HomeMy WebLinkAboutMINUTES - 05221990 - 1.77 ' J
RESOLUTION 90/312
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 ACALANES
UNION HIGH SCHOOL DISTRICT, COUNTY OF CONTRA COSTA,
CALIFORNIA, 1990 GENERAL OBLIGATION BONDS, SERIES B IN A
PRINCIPAL AMOUNT OF $15, 000 , 000 FOR THE PURPOSE OF
FINANCING REAL PROPERTY IMPROVEMENTS.
WHEREAS, a duly called special municipal election was held
in the Acalanes Union High School .District, County of Contra
Costa, State of California (hereinafter referred to as the
"District" ) , on November 8, 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 $34 ,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 ,
Acalanes Union High School District, Contra Costa County,
California, 1989 General Obligation Bonds, Series A, in the
principal amount of $10 , 000, 000 were issued in March, 1989;
WHEREAS, this Board has received previously the resolution
of the governing board of the District requesting the issuance
of a portion of such Bonds in the aggregate principal amount of
$15, 000 , 000 (the "Bonds" ) and this Board authorized and
directed the issuance and sale of the Bonds and has received
bids on the Bonds, which bids have been timely received and
considered by this Board, pursuant to the authorizing
resolution of this Board (the "Authorizing 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 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:
. SECTION 1 . That for the purpose of raising money for
certain real property improvements, including the acquisition
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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 Bonds at public sale is hereby
ratified, confirmed and approved.
SECTION 2 . The 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 of
Intention to Sell 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 21 , 1990 is hereby ratified, confirmed and
approved. The issuance and sale of the Bonds pursuant to the
provisions of the resolution of the Board of Supervisors of
Contra Costa County, California and on the terms set forth in
the Notice Inviting Proposals for Purchase of Bonds attached
hereto as Exhibit B are hereby ratified, confirmed and
approved. By approving such terms this resolution hereby
amends Section 8 of the Authorizing Resolution such that the
last line of the second paragraph thereof shall read in its
entirety "from June 1, 1990" and that the table in the fourth
paragraph shall read in its entirety as follows :
Redemption Date Redemption Price
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 and thereafter 100
SECTION 3 . In accordance with provisions of the
Authorizing Resolution, this Resolution and the Notice, this
Board has caused all bids for the Bonds to be received,
opened and presented to it in the manner set forth in the
authorizing 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 C, this Board
determines that the bid of Dean Witter Reynolds , Inc. and
Merrill Lynch Capital Markets (together, the "Purchaser" ) , at
a purchase price of $15 , 000 , 000 and at an average net
interest rate of 7 . 0878%, a copy of which bid is attached
hereto as Exhibit D, is in accordance with the Notice and is
the highest bid for the Bonds based upon the lowest rate of
interest . The Bonds, having the terms and maturities as
provided in the authorizing resolution, this
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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 .
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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
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 5 . The Clerk of this Board is hereby directed to
provide a certified copy of this Resolution to the County
Auditor-Controller .
SECTION 6 . This Resolution shall take effect immediately
upon its passage.
PASSED AND ADOPTED this 22nd day of May, 1990 , by the
following vote:
AYES: Supervisors Powers , Schroder, McPeak
Torlakosn, Fanden
NOES : None
ABSENT: None
ABSTENTIONS : None
Chairman, ard of Supervisors
[gF.AT,J Phil Batchelor, Cleric of the Board of
,Attest: Supervisors and County Administrator
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Clerk, Board of Supervisors
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EXHIBIT A
NOTICE OF INTENTION TO SELL BONDS
$15, 000, 000
ACALANES UNION HIGH
SCHOOL DISTRICT
Contra Costa County, California
1990 General Obligation Bonds , Series B
NOTICE IS HEREBY GIVEN that the Acalanes Union High School
District (the "District" ) , in Contra Costa County, California,
intends to offer for public sale on May 21 , 1990 , at the hour
of 11 : 00 a.m. at the office of Kelling, Northcross & Nobriga,
Inc . , 595 Market Street, Suite 1350, San Francisco, California
94105 $15, 000, 000 principal amount of general obligation bonds
of the District designated "Acalanes Union High School
District , Contra Costa County, California 1990 General
Obligation Bonds, Series B" (the "Bonds" ) . On May 22 , 1990,
the Board of Supervisors will meet for the purpose of
considering bids received and, if an acceptable bid is
received, awarding the contract of purchase of the Bonds . In
the event that the Board of Supervisors considers but does not
award a bid on said date, proposals will be received the
following Monday at the same time and place 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 June 1 , 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 , the financial
consultant to the District for the Bonds.
Dated: May 4, 1990
By: /s/ Gary Cook
Assistant Superintendent,
Business
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EXHIBIT B
NOTICE INVITING PROPOSALS FOR PURCHASE OF BONDS
$15, 000 , 000 ACALANES UNION HIGH SCHOOL DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA
1990 General Obligation Bonds , Series B
NOTICE IS HEREBY GIVEN that sealed unconditioned proposals will
be received to and including the hour of 11 : 00 a.m. , Pacific
Daylight Time, on May 21 , 1990 , 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 $15 , 000 , 000 principal amount of Acalanes Union High
School District , Contra Costa County, California, 1990 General
Obligation Bonds, Series B (the "Bonds" ) . On May 22, 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 the
Board of Supervisors considers but does not award a bid on said
date by the designated time, proposals will be received the
following Monday at the same time and place and each Monday
thereafter until such time as a bid is awarded.
Issue:
The Bonds will be dated June 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
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1991 to 2014 , inclusive, as follows :
PRINCIPAL
YEAR AMOUNT YEAR AMOUNT
1991 $240 , 000 2003 $575 , 000
1992 260 , 000 2004 615 , 000
1993 280 , 000 2005 665 , 000
1994 300 , 000 2006 710 , 000
1995 320 , 000 2007 765 , 000
1996 345 , 000 2008 825 , 000
1997 370 , 000 2009 885,000
1998 400 , 000 2010 950 ,000
1999 430 , 000 2011 1 , 025, 000
2000 460 , 000 2012 11100 , 000
2001 495, 000 2013 11180 , 000
2002 535, 000 2014 1 ,270 ,000
Redemption:
The Bonds maturing on or before August 1 , 1998, are not subject
to redemption. The Bonds maturing on August 1 , 1999 , or any
time thereafter, are subject to 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 the 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 , 1998 through July 31 , 1999 102 %
August 1 , 1999 through July 31 , 2000 1011/2
August 1 , 2000 through July 31 , 2001 101
August 1 , 2001 through July 31 , 2002 100%
August 1, 2002 and 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
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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) .
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 an election held on November 8, 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 without modification or
change. 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 on any maturity
shall not be more than three percent (3%) higher than the
interest rate on any other maturity.
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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 .
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 complying with the terms of this Notice and any
Supplemental Notice and 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 .
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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
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.
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 .
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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 .
Official Statement :
The District will make available a Preliminary Official
Statement relating to the Bonds, a copy of which, along with
related documents, will be furnished upon request made either
by mail to Kelling, Northcross & Nobriga Incorporated, 595
Market Street, Suite 1350 , San Francisco, California 94105 , or
5776 Stoneridge Mall Road, Suite 380 , Pleasanton, California
94588, the District ' s financial consultant for the Bonds , or
telephoned to said consultant at (415) 362-4110 or (415)
734-0755 . Such Preliminary Official Statement , together with
any supplements thereto, shall be in form "deemed final" by the
District for the purposes of SEC Rule 15c2-12(b) ( 1) , but is
subject to revision, amendment and completion in a final
official statement . The District agrees to provide a
reasonable number, not exceeding 300 , of the final Official
Statement to the winning bidder at the District ' s expense
within seven business days of the date of sale. The District
shall deliver, at closing, a certificate, executed by
appropriate officers of the District acting in their official
capacities, to the effect that the facts contained in the
Official Statement relating to the Bonds are true and correct
in all material respects, and that the Official Statement does
not contain any untrue statements of a material fact or omit to
state a material fact necessary to make the statements therein,
in light of the circumstances under which they were made, not
misleading.
Dated: May 4_, 1990
ACALANES UNION HIGH SCHOOL
DISTRICT
By: /s/ Gary Cook
Assistant Superintnedent,
Business
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='IBIT C
Acalanes Union High School District
Contra Costa County, California
1990 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 11 : 00 'a.m. , May 21 , 1990 , for
Acalanes Union High School District:
Average Net
Name of Bidder Interest Rate Premium
Dean Witter 7. 0878% $ -0-
Reynolds , Inc . and
Merrill Lynch Capital Markets
Shearson Lehman Hutton 7 . 1556 -0-
Bank of America NT & SA, et al 7 . 1449 400 . 55
Van Kampen Merrit, et al 7 . 2157 -0-
Prudential-Bache, et al 7 . 1882 -0-
Sutro & Co . , et al 7 . 1026 102. 95
Dated: May 21, 1990
/s/ Christina Crosby
Bond Counsel
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Exhibit D
BIDS
FOR THE PURCHASE OF
ACALANES UNION HIGH SCHOOL DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA
1990 General Obligation Bonds , Series B .
$15 , 000 , 000
May 21, 1990
Acalanes Union High School District
Contra Costa County, California
On .behalf of a group which we. have formed consisting of :
Dean Witter Reynolds Inc.
Merrill Lynch Capital Markets
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
"Acalanes 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 INSURANCE
(August 1) AMOUNT RATE (August 1) AMOUNT RATE
1991 $240,000 CLIO 2003 $ 575,000 (0.90
1992 260,000 caa p 2004 615.000 4L.90
1993 280.000 U0 2005 6d:5.Go �4e
1994 300,000 CL.—?'O 2006 710,000 4-30
1995 320,000 6 2007 765.000 1.20
1996 345.000 Q-..&O 2008 825,000 -L-00
1997 370,000 7-:,60 2009 885,000 ?-00
1998 400.000 -00 2010 950,000 ?-.W
1999 430,000 as7 5 2011 1.025.000 7"
2000 460,000 (4�5 2012 1,100,000 7-,W
2001 495.000 (Q.-.SO 2013 1.180,000 1100
2002 535.000 40 $ 2014 1,270,000
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and to pay therefor the aggregate sum of $ 15'000 plus
interest accrued on such Bonds to the date ot 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,
N��N Name:
(Account Manager)
P .
By: Dean Witter Reynolds Inc.
Address : 101 California Street
City: San Francisco
• State:Ca. 94111
MEMORANDUM OF INTEREST COST
The total net interest cost on the Bonds during the life of tbe
issue to �1- a O , under the above bid is $/4.277.54/0. ,
and the average net interest rate determined therebbys7.8' %.
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