it-s reasonable expectations concerning the Bonds and
the use of� proceeds thereof.
A=5
Additional Information:
Copies of the Notice Inviting Proposals for Purchase of Bonds,
the form of bid, and the Official Statement relating to the-
Bonds will be furnished .to any bidder upon request made to
Kelling, Northcross & Nobriga, Inc. ,' 595 Market Street, Suite
1350, San Francisco, .CA 94105,, (415) 362-4110, . financial .
consultant to the District. Two hundred (200) extra copies of
the. Official Statement will be made available to the purchaser
without charge and additional copies. will be made available
upon request at the purchaser ' s expense.
Dated: July 151, 1988
LIBERTY UNION HIGH SCHOOL
DISTRICT
By: /s/ Philip White
Superintendent
'A-6
EXHIBIT B
NOTICE OF INTENTION TO SELL BONDS
$5, 000, 000
LIBERTY UNION HIGH
SCHOOL DISTRICT
Contra Costa County, California
1988 General Obligation Bonds, Series A
(Bank Qualified)
NOTICE IS HEREBY GIVEN that the .Liberty Union High School
District. (the "District") , in Contra Costa County, California,
intends to offer for public sale on August 2, .1988, at the hour
of 9 a.m. at the office of Kelling, Northcross & Nobriga, Inc. ,
595 Market Street, Suite 1350, San Francisco, California 94105
$5,000,000 principal amount of general obligation bonds of the
District designated "Liberty Union High School District, Contra
Costa County 'California 1988 General Obligat.ion 'Bonds, Series
A" (the "Bonds")
NOTICE IS HEREBY .FURTHER GIVEN that the Bonds will .be
offered for public sale subject to "the terms and conditions of "
the Notice Inviting Bids for the Bonds, dated July 15, 1988 .
An Official Statement .and a Notice Inviting Bids relating. to
the Bonds will be furnished upon request mailed to Kelling,
Northcross & Nobriga, Inc. , 595 Market Street, Suite 1350 San
Francisco, California 94105, (415) 362-4110, the financial
consultant to the District for the Bonds .
Dated: July 15, 1988
By: /s/ Philip White
Superintendent
Liberty Union High School.,
District
B-1
EXHIBIT C -
LIBERTY UNION HIGH SCHOOL DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA
1988 GENERAL OBLIGATION BONDS, SERIES .A
$5, 000, 000.
TABULATION OF BIDS RECEIVED
I certify that the following bids, all in conformity with
the Notice of Intention to Sell Bonds, were received by me on
or before 9 :00 a.m. , August -2, 198.8, for• the Bonds identified
above authorized by Resolutions , of the Liberty Union High .
School District:
Average Net
Name of Bidder Interest Rate Premium/Discount
Merrill Lynch 7. 63915% $5, 000, 000
Shearson Lehman Hutton 7. 6931 5,000, 00.0
Smith Barney 7. 647275 5, 000,000
Bank of America 7. 6628 5,000,311. 85
Bateman Eichler 7. 6889 5, 0001, 000 '
First Interstate 7. 6742 5, 000, 000
Dean Witter 7. 65214 . 5,000, 000
Dated:
avid G. asnocha
Brown & Wood
Bond Counsel '
C-1
i
EXHIBIT D
C BIDS
FOR THE PURCHASE OF
-LIBERTY UNION HIGH SCHOOL DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA ;
1988. GENERAL OBLIGATION BONDS, SERIES. A
$5, 000,000 :
August 2, 1988
Liberty Union High School District`
Centra Costa County, California
On` behalf of a group which we have formed consisting of: '
MERRILL LYNCH CAPITAL MARKETS and Associates
. and pursuant to the Notice Inviting Bids hereinafter mentioned,
we offer to purchase all of the five million dollars
($5, 000, 000) principal amount of .the Bonds designated as
"Liberty. Union- High School District, Contra Costa County,
California 1988 General Obligation Bonds, Series A" , maturing
on August -1 in the years and amounts and bearing interest at
the rate or rates set forth in the. following schedule:
YEAR PRINCIPAL INTEREST YEAR PRINCIPAL INTEREST
(August .l). AMOUNT RATE (August l) AMOUNT RATE
1990 -$10,006* 7 •5o% 2002 $185,000 •6, -i
1991 80,000 2003 205,000 7,bo
1992 85,000 2004 220,000 0
b
1993 90,000 V 2005 2401000 �.by
1994 100,000 7.60 2006 255,000
1995 105,000 -b 0 2007 280,000 b d
1996. 115,000 :2.6u 2008 300,0010 O
1997 125,000 b0 _ 2009 325,000
1998 135,000 x•60 2010 355,000 7.61
1999 150,000 .-7,60 - 2011 380,000 :7 -�o
.2000 160,000 b0 2012 415,000 1
2-001 175,000 - -Izo 2013 450,000 - u
1
/c 0o
and to pay therefor the aggregate sum of $ 0 plus
interest accrued on such Bonds to . the. date of delivery thereof•.
This bid is made subject to all the terms � arid conditions of the
Notice ' Inviting Bids heretofore published, all of which terms
and -conditions are made a part hereof as' fully as. though set
forth in full in this bid.
As specified in the Notice. Inviti.ng Bids, this bid is subject
to acceptance not later than twenty-six (26) hours after the
expiration. of the ,time for the receipt of bids, and the opinion
of Brown &f-Wood approving the validity of, the. Bonds will be
furnished us ("if .we are the successful bidder) at the time of
the- delivery, of the Bonds at ,the expense of the District.
There is -enclosed herewith a (certified/cashier ' s) check' in the '
amount .of fifty .thousand dollars ($50,000) payable . to the order_
of the Auditor-Controller of Contra Costa County.
There is submitted herewith a memorandum (which shall not
constitute apart of this bid) stating the total net interest
cost in dollars on the Bonds during the life of the issue under
this bid, and the average net interest rate determined thereby.
r Respectfully submitted,
Name:• MERRILL LYNCH CAPITAL MARKETS
(Account Manager)
1
By:
ohn resch, Vice Pres. & Reg'l Mgr.
Address : 400 So. Hope Street
19th Floor
City: Los Angeles
State: California
Please return check to:
ATTN: Connie Kessinger
MEMORANDUM OF INTEREST COST
The total net interest cost on the Bonds . during the life ofot�he
issue to . a�oJ under the above b'id is $_A x,3_,
and the average net interest rate determined thereby is
7�63g1 �r
. 2