HomeMy WebLinkAboutMINUTES - 05211991 - S.4 RESOLUTION NO 91/312
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, 1991 GENERAL OBLIGATION .BONDS, SERIES C IN A
PRINCIPAL AMOUNT OF $9,000, 000 FOR THE PURPOSE OF FINANCING
REAL PROPERTY IMPROVEMENTS.
WHEREAS, a duly called 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 of the voters 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 and
1990 General Obligations, Series B, in the principal amount of
$15, 000, 000 were issued in June 1990;
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
$9 , 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;
RESOLUTION NO. 91/312
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NOW, THEREFORE, BE IT RESOLVED BY THE DOARD OF SUPERVISORS
OF THE COUNTY OF CONTRA COSTA, CALIFORNIA, AS FOLLOWS:
SECTION 1. That for the purpose of raising money for real
property improvements, including the construction and
reconstruction of school facilities, improvements, on-site and
off-site, 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 20, 1991 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 .
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 Bank of America NT & SA (the "Purchaser") , at a purchase
price of $9, 001, 189 . 85 and at an average net interest rate of
6 . 6939%, 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 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 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
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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 21st day of May, 1991, by the
following vote:
AYES: Supervisors Fanden, Schroder, McPeak
Torlakson, Powers
NOES: None
ABSENT: None
ABSTENTIONS: None
C airman, Board of Supervisors
LSEALJ
Attest :
Phil Batchelor, Clerk of the Boa;d of
Supervisors and County Administrator
Cr]
Clerk, Board,-of Supervi rs
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EXHIBIT A
NOTICE OF INTENTION TO SELL BONDS
$9, 000, 000
ACALANES UNION HIGH
SCHOOL DISTRICT
Contra Costa County, California
1991 General Obligation Bonds, Series C
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 20, 1991, at the hour
of 11:.00 a.m. pacific daylight time at the office of Kelling,
Northcross & Nobriga, Inc. , 595 Market Street, Suite 1350, San
Francisco, California 94105 $9, 000, 000 principal amount of
general obligation bonds of" the District designated "Acalanes
Union High School District, Contra Costa County, California
1991 General Obligation Bonds, Series C" (the "Bonds") . On
May 21, 1991, 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 or notice to the
contrary is given.
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, 1991. An
Official Statement and a Notice Inviting Bids relating to the
Bonds will be furnished upon request mailed to Kelling,
Northcross & Nobriga, Inc. , 5776 Stoneridge Mall Road, Suite
380, Pleasanton, California 94588, (415) 731-0755, the
financial advisor to the District for the Bonds .
Dated: May 10, 1991
By: /s/ Gary Cook
Assistant Superintendent,
Business
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EXHIBIT B
NOTICE INVITING PROPOSALS FOR PURCHASE OF BONDS
$9, 000, 000 ACALANES UNION HIGH SCHOOL DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA
1991 General Obligation Bonds, Series C
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 20, 1991, at the offices of Kelling,
Northcross & Nobriga, Inc. , 595 Market Street, Suite 1350, San
Francisco, California 94105 for the purchase of all, but not
less than all, of $9, 000, 000 principal amount of Acalanes Union
High School District (the "District") , Contra Costa County,
California, 1991 General Obligation Bonds, Series C (the
"Bonds") . On May 21, 1991, the Board of Supervisors (the
"Board of Supervisors") of the County of Contra Costa (the
"County") 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 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 or notice to the contrary is given.
Issue•
The Bonds will be dated June 1, 1991, 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 will not exceed 12% per annum, with interest
payable on February 1, 1992, and semiannually thereafter on
August 1 and February 1 of each year during the term of each of
the Bonds . The Bonds will mature on August 1 in each of the
years 1993 to 2015, inclusive, as follows :
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PRINCIPAL PRINCIPAL
YEAR AMOUNT YEAR AMOUNT
1993 $170,000 - 2005 $380,000
1994 185, 000 2006 405, 000
1995 195, 000 2007 435, 000
1996 210, 000 2008 465, 000
1997 225, 000 2009 495, 000
1998 240, 000 2010 530, 000
1999 255, 000 2011 565, 000
2000 275, 000 2012 605, 000
2001 290, 000 2013 645, 000
2002 310,000 2014 690, 000
2003 335, 000 2015 740, 000 .
2004 355, 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 date of redemption, plus the payment of a
redemption 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 101
August 1, 2000 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
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 .
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Registration of Bonds as to Principal
and Interest and Place of Payment:
Principal and redemption premium, if any, are payable at the
principal corporate trust office of Bank of America National
Trust and Savings Association, 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) ,
such interest to be paid by check or draft mailed to the
registered owner at his address as it appears on 'such
registration books, provided, however, that at the option of
any bondholder of at least $1 million in aggregate principal
amount, interest shall be wired to an account designated by
such holder.
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 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
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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 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 and pay
for the Bonds . '
California Debt Advisory Commission:
The successful bidder will be required, pursuant to State law,
to pay any fees to the California Debt Advisory Commission
("CDAC") . CDAC will invoice -the successful bidder after the
closing of 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
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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 ("Bond Counsel") ,
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 said 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
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, assuming compliance with
certain covenants made by the District and the County, under
existing laws, interest on the 'Bonds is not includable in the
gross income of the owners of the Bonds for federal income tax
purposes . Interest on the Bonds will not be treated as an item
of tax preference in calculating alternative minimum taxable
income of individuals and corporations; however, interest on
the Bonds will be included as an adjustment in the calculation
of a corporation' s alternative minimum taxable income and may
therefore affect such corporation' s alternative minimum tax and
environmental tax liabilities. Interest on the Bonds is exempt
from State of California personal income taxes . 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
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Bonds, and 'in that event the purchaser 's bid check will be
returned.
Certificate Regarding Reoffering Prices:
As soon as practicable, but not later than seven days prior
to delivery of the Bonds, the successful bidder must submit to
the District a .certificate specifying for each maturity the
reoffering price at which at least 10% of the Bonds of such
maturity were sold (or were offered in a bona fide public
offering and as of the date of award of the Bonds to the
successful bidder reasonably expected to be sold) to the
public. Such certificate shall be in form and substance
satisfactory to Bond Counsel and shall include such additional
information as may be requested by Bond Counsel .
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, commitment therefor or
costs associated therewith shall be at the sole option and
expense of the bidder and shall be paid by such bidder,
including but not limited to rating fees charged by ,Standard
and Poor ' s Corporation and/or Moody' s Investors Service. 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 Preliminary Official Statement
relating to the Bonds will be furnished to any bidder upon
request made to Kelling, .Northcross & Nobriga, Inc. , 5776
Stoneridge Mall Road, Suite 380, Pleasanton, California 94588,
(415) 734-0755, financial consultant to the District. Such
Preliminary Official Statement, together with any supplements
thereto, shall be in form "deemed final" by the District for
purposes of SEC Rule 15c2-12, but is subject to revision,
amendment and completion in a final official statement . The
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District agrees to provide a reasonable number, not exceeding
200, 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 are true .and correct
in all material respects, and that the Official Statement does
not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein,
in light of circumstances under which they were made not
misleading.
Dated: May 10, 1991
ACALANES UNION HIGH SCHOOL
DISTRICT
By:
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EXHIBIT C
Acalanes Union High . School District
Contra Costa County, 'California
1991 General Obligation Bonds, Series C
TABULATION OF BIDS RECEIVED
I certify that the following bids, all in -conformity with
the Notice Inviting Proposals for Purchase of Bonds, were
received on or before 11: 00 a.m. pacific daylight time, May 20,
1991, for Acalanes Union High School District :
Average Net
Name of Bidder Interest Rate Premium
Bank of America NT & SA et al 6 . 6939% $1, 189 . 85
Dean Witter Reynolds Inc. 6.7349 -0-
Lehman Brothers 6 . 7700 -0-
Smith Barney,, Harris Upham & Co. 6 .8493 -0-
Prudential Securities Inc. et al 6 . 8179 -0-
Dated: May 20, 1991
_/s/ Christina Crosby
Bond Counsel
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A &a=-N t
EXHIBIT D
BIDS
FOR THE PURCHASE OF
ACALANES UNION HIGH SCHOOL DISTRICT
CONTRA COSTA COUNTY, CALIFORNIA
1991 General Obligation Bonds, Series C
$9 ,000, 000
May 20, 1991
Acalanes Union High School District
Contra Costa County, California
On behalf of a group which we have formed consisting of :
Please see attached list
and pursuant to the Notice Inviting Bids hereinafter mentioned,
we offer to purchase all of the nine million dollars
($9 ,000,000) principal amount of the Bonds designated as
"Acalanes Union High School District, .Contra Costa County,
California 1991 General Obligation Bonds, Series C" , 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 INSURANCE YEAR PRINCIPAL INTEREST INSURANCE
(August 11 AMQU T RATE �, (August 1) AMOUNTT RATE
1993 $170,000 i P.Z� �r�r G- 2005 $380,000 �-• ' C''
1994 185,000 2006 405,000
1995 195.000 �' `�' 2007 435.000 1._ 0
1996 210,000 Z 2008 435.000
p
1997 225,000 2009 495,000
1•
1998 240,000gam• —11- dl 2010 530,000
1999 ?551000 v3 2011 565,000
2000 275.000 �.�L 2012 6051000 �' 10
2001 290,000 -ZS 2013 645,000
2002 310,000 2014 690,000
2003 335,000 2015 740,000
2004 355,000
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and to pay therefor the aggregate sum of $ 9; 001
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 ekwffAl check in the amount of
ninety thousand dollars ($90, 000) payable to the order of the
District .
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: BANK OF AMERICA NT & SA
(Account Manager)
By: al -9—. Peck Perrin, Vice President
Address : 555 California Street
10th Floor
City.: San Francisco
State:California 94104
MEMORANDUM OF INTEREST COST
The total net interest cost on the Bonds during the life of the
issue to August 1, 2015 under the above bid is $9` 62u 3 ,
and the average net interest rate determined thereby is.G• 6 $ .
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