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HomeMy WebLinkAboutRESOLUTIONS - 07111989 - 89-449 GN ` 10009S BOARD OF SUPERVISORS COUNTY OF CONTRA COSTA, CALIFORNIA RESOLUTION NO. 89/449 RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA AUTHORIZING THE PUBLIC SALE OF THE MT. DIABLO UNIFIED SCHOOL DISTRICT 1989 TAX AND REVENUE ANTICIPATION NOTES WHEREAS, pursuant to Sections 53850 to 53858, both inclusive, of the Government Code of the State of California (the "Government Code" ) (being Article 7 . 6, Chapter 4, Part 1, Division 2, Title 5 of said Code) , the Board of Education of the Mt. Diablo Unified School District (the "District" ) has filed with this Board of Supervisors (the "Board" ) a resolution requesting that the Board borrow money for the District by the authorization, issuance and sale of four million nine hundred fifty thousand dollars ($4, 950, 000) principal amount of 1989 Tax and Revenue Anticipation Notes (the "Notes" ) of the District in anticipation of the receipt of taxes, income, revenue, cash receipts and other moneys to be received by the District for the General Fund of the District during or attributable to Fiscal Year 1989-1990; and WHEREAS, the Board has determined to issue the Notes, and to provide for the public sale of the Notes to the highest bidder therefor; NOW, THEREFORE, the Board of Supervisors of the County of Contra Costa hereby resolves as follows: Section 1 . Both of the above recitals are true and correct, and the Board so finds and determines. Section 2 . The Notes shall be offered for public sale on Tuesday, July 25, 1989, in accordance with the Official Notice of Sale attached hereto, labeled Exhibit A and by reference incorporated herein, which notice is hereby adopted and approved by the Board. Section 3 . Government Financial Strategies, 8489 West Third Street, Los Angeles, California 90048-4124, as financial consultant to the District for the Notes, is hereby authorized and directed to cause to be printed and mailed to prospective bidders for the Notes copies of the Official Notice of Sale in substantially the form herein set forth, together with copies of an Official Statement for the Notes .in the form now on file with the Clerk of the Board, which is hereby adopted and approved by the Board, subject to such changes as may be approved by County Counsel of the County and Bond Counsel of the District for the Notes. 1523F Section 4. The publication by the Clerk of the Board of a copy of a notice of intention to sell the Notes, in substantially the form attached hereto, labeled Exhibit B and by reference incorporated herein, as published in The Daily Bond Buyer on July 10, 1989, is hereby ratified and confirmed. PASSED AND ADOPTED this 11th day of July, 1989, by the following vote, to wit: AYES: Supervisors Powers, Fanden, Schroder, McPeak, Torlakson. NOES: None. ABSENT: None. Chairman of the Board of Supervisors [ SEAL] ATTEST: Phil Batchelor Clerk of the Board of Supervisors and/County Administrator ' By Deputy 2 1523F EXHIBIT A OFFICIAL NOTICE OF SALE $4, 950, 000 MT. DIABLO UNIFIED SCHOOL DISTRICT 1989 TAX AND REVENUE ANTICIPATION NOTES NOTICE IS HEREBY GIVEN that sealed proposals will be received and opened by a representative of the Treasurer-Tax Collector of the County of Contra Costa (the "County" ) at the office of Orrick, Herrington & Sutcliffe, 600 Montgomery ' Street, 12th Floor, San Francisco, California 94111, on TUESDAY, JULY 25, 1989 at the hour of 10: 00 o' clock A.M. for the purchase of $4,950, 000 principal amount of temporary notes of the Mt. Diablo; Unified School District (the "District" ) designated "Mt. Diablo Unified School District 1989 Tax and Revenue Anticipation Notes" (the "Notes" ) more particularly described below. ISSUE; BOOK The Notes will be issued as fully register- ENTRY SYSTEM: ed notes and, when issued, will be registered in the name of Cede & Co. , as nominee of The Depository Trust Company, New York, New York ( "DTC" ) , which bank will act as securities depository for the Notes. Individual purchases of interests in the Notes will be made in book-entry form only, in the principal amount of $5, 000 or any integral multiple thereof, and purchasers of such interests will not receive certificates representing their interests in the Notes. DTC will receive payment from the County of both the principal of and interest on the Notes at maturity in lawful money of the United States of America which DTC will, in turn, remit to the participants in the DTC system for subsequent disbursement to the purchasers of interests in and beneficial owners of the Notes. DATE: The Notes are dated August 2, 1989 . MATURITY DATE: The Notes will mature on August 1, 1990. A-1 1523F INTEREST RATE: The Notes will bear interest at the single interest rate designated by the successful bidder therefor, but not to exceed twelve per cent ( 12%) per annum, payable on a 30-day month/360-day year basis at the maturity of the Notes. The interest rate specified must be in an integral multiple of 1/100 of 1% and the Notes will bear interest from their date to their stated maturity date at the interest rate specified in the bid. REDEMPTION: The Notes are not subject to redemption prior to their stated maturity date. PURPOSE OF ISSUE: The proceeds of the Notes will be used for current General Fund expenditures, of the District, including current expenses, capital expenditures, and the discharge of any obligation or indebtedness of the District. SECURITY: The Notes are issued pursuant to Article 7 . 6, Chapter 4, Part 1, Division 2, Title 5 (commencing with Section 53850) of the Government Code of the State of California. In accordance with California law, the Notes are payable from taxes, income, revenues, cash receipts and other moneys received by the District for the General Fund of the District for Fiscal Year 1989-1990 and legally available for the payment of the Notes, and the Notes are secured by a pledge of the first two million dollars ($2, 000, 000) of the first installment of secured property taxes to be received by the District which become due and payable on November 1, 1989, and become delinquent after December 10, 1989, and the first two million nine hundred fifty thousand dollars ($2, 950, 000) , _ together with an amount sufficient to pay the interest on the Notes, of the second installment of secured property taxes to be received by the District which become due and payable on February 1, 1990, and become delinquent after April 10, 1990, all of which secured property taxes will be deposited in a special Note repayment fund and used solely for the payment of the principal of and interest on the Notes. The Notes are by such law a general obligation of the District, but to the extent not paid from said pledged funds are payable only from any other taxes, income, revenue, cash receipts and moneys of the District lawfully available therefor. TAX EXEMPT STATUS In the opinion of Orrick, Herrington & Sutcliffe, of San Francisco, California, the interest on the Notes is exempt from present State of California personal income taxes and, assuming compliance with certain covenants contained in the resolution authorizing their issuance, is excluded from gross income for federal income tax purposes under Section 103 of A-2 1523F the Internal Revenue Code of 1986. See the discussion of Tax Exemption in the Official Statement hereinafter referred to. LEGAL OPINION: The legal opinion of Orrick, Herrington & Sutcliffe, of San Francisco, California, approving the validity of the Notes, will be furnished to the successful bidder without charge. TERMS OF SALE Highest Bid: All bids must be for all of the Notes, plus such premium as is bid, and the Notes will be awarded to the highest bidder on the basis of the lowest net interest cost to the District. The net interest cost of each proposal will be determined by deducting the amount of the premium bid (if any) from the total amount of interest which the District would be required to pay from the date of the Notes to their stated maturity date . All interest will be computed on a 30-day month/360-day year basis. Right_ of The Board of Supervisors of the County Region: reserves the right, in its discretion, to reject any and all bids and to waive any irregularity or informality in any bid. Prompt Award: The Board of Supervisors of the County will take action awarding the Notes 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. Delivery and Delivery of the Notes will be made to The Payment, Bidder' s Depository Trust Company for the account Certification: of the successful bidder as soon as the Notes can be prepared, which delivery date is presently estimated to be August 2, 1989, but will not be prior to such date . Payment for the Notes must be made in Federal Reserve Bank funds or other funds immediately available to the County Treasurer-Tax Collector in Martinez, California. The successful bidder must provide the County, prior to the closing of the Notes, the initial price to the public (not including bond houses and brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers) at which the Notes were offered for sale. Right of The successful bidder shall have the Cancellation: right, at its option, to cancel the contract of purchase if the County shall A-3 1523F fail to execute the Notes and tender the same for delivery within thirty (30) days from the date of award of the Notes, and in such event the successful bidder shall be entitled to the return of the deposit accompanying its bid. Form of Bid: Each bid must be enclosed in a sealed envelope, addressed to the representative of the Treasurer-Tax Collector of the County, with the envelope clearly marked "Proposal for Mt. Diablo Unified School District 1989 Tax and Revenue Anticipation Notes. " All bids must be delivered to the representative of the Treasurer-Tax Collector of the County at the place first above described in time to be received by the time and date first above described. Estimate of Net Bidders are requested, but not required, Interest Cost: to supply an estimate of the total net interest cost to the County on the basis of their respective bids, which shall be considered as informative only and not binding on either the bidder or the County. CDAC Fees: The successful bidder will be required, pursuant to California law, to pay any fees to the California Debt Advisory Commission, which will invoice the successful bidder after the closing for the Notes. Official The District and the County have caused an Statement: Official Statement to be prepared, a copy of which will be furnished upon request to Government Financial Strategies, 8489 West Third Street, Los Angeles, California 90048-4124. The District and the County will provide the successful bidder with forty (40) copies of the Official Statement, and any additional copies will be furnished at the expense of the bidder. Further Requests for further information concerning Information: the County should be addressed to Ms. Lori Raineri , Government Financial Strategies, 8489 West Third Street, Los Angeles, California 90048-4124 (telephone 213/658-6006) . There is no litigation pending concerning the validity of the above issue, the corporate existence of the District, or the title of the officers of the County thereof to their respective offices, and the County will furnish to the purchaser or purchasers of the Notes a no-litigation A-4 1523F certificate certifying to the foregoing as of and at the time of the delivery of the Notes. Dated: July 11, 1989. Clerk of the Board of Supervisors and County Administrator of the County of Contra Costa A-5 1523F EXHIBIT B NOTICE OF INTENTION TO SELL $4, 950, 000 MT. DIABLO UNIFIED SCHOOL DISTRICT 1989 TAX AND REVENUE ANTICIPATION NOTES NOTICE IS HEREBY GIVEN that a representative of the Treasurer-Tax Collector of the County of Contra Costa, State of California, intends to offer for public sale on Tuesday, July 25, 1989, at 10: 00 A.M. , at the office of Orrick, Herrington & Sutcliffe, Twelfth Floor, 600 Montgomery Street, San Francisco, California 94111, $4, 950, 000 principal amount of temporary notes of the Mt. Diablo Unified School District designated "Mt. Diablo United School District, 1989 Tax and Revenue Anticipation Notes" (the "Notes" ) . Copies of the Official Notice of Sale and the Official Statement for the Notes and other information concerning the District may be obtained from Ms. Lori Raineri , Government Finance Strategies, 8489 West Third Street, Los Angeles, California 90048-4124 (213/658-6006) . Dated: July 11, 1989. Clerk of the Board of Supervisors and County Administrator of the County of Contra Costa B-1 1523F