HomeMy WebLinkAboutMINUTES - 02271990 - 1.125 RESOLTTION 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 COMM, CALIFORNIA 1990
GENERAL OBLIGATION BONDS, SERIES B, 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, pursuant to such authorization by the voters,
Liberty Union High School District, Contra Costa County,
California 2988 General Obligation Bonds, Series A, in the
principal amount of $5,000,000 were issued in August 1988;
WHEREAS, this Board has received a 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 H Bonds") and this Board authorized *
and directed the issuance and sale of the Series B Bonds and
has received bids on the Series B Bonds, which bids have been
timely received and considered by this Board, pursuant to
Resolution No. 90/86 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 B 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 I . That for the purpose of raising money for real
property acquisition or improvements including (a) the
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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
contingent costs in connection therewith, the issuance and
sale of the Series B Bonds at public sale is hereby ratified,
confirmed and approved.
SECTION 2. The Series B Bonds were previously ordered sold
at public sale with bids to be received until 11.00 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 the
publishing of the Notice of Intention to Sell Bonds in "The
Bond Buyer, " which is a national trade publication, at least
fifteen days prior to February 26, 1990 is hereby ratified,
confirmed and approved. The issuance and sale of the Series B
Bonds pursuant to the provisions of Resolution No. 90/86 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 B
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 "1990 Series B 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 B 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 8
Bonds shall be kept separate and apart in the fund hereby
created and established and to be designated as the "1990
series A Liberty Union High School District General Obligation
Bond Interest and Sinking Fund" (the "Debt Service Fund" ) for
the series B Bonds and used only for payments of principal and
interest on the Series B Bonds. Interest earned on the
investment of monies held in the Building Fund shall be
retained therein, Any excess proceeds of the Series B Bonds
not needed for the authorized purposes set forth herein for
Which the Series B Bonds are being issued shall be transferred
to the Debt Service Fund and applied to the payment of
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principal and interest on the Series B Bonds . If, after
payment in full of the Series B Bonds, there remains excess
proceeds, any such excess amounts shall be transferred to the
general fund of the District.
SECTION 4 . In accordance with provisions of Resolution
No.90/86, this Resolution and the Notice this Board has caused
all bids for the Series B Bonds to be received, opened and
presented to it in the manner set forth in Resolution No.
90/86, 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 Dean Witter Reynolds Inc. and First Interstate Bank
(collectively, the "Purchaser") , at a purchase price of
$5,000,400 and at an average net interest rate of 7.0165%, 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 B Bonds based upon the lowest rate of interest . The
Series B Bonds, having the terms and maturities as provided in
Resolution No.90/86, 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 B 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.
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SECTION 7. This Resolution shall take effect immediately
upon its passage.
PASSED AND ADOPTED this 27th day of February, 1990 by the
following vote:
AYES: Supervisors PoweY-s , Schroder, McPeak,
Torlakson, Fanden.
NOES: None
ABSENT: None
ABSTENTIONS: None
Chairman, card of Supervisors
[SEAL]
Attest :
Clerk, Board of Su ervisors
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CLERK'S CERTIFICATE
I , Jeanne 0. Maglio , Deputy Clerk of the Board of Supervisors
bf Contra Costa County, California, hereby certify as follows :
The foregoing is a full , true and correct copy of a
resolution duly adopted at a regular meeting of the Board of
Supervisors of said County duly and regularly and legally held
at the regular meeting place thereof on February 27., 1990 , of
which meeting all of the members of the Board of said County
had due notice and at which a quorum was present .
I have carefully compared the same with the original
minutes of said meeting on file and of record in my office and
the foregoing is a full , true and correct copy of the original
resolution adopted at said meeting and entered in said minutes .
Said resolution has not been amended, modified or rescinded
since the date of its adoption, and the same is now in full
force and effect .
Dated: February 27 , 1990 , 1990
Deputy Clerk, Board OY Supervisors
[Seal ]
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E(HIBIT A
NOTICE INVITING PROPOSALS FOR PURCHASE OF BONDS
$5,000,000 LIBERTY UNION HIGH SCHOOL DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA
1990 GENERAL OBLIGATION BONDS, SERIES B
(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 February 26, 1990, at the offices of
Belling, 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,
1990 General Obligation Bonds, Series B (the "Bonds") . On
February 27, 1990, 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 March 1, 1990, 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, 1991 , 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 1992 to 2014, inclusive, as follows :
PRINCIPAL
YEAR AMOUNT YEAR AMOUNT
1992 $ 90, 000 2004 $210,000
2993 95,000 2005 225,000
1994 105,000 2006 240,000
1995 110,000 2007 260,000
199A 120, 000 2008 275,000
1997 130,000 2009 300, 000
1998 140 ,000 2010 320, 000
1999 150 ,000 2011 345, 000
2000 160, 000 2012 365, 000
2001 170,000 2013 395 ,000
2002 1800000 2014 420 ,000
2003 195,000
Redem tion:
The Bonds maturing on or before August 1, 1998, are
non-callable. The Bonds maturing on August 1, 1999, 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, 1998, 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
(expresses as a ,paL4eritage of the prinripal amount) payable
from any source lawfully available therefor, as folows :
Redemption pate Redemption Premium
August 1, 1998 through July 31, 1999 102
August 1, 1999 through July 31, 2000 101%
August 1, 2000 through July 31 , 2001 101
August 1, 2001 through July 31, 2002 100%
August 1, 2002 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 15t1h 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 and the 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
A-4
on 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,
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.
Qualified Tax-Exempt Obligations:
The Board of Supervisors of the County has designated the
Bonds "qualified tax--exempt obligations" under
Section 265(b)t3) 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 Nan-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 .
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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
Belling, Northcross & Nobri+ga, Inc. , 595 Market Street, Suite
1350, San Francisco, CA 94105, (415) 362-4110 or 5776
Stoneridge Mall Road, Suite 380, Pleasanton, CA 94588, (415)
734-0755, financial consultant to the District. Two hundred
(204) 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: March 13, 1940
LIBERTY UNION HIGH SCHOOL
DISTRICT
By: Philip White
Superintendent
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EXHIBIT 8
NOTICE OF INTENTION TO SELL BONDS
$5,000,000
LIBERTY UNION HIGH
SCHOOL DISTRICT
Contra Costa County, California
1990 General obligation Bonds, Series B
(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 February 26, 1990, 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 "Liberty Union
High School District, Contra Costa County, California
1990 General Obligation Bonds, Series B" (the "Bonds" ) . On
February 27, 1990, 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. In the event that the Board of Supervisors does not
award a bid on said date, proposals will be received the
following Monday at the same time and place specified above
and each Monday thereafter until such time as a bid is awarded.
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 February 6,
1990. 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 or 5776
Stoneridge Mall Road, Suite 350, Pleasanton, California
94588, (415) 734-0755, the financial consultant to the
District for the Bonds .
Dated: February 6, 1990
By: /_sl ' Philip White
Superintendent
Liberty Union High School
District
B-1
EQiIBIT C
LIBERTY UNION HIGH SCHOOL DISTRICT
CONTRA COSTA COUN'T'Y, CALIFORNIA
1990 GENERAL OBL IGAT ION BONDS, SERIES B
$5,000,000
TABULATION OF BIDS RECEIVED
I certify that the following bids, all in conformity with
the Notice of Intention to Sell Bonds, were received by me on
or before 11 :00 a.m. , February 26, 1990 , for the Bonds
identified above authorized by Resolutions of the Liberty
Union High School District:
Average Net
Name of Bidder Interest Rate Premium
Dean Witter, et al . 7. 0165% 0
Sutro & Co. , et al . 7. 0431 43 .35
Merrill Lynch & Associates 7.0474 422 . 50
Prudential-Bache 7.0738 0
Shearson Lehman 7.0829 0
Smith Barney & Associates 7 . 1023 0
Bank of America, et al . 7. 1465 369 .30
Is/, Christina Crosby
Christina Crosby
Brown & Wood
Bond Counsel
C-1
Exhibit D
BIDS
FORrNCMPGU1CSHCHAS0E0?FD1STR1CT
LIBERTY UNI
CONTRA COSTA COUNTY, CALIFORNIA
1990 GENERAL OBLIGATION BONDS, SERIES B
WANK QUALIFIED}
�S,r000,Q00
Uberty Union High School District February 26, 1990
Contra Costa County. California
On behalf of a group which we have formed consisting of:
DEAN WTTTgR R UL S ZINC-
FI INTERSTATE
and pursuant to the Notice Inviting Bids hereinafter mentioned, we offer to purchase all
of the five million dollars($S.000,000)principal amount of the Bonds designated as liberty
Union High School District, Contra Costa County. California 1990 General Obligation
Bonds, Series B 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 1) .8Mount. mate^. (AulpW 1) .1 Mount ._Bat
1992 $ 901000 .9.50.% 2004 $210,000 6,g,j:.01
1993 95,000
1994 105 000 9�II 2005 225.000 .
6 0
s 9.6.w 2006 240,000 6.90
1995 110,000 9.P..W 2007 260,000 6.90
1996 120.000 9z0 2008 275.000 6-Tr
1997 130.000 9.50 2009 300,004 6.Vtr'
1998 140,000 97 0 2010 320.000 6.w
1999 150,000 6.5A 2011 345,000 6.W-
2000 160,000 6.AA 2012 365,000 6.1L
2001 170,000 6.ft.Z4 2013 395,000 6.2L
2002 180,000 6.75 2014 420,000 6.90
2003 195.000 6 80 --`
and to pay therefor the aggregate sum of S_s_000_Qin***_...*..�.. plus interest accrued on
such Bonds to the date of delivery thereof.
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This bid is made subject to all the terns and 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 Inviting Bids, this bid is subject to acceptance not tater than
twen4-vix (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
District
There is enclosed herewith a certified check in the amount of fifty thousand dollars
($30,000) payable to the order of the Auditor-Controller of Contra Costa County.
There is submitted herewith a memorandum (which shall not constitute a part of this bid)
stating the total net interest coat 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: DEAN WITTER REYNOLDS INC.
(Account Manager)
Address; 101 G&IFORmIA r. BEZX,�l�_
_MUNI BONDS - 7th floor
City: SAN FRANCISCO
State: CA 94111
MEMORANDUM OF WnRM cask
The total net interest cost on the Bonds during the life of the issue to 8/1/14 . under
the above bid is $_5,742,889.17 , and the average net interest rate determined
thereby is 7,016YA.
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