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HomeMy WebLinkAboutMINUTES - 05091989 - 1.67 RESOLUTION A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, CALIFORNIA, RATIFYING AND CONFIRMING THE ISSUANCE AND SALE AND PROVIDING FOR THE AWARD OF MARTINEZ UNIFIED SCHOOL DISTRICT, COUNTY OF CONTRA COSTA, CALIFORNIA, 1989 GENERAL OBLIGATION BONDS, SERIES B, IN THE PRINCIPAL AMOUNT NOT TO EXCEED $15 MILLION FOR THE PURPOSE OF FINANCING THE ACQUISITION AND IMPROVEMENT OF REAL PROPERTY. WHEREAS, a duly called special municipal election was held in the Martinez Unified School District, County of Contra Costa, 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 $25, 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 , Martinez Unified School District, Contra Costa County, California, 1988 General Obligation Bonds , Series A, in the principal amount of $5 , 000, 000 were issued in August, 1988; WHEREAS, this Board has received the resolution of the governing board of the District, adopted on April 11, 1989 (the "District Resolution" ) , requesting the issuance of a portion of such bonds in the aggregate principal amount not to exceed $15, 000, 000 (the "Series B 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 a Resolution of this Board adopted April 18, 1989 (the "Resolution" ) ; 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 THE COUNTY OF CONTRA COSTA, CALIFORNIA, AS FOLLOWS: 1 3035004/4 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 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 10 : 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" ) . The publishing of the Notice 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 May 8, 1989 is hereby ratified, confirmed and approved. The issuance and sale of the Series B Bonds pursuant to the provisions of the Resolution of the Board of Supervisors of Contra Costa County, California and the Notice are hereby ratified, confirmed and approved. SECTION 3 . In accordance with provisions of the Resolution, 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 the Resolution, 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 B, this Board determines that the bid of Kidder, Peabody & Co. , Inc. (the "Purchaser") , at a purchase price of $15, 000, 553 . 70 and at an average net interest rate of 7 . 089803%, a copy of which bid is attached hereto as Exhibit C, 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 the Resolution, this Resolution and the Notice, and bearing interest at the rate stated above and as set forth in Exhibit C, are awarded and sold to the Purchaser at the price stated above . SECTION 4 . 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. 2 3035004/4 f SECTION 5 . 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 6 . This Resolution shall take effect immediately upon its passage. PASSED AND ADOPTED this 9th day of May, 1989 , by the following vote: AYES : Supervisors Powers, Fanden, McPeak, Schroder, Torlakson NOES : None ABSENT: None ABSTENTIONS: None Chairman, Board Wof :TSupervisors [SEAL] Attest : Cwt Deputy Clerk, Board of Supervisors 3 NUMATTER/59 CLERK' S CERTIFICATE I, J.O. Maglio,Deputy Clerk of the Board of Supervisors of 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 May 9 , 1989 , 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: May__g 1989 puty Clerk,// [Seal] 4 NUMATTER/59 EXHIBIT A NOTICE INVITING PROPOSALS FOR PURCHASE OF BONDS $15, 000, 000 MARTINEZ UNIFIED SCHOOL DISTRICT CONTRA COSTA COUNTY, CALIFORNIA 1989 GENERAL OBLIGATION BONDS, SERIES B NOTICE IS HEREBY GIVEN that sealed unconditioned proposals will be received to and including the hour of 10 : 00 a .m. , Pacific Standard Time, on May 8, 1989 , at the offices of Kelling, Northcross & Nobriga, Inc . , 595 Market Street, Suite 1350, Sa'n Francisco, CA 94105 for the purchase of all, but not less than all, of $15 , 000, 000 principal amount of Martinez Unified School District, Contra Costa County, California, 1989 General Obligation Bonds, Series B (the "Bonds" ) . On May 9 , 1989 , 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 May 1, 1989 , 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, 1990, 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 1991 to 2013 , inclusive, as follows : PRINCIPAL PRINCIPAL YEAR AMOUNT YEAR AMOUNT 1991 $ 220, 000 2001 $ 535 , 000 1992 275 , 000 2002 590, 000 1993 295 , 000 2003 635 , 000 1994 320, 000 2004 685 , 000 1995 345 , 000 2005 725 , 000 1996 370 , 000 2006 780 , 000 1997 400 , 000 2007 840 , 000 1998 430, 000 2008 905 , 000 1999 460, 000 2009 975 , 000 2000 500 , 000 2010 1, 050, 000 2011 1, 130, 000 2012 1, 220, 000 2013 1, 315 , 000 A-1 3035004/4 1 Redemption• The Bonds maturing on or before August 1, 1997, are non-callable. The Bonds maturing on August 1, 1998 , 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, 1997, 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 Price August 1; 1997 through July 31, 1998 102 % August 1, 1998 through July 31, 1999 101% August 1, 1999 through July 31, 2000 101 August 1, 2000 through July 31, 2001 100/2 August 1, 2001 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 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 3035004/4 i 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 March 7, 1989 . 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 on any maturity shall not be more than three percent (3%) higher than the interest rate on any other maturity. Bid Check: All bids must be accompanied by a certified check or cashier ' s check in a sum equal to one percent (1%) of the par value of the Bonds , drawn on a bank or trust company payable to the order of the Auditor-Control.ler 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 3035004/4 i 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 of 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 3035004/4 i 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. 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 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 . 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 . Three hundred I A-5 3035004/4 fifty (350) 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: 1989 By: I A-6 3035004/4 i BIDS FOR THE PURCHASE OF MARTINEZ UNIFIED SCHOOL DISTRICT CONTRA COSTA COUNTY, CALIFORNIA 1989 GENERAL OBLIGATION BONDS, SERIES B $15, 000, 000 1989 Martinez Unified School District Contra Costa County, California On behalf of a group which we have formed consisting of : and pursuant to the Notice Inviting Bids hereinafter mentioned, we offer to purchase all of the Fifteen Million Dollars ($15, 000 , 000) principal amount of the Bonds designated as "Martinez Unified School District, Contra Costa County, California 1989 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) AMOUNT RATE (August 1) AMOUNT RATE 1991 $ % 2002 $ % 1992 2003 1993 2004 1994 2005 1995 2006 1996 2007 1997 2008 1998 2009 1999 2010 2000 2011 2001 2012 2013 1 3035004/4 i I I and to pay therefor the aggregate sum of $ plus interest accrued on such Bonds to the date of delivery thereof . This bid is made subject to all the terms 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 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 District . There is enclosed herewith a certified check in the amount of One hundred-fifty thousand dollars ($150 , 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 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• (Account Manager) By: Address • City: State : MEMORANDUM OF INTEREST COST The total net interest cost on the Bonds during the life of the issue to ,under the above bid is $ and the average net interest rate determined thereby is % . I 2 3035004/4 I I EXHIBIT B Martinez Unified School District (Contra Costa County, California) 1989 General Obligation Bonds , Series B TABULATION OF BIDS RECEIVED I certify that the following bids, all in conformity with the Notice Inviting Proposals for Purchase of Bonds, were received by me on or before 10 : 00 a .m. , May 8, 1989 , for the Bonds identified above, authorized by Resolutions of the Martinez Unified School district : Average Net Name of Bidder Interest Rate Premium Kidder, Peabody & Co . , Inc. 7 . 089803% $ 553 . 70 Smith Barney Harris Upham 7 . 157947 0 Prudential-Bache 7 . 2036 0 Shearson Lehman Hutton 7 . 2498 0 Dean Witter Reynolds Inc . 7 . 1659 0 Merrill Lynch Capital Markets 7 . 119900 2 , 788 . 45 Bank of America NT&SA 7 . 1175 8 , 453:. 75 Dated: May 8, 1989 /s/ Norma Masters Business Manager I B-1 3035004/4 EXHIBIT C BIDS FOR THE PURCHASE OF MARTINEZ UNIFIED SCHOOL DISTRICT CONTRA COSTA COUNTY, CALIFORNIA 1989 GENERAL OBLIGATION BONDS, SERIES B $15,000 , 000 May 8 , 1989 Martinez Unified School District Contra Costa County, California On behalf of a group which we have formed consisting of : Kidder Peabody, alone and pursuant to the 'NoticeInviting Bids hereinafter mentioned, we offer to purchase all of the Fifteen Million Dollars ($15, 000, 000) principal amount of the Bonds designated as "Martinez Unified School District, Contra Costa County, California 1989 General Obligation Bonds, Series B, " maturing on August 1 in the years and amounts and bearing interest ati. the rate or rates set forth in the following schedule: YEAR PRINCIPAL INTEREST YEAR PRINCIPAL INTEREST (August 1) AMOUNT RATE Au ust 1) AMOUNT RATE 1991 $220,000 `� �r % 2002 $ 590.000 - 1992 275,000 �'r 2003 635,000- 7 ✓= 1993 .295,000 • =s 2004 685,000- 7 1994 320,000- 9''—s 2005 725,000 - --7 r 1995 345.000- 2006 780,000- 7 1996 370,000-' 9 '—f 2007 840,000• 7L-' 1997 400,000• �y 2008 905,000 • 7z-, 1998 430,000- G '—s 2009 975,000, 7_!- 1999 460,000- G=-r 2010 1,0500000_ 7 K' 2000 500,000 - Gau 2011 1,130,000: 7 2001 535,000 - G°' 2012 1,220,000- 2013 ,220,000-2013 1,315,000 - G i • 1 i N'UMATTER j 4 2 and to pay therefor the aggregate sum of iso�. s� plus interest accrued on such Bonds to the date of delivery thereof , This bid is made subject to all the terms and conditions o.f 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 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 District . There is enclosed herewith a certified check in the amount of .one hundred-fifty thousand dollars ($150 , 400) 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 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: Kidder, Peabody & Co. , Inc;:,) (Account Manager) By: si Address : 333 South Ind Avenue City: Los Angeles CA 90071 State: -MEMORANDUM. OF INTEREST COST The total net interest cost on the Bonds during the life of the issue to August 1 , 2013 ' under the above bid is $ ice,v�i� 9x4 ss, and the average net interest rate determined thereby is Lffi . 2 NUMATTER/42 i i (7) $15, 000, 000 MARTINEZ UNIFIED SCHOOL DISTRICT COUNTY OF CONTRA COSTA, CALIFORNIA 1989 GENERAL OBLIGATION BONDS, SERIES B GENERAL CERTIFICATE OF THE COUNTY We, the undersigned Treasurer-Tax Collector and Clerk of the County Board of Supervisors of the County of Contra Costa, California, a political subdivision duly organized and existing pursuant to the Constitution and laws of the State of California (the "County" ) DO HEREBY CERTIFY as follows : 1 . Representations . (a) The County Board of Supervisors has complied with all the terms of the Resolutions adopted on April 18 , 1989 and May 9 , 1989 (the "Bond Resolutions" ) to be complied with by the County Board of Supervisors prior to or concurrently with the date hereof and such documents are in full force and effect . (b) To the best of our knowledge, there is no action, suit, proceeding, inquiry or investigation at law or in equity, before ,or by any court, public board or body, pending or threatened against the County to restrain or enjoin the issuance of the above-referenced bonds (the "Bonds" ) or the levy of the tax pledged for the payment thereof or in .any way contesting the validity of the Bonds or the existence of the County or its authority to issue the Bonds or take any action authorized by the Bond Resolutions or contesting in any way the completeness or accuracy of the Official Statement dated May 9 , 1989 , relating to the issuance of the Martinez Unified School District, County of Contra Costa, California, 1989 General Obligation Bonds, Series B (the "Bonds" ) . 2 . Incumbency. The following persons and only the following persons have been the duly chosen, qualified and acting members of the County Board of Supervisors since the first official action in relation to the Bonds was taken on April 18, 1989 , for a term of office set forth below, or until his or her successor shall be duly chosen and qualified: 1 3035004/7 Date of Date of Commencement Expiration Office Name of Term of Term Chairman Thomas A. Torlakson January 1989 December 1992 Vice Chair Nancy C. Fanden January 1989 December 1992 Board Member Tom Powers January 1987 December 1990 Board Member Sunne McPeak January 1987 December 1990 Board Member Robert I. Schroder January 1989 December 1992 The following persons are duly elected or appointed, qualified and acting officers of the County: Office Name Treasurer-Tax Collector Alfred P. Lomeli Auditor-Controller Donald L. Bouchet Clerk of the Board of Supervisors Phil Batchelor County Clerk Stephen L. Weir 3 . Signatures . We did officially cause the Bonds, approved by the County Board of Supervisors, to be executed in the name of the County by the signing of the Bonds with the manual or facsimile signature of either the Chairman of the County Board of Supervisors or the Treasurer-Tax Collector , as appropriate, and where required with the manual or facsimile signature of the Clerk of the Board of Supervisors attesting thereto and the seal of the County manually or by facsimile impressed thereon: The following are true and correct specimens of the signatures of the officers of and the Seal of the County which have been affixed to the Bonds either manually or by facsimile as prescribed in and authorized by the Bond Resolutions and such officers were the duly chosen and acting officers indicated on the Bonds on the date of delivery of the Bonds . Name Signature Thomas A. Torlakson, Chairman of the Board of Supervisors Alfred P. Lomeli , Treasurer— Tax Collector Phil Batchelor, Clerk of the Board of Supervisors [SEAL] 2 3035004/7