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HomeMy WebLinkAbout88-011 RESOLUTION NO. 88-11 RESOLUTION ORDERING THE SALE OE' $1,900,000 PRINCIPAL AMOUNT OF MOHAVE VALLEY ELEMENTARY SCHOOL DISTRICT NO. 16 OF MOH1WE COUNTY, ARIZONA, SCHOOL IMPROVEMENT BONDS, PROJECT OF 1987. I WHEREAS, a request has been received from the Governing Board of :Mohave Valley Ell~mentary School District No. 16 of Mohave County, Arizona, requesting the Board of Supervisors to order the sale of bonds of the District in the principal amount of $1,900,000 as aut.horized at an election held within the District on November 3, 1987; BE IT RESOLVED BY THE: BOARD OF SUPERVISORS OF MOHAVE COUNTY, ARIZONA, AS FOLLOWS: Sect ion 1. ThE~ Board of Supervi sors hereby orders the sale of Mohave Valley Elementary School District No. 16 of Mohave County, A,rizona, School Improvement Bonds, Project of 1987 (the "Bonds") in the principal amount of $1,900,000. The Bonds are to be sold by inviting proposals to be received on February 22, 1988. I Section 2. 1rhe Clerk is hereby directed to cause a Notice Invi ting Proposals for thE: Purchase of Bonds to be executed and transmitted to Young, Smith, & Peacock, Inc., financial consultant to the District, to be included in an official statement and circulated so as to be made known to potential bidders for the Bonds. Such Notice shall be in substantially the form attached hereto, with such addition, del€~tions and variations as shall be deemed advisable. The Di.strict' s financial consultant is ordered an directed to composE~ and circulate such official statement on behalf of the District. PASSED AND ADOPTED on F'ebruary 1, 1988. ,~~----_..----_. <:: ATTEST: / ) '-.. c'~ / i<"~~/L :( (5/ .?L-({.~i-:c:':c/,~) Clerk of the Board I sds00076d SWR:gmh 011988.1 I NOTICE INVITING PROPOSALS FOR THE PURCHASE OF BONDS NOTICE IS HEREBY GIVEN that sealed, unconditional proposals will be received to and including the hour of 11:00 a.m., Mountain Standard Time, on February 22, 1988, at the Office of the Clerk of the Board of Supervisors of Mohave County at Kingman, Arizonar at which time the Board of Supervisors of Mohave County will meet for the purpose of considering bids received and, if an acceptable bid is received, awarding the contract for the purchase of all, but not less than all, of $1,900,000 principal amount of Mohave Valley Elementary School District No. 16 of Mohave County, Arizona, School Improvement Bonds, Project of 1987 (the "Bonds"), to be dated March 1, 1988, upon initial issuance, to bear interest from the date of the Bonds to the maturity of each of the Bonds at a rate or rates per annum of not to exceed 10%, interest payable on January 1, 1989, and semi- annually thereafter on July 1 and January 1 of each year during the term of each of the Bonds, Bonds to mature on July 1 in the years 1990 to 2001 inclusive, as follows: I Year 1990 1991 1992 1993 1994 1995 Amount $ 75,1000 1100,1000 1100,1000 1100,1000 1100,1000 100,000 Year 1996 1997 1998 1999 2000 2001 Amount $ 150,000 150,000 250,000 250,000 250,000 275,000 PURPOSE: The Bonds are being issued for the purpose of making school improvements in the District. OPTIONAL REDEMPTION: Bonds maturing on or before July 1, 1993, are not subject to call for redemption prior to maturity. Bonds maturing on or after July 1, 1994, are subject to call for redemption prior to maturity, in whole or in part, on July 1, 1993, or on any interest payment date thereafter by the payment of the principal amount of each Bond called for redemption plus accrued interest to the date fixed for redemption plus a premium payable from any source lawfully available therefor, the premium to be computed as follows: ~edemption Dates Premium ~Tuly 1, 1993 and January 1" 1994 3% ~Tuly 1, 1994 and January 1" 1995 2-1/2% I ~Tuly 1, 1995 and January 1" 1996 2% ~ruly 1, 1996 and January 1" 1997 1-1/2% ~ruly 1, 1997 and January 1, 1998 1% July 1, 1998 and January 1, 1999 1/2 of 1% and thereafter without premium. I NOTICE OF REDEMPTION: Notice of redemption of any Bond will be mailed not more than 60 nor less than 30 days prior to the date set for redemption to the registered holder of the Bond or Bonds being redeemed at the address shown on the bond register maintained by the registrar. FORM AND DENOMINATIONS: The Bonds will be issued only in registered form as to both principal and interest, in the denomination of $5,000 or integral multiples thereof. The initial purchaser must accept one fully registered Bond for all amounts in each maturity for which names and addresses of the initial retail owners of the Bonds were not provided to the registrar at least seven (7) days prior to closing. I REGISTRATION AND TRANSFER: The Bonds will be transferable only upon the bond register maintained by the registrar upon surrender of the Bond or Bonds to be transferred to the registrar together with an appropriate instrument of transfer executed by the transferor. The registrar will be a bank or trust company to be named at or before the time bids for the Bonds are to be received. The transferor will be responsible for all taxes, fees and costs relating to the transfer of ownership of individual Bonds. PAYMENT OF BONDS: Interest on the Bonds shall be payable by check drawn upon the paying agent and mailed at or prior to the interest payment date to the registered holders of such Bonds at the addresses of such holders as they appear on the books of the registrar on the 15th day of the month preceding the date such interest comes due. Principal of the Bonds shall be paid when due upon surrender of such Bonds at the principal office of the paying agent. SECURITY: Principal of and interest on the Bonds are payable from an ad valorem tax levied against all of the taxable property in the District. The Bonds being issued are payable from such a tax without limit of rate or amount. I INTEREST RATES: 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 at the date of delivery of the bonds, will be considered. All Bonds of the same maturity must bear the same rate of interest. The highest rate bid shall not exceed the lowest rate by more than 3% per annum. Interest will be calculated on the basis of 360 days per year comprised of twelve 3D-day months. -2- I I I Any interest rate bid which would result in an interest payment amount having fractional cents will be deemed a waiver of the right to payment of such fractional cents. No fractional cents will be paid or accumulated for payment on any Bond. FORM OF BID AND BID CHECK: A prescribed form of bid for the Bonds will be prepared and all bids must be submitted on that form. All bids must be accompanied by a certified check in a sum equal to two percent of the par value of the Bonds, drawn on a bank doing business in the State of Arizona, payable to the order of the County Treasurer. 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: It is anticipated that CUSIP numbers will be placed on the Bonds, but neither failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of the sale. No CUSIP number shall be deemed to be a part of any Bond or of the contract evidenced thereby. RIGHT OF REJECTION: The Board of Supervisors 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! Distr ict will bear the cost of the printing of the Bonds and will furnish fully executed Bonds, registered in the name of the purchaser or nominees, 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 date to their respective maturities and by deducting there- from any premium. Delivery of the Bonds will be made to the purchaser upon payment in Federal or immediately available funds at the offices of Gust, Rosenfeld & Henderson, Phoenix, Arizona, or, at the purchaser's request and -3- expense, at any other place mutually agreeable to both the District and the purchaser. I LEGAL OPINION: The Bonds are sold with the understanding that the District will furnish the purchaser with the approving opinion of Gust, Rosenfeld & Henderson of Phoenix, Arizona. An undated copy of such opinion will be printed on the reverse side of each Bond. 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 Arizona law and on the exemption of the interest income on such Bonds from Federal and State of Arizona income taxes (see "Tax Exempt Status" below). Fees of Bond Counsel will be paid from Bond proceeds. TAX EXEMPT STATUS: The! opinion of Bond Counsel will state in part: I Under existing laws, regulations, rulings and judicial decisions, the interest income on the Bonds is excluded from gross income for the pur- pose of calculating federal income taxes and is exempt from Arizona income taxes. Interest on the Bonds must, however, be taken into account for federal income tax purposes as an adjustment to alternative minimum taxable income for corpora- tions which income is subject to federal alternative minimum tax. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. The Internal Revenue Code of 1986, as amended (the "Code"), imposes various restrictions, condi- tions and requirements relating to the continued exclusion of interest income on the Bonds from gross income for federal income tax purposes, including a requirement that the District rebate to the federal government certain of the invest- ment earnings with respect to the Bonds. Failure to comply with such restrictions, conditions and requirements could cause the Bonds to be "arbi- trage bonds" wi.thin the meaning of the Code or otherwise result in the interest income on the Bonds being included as gross income for federal income tax purposes from their date of issuance. The District has covenanted to comply with the restrictions, conditions and requirements of the Code necessary to preserve the tax-exempt status of the Bonds. For purposes of this opinion we I -4- I I I have assumed continuing compliance by the District with such restrictions, conditions and requirements. Should changes in the law cause Bond Counsel's opinion to change prior to delivery of the Bonds to the purchaser, the purchaser will not be obligated to pick up and pay for the Bonds, and the bid check will be returned. QUALIFIED TAX EXEMPT OBLIGATIONS. The District has designated the Bonds as "qualified tax-exempt obliga- tions" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986. The District has certified that it reasonably anticipates that the aggregate amount of qualified tax-exempt obligations (as defined in Section 265(b)(3)(B) of the Internal Revenue Code of 1986) which will be issued for or by the District in calendar year 1987 will not exceed $10,000,000. INFORMATION FROM PURCHASER: The purchaser must certify to the District the initial offering price to the public (excluding bond houses, brokers and other inter- mediaries) of each maturity of the Bonds at which a substantial amount of Bonds of that maturity were sold, to enable the District to file required information with the Internal Revenue Service and to compute the yield on the Bonds for federal arbitrage law purposes. NO LITIGATION AND NON-ARBITRAGE: The District will deliver a certificate to the effect 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. JlIDDITIONAL INFORMATION: Copies of this Notice and the officiil statement relating to the Bonds will be furnished to any bidder upon request made to the Clerk of the Board of Supervisors of Mohave County, Arizona; or to Young, Smith & Peacock, Inc., 3443 North Central Avenue, Phoenix, Arizona 85012, telephone (602) 264-8880; Financial Consultant to the District. DATED: February l, 1988. ,//') \,<4;A,/; c:,"L/6~~'1 Clerk, Board of Supervisors of Mohave County, Arizona -5- I I I have assumed continuing compliance by the District with such restrictions, conditions and requirements. Should changes in the law cause Bond Counsel's opinion to change prior to delivery of the Bonds to the purchaser, the purchaser will not be obligated to pick up and pay for the~ Bonds, and the bid check will be returned. QUALIFIED TAX EXEMPT OBLIGATIONS. The District has designated the Bonds as "qualified tax-exempt obliga- tions" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986. The District has certified that it reasonably anticipates that the aggregate amount of qualified tax-exempt obligations (as defined in Section 265(b)(3)(B) of the Internal Revenue Code of 1986) which will be issued for or by the District in calendar year 1987 will not exceed $10,000,000. INFORMATION FROM PURCHAS:E:R: The purchaser must certify t6 the District the initial offering price to the public (excluding bond houses, brokers and other inter- mediaries) of each maturity of the Bonds at which a substantial amount of Bonds of that maturity were sold, to enable the District to file required information with the Internal Revenue Service and to compute the yield on the Bonds for federal arbitrage law purposes. NO LITIGATION AND NON-ARlBITRAGE: The Dist r ict will deliv~r a certificate-to the effect 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. ,ADDITIONAL INF'ORMATION: Copies of this Not ice and the offici~l statement relating to the Bonds will be furnished to any bidder upon request made to the Clerk of the Board of Supervisors of Mohave County, Arizona; or to Young, Smith & Peacock, Inc., 3443 North Central Avenue, Phoenix, Arizona 85012, telephone (602) 264-8880; Financial Consultant to the District. DATED: February 1, 1988. ~"t ~~ L~ bU-no Clerk, Board of Supervisors of Mohave County, Arizona -5-